BBNI Annual Report 2018 ENG

Serving the Country, the Pride of the Nation
Adapting Quickly
to Face Change
ANNUAL
REPORT 2018
PT Bank Negara Indonesia (Persero) Tbk
PT Bank Negara Indonesia (Persero) Tbk Adapting Quickly to Face Change 1
ANNUAL
REPORT 2018
THEMES AND
THEIR MEANING
Adapting Quickly
to Face Change
PT Bank Negara Indonesia (Persero) Tbk’s performance in 2018 strengthened
as they recorded achievements that exceeded the banking standards. Bank BNI
continued its transformation and adapted quickly to the current changes in the
modern banking industry.
In the technology disruption era, Bank BNI has become a pioneer bank for digital
banking services. This has been achieved through Digital Transformation, starting
from internal process improvements, then preparing its competent human capital
to master technology, to offering its customers many electronic and digital services
and products, such as BNI DigiCare, DigiDeal, DigiMaster, and DigiSport. For BNI, the
digital services transformation is necessary when facing the challenge of becoming
a bank that remains relevant and offers fast, flexible and mobile service solutions to
its customers.
2 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

ANNUAL
REPORT 2018
THEME
CONTINUITY
Rising To the Challenge
BNI has also grown and developed into a solid national bank with
sustainable financial growth. As a State Serving Bank, Nation’s Pride,
our challenge is to continue and enhance BNI’s real contribution to the
progress of the nation and the country, now and for the future.
Bigger, Better, Together

With a focus on quality growth, BNI with a broad customer base maintains
a leading role in supporting national economic growth. BNI supports
customer business segments in the 8 main industry sectors, including
Small and Medium Enterprises entrepreneurs. BNI is a loyal and reliable
partner for all customers with its products, service, service coverage and
electronic channels.
Advancing On The Right Track

BNI has made significant progress and important achievements in many
areas. Most of the achievements and progress can be directly measured,
presented in graphs, or reported in the BNI financial statements, such as
the branch and ATM growth, the high capital adequacy ratio, and the Net
Income growth of Rp10.8 trillion in 2014.

Working To Build The Nation
The Indonesian people have noble ideals as an independent nation to
excel in global competition.
To support the achievement of these goals, BNI plays an active role as

an Agent of Development carrying out the intermediary function of
supporting the national banking needs, and continues to show the spirit
of achievement to build a nation with a strong sense of responsibility.
Moving Faster Wins The Competition

The implementation of the ASEAN Economic Community (AEC) in 2015
will further increase competition, especially in the real sector. Mastery of
the domestic market will be the answer for MEA, together with an increase
in national banking system competitiveness.
A value chain approach has became the focus for BNI and is the strategy
expected to answer the future challenges and support the development
of institutions / corporations, small and medium enterprises (SMEs), and
well as reach out to the individuals within.
Strengthening Competitive Advantage

Based on the Vision and Mission of the Company, BNI strives to provide
the best contribution to encourage economic growth and development
for the realization of the welfare of the whole society. It is implemented,
coordinates, and cooperates with other institutions from countries,
governments, individuals, communities, fellow financial companies, and
other private entities.
Beside to its contribution to the nation and the State, BNI seeks to
assert its existence by striving to become one of the major players
in the financial sector, especially banking through comprehensive
financial services to all banking customers and value added benefits
to all stakeholders: customers, investors, employees, and the
financial industries.

ANNUAL
REPORT 2018
PERFORMANCE
HIGHLIGHT
Loans disbursed
increased by
Net Interest and

16.2% to
Sharia income
Rp
11.0%
increased by
billion
to
Total assets
Rp
14.0%
increased by
billion
to
Customer deposits
increased by Rp
12.1%
billion
to
Rp
billion Profits increased by
Equity
increased by
10.3%
9.4% to Rp
to
Rp
billion
billion

Gross NPL
decreased from
1.9% in 2018
Coverage Ratio The ACGS score

increased by in 2018 was
152,9% 91.58
In 2018 (Very Good) up from
88.60
(Good)
in the previous year.
The Best State Owned

Enterprise and Top 50 Public
Listed Companies at the Good
Corporate Governance Award
organized by the Indonesian
Institute for Corporate
Directorship (IICD).
Most Trusted
Company Based on
Corporate Governance
Perception Index
(CGPI) in the Good
Corporate Governance
Award 2018.

MILESTONES
BNI converts to a As a commercial bank with the name “Bank

commercial bank and Negara Indonesia 1946”, BNI is given the task
BNI opens its first of improving the economy of the people of
Indonesia and participates in the national
overseas branch in
economic development by empowering
Singapore.
various industrial sectors in Indonesia.
The establishment of PT Bank BNI supports the Indonesian

Negara Indonesia (Persero) Tbk economy and introduces
as the first state-owned bank, BNI as a development bank various banking services such
functioning as a central bank given the right to act as a foreign as Floating Banks and Mobile
and a commercial bank. Banks.
exchange bank.
BNI issues Global Bonds through BNI issues new shares through BNI shareholders agreed
its London branch office worth a Rights Issue so that public to separate business units
USD500 million. BNI’s Global Bonds ownership increases to 40%. syariah bank independent
are registered at the Singapore business entity .
Stock Exchange.
In order to adapt to
the changing dynamic
business environment,
to meet the needs of all
BNI joins a strategic partnership stakeholders interests, and
with Sumitomo Life Insurance BNI’s Net Income for the first time to align with regulations
Company who purchases new breaks the double-digit figure related to management
shares issued by PT BNI Life (Rp10,8 trillion), as one result of for financial conglomerate
Insurance worth Rp4.2 trillion. BNI’s transformation programs institutions, BNI restates
implemented since 2008. its vision: “Becoming
a Superior Financial
Institution in Service and
Performance”.

BNI obtains additional
capital from the
Government through
the bank recapitalization
program. BNI succeeds
in obtaining ISO 9002
BNI launches its new logo “the BNI offers initial public certificate in recognition
ark of sailing in the middle of shares and lists its of quality standards
the ocean” as a reflection and shares on the Jakarta including the Joint
expression of the Company’s and Surabaya Stock Processing Unit (UPB).
expectations. Exchanges. This makes
BNI the first government
bank to become a public
company.
BNI conducts operational The monetary crisis hits Asia

restructuring and corporate and Indonesia. Like other
reforms, including banks, BNI is also affected
developing its vision and The legal status of BNI is changed to PT by the crisis, as reflected
mission and Performance (Persero) in line with the Banking Law in the decline in financial
Improvement Program (PIP). provisions. performance indicators.
Under a new Management team, BNI issued new shares

BNI steps up in the midst of the listed on the Jakarta and
global economic crisis, reinforcing Surabaya Stock Exchanges
its financial foundation through at the same time as
five key strategies: adequacy of the government share
reserves, improving the quality of divestment program. BNI launches its new corporate logo
assets, focusing on profitability, With the completion of and identity related to efforts to
creating sustainable business both programs, public build a firm image of the Company
models and maintaining efficient ownership increases to in the face of competition.
cost structures. 23.64%.
BNI Subordinate I Medium

coverage ratio Term Notes (MTN)
146% For the second Sustainable Bond I BNI Issuance in 2018 with a
CAR 19.4%. time BNI achieves a Phase I Issuance In 2017 value of Rp100 billion for
double-digit profit of with a value of Rp3 Trillion
a period of 5 years with
Rp11.4 trillion with for a period of 5 years with
a coupon of 8% per annum. a fixed interest rate of
better fundamentals,
indicated by a coverage BNI Bonds were published 8% per annum. The MTN
ratio of 146% and CAR on July 11, 2017 and listed were registered at OJK,
of 19.4%. on BEI. effective June 8, 2018.

OUR
ADVANTAGES
CORPORATE SEGMENT GROWTH IS

FASTER THAN THE COMPETITORS
12.7 15.3
7.7 11.8
2018 2018
2017 2017
Industri BBNI
STRONG CREDIT CARD

CREDIT CARD MARKET SHARE
PENETRATION
In 2018 BNI’s credit card market share in Indonesia BBNI

15.5%
reached 15.5%, an increase of 14.60% compared
Other
to 2017. BNI’s average credit card growth over the 49.9%
past 5 (five) years has been 18.7%, the highest
compared to other banks. The growth in the number Bank Mega
of cards, the increase in credit card sales volume 9.6%
through e-commerce penetration programs, and the
introduction of new products increased BNI Credit
Card outstandings by the end of 2018. The credit
card sales volume in 2018 amounted to Rp38,924 Mandiri
billion, or an increase of 11.3% compared to 2017, 14.3%
while credit card outstandings in 2018 amounted
to Rp12,558 billion, an increase of 7.9% compared
to 2017. CIMB Niaga
10.7%

HIGHER GROWTH
OF BUSINESS LOANS (KUR)
As of December 31, 2018, BNI had disbursed KUR amounting to Rp66.1

trillion, an increase of 16.9% from Rp61.3 trillion in 2017. The disbursed KUR
continues to increase and was above the expected proportional target to
assist MSMEs in developing their businesses, which in turn will increase the
Indonesian economy. Through good economic growth, BNI is expected to
improve its business.
GOOD CASH MANAGEMENT SKILLS
Based on AsiaMoney Magazine, BNI ranked first in the corporate and middle segment cash
management. BNI was also ranked second in the small segment. The following shows the AsiaMoney’s
assessment results for BNI, and other banks, cash management:
CORPORATE MIDDLE SMALL
6.4
6.2
5.9 5.9
5.7
5.5 5.5 5.5
5.5
5.4 5.1 5.4 5.4 5.3
4.4
BNI Danamon Permata BNI Mandiri BCA Danamon Mandiri BCA

Mandiri BCA Permata Danamon BNI Permata

ANNUAL
REPORT 2018
TABLE OF
CONTENTS
2 THEMES AND 6 PERFORMANCE 10 ADVANTAGES
2 THEIR MEANING 6 HIGHLIGHT 12 TABLE OF
4 THEME 8 MILESTONES 12 CONTENTS
4 CONTINUITY 10 OUR
Performance Highlights 2018

16 FINANCIAL 27 CORPORATE 29 OTHER FUNDING SOURCES
OVERVIEW ACTIONS 29 INFORMATION
22 OPERATIONAL 27 TEMPORARY SUSPENSION AND / 30 IMPORTANT EVENTS IN 2018
22 OVERVIEW OR DELISTING OF SHARES
24 SHARE PRICE 28 BONDS, SUKUK AND/OR
24 INFORMATION CONVERTABLE BONDS
INFORMATION
Management Report
37 Board of Commissioners' 46 BOARD OF DIRECTORS’ 56 RESPONSIBILITY
37 Report 46 REPORT STATEMENT
Company Profile
60 COMPANY IDENTITY 101 EXECUTIVE OFFICERS 144 AWARD AND
62 BRIEF HISTORY OF PROFILE CERTIFICATION
THE COMPANY 117 EMPLOYEE PROFILE 151 NAMES AND ADDRESSES OF
64 Brand PERUSAHAAN AND EMPLOYEE COMPETENCY SUBSIDIARIES, ASSOCIATED
65 BUSINESS FIELDS DEVELOPMENT KARYAWAN ENTITIES,
66 PRODUCTS 128 SHAREHOLDER BRANCH OFFICES AND OVERSEAS
AND SERVICES COMPOSITION REPRESENTATIVES AND REGIONAL
70 REGIONAL BUSINESS MAP 131 LIST OF SUBSIDIARIES AND/OR OFFICES
74 ORGANIZATION ASSOCIATED ENTITIES 152 OVERSEAS BRANCH OFFICES,
STRUCTURE 136 BNI GROUP SUB BRANCH OFFICES,
76 VISION, MISSION STRUCTURE REPRESENTATIVES OFFICES AND
AND CORPORATE CULTURE 137 SHARE ISSUANCE REGIONAL OFFICES
78 VISION AND MISSION REVIEW BY CHRONOLOGY 154 INFORMATION AVAILABLE
THE BOARD OF COMMISSIONERS 139 BOND ISSUANCE ON THE WEBSITE
AND BOARD OF DIRECTORS CHRONOLOGY 156 EDUCATION AND/OR
79 COMPANY CULTURE 142 OTHER SECURITIES ISSUANCE TRAINING FOR THE BOARD
80 BOARD OF COMMISSIONERS AND/OR OF COMMISSIONERS, BOARD
PROFILES LISTING CHRONOLOGY OF DIRECTORS, COMMITTEES,
89 BOARD OF DIRECTORS 143 NAME AND ADDRESSES CORPORATE SECRETARY, AND
PROFILE OF INSTITUTIONS AND/OR INTERNAL AUDIT UNIT
100 SENIOR EXECUTIVE VICE SUPPORTING PROFESSIONS
PRESIDENT
PROFILE
Management Discussion And Analysis

172 ECONOMIC AND 234 FINANCIAL REVIEW 301 FOREIGN ACCOUNT TAX
INDUSTRY REVIEW 295 TAX COMPLIANCE ACT (FATCA)
176 OPERATIONAL REVIEW 298 TRANSFER PRICING DOCUMENT 303 OTHER MATERIAL INFORMATION
223 MARKETING ASPECT

BUSINESS SUPPORT UNIT
318 CREDIT RISK 333 INFORMATION 349 Human
MANAGEMENT TECHNOLOGY UTILIZATION Capital
323 NETWORK 337 INFORMATION TECHNOLOGY 350 HUMAN CAPITAL ARCHITECTURE
AND SERVICES GOVERNANCE 351 TALENT MANAGEMENT POLICY TO
326 BNI 338 INFORMATION TECHNOLOGY ACCELERATE LEADERSHIP
CONTACT CENTER FUTURE DEVELOPMENT PLAN DEVELOPMENT
329 UNIT 341 DIGITAL
SERVICES UNIT BANKING
330 INFORMATION 342 ELECTRONIC
TECHNOLOGY BANKING
Good Corporate Governance

360 GOOD CORPORATE 372 MONITORING OF 604 SIGNIFICANT CASES
GOVERNANCE IMPLEMENTASI GCG 618 ACCESS TO COMPANY’S
363 RELATIONSHIP BETWEEN GOOD 373 GOOD CORPORATE GOVERNANCE INFORMATION AND DATA
CORPORATE GOVERNANCE AND ASSESSMENT 639 CODE OF CONDUCT
COMPANY PERFORMANCE 381 COMPANY ORGANS AND 644 WHISTLEBLOWING SYSTEM
364 LEGAL FOUNDATION OF IMPLEMENTATION PROCESS OF 656 INFORMATION ON MAIN AND
THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE CONTROLLING SHAREHOLDER
GOOD CORPORATE GOVERNANCE 571 RISK MANAGEMENT 668 INFORMATION ON MAIN AND
365 IMPLEMENTATION OF 602 ANTI MONEY LAUNDERING AND CONTROLLING SHAREHOLDER
GOOD CORPORATE GOVERNANCE COUNTER-TERRORIST FINANCING
369 EFFORTS TO IMPROVE THE (APU-PPT)
QUALITY OF
GOOD CORPORATE GOVERNANCE
IMPLEMENTATION
CORPORATE SOCIAL RESPONSIBILITY

682 SOCIAL RESPONSIBILITY 692 CORPORATE SOCIAL 702 CORPORATE SOCIAL
GOVERNANCE RESPONSIBILITY APPLICATION RESPONSIBILITY RELATED
687 CORPORATE SOCIAL BASIC TO SOCIAL COMMUNITY
RESPONSIBILITY RELATED TO 693 CORPORATE SOCIAL DEVELOPMENT
HUMAN RIGHTS RESPONSIBILITY MANAGEMENT 709 CORPORATE SOCIAL
689 CORPORATE SOCIAL STRUCTURE RESPONSIBILITY RELATED TO
RESPONSIBILITY RELATED TO FAIR 694 CORPORATE SOCIAL CONSUMERS
OPERATIONS RESPONSIBILITY RELATED TO THE
690 SOCIAL RESPONSIBILITY ENVIRONMENT
IMPLEMENTATION BASED ON 699 CORPORATE SOCIAL
SUSTAINABLE FINANCE CONCEPT RESPONSIBILITY RELATED TO
EMPLOYMENT, OCCUPATIONAL
HEALTH AND SAFETY
Risk Management Capital & Practice

717 CAPITAL 721 RISK MANAGEMENT PRACTICES
Financial Report
1068 CROSS REFERENCE OF
ARA’s CRITERIA 2018

ANNUAL
REPORT 2018
Performance
16 FINA
OVE
22 OPE
22 OVE
24 SHA
24 INFO
27 AKS
KOR
27 TEM
Performance
28 BON
CON
29 OTH
29 INFO
Highlights 2018
30 IMPO
16 FINANCIAL OVERVIEW
22 OPERATIONAL OVERVIEW
24 SHARE PRICE INFORMATION
27 CORPORATE ACTIONS
27 TEMPORARY SUSPENSION AND / OR DELISTING OF SHARES
28 BONDS, SUKUK AND/OR
CONVERTABLE BONDS INFORMATION
29 OTHER FUNDING SOURCES INFORMATION
30 IMPORTANT EVENTS IN 2018

erformance Highlights 2018
ANCIAL
ERVIEW
ERATIONAL
ERVIEW
ARE PRICE
ORMATION
SI
RPORASI
MPORARY SUSPENSION AND / OR DELISTING OF SHARES
NDS, SUKUK AND/OR
NVERTABLE BONDS INFORMATION
HER FUNDING SOURCES
ORMATION
ORTANT EVENTS IN 2018

ANNUAL
REPORT 2018
FINANCIAL
OVERVIEW
(in million Rupiah)
Description 2018 2017 2016 2015 2014
REPORT OF FINANCIAL POSITION

ASSETS
Cash 14,044 11,578 11,168 12,890 11,436
Current Accounts with Indonesia Bank 35,591 32,701 30,147 30,932 24,598
Current Accounts with Other Banks - Net 13,134 21,335 6,298 8,999 4,496
Placements with Other Banks – Net 39,325 28,593 33,662 33,417 14,527
Marketable securities – Net 32,044 36,050 23,765 9,927 12,738
Securities purchased under agreements to resell – Net - 679 1,665 376 6,237
Export bills and others receivables - Net 24,587 15,701 8,932 8,831 2,301
Acceptances receivables - Net 20,295 18,106 14,724 10,821 12,467
Derivatives receivables - Net 606 217 250 441 165
Loans Disbursed 512,779 441,314 393,275 326,105 277,622
Allowance for impairment losses on the Loans (14,892) (14,524) (16,681) (12,039) (6,970)
Government Bonds 86,791 79,849 63,006 47,222 43,830

Prepaid taxes 1,624 623 620 2,299 1,437
Prepaid expenses 2,337 2,318 2,411 1,633 1,392
Equity investments - net 604 713 57 36 37
Other Assets 11,900 10,381 6,429 4,482 3,370
Fixed Assets – net 26,127 22,805 21,972 20,757 6,222
Deferred tax assets – net 1,676 891 1,332 1,465 668
TOTAL ASSETS 808,572 709,330 603,032 508,595 416,574

Performance
Highlights 2018
Description 2018 2017 2016 2015 2014
LIABILITIES
Obligations due immediately 4,160 4,868 3,276 1,805 1,813
Deposits from customers * 578,775 516,098 435,545 370,420 313,893
Deposits from other banks * 14,233 12,228 10,801 4,698 3,177
Derivatives Payable 322 114 411 1,162 662
Securities sold under agreements to repurchase 21,524 2,390 3,765 3,163 2,492
Accaptances payable 4,417 4,507 4,359 6,188 6,469
Accrued expenses 876 972 1,047 917 660
Taxes payable 481 80 151 749 318
Employee benefits 3,512 4,094 3,503 3,481 3,393
Provisions 178 192 156 99 87
Other liabilities 14,608 14,731 11,149 7,584 5,219
Securities issued * 2,987 3,482 7,227 7,367 6,158
Loans Received 52,025 44,671 32,389 22,524 11,212
Subordinated Securities 100 - - - -
TOTAL LIABILITIES 698,198 608,427 513,778 430,157 355,552
TEMPORARY SYIRKAH FUNDS
Deposits From Customers 26,603 23,350 20,092 16,484 13,629
Deposits From Other Banks 358 494 489 449 775
Mudharabah Sukuk Issued - 496 496 496 -
TOTAL TEMPORARY SYIRKAH FUNDS 26,961 24,340 21,077 17,429 14,404

ANNUAL
REPORT 2018
Description 2018 2017 2016 2015 2014
EQUITY
Share Capital 9,055 9,055 9,055 9,055 9,055
Additional Paid-in Capital/Agio Shares 14,568 14,568 14,568 14,568 14,568
Exchange Difference on Translation of Foreign Currency 85 93 82 76 58
Financial Statements
Transactions Difference With Non-Controlling Interest 2,257 2,257 2,257 2,257 2,257
Unrealized Gains (Losses) on Available-For-Sale Marketable (3,914) 22 (1,888) (2,519) (1,945)
Securities And Government Bonds, Net of Tax
Net Difference in Revaluation of Fixed Assets after Deductible 14,979 12,283 12,285 12,190 -
Taxes
Retained Earnings 71,047 60,314 50,798 41,538 35,078
Non-Controlling Interest in Net Assets of Consolidated 2,297 2,311 2,097 2,023 1,950
Subsidiaries
TOTAL EQUITY 110,374 100,903 89,254 78,438 61,021
TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS AND 808,572 709,330 603,032 508,595 416,574
EQUITY
* includes temporary Syirkah funds
STATEMENT OF PROFIT OR LOSS AND OTHER COMPRHENSIVE INCOME

INCOME AND OPERATING EXPENSES
Interest Income and Sharia Income 54,138 48,177 43,768 36,895 33,750
Interest Expense and Sharia Expense (18,692) (16,240) (13,773) (11,335) (10,989)
Interest Income and Sharia Income - Net 35,446 31,937 29,995 25,560 22,761
Premium Income 5,997 6,871 5,597 3,618 1,476
Claims Expense (4,285) (5,104) (4,255) (2,485) (1,343)
Premium Income - Net 1,712 1,767 1,342 1,133 607
Other Operating Income (Incl Recovery) 11,613 11,040 9,552 8,274 8,145
- Other Operating Income 9,616 9,308 8,174 6,684 6,559
- Recovery 1,997 1,732 1,378 1,590 1,856
Total Operational Income 48,771 44,744 40,888 34,967 31,783
Other Operating Expenses (21,783) (20,396) (18,806) (16,218) (14,576)
Allowance For Impairment Losses (7,388) (7,126) (7,853) (7,336) (3,642)
Operating Income 19,599 17,222 14,229 11,412 13,566
Non-Operating (Expense)/Income-Net – Net 221 (57) 74 54 178
Income Before Tax Expenses 19,821 17,165 14,303 11,466 13,744
Tax Expense (4,729) (3,394) (2,893) (2,326) (2,695)
Income For The Year 15,092 13,771 11,410 9,141 11,049
Income For The Year Attributable To:
- Non-controlling interests 77 154 71 74 47
- Owner of the Parent Entity 15,015 13,617 11,339 9,067 10,783

Performance
Highlights 2018
Description 2018 2017 2016 2015 2014
Profit and Loss - Comprehensive
Other Comprehensive Income / Loss For The Year After Taxes (856) 1,847 922 11,722 1,085
Total Comprehensive Income For The Year 14,236 15,617 12,333 20,863 11,915
Comprehensive Income for the Year Attributable To:

- Non-controlling interests (14) 215 73 74 47
- Owner of the Parent Entity 14,250 15,403 12,260 20,789 11,868
EARNINGS PER SHARE (in full Rupiah amount) 805 730 610 487 578
CASH FLOW STATEMENT
Cash Flows from Operating Activities (4,274) 33,677 15,999 24,357 (610)
Arus Kas bersih dari Dana Syirkah Temporer (9,612) (23,274) (29,400) (3,516) (2,406)
Net Cash Flows from Temporary Syirkah Funds 20,609 3,194 8,060 9,250 (4,454)
Cash Flows from Financing Activities 222 96 17 5 (78)
Effect of Foreign Currency Exchange Rate Changes 91,977 78,284 83,606 53,512 61,061
Cash and cash equivalents at beginning of year 6,723 13,597 (5,341) 30,090 (7,471)
Cash and cash equivalents at the end of year 98,922 91,977 78,284 83,606 53,512
FINANCIAL RATIOS
CAPITAL (%)
Minimum Capital Adequacy Ratio (KPMM) 18.5 18.5 19.4 19.5 16.2
KPMM Taking into account Credit Risk, Operational Risk 18.6 18.6 19.5 19.6 16.3
KPMM Taking into account Credit Risk, Operational Risk and 18.5 18.5 19.4 19.5 16.2
Market Risk
Fixed Assets Against Capital 24.6 23.7 25.7 27.7 10.4
ASSET QUALITY (%)
Troubled Productive Assets and Troubled Non-Productive 1.3 1.5 2.1 1.9 1.5
Assets to Total Productive Assets and Non-Productive Assets
Troubled Productive Assets to Total Productive Assets 1.3 1.5 2.0 1.9 1.4
Allowance for Impairment Losses (CKPN) for Financial Assets 1.9 2.1 2.7 2.5 1.7
Against Productive Assets
CKPN Fulfillment for Productive Assets 1.9 2.1 2.7 2.4 1.7
CKPN Fulfillment for Non-Productive Assets 4.1 19.9 42.3 33.5 98.3
Gross NPL 1.9 2.3 3.0 2.7 2.0
Net NPL 0.8 0.7 0.4 0.9 0.4
Loan Ratio to Total Productive Assets 62.1 59.2 61.7 63.2 67.0
Ratio of core debtors to total loans 20.2 26.6 29.6 26.2 23.4
Ratio of foreclosed collateral to total loans 0.2 0.1 0.1 0.2 0.1

ANNUAL
REPORT 2018
Description 2018 2017 2016 2015 2014
PROFITABILITY (%)
Return on Assets (ROA) 2.8 2.7 2.7 2.6 3.5

Return on Equity (ROE) 16.1 15.6 15.5 17.2 23.6
Net Interest Margin (NIM) 5.3 5.5 6.2 6.4 6.2
Other Operating Income to Operating Income 26.5 27.3 25.7 26.0 27.7
BOPO (Operating Cost/Operating Income) 70.1 71.0 73.6 75.5 69.8
Ratio of Profit (Loss) to Total Assets 2.0 2.1 1.9 1.8 2.7
Ratio of Profit (Loss) to Total Equity 14.5 14.5 12.9 11.7 18.7
Ratio of Liabilities to Total Assets 86.3 85.8 85.2 84.7 85.7
Ratio of Liabilities to Total Equity 628.4 603.8 576.1 551.8 598.7
Fee Based Income Ratio to Other Operating Incomes 82.8 84.9 85.7 81.0 77.4
Profit per Share (EPS) (In full amount) 805 730 610 487 578
LIQUIDITY (%)
Loan to Deposit Ratio 88.8 85.6 90.4 87.8 87.8
Loan to Funding Ratio 85.6 85.3 90.4 87.8 87.8
Ratio of Liquid Asset to total assets 19.7 20.2 19.0 21.0 18.6
Ratio of total liquid assets to short-term funding - - - - -
The ratio of total loans to MSMEs to total loans 17.6 18.3 17.7 16.0 16.2
COMPLIANCE
LLL Percentage
- Related parties Nihil Nihil Nihil Nihil Nihil
- Unrelated Parties Nihil Nihil Nihil Nihil Nihil
LLL Excess Percentage
- Related parties Nihil Nihil Nihil Nihil Nihil
- Unrelated Parties Nihil Nihil Nihil Nihil Nihil
Minimum mandatory reserve (GWM)
- GWM Primary Rupiah reserve 6.5 6.6 6.8 9.2 8.1
- GWM Foreign Currency 8.0 8.0 8.0 8.0 8.3
Net Open Position (NOP) 2.0 2.5 3.4 1.7 1.6
OTHER RATIOS
LLR/NPL Gross (Coverage Ratio) - (%) 152.9 148.0 146.0 140.4 130.1
CIR (Ratio of Cost to Income) - (%) 42.5 43.9 44.0 44.2 43.8
Operating Income/Employee (in Million Rp) 1,657 1,496 1,330 1,196 1,115
Total Outlets (full, unaudited, in-unit) 2,262 2,150 1,990 1,826 1,766
Total ATM (full, unaudited, in unit) 18,311 17,966 17,056 16,071 14,071
Number of Employees (full, unaudited, in person) 27,224 27,209 28,184 26,875 26,536

Performance
Highlights 2018
Assets Liabilities
in billion Rupiah in billion Rupiah
808,572 698,198
709,330 608,427
603,032 513,778
508,595 430,157
416,574 355,552
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Equity Operating Income

in billion Rupiah in billion Rupiah
110,374 19,599
100,903 17,222
89,254 14,229
78,438 13,566
61,021
11,412
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

ANNUAL
REPORT 2018
OPERATIONAL
OVERVIEW
Business Banking Loan Product Performance (in billion Rupiah)
Segment 2018 2017 2016 2015 2014
Corporate 222,910 188,026 174,073 137,909 119,715

Medium Commercial 74,731 70,261 61,330 51,147 40,324
Small 66,063 56,479 50,684 42,076 40,374
Overseas 39,789 30,734 21,237 19,538 10,082
TOTAL 403,493 345,499 307,323 250,670 277,622
Consumer Loan Product Performance (in billion Rupiah)

Product 2018 2017 2016 2015 2014
Mortgage 40,753 37,066 36,396 34,664 33,341

Credit Card 12,558 11,635 10,549 9,795 7,777
Payroll 23,744 17,687 12,026 7,048 4,290
Others 2,680 5,057 6,097 6,032 6,617
TOTAL 79,735 71,445 65,069 57,540 52,024
Corporate Segment Loan Product Performance Including Overseas Based on Sector (in billion Rupiah)
Sector 2018 2017 2016 2015 2014
Industry 69,350 55,941 54,034 50,703 36,625

Agriculture 38,189 38,840 35,706 23,307 19,779
Business Services 35,235 27,842 18,222 13,868 13,283
Electricity, Gas and Water 22,328 25,232 27,387 17,605 13,682
Transportation, Warehousing and 20,479 17,439 17,648 17,694 14,921
Communication
Construction 22,200 16,869 8,907 6,643 2,477
Trade, Restaurant and Hotel 26,591 16,490 9,207 7,838 7,462
Mining 15,704 9,496 12,472 13,064 16,435
Social Services 7,623 5,496 7,292 1,801 1,392
Others 4,999 5,115 4,435 4,924 3,741
TOTAL 262,699 218,760 195,310 157,447 129,797

Performance
Highlights 2018
Small Loan Product Performance (in billion rupiah)

Product 2018 2017 2016 2015 2014
BCM 39,521 36,095 34,405 31,958 30,084

KUR 20,289 14,194 10,964 4,326 3,186
KKLK 1,459 2,019 2,457 3,164 3,807
BWU 4,794 4,171 2,859 2,628 3,297
TOTAL 66,063 56,479 50,684 42,076 40,374
Third Party Funds Performance (in billion rupiah)

Product 2018 2017 2016 2015 2014
Current Accounts* 169,274 143,162 122,652 91,194 82,743

Saving* 206,056 182,295 158,662 135,065 119,779
Deposit* 203,445 190,641 154,230 144,161 111,371
TOTAL 578,775 516,098 435,545 370,421 313,893
* includes temporary Syirkah funds

ANNUAL
REPORT 2018
SHARE PRICE
INFORMATION
BNI Share Price, Volume and Capitalization in 2015-2018

Year Price per share (Rp) Number of Transaction Market
Shares (shares) Volume (shares) Capitalization
Opening Highest Lowest Closing (Rp Million)
2018
Quarter I 9,775 10,175 8,650 8,675 19,135,000 161,777,095
Quarter II 8,725 9,000 6,800 7,050 31,968,800 131,473,028
18,648,656,458
Quarter III 7,125 8,300 6,750 7,400 13,735,400 138,000,058
Quarter IV 7,425 9,050 6,675 8,800 16,215,800 184,621,699
2017
Quarter I 5,525 6,900 5,450 6,475 49,095,300 120,750,049
Quarter II 6,400 6,825 6,150 6,600 33,985,100 123,081,131
18,648,656,458
Quarter III 6,600 7,500 6,575 7,400 18,413,500 138,000,057
Quarter IV 7,500 9,925 7,300 9,900 44,149,300 184,621,698
2016
Quarter I 4,990 4,835 4,675 5,200 27,788,000 96,192,494
Quarter II 5,100 4,270 5,300 5,200 44,907,800 96,192,494
18,648,656,458
Quarter III 5,225 5,100 5,975 5,200 23,008,500 103,500,043
Quarter IV 5,625 5,450 5,650 5,525 28,428,000 103,033,826

Performance
Highlights 2018
Transaction Volume Shares
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
Quarter I Quarter II Quarter III Quarter IV
2018 2017 2016
Market Capitalization
200,000,000
150,000,000
100,000,000
50,000,000
Quarter I Quarter II Quarter III Quarter IV
2018 2017 2016

ANNUAL
REPORT 2018
BBNI Stock Prices in 2017
(Rp/IHSG) Volume
(000) unit
BBNI IHSG VOLUME
7,000 140,000,000
6,000 120,000,000
5,000 100,000,000
4,000 80,000,000
3,000 60,000,000
2,000 40,000,000
1,000 40,000,000
- 20,000,000
6
17
17
17
17
7
-1
-1
-1
-1
-1
l-1
-1
-1
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Ju
Ja
Se
Fe
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M
D
D
N
A
BBNI Stock Prices in 2018
(Rp/IHSG) Volume
(000) unit
BBNI IHSG VOLUME
11,000 80,000,000
10,000 70,000,000
9,000 60,000,000
8,000 50,000,000
7,000 40,000,000
6,000 30,000,000
5,000 20,000,000
- 10,000,000
7
18
18
18
18
8
-1
-1
-1
-1
l-1
-1
-1
-1
-1
n-
b-
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p-
ar
pr
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ug
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Ju
Ju
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Fe
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M
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N
A

Performance
Highlights 2018
CORPORATE
ACTIONS
During 2018, the Company did not carry out any corporate actions.
TEMPORARY SUSPENSION AND / OR

DELISTING OF SHARES
Up to December 2018, BNI was not subject to any suspension and / or delisting of shares.

ANNUAL
REPORT 2018
BONDS, SUKUK AND/OR

CONVERTABLE BONDS INFORMATION
BOND INFORMATION
BNI Bonds Issuance Chronology

Ranking
Issued Effective Offering Maturity Interest Payment
Description Tenor Currency Total Bonds Trustees
Date Date Price date Rate Status
2018 2017
Sustainable July 11, June 22, 5 IDR 3,000,000,000,000 100.00 July 11, 8.00% Not Yet idAAA idAAA BRI
Bond I BNI 2017 2017 years 2022 p.a Paid (Pefindo) (Pefindo)
Phase I 2017
Medium Term Notes (MTN) BNI
Ranking
Issued Effective Value Discount Payment
Description Tenor Currency Maturity date Trustees
Date Date (million) Rate Status
2018 2017
Medium Term Notes (MTN)
MTN August - 60 Rp 100,000,000 August 10, 2023 8.00% Not Yet Paid idAAA * PT Bank
Subordinated I BNI 10, 2018 months Rakyat
Year 2018 Indonesia
(Persero)
Table of BNI bond usage realization (dalam triliun Rupiah)

Fund Proceeds Public Offering
Public Offering Proceeds Realization Fund Proceeds Plan
Realization Proceeds Remaining
Type of
Effective
Public Total
Date Cost of
Offering Proceeds Net Credit Credit
Public Total Total
from Public Results Expansion Expansion
Offering
Offering
Sustainable June 22, Rp3 Rp0,0074 Rp2,992 Rp2,992 Rp2,992 Rp2,992 Rp2,992 -
Bond I BNI 2017
Phase I 2017
SUKUK INFORMATION
Until December 2018, BNI has never issued sukuk so there is no information regarding Sukuk.
CONVERTIBLE BOND INFORMATION
Until December 2018, BNI has never issued Convertible Bonds so there is no information regarding Convertible Bonds.

Performance
Highlights 2018
OTHER FUNDING SOURCES

INFORMATION
Negotiable Certificates of Deposit (NCD) BNI
Ranking
Issued Effective Value Discount Payment
Description Tenor Currency Maturity Date Trustees
Date Date (million) Rate Status
2018 2017
NCD Phase I
NCD Phase I June 16, 36 June 14, Not Yet

- Rp 925,000 8.40% - - -
Series F 2016 months 2019 Paid
NCD Phase II
26
NCD Phase September 36 Not Yet
- Rp 815,000 September 8.10% - - -
II Series D 27, 2016 months Paid
2019
NCD Phase III
NCD Phase March 10, 24 28 Februari Not Yet

- Rp 150,000 8.05% - - -
III Series C 2017 months 2019 Paid
NCD Phase 36 24 Februari Not Yet
- Rp 5,000 8.35% - - -
III Series D months 2020 Paid

ANNUAL
REPORT 2018
IMPORTANT EVENTS
IN 2018
January 26, 2018 February 28, 2018 March 22, 2018
46.000 likes 46.000 likes 46.000 likes

BNI yap! Launched, Easy, Safe, and Recent BNI in collaboration with RI Ministry of Finance, BNI and BNI Life (Subsidiary) Support
Payment System BNICorporate Card Ready as a Government Issuance of SOE Health Card
Payment Tool
January 12, 2018
Jakarta BNI Taplus Prepares the Best Team to March 1, 2018
Become a Champion February 08, 2018 BNI Java Jazz Festival 2018
Commemorating National Press Day, BNI Invites 100
January 21, 2018 Journalists to Learn About Entrepreneurship March 9, 2018
Passport Payment Service, BNI Becomes the Bank BNI KUR Reaches 1,700 Farmers in East Java
with the Most PNBP Online Deposit Services February 16, 2018
BNI Cooperates with 4 Airlines to Present Travel March 11, 2018
January 31, 2018 Experience BNI launches BNI MoRe in Singapore
Become a Partner, Pay PTKIN Entrance Exams easier
with BNI March 29, 2018
BNI in collaboration with ITS, Delivers Loan
Education at Surabaya
#bni46 #AnnualReport2018 #bni46 #AnnualReport2018 #bni46 #AnnualReport2018
April 25, 2018 May 9, 2018 June 8, 2018

#BNITuDigital Enlivens Inacraft 2018 and Ahead of BNI’s 72nd Anniversary, BNI BNI Mudik Bus Travelers at Taman Mini
engages 35 Partners Emerald Customers Treated to BNI Helicity Indonesia Indah
April 3, 2018 Service
June 5, 2018
Ahead of the 2018 Asian Games, BNI Invited May 07 2018 BNI Offers State Civil Housing Funding in Jakarta
Reporters to Get to Know Indonesian Banking BNI Supports Online Transactions, Ship Ticket
Payments and PELNI Agent Top Up in Jakarta June 22, 2018
April 6, 2018 After Reducing Tariffs, BNI Is Ready to Accommodate
BNI Sergab46 reserves 700 Tons for East Java Grain May 17, 2018 Tax Payments for MSMEs in Surabaya
Farmers in Banyuwangi BNI Distributes 6,000 Cheap Food Packages for PMI
Families in Pamekasan June 29, 2018
April 26, 2018 BNI Mudik Travelers at Gambir Station, BNI in
Garuda Indonesia and BNI Online Travel Fair (GOTF) May 25, 2018 collaboration with the Indonesian Navy Distributes
in Cengkareng PMI family in Pamekasan - BNI & Angkasa Pura Soldier Salaries
Kargo Expands Cooperation, Increased Variety of
Cashless Transactions

Performance
Highlights 2018
July 8, 2018 August 12, 2018 September 10, 2018

BNI Celebrates 72nd Anniversary BNI Distributes 2,000 Taplus Anak Accounts, To Strengthen the Logistics Sector Services,
to strengthen the Financial Literacy BNI and Triplogic Develops a Digital
July 17, 2018 campaign at the 2018 Asian Games Transaction System
BNI Funds First Toll Road in North Sulawesi August 7, 2018 September 4, 2018
Supporting IPC, BNI Distributes Port Service Financing BNI Millennial Children Treats Program, a
July 18, 2018 and IPC Smart Card in Jakarta manifestation of Financial Literacy strengthening
Support for the 2018 Asian Games, BNI Launches for Millennialsl
Virtual Debit Combo Card Account in Yogyakarta August 14, 2018
Starting in NTT, BNI Pioneers KUR Disbursements for Salt
September 18, 2018
Farmers in Kupang
July 20, 2018 BNI Retains its Trade Finance Service Excellence, BNI
To encourage Indonesian Exports, BNI Disburses August 15, 2018 Syariah Becomes the Best Sharia Bank
Loans Dominated in Yen Constructing Drinking Water Facilities in Lampung, BNI
and IIF Disburse Rp550 billion in Jakarta September 24, 2018
BI, BNI, & BRI Cooperate with 50 Top Exporters for
August 19, 2018 Hedging Program in Jakarta
Start of the 2018 Asian Games, BNI Participates by
Maximizing Services
October 14, 2018 November 13, 2018 December 13, 2018

As part of its Role for a Better World BNI Pioneers “I am a Young Merchant” Saksansin Wins BNI Indonesian Masters in
Economy, BNI Launches GPN Card (National Creating Business minded School Students Jakarta
Payment Gateway) in Tegal
December 03, 2018
October 3, 2018 November 7, 2018 Ministry of Social Affairs Recognizes Bank BNI as
Enlivens IBDExpo 2018, BNI Digital Ecoservices BNI Supports the Cashless Program at Pertamina being Friendly to People with Disabilities
Gas Stations, Various Promos Ready to Pamper
October 12, 2018 Customers in Jakarta December 21, 2018
BNI ITB Ultra Marathon, Ministry of Youth and Sports Exceeding 2018 FLPP Target, BNI Disburses
Release Runners from BNI Office Lobby, Financial November 7, 2018 Subsidized Mortgages for 10 Thousand Houses in
Literacy Campaign Through Sports Support for US Trade and Investment in Indonesia, 2019 in Jakarta
BNI New York Branch Trade Finance Grows 25%
October 25, 2018 December 22, 2018
Realizing Cashless and Cardless Shopping at BUMDes Can Now Open SOE Shops, with Definite
Supermarkets, BNI Products Yap! Present at Ranch Prices & Guaranteed supply
Market

ANNUAL
REPORT 2018
Management
Report
37 Board of Commissioners’ Report
46 BOARD OF DIRECTORS’ REPORT
56 RESPONSIBILITY STATEMENT

ANNUAL
REPORT 2018
Revrisond Baswir Pataniari Siahaan Wahyu Kuncoro

(Independent Commissioner) (Independent Commissioner) (Vice President Commissioner)
Joni Swastanto Ari Kuncoro

(Commissioner) (President Commissioner/
Independent Commissioner)
Bistok Simbolon Sigit Widyawan
(Commissioner) (Independent Commissioner)
Ahmad Fikri Assegaf Marwanto Harjowiryono

(Independent Commissioner) (Commissioner)

ANNUAL
REPORT 2018
In the middle of this external

pressure, Indonesia’s economic
situation did not change
significantly in 2018. The Board of
Commissioners’ view is that the BNI
Directors and staff’s spirit
continued to grow amid the very
high economic challenges,
and they were able to continue
competing in an increasingly
competitive banking business..
Ari Kuncoro
President Commissioner/Independent
Commissioner

Management
Report
Board of Commissioners'
Report
In 2018, BNI maintained its asset growth in their

prospective sectors, which is reflected in total assets
reaching Rp99.2 trillion. BNI’s loans grew by 16.2%, higher
than last year’s 12.2%. During 2018, customer deposits
stood at Rp578.8 trillion, an increase of Rp62.7 trillion or
12.1% from Rp516.1 trillion in 2017.
Dear respected shareholders and stakeholders,
This report covers the Board of Commissioners’ duties and responsibilities conducted during the 2018
financial year. When supervising and advising the Board of Directors’ duties, the Board of Commissioners
refers to the approved Bank Business Plan, ensures that the Company runs effectively and acts in
accordance with the expectations of shareholders and other stakeholders.
During 2018 the Board of Commissioners carried out its duties, obligations and responsibilities covered
the management policy supervision, and the Company management as stipulated by the applicable
laws and regulations, the Articles of Association and the Work Plans set at the beginning of the year.
Important matters related to the Board of Commissioners’ duties and responsibilities are presented
below.

ANNUAL
REPORT 2018
STRATEGY IMPLEMENTATION SUPERVISION During 2018 a Board of Commissioners held 41 meetings

including internal Board of Commissioners meetings, or by
Key strategies were established in BNI’s Corporate Plan to help inviting the Sector Director or the related Senior Executive
achieve the Bank Business Plan (RBB) targets, and became Vice President. Joint Meetings with the Board of Directors
one of the main focuses for the Board of Commissioners. were held 11 times. The Commissioners and Directors
The Board of Commissioners directed, monitored and conducted all meetings effectively, with a high level of
evaluated the Bank’s strategic policies implementation in attendance.
2018, including evaluating the BNI and RBB Corporate Plan
and 2018 financial performance every month. The Board of BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT
Commissioners supervises the efforts made to achieve the
RBB, particularly the important elements in the business plan The Board of Commissioners gives its highest appreciation for
such as lending, improving asset quality, collecting third party the Board of Directors’ excellent performance achievements
funds, productivity and efficiency. in managing Bank’s, which resulted in the Company
exceeding its performance targets in 2018. Some areas that
the Board of Commissioners considered in the Board of
The Board of Commissioners also evaluates and submits the Directors’ performance evaluation are presented below.
RBB realization reports to the Financial Services Authority
through the RBB supervision reports every semester. If ECONOMIC CONDITIONS AND COMPANY PERFORMANCE
revisions are made, the Board of Commissioners will conduct Bank Indonesia projected that Indonesia’s economic growth
a further review for approval. In addition, the Board of in 2018 would reach 5.17%. Inflation at the end of November
Commissioners conducts reviews and approvals for the 2018 was 3.23% (yoy), against Bank Indonesia’s target of 3.5%
following years’ RBB, including the RBB for 2019-2021 and the ± 1%. The Indonesian economy is still dominated by 3 (three)
BNI Corporate Plan for 2019-2023. main business areas, namely agriculture, forestry / fisheries,
and trade. By the second quarter of 2018, the processing
FREQUENCY AND HOW ADVICE IS GIVEN TO THE BOARD OF industry had the highest growth at 0.91%, followed by the
DIRECTORS trade sector at 0.69%, and construction at 0.57%.
The Board of Commissioners’ supervision functions, duties The Rupiah exchange rate against the US Dollar was under
and obligations is conducted through the following pressure in mid-2018 and this continued until the end of
mechanism: the year leading to an outflow of foreign capital from the
1. Through the Board of Commissioners’ Indonesian financial system, resulting in an account deficit,
MeetingsThe Board of Commissioners’ Meetings are mainly due to the export-import deficit, which dominated
conducted internally by Commissioners, or by inviting the Indonesian economy throughout 2018. In addition, other
Sector Directors or Senior Executive Vice Presidents external factors came into play including the Fed Fund Rate
related to the Meeting agenda, as well as regular joint (FFR) and the US and China trade wars.
Meetings with the Board of Directors.
2. The Committees below the Board of Commissioners play In the middle of this external pressure, Indonesia’s economic
an active role in assisting and supporting the Board’s situation did not change significantly in 2018. The Board of
smooth operation through Committee meetings as well Commissioners’ view is that the BNI Directors and staff’s spirit
as by evaluating, studying or reviewing matters related to continued to grow amid the very high economic challenges,
the Board of Commissioners’ duties. and they were able to continue competing in an increasingly
3. Providing the Board of Commissioners’ direction and competitive banking business. BNI maintained this spirit
opinion in writing to the Board of Directors in response throughout 2018 in relationship to business growth, by
to reports on the execution of their duties, all approval becoming more selective in choosing the right industrial
or consultation requests submitted by the Board of sectors. The Board of Commissioners’ view is that the Board
Directors, as well as information on strategic and of Directors has been able to face the disruptive economy era
significant issues. that began in 2017, and has adapted well especially in terms
4. Board of Commissioners’ work visits to BNI work units, of technology and service innovations.
and giving direction and opinion to the Board of
Directors based on the results of these visits.

Management
Report
In 2018, BNI maintained its asset growth in their prospective BANK HEALTH LEVEL
sectors, which is reflected in total assets reaching Rp99.2 One important factor for the Board of Commissioners is the
trillion. Loans disbursed, as the bank’s main business, Bank’s Health Level (BHL) that is derived from assessing the
accounted for 63.4% of the total assets in 2018. BNI’s loans Bank’s risk based rating, and the Bank’s performance. The
grew by 16.2%, higher than last year’s 12.2%. BNI’s aggressive BHL helps BNI identify problems early so it can develop and
expansion relied on it staying selective, especially on implement corrective actions, and establish future business
asset quality and paying attention to prudential banking strategies.
principles. The highest loan growth was with other SOEs,
which grew by 31.6%, and private corporate loans which The BHL is based on 4 (four) factors as follows:
grew 12.9%, with the largest contributions coming from 1. Risk Profile
the manufacturing industry, restaurant and hotel trade, and A Risk Profile Assessment is carried out by assessing the
business services. Absolute NPL decreased from Rp9.4 trillion Inherent Risk in BNI activities, and the Quality of Risk
in 2017 to Rp9.2 trillion in 2018, a decrease of 2.4%, showing Management on 8 (eight) risk types.
BNI’s commitment to maintaining the loan quality amid the 2. Good Corporate Governance
aggressive expansion. The Corporate Governance Assessment evaluates
the quality of BNI’s management on the execution of
BNI’s Third Party Funds (TPF) through customer deposits grew Corporate Governance principles.
during 2018, mainly driven by digital banking transactional 3. Earnings
services. BNI also raised cheap funds by continuing to Assesses the Earnings factors including performance,
enhance its partnerships with institutional customers, both sources, sustainability, and management.
private, state-owned and government. 4. Capital
Assesses the capital factors including capital adequacy
During 2018, customer deposits stood at Rp578.8 trillion, an and its management. When assessing capital adequacy,
increase of Rp62.7 trillion or 12.1% from Rp516.1 trillion in BNI links its capital adequacy to its risk profile.
2017. Giro accounts reached Rp169.3 trillion, an increase of
18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017. Savings Rating (TKB) is reported to the regulator (OJK) every 6 months
also recorded aggressive growth and reached Rp206.1 trillion, (semester) in June and December. The BNI Bank Health
an increase of Rp23.8 trillion from Rp182.3 trillion in 2017. Rating for the period to December 31, 2018 resulted in the
Deposit products also grew 6.7% or Rp12.8 trillion during “Healthy” rating, which means that:
2018 to Rp203.4 trillion. This growth was not as aggressive as 1. The Bank’s condition is generally healthy, so it is
the giro and savings products as BNI implemented its strategy considered capable of facing significant negative effects
to focus on funding sourced from CASA. from changes in business conditions and other external
factors.
The excellent operational performance helped generate net 2. The rankings for the assessment factors (Risk Profile,
profit growth of 10.3% compared to 2017, mainly due to the Governance, Earnings and Capital) are generally good. If
increases in interest and sharia income which were the main there are any weaknesses, they are not significant.
driving forces for the banking operations.
BNI’s risk profile, as one of the factors in the TKB assessment
for December 31, 2018, was ranked 2 (low to moderate).
As a result of BNI’s low to moderate risk profile and based
on Internal Capital Adequacy Assessment Process (ICAAP)
calculations, the minimum CAR based on the risk profile is
9.9%. If the buffer capital is added, namely Conservation
Buffer 1.875%, Countercyclical Buffer 0% and Capital
Surcharge 1.125%, then the Minimum Capital Adequacy Ratio
(MCAR) limit becomes 12.9%. In 2018, BNI’s MCAR of 18.5%
exceeded the specified minimum limit.

ANNUAL
REPORT 2018
VIEW ON PROSPECTS PREPARED BY THE VIEW ON GOOD CORPORATE

BOARD OF DIRECTORS GOVERNANCE
Long-term business continuity is the goal The Banks performance cannot be

that must always be properly analyzed separated from applying good corporate
by the Board of Directors. Their ability to governance (GCG), and its effectiveness is
predict future business prospects is an a key factor in achieving superior company
important matter that is of concern to the performance. Therefore, the Board of
Board of Commissioners. Based on external Commissioners strongly emphasizes its
and internal conditions, the Board of supervision of the Banks GCG, and we view
Commissioners considers that the business that it has been implemented properly. The
prospects that have been prepared by independent GCG assessments carried out
the Board of Directors are appropriate, in by the Indonesian Institute for Corporate
accordance with realistic assumptions.
The Board of Directorship (IICD) in 2018 show that
Commissioner the Banks has implemented GCG very
Even though global economic conditions well as indicated by an Asean Corporate
have not yet escaped the past difficult optimistic that Governance Scorecard (ACGS) score of
conditions, the Government of Indonesia 91.58.
continues to focus on encouraging
the Board of
the maintenance of public purchasing Directors will The key GCG components that receive
power through subsidy programs, both the main attention from the Board
for energy and non-energy subsidies. continue to of Commissioners include the risk
The Government’s efforts to encourage management system, internal control
Indonesia’s economic growth have resulted
achieve its systems, and the whistleblowing system.
in economic growth in various sectors. This performance
creates opportunities for BNI to develop its RISK MANAGEMENT
business supported by its core capabilities. targets. Over the As a part of GCG, BNI’s risk management
BNI’s ability to mobilize and allocate has been running effectively and
resources and maintain and develop its
last three years, integratedly, and has supported the
core capabilities are important factors BNI’s adaptive sustainable performance achievement
in anticipating and grabbing business and growth while increasing the
opportunities from existing external capacity has company’s competitiveness. The Board
conditions. of Commissioners actively supervises the
already shown application of risk management through
The Board of Commissioners believes that it can grow the following mechanisms:
that BNI will continue to do its best, and 1. Approves BNI’s risk management
is optimistic that the Board of Directors higher than the policies including the risk management
will continue to achieve its performance strategy and framework that are
targets. Over the last three years, BNI’s
industry. determined based on risk appetite and
adaptive capacity has already shown that it risk tolerance.
can grow higher than the industry. 2. Evaluates risk management policies
and strategies.
3. Evaluates the Board of Directors’
accountability and provides direction
for improvements to BNI’s risk
management policies.
4. Ensures that the risk management
policies and processes are carried out
effectively, and are integrated into all
BNI risk management processes.

Management
Report
The Board of Commissioners’ supervisory function is BNI’s Internal Control System refers to the Financial Services
conducted through the Directors and Commissioners forum Authority Circular No. 35/SEOJK.03/2017 dated July 7, 2017
(Radikom), as well as in the Risk Monitoring Committee, the concerning the Standard Guidelines for Internal Control
Integrated Governance Committee and the Audit Committee Systems for Commercial Banks, in line with the COSO
meetings. framework and the Basel Committee - Internal Control,
covering 5 (five) key interrelated elements in the Bank’s
For Risk Management to run effectively, the implementation internal control system including:
is based on established Risk Governance, which includes 1. Management supervision and control culture
clearly regulated roles and responsibilities, decision- 2. Risk identification and assessment
making processes, the interrelationships between the Risk 3. Control activities and separation of functions
management functions, and the establishment of policies 4. Accounting, information and communication systems
that ensure that Risk is managed properly. 5. Monitoring activities and deviations/weaknesses
correction actions
BNI has a General Risk Management Policy that is the
strategic and comprehensive basic reference for applying WHISTLEBLOWING SYSTEM
Risk Management. Risk Management Procedures are in A key mechanism in Banks Anti-Corruption Program is the
place to guide the implementation of Risk Management. whistleblowing system (WBS), and includes “WBS to CEO” as
As a guideline for implementing Risk Management, BNI has a means for early detection of violations in BNI that could
already established policies and procedures for managing cause financial losses, or could damage BNI’s image. The
each of the Risks. WBS is used by BNI staff to report violations that occur in
the BNI environment, and is managed in collaboration with
To apply Integrated Risk Management, the BNI Financial an external party, Deloitte, with the aim of realizing a clean
Conglomerate has a joint commitment to carrying out working environment with more effective integrity.
the duties and responsibilities of each Financial Services
Institution (FSI), as outlined in the Integrated Risk The Board of Commissioners is of the opinion that the
Management Pact that has been approved and signed by management of WBS externally will increase the potential
the President Director and President Commissioner of all BNI for staff to report violations as they will feel freer when
Financial Conglomerate FSI. reporting, without fear of reprisal actions from the reported
parties, especially if those reported are their superiors, and
The Board of Commissioners believes that the Bank’s risk for this reason the WBS management has become more
management and integrated risk management has been independent. During 2018, the WBS received 93 (ninety
conducted properly. Banks has sufficient policies, risks and three) violations reports, which were followed up through
risk limits that are regularly reviewed with the approval of investigation processes. Based on the ICU results for their
the Board of Directors. Banks also has adequate processes for examination on WBS reporting, there were 21 reports that
identifying, measuring, monitoring and controlling risk on an were declared proven, and sanctions were imposed in
ongoing basis for all material risk factors supported by a Risk accordance with the Company’s policies.
Management Information System.
The Board of Commissioners view is that the WBS is working
INTERNAL CONTROL SYSTEM well, and they have provided direction so that socialization
An effective Internal Control System is an important is carried out on an ongoing basis to improve employees’
component in the Bank’s management and is the basis for understanding and concern in reporting violations so as
sound and safe Bank operations. The Board of Commissioners to create a clean working environment with more effective
constantly monitors the internal control system’s integrity.
effectiveness, especially the Internal Audit Work Unit review
results, related to their function as the third line of defense.

ANNUAL
REPORT 2018
CHANGES IN BOARD OF COMMISSIONERS’ COMPOSITION
During 2018, the membership and composition of the BNI Board of Commissioners saw 2 (two) changes as follows:
JANUARY 1, 2018 - MARCH 20 2018

The Board of Commissioners consisted of 8 (eight) people including 1 (one) President Commissioner and Independent
Commissioner, 1 (one) Deputy President Commissioner, 3 (three) Independent Commissioners and 3 (three ) Commissioners.
Name Position Domicile Date Appointed Effective Date
Ari Kuncoro President Commissioner Jakarta November 2, 2017 March 14, 2018
/ Independent
Commissioner
Wahyu Kuncoro Commissioner Vice Jakarta March 10, 2016 January 25, 2017
President Commissioner / March 16, 2017 May 29, 2017
Commissioner.
Revrisond Baswir Commissioner Jogjakarta March 17, 2015 June 24, 2015
Independent March 10, 2016 January 25, 2017
Commissioner
Pataniari Siahaan Commissioner Jakarta March 17, 2015 June 25, 2016
Commissioner
Bistok Simbolon Commissioner Jakarta January 12, 2016 May 10, 2016
Joni Swastanto Commissioner Jakarta March 10, 2016 April 20, 2016
Marwanto Harjowiryono Commissioner Jakarta March 16, 2017 July 19, 2017
Ahmad Fikri Assegaf Independent Jakarta March 16, 2017 July 19, 2017
Commissioner
MARCH 20, 2018 - DECEMBER 31, 2018

The Board of Commissioners consisted of 9 (nine) people including 1 (one) President Commissioner and Independent
Commissioner, 1 (one) Deputy President Commissioner, 4 (four) Independent Commissioners and 3 (three) Commissioners.
Ari Kuncoro President Commissioner Jakarta November 2, 2017 March 14, 2018
/ Independent
Commissioner
Wahyu Kuncoro Commissioner Vice Jakarta March 10, 2016 January 25, 2017
President Commissioner / March 16, 2017 May 29, 2017
Commissioner.
Commissioner
Commissioner
Ahmad Fikri Assegaf Independent Jakarta March 16, 2017 July 19, 2017
Commissioner
Sigit Widyawan Independent Jakarta 20 Maret 2018 September 7, 2018
Commissioner
Changes to the Board of Commissioners’ composition are based on Banks business needs, and the results of the needs analysis
carried out by the Remuneration and Nomination Committee.

Management
Report
COMMITTEES UNDER THE BOARD OF COMMISSIONERS PERFORMANCE ASSESSMENT AND BASIS FOR THE ASSESSMENT
In carrying out its duties and responsibilities the Board of Commissioners is assisted by committees that report to them,
including the Audit Committee, Nomination and Remuneration Committee, Risk Monitoring Committee and Integrated
Governance Committee. The performance assessment for the committees under the Board of Commissioners is based on
the correct implementation of all Committees programs/work plans established at the beginning of the year. The committee
programs/work plans are implemented through the following mechanism:
1. Holding of committee meetings including those inviting sector directors or related divisions/work units.
2. Studying/evaluating/reviewing by the committees outside the meeting forum where the results are sent in writing to the
Board of Commissioners.
The fact that the Committees under the Board of Commissioners’ completed of all the programs / work plans set at the
beginning of the year, and the frequency and level of attendance at the Meetings, and the activity reports from the Audit
Committee, Nomination and Remuneration Committee, Risk Monitoring Committee and Integrated Governance Committee
indicates that each committee carried out its duties properly.
CLOSING
Accordingly, this reports the Board of Commissioners execution of their duties and responsibilities related to the Company’s
management during 2018. To all BNI Directors and management, the Board of Commissioners expresses its highest
appreciation for the satisfying achievements in 2018. We hope that in the future, BNI Bank will continue to contribute to the
Indonesian nation through its role in increasing national economic growth.
Jakarta, April 2019

On behalf of the Board of Commissioners
Ari Kuncoro
President Commissioner

ANNUAL
REPORT 2018
Herry Sidharta Dadang Setiabudi Tambok P. Setyawati

(Vice President Director) (Managing Director Information (Managing Director Retail Banking)
Technology and Operations)
Anggoro Eko Cahyo Endang Hidayatullah

(Managing Director Finance) (Managing Director Compliance)
Management
Report
Adi Sulistyowati Bob Tyasika Ananta Rico Rizal Budidarmo

(Managing Director Institutional (Managing Director Risk (Managing Director Treasury and
Relations) Management) International Banking)
Achmad Baiquni Putrama Wahju Setiawan Catur Budi Harto

(President Director) (Managing Director Medium (Managing Director Small Business
Business) & Network)
ANNUAL
REPORT 2018
BOARD OF DIRECTORS’
REPORT
Compared to the banking industry and its peers group,

BNI grew higher both in terms of assets and funding. BNI
loans grew 15.3% as of September 2018, while customer
deposits grew 13.7% higher than the industry and also
peers groups for the same period. With the loans and
customer deposits growth, BNI’s assets grew 14.3%, higher
than the industry and peers groups.
Dear respected shareholders and stakeholders,
Through this report, please allow us to present the Company’s management results for 2018, as
carried out by the Board of Directors. Thanks to the presence of God Almighty, in this challenging
year, the Directors, management and all employees have produced a performance that has
exceeded the Bank’s Business Plan targets.
In this report, we will present our analysis of Banks performance and BNI business prospects going
forward. This report will also convey the corporate governance development, and will contain
information on changes to the Board of Directors’ composition in 2018.
PERFORMANCE ANALYSIS

Management
Report
The improved BNI performance

succeeded in driving net profit
growth of 10.3% compared to
2017, triggered by the increasing
contribution of income such as
interest and sharia income which
are the main driving forces of the
banking operations.
Achmad Baiquni
President Director

ANNUAL
REPORT 2018
PERFORMANCE ANALYSIS controlled inflation was influenced by low core inflation, and
The Company’s performance achievements in 2018 were low volatile food inflation, so price inflation was relatively well
strongly influenced by a number of external and internal maintained. BI’s success in maintaining inflation cannot be
factors, and choosing the right strategy was necessary in the separated from its joint coordination with the Government
face of economic challenging conditions. In the next section, both at the central and regional levels.
we will analyze the macro economy and banking industry,
outline the strategic policies that have been implemented, One major problem in 2018 was the current account deficit
and present Banks performance. (CAD), with the CAD ratio to Indonesia’s GDP continuing to
increase during 2018. In QI - 2018, CAD reached 2.17% of GDP,
ECONOMIC AND BANKING INDUSTRY ANALYSIS then increased to 3.02% Q2, and widened again to 3.37% of
In the global economy, during 2018 the conditions in the GDP in Q3. CAD has become the focus of attention for the
United States remained a major concern, with the United Government as it negatively impacts the rupiah exchange
States central bank The Federal Reserve (The Fed) grabbing rate.
the world’s attention with its interest rate policy. The Fed
raised its benchmark interest rate by 25 bps 4 (four) times, The negative impact from the CAD drove BI to be pre-
and it is currently standing at 2.50%. The increases took place emptive and ahead of the curve towards its benchmark
in March, June, September and December 2018 following the interest rate, the BI 7 days Repo Rate which was increased
increases in US inflation that exceeded the comfort limit of by 175bps in 2018. From within the country, another factor
2%, and the unemployment rate standing at 3.9% at the end considered by BI besides the widening CAD was the trade
of 2018. balance deficit. Cumulatively, Indonesia recorded a trade
balance deficit of US$8.57 billion, against the US$11.84 billion
In the European region, the Eurozone (EZ) economy’s surplus in 2017. Indonesia’s exports grew 6.65% in 2018 to
improving inflation pushed the European Central Bank reach US180.06 billion, while imports grew 20.15% to reach
to reduce its stimulus to buy securities. China’s economy US$188.63 billion.
contracted in 2018, after growing moderately 6.8% (YoY)
in Q1, it slowed to 6.7% (YoY) in Q2, then fell to 6.5% (YoY) The Indonesian banking industry condition up to September
in Q4, and fell again to 6.4% (YoY) in Q4. The tariff war with 2018, saw bank loans grow by 12.7% (YoY) higher than the
the US depressed China’s export performance, as the US 8.2% growth in December 2017. In terms of funding, bank
was China’s main export destination market. In Japan, the third party funds as of September 2018 grew by 6.6% lower
negative interest rate policy has not consistently encouraged than the 9.4% growth in December 2017. The slowdown in
Japan’s economic growth. After contracting 1.2% (YoY) in Q1 third party funds growth had an impact on banking assets,
- 2018, it grew 1.4% (YoY) in Q2, but fell again to 0.0% (YoY) in which by September 2018 had grown 8.6%, lower than the
Q3. Japanese inflation continued to improve leaving behind 9.8% growth in December 2017.
the deflation era of 2016 and the low inflation era of 2017.
In 2018 Japanese inflation was closer to 2%, with it’s highest When compared to the banking industry and its peers group,
in February 2018 at 1.5%. Food and energy prices drove the BNI grew higher both in terms of assets and funding. BNI
inflation increase, while core inflation remained relatively low. loans grew 15.3% as of September 2018, while customer
This condition encouraged the Bank of Japan (BOJ), as the deposits grew 13.7% higher than the industry and also peers
Japanese central bank, to keep its benchmark interest rate at groups for the same period. With the loans and customer
-0.10%. deposits growth, BNI’s assets grew 14.3%, higher than the
industry and peers groups.
During these unstable world economic conditions, the
Indonesian economy grew moderately. In Q1 - 2018 the
economy grew 5.06% (YoY), and grew to 5.27% (YoY) in Q2,
and finally reached 5.17% (YoY) in Q3. Indonesian inflation for
2018 was 3.13%, within the BI target range of 3.5 ± 1%. The

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Report
STRATEGIC POLICIES and supply chain, and by maximizing our

BNI continually strives to provide the best role in the government programs as the
contribution to encourage economic basis for growth. In addition, to support
growth and development for the welfare and facilitate loan applications in the
of society as a whole. This is achieved small segment we added more channels,
by coordinating and cooperating namely agen46 and digital-based
with other institutions from countries, lending. The above the industry average
governments, individuals, communities, loan growth was achieved by always
fellow financial companies, and other following the principle of prudence
private entities. BNI is seeks to cement ensuring that Non-Performing Loans
its existence by endeavoring to be one (NPL) are maintained and decreased, to
of the major players in the financial produce relatively high returns.
sector, especially banking, through
comprehensive financial services to all The consumer business increase was Interest income
banking customers, and by adding value achieved by selling BNI Griya, BNI Fleksi,
and sharia
that is beneficial to all stakeholders, Credit Cards and other loans, focusing
namely customers, investors, employees, on potential millennials through digital income increased
communities, and the financial industry. development. To grow the digital
BNI has developed a Long Term Plan and potential millennial business, BNI from Rp31.9
and a Short Term Plan after considering launched a QR-based mobile payment
trillion in 2017 to
the latest internal and external factors. systems called Yap!, Cinta banking chat,
During 2018, BNI succeeded in carrying and BNI Call application (1500046 Virtual Rp35.4 trillion in
out its plans that followed 4 (four) main Assistant). To provide a better user
themes, namely Selective, Digitalize, customer experience, BNI has opened 8 2018 or 11.0%,
Market Penetration, and Organization (eight) digital branches.
with the largest
Capabilities.
The strategy for increasing TPF focuses increase in
The 2018 strategy has been executed on closed loop transactions to ensure
well, resulting in BNI’s lending growing all customer transactions remain in interest income
faster than the industry average, mainly BNI. The closed loop transactions for
coming from
driven by the corporate segment’s Corporate and Commercial customers
lending, which focused on infrastructure and their supply chains is through the loans disbursed
and the processing sector. In the medium use of product and service solutions,
segment, the lending increase was one being the increase in cash amounting to
supported by optimizing the Corporate management transactions. In addition,
Rp3.9 trillion.
customer value chain, and taking over to increase customer transactions
customers in selective industries based through e-commerce, several feature
on regional potential. Loan expansion in developments and strategic partnerships
the small segment was also supported were carried out.
by optimizing the financing value chain

ANNUAL
REPORT 2018
PERFORMANCE TARGETS ACHIEVEMENT banking liquidity, BNI produced encouraging growth in

The selection of the right strategies produced a satisfactory customer deposits during 2018, with Digital-based banking
performance in 2018. transactional services becoming BNI’s main weapon in driving
this growth. Also to collect cheap funds, BNI continued
In 2018, BNI maintain its asset growth in its prospective expanding its partnerships with institutions or institutional
sectors, which is reflected in it growing to Rp99.2 trillion. customers, both private, state-owned and government.
The loans disbursed to the bank’s main business contributed
63.4% of total assets in 2018. BNI’s loans grew by 16.2%, During 2018, customer deposits stood at Rp578.8 trillion, an
higher than last year’s 12.2%, due to BNI aggressively increase of Rp62.7 trillion or 12.1% from Rp516.1 trillion in
expanding its lending while staying selective, especially 2017. Giro accounts reached Rp169.3 trillion, an increase of
on asset quality, and while paying attention to prudential 18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017. Savings
banking principles. The growth was mainly in loans to also recorded aggressive growth and reached Rp206.1
SOEs that grew by 31.6%, and private corporate loans that trillion, an increase of Rp23.8 trillion from Rp182.3 trillion
grew 12.9%, with the largest contribution coming from the in 2017. Deposit products also grew 6.7% or Rp12.8 trillion
manufacturing industry, restaurant and hotel trade, and during 2018 to Rp203.4 trillion. This deposit growth was
business services. not as aggressive as the giro and savings products as BNI
implemented its strategy to focus on funding sourced from
BNI, as a state-owned bank, again played an important CASA.
role in strengthening the government’s strategies, which
subsequently had an impact on increasing loans disbursed This strategy resulted in an improvement in BNI’s CASA ratio
to SOEs by 31.6% and loans disbursed to private corporations from 63.1% in 2017 to 64.8% in 2018. This condition also led
that grew by 12.9%, mainly in the manufacturing to a decrease in the cost of funds of 0.2% from 3.0% in 2017
industry, restaurant and hotel trade, business services and to 2.8% in 2018.
construction services sectors. This resulted in the composition
of loans disbursed to the bank’s main business increasing The improved BNI performance succeeded in driving net
from 62.2% in 2017 to 63.4% in 2018. profit growth of 10.3% compared to 2017, triggered by the
increasing contribution of income such as interest and sharia
In 2018 the gross NPL ratio improved to 1.9% compared to income which are the main driving forces of the banking
2.3% in 2017. Net NPL was 0.8% in 2018, compared to 0.7% operations. Interest income and net sharia income increased
in 2017. This was due to BNI’s strategy of selective expansion from Rp31.9 trillion in 2017 to Rp35.4 trillion in 2018 or 11.0%,
in low risk sectors, and shows us as a major player in the with the largest increase in interest income coming from
regions. In addition, BNI also restructured and remedied loans disbursed amounting to Rp3.7 trillion.
troubled debtors who still have the potential for financial and
operational improvements. These 2018 achievements indicate that the Company’s
performance has met its target.
In anticipation of the fluctuating macroeconomic conditions,
BNI mitigated its lending risks by providing higher reserves OBSTACLES FACED AND STEPS TAKEN
than the previous year, as reflected in the 2018 coverage ratio The superior performance in 2018 is inseparable from the
of 152.9% compared to 148.0% in 2017. Board of Directors and management efforts to overcome the
many obstacles and challenges faced. Like other business
Absolute NPL (Bank only) decreased 2.4% from Rp9.4 trillion entities, BNI faced a variety of challenges from the external
in 2017 to Rp9.2 trillion in 2018, showing BNI’s commitment environment and also from several internal challenges. The
to maintaining the quality of its loans amid aggressive increase in benchmark interest rates and the weakening
expansion. trend in the exchange rate, as well as the increase in the
Banking NPL were the external challenges that had to
Liquidity became an issue in the banking industry during be faced with appropriate strategies. Like other banking
2018, with the growth in lending being higher than the companies, the threat of cyber crime is also a challenge that
growth in customer deposits resulting in the industry Loan has to be faced by BNI.
to Deposit Ratio (LDR) being above 90%. During this tight

Management
Report
In addition, internally there are also several matters that need Regarding domestic liquidity, estimates say that it will be
to be improved, especially related to loan collectibility. The tight due to several reasons. Firstly, higher loan growth
contribution from subsidiaries is also an important matter compared to deposit growth, reflected in a higher loan
that needs to be improved, so that significant synergies can to deposit ratio (LDR). Based on regulation No. 17/11/
be achieved. PBI/2015, the LDR lower limit is 78% and the upper limit
is 92%. Secondly, the government is increasingly active in
Related to the internal challenges and constraints, the Board issuing retail bonds that can be purchased by individuals
of Directors continually tries to overcome these obstacles. so there is the potential they may switch from deposits in
One way has been through selectively channeling financing banks (both deposits and savings) to retail bonds. Currently
that focuses on priority industries and by optimizing the Government owned retail bonds consist of Retail
the Banks’ role in government programs as a basis for Government Bonds (ORI), Retail Sukuk (SR) and Sukuk
growth. BNI has also strengthened its consumer business Tabungan (ST). The amount of retail Government Securities
in collaboration with business partners and provided (SBN) in 2019 will reach Rp60 trillion, and to facilitate the
financial transaction solutions with a focus on e-commerce public, the Government will issue SBN online with a first
and the millennial generation through the development come first served system. If liquidity is tightened, there will
of digital channel acquisition and feature development be increased competition between banks for deposits, which
through strategic partnerships. Also importantly, BNI is will affect funds growth in 2019.
optimizing its organization capabilities to support its
business achievements by increasing employee productivity, In line with the adoption of the Macroprudential
increasing the effectiveness and efficiency of business Intermediation Ratio (MIR), BI continues to encourage bank
processes and developing information technology that lending while expanding funding and financing sources
supports Banks business. through issuance of securities. These financing alternatives
present a challenge for banks in carrying out its intermediary
These strategies have been implemented appropriately and function. The low cost of issuing bonds will encourage
BNI produced a proud performance in 2018. Based on its companies to choose financing through bonds. The national
targeted achievements in 2018, BNI increased its net profit bank lending growth will become a problem if it does not
and reduced its NPL in 2018, according achieving the targets. grow like in 2018, which until September 2018 had grown by
12.6%.
BUSINESS PROSPECTS ANALYSIS
The economic conditions, especially in the financial industry,
The world’s and Indonesia’s economic conditions in 2019 are is still facing various challenges, and will of course have an
predicted to still face many challenges, with several world impact on BNI’s business activities. BNI’s ability to mobilize
institutions agreeing that the global economy would be and allocate resources and maintain and develop its core
supported by the US and developing countries such as India, capabilities is an important factor in anticipating and taking
ASEAN-5 (especially Indonesia and the Philippines), Brazil business opportunities from existing external conditions. BNI
and Mexico (Economic Outlook 2019, IMF). There is still the remains confident that it will still be able to do its best.
potential for an increase in the FFR in 2019 if the American
economy continues to grow in accordance with the BNI is optimistic that it will always be able to achieve its
expectations and realization of American inflation, which has performance targets as the business world will still offer
reached its target of 2%. In addition, the end of Quantitative many excellent growth opportunities in the coming
Easing (QE) in both Europe and Japan will impact the lack years, especially for companies that are able to adapt to
of foreign funds entering the Indonesian financial market the environment and are agile enough to exploit these
compared to the previous year. The US and China trade wars opportunities. BNI’s adaptability and agility has historically
will also continue and cause an impact. been proven in recent years, where in years of moderate
economic and financial industry growth conditions, BNI has
Given that global economic growth is still problematic, the been able to grow higher than the industry.
main source for Indonesia’s economic growth comes from
within the country. The government will continue to focus on From the quarterly breakdown of Indonesia’s economic
encouraging the maintenance of public purchasing power growth in 2017-2018, the largest contributions apart from
through various subsidy programs, both for energy and non- the Industrial Trade Sector came from the Processing
energy subsidies.

ANNUAL
REPORT 2018
Industry, Agriculture (including Forestry and Fisheries), Support for the Government programs will continue
Construction, Transportation and Warehousing, and to be carried out as BNI is one of the national agents of
Communication Information Sectors with an average growth development, and this government program and the entire
contribution of 20%, 13%, 10.5%, 5.5%, and 3.8% respectively. community involved can become BNI’s potential business
By comparison, the Industrial Trade Sector contributed an targets. Support for cross-sectoral government development
average of 13% to economic growth. This economic structure strategies such as infrastructure development, tourism,
is an opportunity for BNI to develop its business supported transportation, or agriculture will continue. The business
by its core capabilities. In 2018, the largest funding to the contribution from this support is quite significant for BNI,
BNI Corporate Segment was given to the Manufacturing, both for finance distribution and for raising funds and fee-
Agriculture, and the Business Services Industry Sectors based income. Other Government programs such as the
with each portfolio’s composition being 26%, 15% and 13% People’s Business Loans, Financial Inclusion, Laku Pandai,
respectively. The Business Services Industry Sector is the and social assistance will help improve the quality of the
third highest-growth Industrial Sector after the Information economic growth quickly and sustainably and will ultimately
and Communication Industry Sector and the Transportation increase BNI’s business as a whole.
and Warehousing Industry Sector. During the same period,
BNI’s Medium Segment provided the largest financing to CORPORATE GOVERNANCE DEVELOPMENT
the Industrial Trade, Manufacturing, and Transportation
and Warehousing Sectors with a portfolio composition of BNI is committed to continuously improving the quality of
31%, 26% and 11% respectively. BNI’s Small Segment largest its good corporate governance principles in all aspects of
financing was to the Trade, Manufacturing and Agriculture its business activities including its integrated subsidiaries.
sectors with a financing composition of 57%, 11% and 10% Together with the development of good corporate
respectively. governance (GCG) best practices, both in the banking
industry and the financial services industry, BNI as a state-
BNI has and will continue to make significant investments owned bank registered in the capital market understands
in the development of its technology in an effort to always that the execution and development of GCG brings
remain relevant in the era of technological change, including enormous benefits. To achieve this, BNI has guidelines for
efforts to be a pioneer in the use of information technology conducting its business activities so they are always in line
in accordance with changes in customer preferences due to with each stakeholder’s goals and needs. Alignment between
internet penetration and devices. Information technology stakeholders and BNI will foster mutual trust and a conducive
applications will be perceived by customers, both individuals attitude in the corporate environment resulting in the
and business entities, or other institutions, when using BNI emergence of, and increase in the superior nature of work
financial services, to be superior and are expected to help and professionalism in all BNI people.
increase engagement with BNI so that it can provide long
term added value not only for BNI but also its customers. BNI also realizes that corporate governance will further
The information technology applications developed include enhance its investors’ trust and security in the current global
digitizing business processes to improve quality, service era. On an ongoing basis, in addition to implementing
speed, process transparency, and system interoperability. In the basic GCG principles, BNI is adopting many best
addition, platform development and transaction applications governance standards at regional and international levels,
that enable interaction between customers both Business to including the ASEAN Corporate Governance Scorecard,
Business (B to B), Business to Customer (B to C), and Customer Minister of State-Owned Enterprises Regulation No. PER-01/
to Customer (C to C) will be developed so as to increase the MBU/2011 concerning Good Corporate Governance. and its
user’s experience in every customer trip to BNI. Development amendments namely Minister of State-Owned Enterprises
of features and applications like the Yap! cash management Regulation No. PER-09/MBU/2012, OJK Regulation No. 21/
system will continue to meet customer needs by optimizing POJK.04/2015 concerning Application of Public Company
the capabilities of data analytics. Governance Guidelines, and OJK Regulation No. 55/
POJK.03/2016 concerning Implementation of Governance

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for Commercial Banks, Principles for Enhancing Corporate Governance issued by the Basel Committee
on Banking Supervision, OJK Circular Letter No. 32/SEOJK.04/2015 concerning Guidelines for Public
Company Governance, and OJK Circular Letter No. 13/SEOJK.03/2017 concerning Implementation of
Governance for Commercial Banks.
In 2018, BNI again won the Best State Owned Enterprise and Top 50 Public Listed Companies awards at
the Good Corporate Governance Award Ceremony organized by the Indonesian Institute for Corporate
Directorship (IICD), and the Most Trusted Company Based on Corporate Governance Index (CGPI) at the
Good Corporate Governance Award 2018 Ceremony.
Other GCG developments in 2018 included:

1. Signing of GCG Commitments by all BNI Personnel.
2. Anti-Fraud socialization to all BNI employees.
3. Anti-Gratification Publication in Kompas and Bisnis Indonesia Daily on 30 May 2018 and 21
December 2018.
4. Completion of the Board of Directors’ Charter as stated in the Directors’ Decree No.KP/228/DIR/R
dated 29 June 2018.
5. The Implementation of the Socialization GCG Division and the Secretariat, Corporate
Communications the district office Makasar (WMK), the district office (WMK), poor a branch office
Singkawang and Pontianak as well as all the representative of subsidiary.
6. Anti-Money Laundering and Prevention of Terrorism Financing Compliance Forum in the Financial
Services Sector on 30 August 2018.
7. To improve the application of GCG principles in the BNI work environment, internal activities were
held in the form of a Vlog GCG competition with the theme “Integrity as the Lifestyle for BNI People
#IniIntegritasGue”. The competition’s purpose and objective was to raise awareness in all BNI people
to make integrity a lifestyle choice, and to increase the participation of all BNI people to play an
active and creative role in BNI’s integrity lifestyle campaign.
In principle, GCG in BNI was conducted well by the Board of Commissioners, Board of Directors and
all employees in all activities, with the aim of protecting the interests of the Bank, shareholders and
stakeholders. BNI always evaluates the application of GCG on an ongoing basis, so that GCG will always
increase.

ANNUAL
REPORT 2018
BOARD OF DIRECTORS’ COMPOSITION CHANGES
In the 2018 period, the Board of Directors’ membership and composition changed as follows:
BOARD OF DIRECTORS’ COMPOSITION BEFORE THE AGMS ON MARCH 20, 2018

The Board of Directors consisted of 10 (ten) people including 1 (one) Managing Director, 1 (one) Deputy Managing Director
and 8 (eight) Directors. All members of the Board of Directors are domiciled in the BNI Head Office work area.
Achmad Baiquni President Director Jakarta March 17, 2015 April 16, 2015
Herry Sidharta Vice President Director Jakarta March 17, 2015 May 22, 2015
(appointment as
Director).
March 16, 2017 May 29, 2017
(redirection to be a Vice
President Director)
Rico Rizal Budidarmo Managing Director Finance and Jakarta April 16, 2015
Credit Risk
Bob Tyasika Ananta Managing Director Planning and Jakarta March 17, 2015 April 16, 2015
Operational
Adi Sulistyowati Managing Director Institutional Jakarta March 17, 2015 May 22, 2015
Relations & Transactional Banking
Anggoro Eko Cahyo Managing Director Consumer Jakarta March 17, 2015 May 22, 2015
Business
Imam Budi Sarjito Managing Director Company Jakarta March 17, 2015 May 22, 2015
Compliance & Risk
Panji Irawan Managing Director Treasury & Jakarta January 12, 2016 April 11, 2016
International
Putrama Wahju Managing Director Medium Jakarta March 10, 2016 July 15, 2016
Setyawan Business
Catur Budi Harto Managing Director Small Business Jakarta March 16, 2017 July 19, 2017
& Network
BOARD OF DIRECTORS’ COMPOSITION AFTER THE AGMS ON MARCH 20, 2018

The Board of Directors consisted of 11 (eleven) people including 1 (one) President Director, 1 (one) Deputy Managing Director
and 9 (nine) Directors. All members of the Board of Directors are domiciled in the BNI Head Office work area.
Herry Sidharta Vice President Director Jakarta March 17, 2015 May 22, 2015
(appointment as
Director).
March 16, 2017 May 29, 2017
(redirection to be a Vice
President Director)
Rico Rizal Budidarmo Managing Director Finance and Jakarta March 17, 2015 April 16, 2015
Credit Risk
Bob Tyasika Ananta Managing Director Planning and Jakarta March 17, 2015 April 16, 2015
Operational
Relations & Transactional Banking
Anggoro Eko Cahyo Managing Director Consumer Jakarta March 17, 2015 May 22, 2015
Business

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Tambok P. Setyawati Managing Director Retail Banking Jakarta March 20, 2018 July 5, 2018
Dadang Setiabudi Managing Director Information Jakarta March 20, 2018 July 5, 2018
Technology and Operations
Putrama Wahju Managing Director Medium Jakarta March 10, 2016 July 15, 2016
Setyawan Business
& Network
Endang Hidayatullah Managing Director Compliance Jakarta March 20, 2018 July 5, 2018
The Board of Directors’ composition changes are based on the Company needs, as decided by the Shareholders.
PERFORMANCE ASSESSMENT OF COMMITTEES UNDER BOARD OF DIRECTORS AND THE BASIS OF ASSESSMENT
In carrying out its management duties, the Board of Directors established Committees at the Board of Directors level in
accordance with BNI’s business needs and regulatory provisions, which are expected to create operational effectiveness and
efficiency, including:
1. Loan Committee.
2. Integrated Risk Management Committee.
3. Risk and Capital Management Committee.
4. Product Committee.
5. Performance Management Committee.
6. Technology Management Committee.
7. Credit Policy and Procedure Committee.
8. Human Capital Committee.
The assessment of members of Committee under the Board of Directors is carried out by the Board of Directors by assessing
their duties in accordance with the Committee Charter, Competencies and Skills and the Attendance Level of the Committee
members. The Board of Directors periodically evaluates the Performance of Committees under the Board of Directors. During
2018, the overall performance of Committees under the Board of Directors was satisfactory.
CLOSING
Accordingly, this reports the Board of Directors report on the Company management in 2018. The Directors expresses their
highest gratitude for the support at all levels of management and employees for their best contribution in achieving the
satisfactory Company performance in 2018. To the Board of Commissioners, all of the Directors express their gratitude for the
supervision and directives given. The Board of Directors also thanks the Shareholders and other stakeholders for their trust,
enabling BNI to provide the best for the nation and state of Indonesia.
Jakarta, April 2019

On behalf of the Board of Directors
Achmad Baiquni

ANNUAL
REPORT 2018
RESPONSIBILITY
STATEMENT
We, the undersigned, state that all information contained in the 2018 Annual Report of PT Bank Negara
Indonesia (Persero) Tbk is presented in its entirety, and we take full responsibility for the correctness of the
contents in this Annual Report This statement is hereby made in all truthfulness.
Jakarta April, 2019
BOARD OF COMMISSIONERS
ARI KUNCORO
President Commissioner/Independent
Commissioner
WAHYU KUNCORO PATANIARI SIAHAAN REVRISOND BASWIR

Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner
AHMAD FIKRI ASSEGAF SIGIT WIDYAWAN

Independent Commissioner Independent Commissioner
BISTOK SIMBOLON JONI SWASTANTO MARWANTO HARJOWIRYONO

Commissioner Commissioner Commissioner
Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

Management
Report
We, the undersigned, state that all information contained in the 2018 Annual Report of PT Bank Negara
Indonesia (Persero) Tbk is presented in its entirety, and we take full responsibility for the correctness of the
contents in this Annual Report This statement is hereby made in all truthfulness.
Jakarta April, 2019
BOARD OF DIRECTORS
ACHMAD BAIQUNI
President Director
HERRY SIDHARTA PUTRAMA WAHJU SETYAWAN ADI SULISTYOWATI

Vice President Director Managing Director Corporate Banking Managing Director Institutional Relation
RICO RIZAL BUDIDARMO ANGGORO EKO CAHYO CATUR BUDI HARTO

Managing Director Treasury Managing Director Finance Managing Director Small Business
& International Banking & Network
BOB TYASIKA ANANTA ENDANG HIDAYATULLAH TAMBOK P. SETYAWATI

Managing Director Risk Management Managing Director Compliance Managing Director Retail Banking
DADANG SETIABUDI
Managing Director Information
Technology & Operation
PT Bank Negara Indonesia (Persero) Tbk Adapting Quickly to Face Change

ANNUAL
REPORT 2018
Company
Profile
60 COMPANY IDENTITY 139 BOND ISSUANCE CHRONOLOGY
62 BRIEF HISTORY OF THE COMPANY 142 OTHER SECURITIES ISSUANCE AND/OR LISTING
64 Brand PERUSAHAAN CHRONOLOGY
65 BUSINESS FIELDS 143 NAME AND ADDRESSES OF INSTITUTIONS AND/
66 PRODUCTS OR SUPPORTING PROFESSIONS
AND SERVICES 144 AWARD AND CERTIFICATION
70 REGIONAL BUSINESS MAP 151 NAMES AND ADDRESSES OF SUBSIDIARIES,
74 ORGANIZATION STRUCTURE ASSOCIATED ENTITIES, BRANCH OFFICES AND
76 VISION, MISSION AND CORPORATE CULTURE OVERSEAS REPRESENTATIVES AND REGIONAL
78 VISION AND MISSION REVIEW BY THE BOARD OF OFFICES
COMMISSIONERS AND BOARD OF DIRECTORS 152 OVERSEAS BRANCH OFFICES, SUB BRANCH
79 COMPANY CULTURE OFFICES, REPRESENTATIVES OFFICES AND
80 BOARD OF COMMISSIONERS PROFILES REGIONAL OFFICES
89 BOARD OF DIRECTORS PROFILE 154 INFORMATION AVAILABLE ON THE WEBSITE
100 SENIOR EXECUTIVE VICE PRESIDENT PROFILE 156 EDUCATION AND/OR TRAINING FOR THE BOARD
101 EXECUTIVE OFFICERS PROFILE OF COMMISSIONERS, BOARD OF DIRECTORS,
117 EMPLOYEE PROFILE AND EMPLOYEE COMMITTEES, CORPORATE SECRETARY, AND
COMPETENCY DEVELOPMENT KARYAWAN INTERNAL AUDIT UNIT
128 SHAREHOLDER COMPOSITION
131 LIST OF SUBSIDIARIES AND/OR ASSOCIATED
ENTITIES
136 BNI GROUP STRUCTURE
137 SHARE ISSUANCE CHRONOLOGY

ANNUAL
REPORT 2018
COMPANY
IDENTITY
Currently BNI has 1 (one) Head Office,

17 Regional Offices and 2,245 office networks
consisting of branch offices, sub-branch offices,
overseas offices, cash offices and other office networks such as
payment points, mobile cash and O-Branch. In addition, BNI also has
Agen46 in all provinces in Indonesia.

Company Profile
Company Name Business Activity

PT Bank Negara Indonesia Banking business in accordance
with the Articles of Association No.
(Persero) Tbk 52, dated May 22, 2018
Nickname
BNI
Date of Establishment Business Segment

5 Juli 1946 • Business Banking Corporate, Medium and Small
• Consumer Banking
• international Banking and Treasury
Agen46
• 2018: 111.836 Establishment Legal Basis
• 2017: 69.589 • Regulation in lieu Law No. 2 of 1946
• State Gazette of Republic of Indonesia No. 70 of 1968
• Act Number 17 of 1968
• Government regulation No. 19 of 1992 (Adjustment to Legal Form of BNI)
Office Network Data

Head Office Address • 1 Head Office
Grha BNI • 17 Regional Office
Jl. Jenderal Sudirman Kav. 1. • 201 Branch Offices
Jakarta 10220 • 5 Subsidiaries
Phone : (62-21) 251 1946 • 1,109 Branches
I-Telex : 765185 BNI DLN IA • 605 Cash Office
Fax, : (62-21) 251 1214 • 128 Payment Point
E-mail : bni@bni.co.id • 18,311 ATM
Website : www.bni.co.id • 196 O-Branch
Listing Date on Indonesia • 6 Foreign Office Networks
PO Box 1946 Stock Exchange
Central Jakarta 10220 28 Oktober 1996
Ticker Code Investor Relations
Information Access BBNI Corporate Secretary and
Cal Center: Communcation Division
24 hour Service BNI Call Total Employees Grha BNI, 24th floor Jl. Jenderal
1500046 27,224
Sudirman Kav. 1 Jakarta 10220
E-mail: bnicall@bni.co.id
Phone: (62-21) 2511 946, 572 8387
Twitter: @BNI Fax: (62-21) 572 8295, 572 8053
Facebook: BNI E-mail: investor.relations@bni.co.id
Instagram: @BNI46
Subsidiaries
• Bank BNI Syariah
• BNI Multifinance
• BNI Sekuritas
• BNI Life Insurance
• BNI Remittance Ltd.
Authorized capital
Rp15,000,000,000,000
Issued and
Fully Paid Capital
Rp9,054,806,974,125
Ownership Composition
Republic of Indonesia: 60%
Public: 40 %

ANNUAL
REPORT 2018
BRIEF HISTORY OF
THE COMPANY
PT Bank Negara Indonesia (Persero)Tbk (hereinafter “BNI” or “Bank”) was originally

established in Indonesia as a central bank under the name of “Bank Negara Indonesia”
based on Government Regulation in Lieu of Law No. 2 of 1946 dated July 5, 1946.
Subsequently, pursuant to Law 17 in 1968, BNI became “Bank Negara Indonesia
1946”, with the status of a State-owned Commercial Bank. Additionally, BNI’s role as
a bank was mandated to improve the people’s economy and participate in national
development as confirmed by Law 17 of 1968 regarding Bank Negara Indonesia 1946.
Based on Government Regulation No. 19, 1992, April 29, 1992, BNI’s Articles of Association latest changes relates to a
BNI changed its legal status to a limited liability company realignment of the Articles of Association in accordance
(Persero). The change of legal status to limited liability with Deed No. 35 dated March 17, 2015, made before Notary
company, was made in Deed No. 131, dated July 31, 1992, Fathiah Helmi, SH, which was approved by the Minister of
before Muhani Salim, SH, and was published in the State Justice and Human Rights of the Republic of Indonesia, by
Gazette of the Republic of Indonesia No. 73 dated September decree No. AHU-AH,01,03-0776526 dated April 14, 2015
11, 1992, Supplement No. 1A.
The latest amendment to the BNI Articles of Association were
In 1996, BNI as a State Owned Enterprise was the first to included in Deed No. 52 dated May 22, 2018 made before
become a public company after listing its shares on the Notary Fathiah Helmi, S.H., and approved in the Ministry of
Jakarta Stock Exchange and the Surabaya Stock Exchange. Law and Human Rights of the Republic of Indonesia Decree
To strengthen it’s financial structure and competitiveness No. AHU-0012962.AH.01.02.TAHUN 2018 dated June 25, 2018.
in the national banking industry. BNI conducted a number
of corporate actions, including being recapitalized by the Currently, 60% of BNI’s shares are owned by the Government
Government in 1999, with a Government share divestment in of the Republic of Indonesia, while the remaining 40% are
2007, and a limited public offering in 2010. owned by the public, both individuals and institutions,
domestic and foreign. Currently BNI is listed as the 4th largest
To fulfill the provisions of Law 40 of 2007 dated August national bank in Indonesia, in terms of total assets, total loans
16, 2007 on Limited Liability Companies, BNI’s Articles of and total third party funds.
Association were amended. The amendments were stated in
Deed No. 46 dated June 13, 2008, made before Fathiah Helmi, To provide financial services in an integrated manner, BNI
SH, notary in Jakarta, based on an Extraordinary General is supported by a number of subsidiaries, namely Bank BNI
Meeting Shareholders decision dated May 28, 2008, which Syariah, BNI Multifinance, BNI Securities, BNI Life Insurance,
was approved by the Minister of Justice and Human Rights of and BNI Remittance Ltd. BNI offers deposit and loan facilities
the Republic of Indonesia, by Decree AHU-AH,01,02-50609 for the corporate, medium, and small segments. Many of the
dated August 12, 2008 and published in the State Gazette of best products and services have been adapted to meet the
the Republic of Indonesia No. 103 dated December 23, 2008, needs of customers from childhood, through adolescence
Supplement No. 29015. and adulthood, until retirement.

Company Profile
CHANGE OF NAME
As per the description of the company’s brief history, BNI has changed its
name 1 (one) time since its establishment, from its original name Bank Negara
Indonesia to Bank Negara Indonesia 1946 on December 18, 1968 based on the
1968 Law No. 17 concerning Bank Negara Indonesia 1946.
As well as the change of name, BNI also changed its legal status from the
original Bank Negara Indonesia 1946 to become a Limited Liability Company
(Persero) effective on April 29, 1992. BNI has also changed its status from the
previous Private Company to Public Company effective on August 6, 1996.

ANNUAL
REPORT 2018
Brand
PERUSAHAAN
The BNI Logo uses the colors Orange and Turquoise as its
corporate signature colors, which have been developed to give
the impression of modernity and freshness. The figure 46 is part
of the history as the first BNI Indonesian bank to contribute
relentlessly to building the nation
The slogan “Serve the State, Pride of the Nation” reinforces the Company’s
philosophy and vision.
The 2017 Value Proposition sees BNI as a comprehensive and reliable Digital
Financial Institution that will continue to provide the experience of digital
innovation to all levels of Indonesian society without exception, whether large
corporations or very small, individuals of all ages, even for those that have not
yet been not touched the bank (unbank).
The 2018 Value Proposition is BNI with Digital Banking.

Company Profile
BUSINESS
FIELDS
BNI conducts banking businesses and activities in accordance with the Articles of Association as set forth in Deed No. 52, dated
May 22, 2018. The following is a description of the main activities and supporting activities that have been, or have not yet
been implemented by the Bank:
BUSINESS ACTIVITY BNI’s

IN ACCORDANCE WITH THE LAST ARTICLES OF ASSOCIATION Business Activity
Main Business
MAIN BUSINESS Has Been Has Not
Implemented Implemented
Collecting funds from the public in the form of savings, current deposits, time deposits, savings deposits, or √
other equivalent forms.
Providing credit. √
Issuing debt instruments. √
Buying, selling, or guaranteeing, at their own risk or for the interests and on the order of customers, (money √
orders, debt securities/other trade paper, treasury bills, government guarantee letters, Bank Indonesia
certificates, bonds, fixed maturity trade securities, and other fixed maturity securities instruments).
Transfering money either for its own needs or the needs of customers. √
Placing, lending or borrowing with other banks, by using mail, telecommunication facilities and notes, √
checks or other facilities.
Receiving payments from securities billing and performing calculations with or among third parties. √
Facilitating a secure place for expensive goods and securities. √
Performing escrow activities for another party based on a contract. √
Performing funds placements from a customer to other customers in the form of securities that are not √
listed on a stock exchange.
Conducting financing and/or other activities based on sharia principles, in accordance with the provisions √
stipulated by competent authorities.
Performing factoring, credit card business and trusteeship. √
Conducting foreign currencies activities by fulfilling the conditions set by the competent authorities. √
Performing equity activities in banks or other companies in the financial sector. √
Conducting temporary capital participation activities to overcome any consequence of loan failure, √
including financing failure activities based on sharia principles provided they withdraw their investments
in accordance with the provisions stipulated by the competent authorities.
Acting as a Pension Fund Founder and pension fund manager in accordance with legislation. √
Performing financial services, commercial banking, and other investment banking activities. √
Conducting other activities commonly carried out by banks as long as they do not conflict with laws and √
regulations.
Carrying out supporting business activities in the context of optimizing the use of resources, to support √
the main business activities insofar as they do not conflict with the laws and regulations.

ANNUAL
REPORT 2018
PRODUCTS
AND SERVICES
BNI’s business activities include various deposit products, loan products, and various
services described below:
CONSUMER
SAVINGS CREDIT CARD • Private Label Credit Card SERVICES

• BNI Taplus • Reguler Credit Card »» BNI Travelling Card • Remittances in Domestic
• BNI Taplus Muda »» Kartu Kredit Visa Silver »» BNI Health Card- BNI Currency (BNITRANSFER)
• BNI Taplus Bisnis »» Kartu Kredit Visa Gold »» Distribution Card • International Money
• BNI Tappa (Taplus »» Kartu Kredit Mastercard • BNI Cash card Remittance
Pegawai/ Taplus Anggota) Silver • Safe Deposit Box
• BNI Tapma (Taplus »» Kartu Kredit Mastercard DEBIT CARD • BNI Multiguna Voucher
Mahasiswa) Gold • Debit Reguler Card • Inkaso
• BNI Haji »» Kartu Kredit BNI JCB »» Debit Silver Card • BNI Bank Certificate
• BNI Tapenas Gold »» Debit Gold Card • Traveler’s Cheque
• BNI Taplus Anak • Premium Credit Card • Debit Premium Card • Foreign Banknotes
• BNI Taplus Anak Co-Brand »» BNI Style Titanium »» Debit Platinum Card • Electronic Data Capture
• BNI Simpanan Pelajar »» BNI Visa Platinum Card • Debit Co-Branding Card  (EDC)
• BNI Pandai »» BNI JCB Precious »» Debit Garuda Card
• Tabunganku »» BNI MasterCard World »» Debit Ferrari by BNI PENSION SAVING
• BNI Giro »» BNI Visa Infinite   Card   • BNI Simponi
• BNI Dollar • Affinity Credit Card »» Debit LOTTE Mart
• BNI Deposito »» Kartu Kredit BNI Wholesale Card   BANCASSURANCE
• BNI Simponi Affinity BNI Affinity – »» Debit Co-Branding • In Branch and
• BNI Duo Universitas Credit Card Multimart Card   Telemarketing
• Tabungan Indonesia Pintar »» BNI Affinity – Ikatan »» Debit Co-Branding • Solusi Abadi Plus
(PIP) Alumni Credit Card Indogrosir Card • B-Life Plan Multipro
»» BNI Affinity – • BNI Emerald World • B-Life Cash Pro
LOAN Organisasi/Komunitas MasterCard Card  • Prima Proteksi
• BNI Griya Credit Card • Pro Maxima
• BNI Griya Multiguna • Corporate Credit Card E-BANKING • Pro Medika
• BNI Fleksi »» BNI Corporate Card • BNI ATM Reguler • Blife Medplus
• BNI Fleksi Pensiun Gold • BNI ATM Non Tunai • Rencana Pintar
• BNI Oto »» BNI Corporate Card • BNI ATM Setoran Tunai • Rencana Sehat
• BNI Instan Platinum • BNI ATM Drive Thru
• BNI Wirausaha »» BNI American Express • BNI SMS Banking
Business Card   • BNI Internet Banking
• Co-Branding Credit Card • BNI Phone Banking
»» BNI – Garuda Card • BNI Mobile Banking
»» BNI – Lotte Mart Card • BNI O-Branch
»» BNI – Bank Sumselbabel • BNI Debit Online
Card • Tap Cash
»» BNI – Bank Jabar • Agen 46 
Banten Card • Unikqu 
»» BNI – Bank DKI Card • EDC 
»» BNI – Pertamina Card   • EDC Mini ATM
• BNI iPay
• BNI SmartPay

Company Profile
PRIORITY BANKING BUSINESS BANKING
EMERALD SERVICE INDUSTRIAL SECTOR FUNDING SERVICES

• BNI Emerald Card • Agribusiness • Non-Individual BNI Current • Cash Management
• BNI Infinite Card • Telecommunications Accounts »» Transfer Management
• BNI Emerald Saving • Food and Drink • Company Time Deposits »» Collection
• Layanan BNI Emerald • Oil and Gas Mining • Single Currency Management (Auto
• Chemical Industry • Dual Currency (BNI duo) Collection, Pickup
INVESTMENT PRODUCTS • Construction Services, BNI Virtual
• BNI Supermarket Investment • Electricity LENDING Account)
• Supermarket Mutual Funds • Large and Retail Trade • Working Capital Loan »» Payment Management
»» Money Market Mutual Funds • Investment Loan (Bulk Payment, Payroll
»» Fixed Income Mutual Funds BNI BUSINESS BANKING • Supply Chain Loan Management, BNI
»» Shares Mutual Funds
»» Mix Mutual Funds • Local Corporate and • Loan to Financial e-Tax)
»» Protected Mutual Funds Multinational Company 1 Institutions (KKLK) »» Liquidity management
• Local Corporate and • People’s Business Loan • Sindikasi
INSURANCE PRODUCTS Multinational Company 2 (KUR) »» Arrangement
• In Branch and Telemarketing • Transactional Banking • Two Step Loan »» Agent
• Solusi Abadi Plus Services • Two Step Loan - IEPC 2 • Facility Agent
• BNI Life Multi Pro »» BNI Direct (Payment • Time Deposit Backed Loan • Security Agent
• BNI Life Cash Pro Management, • BNI Entrepreneurship • Escrow Agent
• Prima Proteksi Collection • Cash Collateral Loan • Fund Services
• Pro Maxima Management, Liquity • Export Loan »» Fund Accounting,
• Pro Medika Management, • Import Loan Fund Administration,
• Blife MedPlus Information • Primary Cooperative Loan Reporting and
• Rencana Pintar Management) • Syndication Loan Publication
• Rencana Sehat »» Supply Chain • Loan for Food and Energy Supervision
Financing Security (KKP-E) »» Core Banking BNI
E-BANKING »» Custody and Securities • Loan Plantation »» Transfer Agency
• BNI ATM  Services Revitalization - Partnership • Custody Service
• ATM Drive Thru • Commercial and Small Program • Wali Amanat
• SMS Banking  »» Working Capital Loan • Garansi Bank
• Internet Banking (KMK) »» Big Bond/Jaminan
• Phone Banking »» Investment Loan (KI) Tender
• O-Branch »» Bank Guarantee (GB) »» Advance Payment
• Mobile Banking »» Domestic Letter of Bond/Jaminan Uang
• Tapcash Credit (SKBDN) Muka
• Unikqu  »» Letter of Credit (LC) »» Performance
• EDC  »» People’s Business Loan Bond (Garansi
• EDC Mini ATM (KUR) Bank Pelaksana/
»» Program Loan Performance Bond,
»» Marketing Intelligence Garansi Bank Jaminan
and Business Portfolio Pemeliharaan/
Maintenance Bond/
Retention Bond,
Garansi Bank
Pembayaran)
»» Custom Bond
• Agen Pembayaran (Paying
Agent)

ANNUAL
REPORT 2018
INTERNATIONAL
TRADE FINANCE PRODUCTS FINANCIAL INSTITUTION PRODUCTS

• Import LC Issuance • Bank Guarantee based on Counter Guarantee
»» Sight LC • Confirm LC/SKBDN
»» Usance LC • Nostro Account
»» Back to Back LC (BBLC) • Foreign Exchange
»» Transferable Letter of Credit • Today, Tom, and Spot
• Export LC Negotiation • Forward Transaction
• Inward Documentary Collection • Swap Transaction
• Outward Documentary Collection • Penempatan Dana
• Shipping Guarantee • Money Market Account
• Trust Receipt • Deposit on Call
• Advances Under Collection Bills • Billateral Trade Financing
• Open Account Financing • Risk Participation and Forfaiting
• Bills Discounting • Custodian Services
• “UPAS” LC Refinancing • Bankers Acceptance
• Standby Letters of Credit • Derivatif
• Interest Rate Swap
LOAN PRODUCTS • Option
• Corporate Loan (Working Capital Loan and Investment • Cross Currency Swap
Loan) • Bank Notes
• Term Loan • Plain Vanilla Option
• Overdraft Facility • Repo Obligasi/Reverse Repo
• Trade Financing
• Syndication Loan TREASURY
• Project Financing • Foreign Exchange
• Discount Bills »» Today, Tom, and Spot
• Loan on Bills • Forward Transaction
• Housing Loan • Penempatan Dana
• Two Steps and Channeling Loans to Local Companies »» Money Market Account
from Indonesia »» Deposit on Call
• Derivatif
RETAIL SERVICE PRODUCTS »» Interest Rate Swap
• BNI Current Account »» Option
• BNI Fixed Deposit »» Cross Currency Swap
• BNI SingPlus Saving Account • Bank Notes
• BNI Simpanan Hong Kong Dollar • Plain Vanilla Option
• BNI Giro Hong Kong Dollar & US Dollar • Repo Obligasi/Reverse Repo
• Demand Deposits
• Negotiable Deposits
• Remittance
• Hospital Guarantee
• Bank BNI Singapore| MAS Electronic
• Payment System (MEPS)
• Escrow Agent
• Safe Deposit Box

Company Profile

ANNUAL
REPORT 2018
REGIONAL BUSINESS
MAP
Currently BNI has 1 (one) Head Office, 17 Regional Offices and 2,245 office networks consisting of branch
offices, sub-branch offices, overseas offices, cash offices and other office networks such as payment points,
mobile cash and O-Branch. In addition, BNI also has Agen46 in all provinces in Indonesia.
MEDAN REGION
»» 19 Branch Office
»» 68 Sub-branch Office
»» 39 Cash Offices
»» 8 Payment Point
»» 1.115 ATM
»» 21 O-Branch
BANJARMASIN REGION
»» 1.438 ATM
»» 21 O-Branch
PADANG REGION PALEMBANG REGION

»» 1.037 ATM
»» 1.015 ATM
»» 13 O-Branch
»» 15 O-Branch
SEMARANG REGION
»» 805 ATM
»» 12 O-Branch
JAKARTA KEMAYORAN REGION BANDUNG REGION

»» 8 Branch Office »» 15 Branch Office
»» 76 Sub-branch Office »» 76 Sub-branch Office
SURABAYA REGION
»» 50 Cash Offices »» 42 Cash Offices
»» 9 Payment Point »» 11 Payment Point
»» 1.530 ATM »» 1.440 ATM
»» 6 O-Branch »» 16 O-Branch
»» 1.286 ATM
JAKARTA SENAYAN REGION »» 11 O-Branch
MALANG REGION
YOGYAKARTA REGION »» 14 Branch Office
»» 956 ATM »» 15 Branch Office »» 43 Sub-branch Office
»» 3 O-Branch »» 56 Sub-branch Office »» 27 Cash Offices
»» 44 Cash Offices »» 11 Payment Point
JAKARTA KOTA REGION »» 22 Payment Point »» 1.029 ATM
»» 6 Branch Office »» 1.103 ATM »» 14 O-Branch
»» 78 Sub-branch Office »» 15 O-Branch
»» 862 ATM
»» 4 O-Branch
JAKARTA BSD REGION

»» 1.816 ATM
70 Adapting Quickly to Face Change
»» 7 O-Branch
Company Profile
Region Office
Branch Office
Sub-branch Office
Cash Offices
Payment Point
O-Branch
ATM
MANADO REGION Overseas

»» 11 Branch Office »» 8 ATM
»» 544 ATM
»» 11 O-Branch
PAPUA REGION
»» 223 ATM
»» 5 O-Branch
MAKASAR REGION
»» 1.042 ATM
»» 12 O-Branch
BNI OFFICE NETWORKS IN 2014 - 2018

Type of Office 2018 2017 2016 2015 2014
DENPASAR REGION Head Office 1 1 1 1 1

»» 91 Sub-branch Office Region Office 17 17 17 15 15
»» 7 Cash Offices
Branch Overseas Offices 6 6 6 6 5
»» 1.062 ATM
»» 10 O-Branch
Branch Office 201 200 196 169 168
Sub-branch Office 1.109 1.085 948 911 912
Cash Offices 605 595 623 545 495
Payment Point 128 130 110 105 92
Others Office Network
ATM 18.311 17.966 17.056 16.071 14.071
O-Branch 196 122 86 81 78
ANNUAL
REPORT 2018
The BNI implemented 8 (eight) Digital Branch outlet units in 2017, with an additional 6 (six) outlets and 1 (one) Digital Branch
devices in 2018.
D-Branch Network Per Region in 2018
No. Outlet Name Branch Office Location Year Of Development
KC Jl. Perintis Mall 23 Paskal Bandung,

1. D-Branch 23 Paskal 2017
Kemerdekaan Bandung Jawa Barat
Hartono Mall Yogyakarta,

2. D-Branch Hartono Mall KC UGM Yogyakarta 2017
D.I. Yogyakarta
Grand City Mall

3. D-Branch Grand City Mall KC Surabaya 2017
Surabaya, Jawa Timur
Plaza Medan Fair,

4. D-Branch Plaza Medan Fair KC Medan 2017
Sumatera Utara
Bandara Ngurah Rai,

5. D-Branch Bandara Ngurah Rai KC Renon 2017
Denpasar, Bali
6. D-Branch Gandaria City KC Pasar Mayestik Gandaria City, Jakarta 2017
7. D-Branch Pacific Place KC Melawai Raya Pacific Place, Jakarta 2017
8. D-Branch Kota Kasablanka KC Tebet Kota Kasablanka , Jakarta 2017
Menara BNI
9. D-Branch Pejompongan KC Mega Kuningan 2018
Pejompongan, Jakarta
10. D-Branch Stasiun BNI City KC Mega Kuningan Stasiun BNI City, Jakarta 2018
Pondok Indah Mall 2,

11. D-Branch Pondok Indah Mall 2 KC Fatmawati 2018
Jakarta
Nipah Mall Makassar,

12. D-Branch Nipah Mall Makassar KC Makassar 2018
Sulawesi Selatan
Manado Town Square

13. D-Branch Manado Town Square KC Manado 2018
Sulawesi Utara
Ciputra World Surabaya,

14. D-Branch Ciputra World KC Surabaya 2018
Jawa Timur

Company Profile

ANNUAL
REPORT 2018
ORGANIZATION
STRUCTURE
In line with the Bank’s business development, BNI’s organizational structure has undergone several changes. The last
organizational change took place on November 09, 2018, based on the letter KEPDIR No.KP/384/DIR/R dated November 09,
2018.
THE BOARD OF
COMMISSIONER
MANAGING MANAGING MANAGING MANAGING

DIRECTOR DIRECTOR DIRECTOR DIRECTOR
CORPORATE SMALL RETAIL BANKING TREASURY &
BANKING BUSINESS & INTERNATIONAL
Putrama Wahju NETWORK Tambok P. BANKING
Setyawan Catur Budi Harto Setyawati Rico Rizal Budidarmo
POLICY LOCAL CONSUMER

INTERNAL AUDIT & CORPORATE SMALL PRODUCT TREASURY
GOVERNANCE MULTINATIONAL BUSINESS 1 DIVISION
Muhammad MANAGEMENT
DIVISION COMPANY 1 DIVISION DIVISION Legendariah Bur
Gunawan Putra Josdi DIVISION Edy Awaludin J. Donny Bima Rasuanto
Situmorang Benny Yoslim Herjuno
CORPORATE SUBSIDIARIES LOCAL SMALL CONSUMER

& CORPORATE INTERNATIONAL
SECRETARY & DEVELOPMENT BUSINESS 2 SALES
MULTINATIONAL BANKING
COMMUNICATION DIVISION DIVISION DISTRIBUTION
COMPANY 2 DIVISION
DIVISION Teddy Erdius E. DIVISION Bambang DIVISION
Saputra Setyatmojo Eko Setyo Nugroho
Warda Hermita
Kiryanto* Nadjamuddin
CHANNEL CARD PENSION

STATED-
OWNED MANAGEMENT BUSINESS FUND
& ENTERPRISE DIVISION DIVISION UNIT
GOVERNMENT Okki Rushartomo
Fauzi Budiprabowo Saktimaya Murti
INSTITUTION
DIVISION
A.A.G Agung
Dharmawan SERVICE
QUALITY E-BANKING
SYNDICATION UNIT DIVISION
BUSINESS Grace Daturante Anang Fauzie
Pong Samma
UNIT
Rommel TP.
Sitompul BNI
MARKETING
CONTACT COMMUNICATION
CENTER UNIT DIVISION
Yohanes Iwan Indomora
Kurniawan Harahap
REGIONAL
BNI BNI BNI LIFE BNI

MULTIFINANCE SYARIAH INSURANCE REMITTANCE
BNI
SECURITIES
*Served until 28 January 2019.

Company Profile
ANNOTATION
Supervision Line
Coordination Line
Communication & Information Delivery Line
GENERAL MEETING
OF SHAREHOLDERS Board of Directors Committee
(GMS)
RISK NOMINATION & INTEGRATED
AUDIT
MONITORING REMUNERATION GOVERNANCE
COMMITTEE
COMMITTEE COMMITTEE COMMITTEE
Pataniari Siahaan
Revrisond Baswir Ari Kuncoro Revrisond Baswir
THE BOARD OF DIRECTORS & SEVP
PRESIDENT DIRECTOR
Achmad Baiquni
VICE PRESIDENT DIRECTOR

Herry Sidharta
MANAGING MANAGING
MANAGING MANAGING MANAGING
DIRECTOR DIRECTOR
DIRECTOR DIRECTOR DIRECTOR
INSTITUTIONAL FINANCE INFORMATION
RISK COMPLIANCE
RELATION (CFO) TECHNOLOGY &
MANAGEMENT
Anggoro Eko OPERATION Endang Hidayatullah
Adi Sulistyowati Bob Tyasika Ananta Cahyo Dadang Setiabudi
SEVP SEVP
COMMERCIAL REMEDIAL &
BANKING RECOVERY
Ronny Venir Yuddy Renaldi
INSTITUTIONAL STRATEGIC IT SOLUTION MIDDLE

ENTERPRISE COMPLIANCE CORPORATE
RELATION RISK PLANNING & SECURITY BUSINESS
MANAGEMENT DIVISION DIVISION DIVISION REMEDIAL &
DIVISION DIVISION DIVISION
Muhammad Risang Widoyoko RECOVERY
G.C. Koen Yulianto Aryanto Purwadi Mucharom Eko Setiawan
Faisal Jazuli DIVISION
Iwan Setiawan
TRANSACTIONAL CUSTOMER
CORPORATE FINANCIAL IT OPERATION
BANKING BUDGETING LEGAL ANALYSIS &
SERVICES CREDIT RISK DIVISION PORTFOLIO MANAGE
DIVISION & CONTROL DIVISION
DIVISION DIVISION Afthon Shodaq MENT UNIT MIDDLE & SMALL
Teddy Wishadi Noor
Johansyah
Retno Murwani Putu Bagus Kresna Syafrudin REMEDIAL &
RECOVERY
DIVISION
WEALTH MIDDLE & PROCUREMENT HUMAN Julius D. Aritonang
BANKING
MANAGEMENT SMALL & FIXED ASSETS CAPITAL
OPERATION
DIVISION CREDIT RISK DIVISION DIVISION
DIVISION
Neny Asriani DIVISION Dandy Perwandi
Sjamsudin Ahmad Fikri Efita Praharani
Babas Bastaman
CONSUMER DATA BNI

E-CHANNEL
LOAN MANAGEMENT CORPORATE
PROCESSING UNIT
DIVISION UNIVERSITY
& COLLECTION Tennisiana
DIVISION Sigit Eri Wicaksono
Moh. Hisyam Soekesi
Soelistianto Sarwo Edi
CREDIT
ADMINISTRATION
BOARD OF DIRECTORS COMMITTEE
DIVISION
INTEGRATED RISK
Anang Basuki RISK CREDIT PRODUCT MANAGEMENT
MANAGEMENT COMMITTEE COMMITTEE & CAPITAL
COMMITTEE COMMITTEE
PERFORMANCE TECHNOLOGY CREDIT POLICY

HUMAN CAPITAL
MANAGEMENT MANAGEMENT & PROCEDURE
COMMITTEE
COMMITTEE COMMITTEE COMMITTEE

ANNUAL
REPORT 2018
VISION, MISSION
AND CORPORATE CULTURE
TO BE A FINANCIAL
INSTITUTION WITH
SERVICE AND
PERFORMANCE VISION
EXCELLENCE
An explanation of the Vision follows:
“Financial Institutions” “Excellence in Service”

• Customer financial services needs will become more • Service is the main value offered to customers of
complex, and will cover financing, transactions, sharia, financial service providers.
investments, insurance, and alternative financing other • Superior services be added value for customers
than loans. choosing financial institutions.
• The increasingly complex customer needs are also • Financial institutions services are required to meet
influenced by information technology development all relevant aspects of customer needs so as to make
that causes changes in customer preferences. The financial institutions as financial lifetime partners, able
convenience of information technology has led to provide total financial solutions, including serving
customers to need easy and fast products and financial the business ecosystems in an integrated manner.
services. At the same time, the financial institution must
manage the emerging risks appropriately. The impact “Excellence in Performance”
of changes in customer preferences means the financial • Financial performance is an indicator of the company’s
services industry must be increasingly integrated with success in conducting its operations in the form of
the non-financial services industry. financial return. Quality financial performance will
• There are policies for financial service industry convince investors, customers, employees, industries
players to implement integrated governance in the that investments and risks are properly managed,
conglomerates involving financial service institutions. generate added value, and grow sustainably.
These aim to improve the effectiveness and efficiency of • Superior non-financial performance will provide
monetary and fiscal policies and the supervision of the added value to wider stakeholders. Non-financial
financial services industry. performance indicators that can be used include
support for government programs such as the financial
inclusion or partnership programs, contributions to the
environment and communities such as the through
sustainable financing or community development, and
other non-financial indicators such as the quality and
speed of services or operational reach of the financial
institutions..

Company Profile
• To provide excellent services and value-added solutions to all

customers and partners by being the primary banking choice
• To increase investment value for investors
• To create the best working environment for employees to
proudly work and actualize oneself
• To increase awareness and responsibility to the local
community and environment
• To become the role model for compliance to laws and
regulations, as well as good corporate governance for the
industry
MISSION
A description of the BNI Mission is as follow: productivity improvement.
1. To provide excellent services and value-added solutions 4. To increase awareness and responsibility to the local
to all customers and partners by being the primary community and environment, as described below:
banking choice as described below: a. Actively serving the banking needs of all levels of
a. Providing complete, integrated, quality, reliable, and society;
dependable products / banking services; b. Actively seeking and entering new businesses in
b. Providing “one stop solution” services for both accordance with the latest laws and regulations;
business and individual customers; c. Actively developing international businesses for
c. Providing superior best-in-class products and business repayments in prospective countries;
services; d. Actively improving the environment and
d. Improving customer experience for processes communications quality in line with business
considered critical by customers development.
e. Proactively making adjustments and improvements 5. To become the role model for compliance to laws and
in accordance with development needs and regulations, as well as good corporate governance for the
customer demands for quality products / services industry, as described below:
offered by BNI. a. Implementing Integrated risk management;
f. Providing convenience for customers when making b. Accommodating whistle blowers, to protect the
transactionsi. company’s and the communities’ interests;
2. To increase investment value for investors, as described c. Active communication between the Company’s
below: management and leaders Senior Leadership actively
a. Maximum business profitability; with to create role models;
b. Sustainable and accountable growth; d. Actively updating rules, regulations, and
c. A sound Financial Institution; implementing them in a disciplined and systematic
d. Cost effectiveness. manner, to create a trusted financial institution
e. Stable share prices and continuing to increaset.
3. To create the best working environment for employees to
proudly work and actualize oneself, as described below:
a. Providing equal opportunities and an area to
increase knowledge, skills, and an assured career
path;
b. Creating and supporting talent management
programs to mold future leaders for both BNI and
Indonesia ;
c. Providing safe, comfortable, harmonious facilities
and working environments to support the goal of

ANNUAL
REPORT 2018
VISION AND MISSION REVIEW BY

THE BOARD OF COMMISSIONERS
AND BOARD OF DIRECTORS
During the preparation of the BNI Long-Term
Corporate Plan 2019-2023, which began in
early 2018, a review of the company’s Vision
and Mission was carried out. The long-term
plan preparation involved all BNI stakeholders,
including the Board of Commissioners,
Management, subsidiaries, representatives at all
levels of employees, and the public, and financial
industry experts using surveys, interviews
and joint discussions. From the stakeholders’
aspirations, aligned with the latest external and
internal conditions, it can be concluded that in
the long term BNI is expected to become “To
be the Most Profitable Financial Institution in
Indonesia”.
After considering these aspirations, Management

determined that the current BNI Vision and
Mission is still very relevant in the long term. In
the context of these aspirations, the Vision and
Mission is explained in other sections of this
Annual Report regarding the Vision and Mission
elaboration. The Vision and Mission was officially
established in the BNI Long-Term Corporate
Plan 2019-2023 and approved in Board of
Commissioners Number DK/117 dated October
22, 2018, and then stipulated in the Board of
Directors’ Decree Number KP/385/DIR/R dated
November 9, 2018.

Company Profile
COMPANY
CULTURE
The BNI Working Culture is called “PRINCIPLE 46”

and is the behavioral guidance for BNI People
BNI 6 BNI PEOPLE MAIN

4 WORKING CULTURE BEHAVIOURS
PROFESSIONALISM • Increasing Competence and Giving the Best
Improving the competence and giving the best Results
result.
INTEGRITY • Honest, Sincere and Heartfelt

Commit to always be consistent for thoughts,
words and deeds based on conscience and belief in • Discipline, Consistent and Responsible
essential truth principles.
COSTUMER ORIENTATION • Delivering the Best Service Through

Always prioritize customer interests based on Synergistic Partnership
mutual respect and synergistic relationships.
CONTINUOUS IMPROVEMENT • Always Improving

Always seek opportunities and solutions to improve
services and performance that exceed Customer • Creative and Innovative
expectations.

ANNUAL
REPORT 2018
PROFILES
Ari Kuncoro
(President Commissioner/Independent
Commissioner)
Citizenship, Domicile, Age and Educational History Concurrent Positions and Affiliated Relationships
Indonesian citizen, domiciled in Jakarta, born in Jakarta in 1962, is While serving as President Commissioner of BNI, he has served on
currently 56 years old on December 2018. He earned a Bachelor’s the East Asia Economist Association Board since 2013, and as Dean
degree in Economics from Universitas Indonesia in 1986, and a at the Faculty of Economics and Business Universitas Indonesia since
Master of Art degree from the University of Minnesota, USA in 1990, 2013. He has no affiliated relationships with members of the Board of
as well as a PhD, in Economics from Brown University, USA in 1994. Directors, other members of the Board of Commissioners or with the
He attended the English to Academic Teaching Training in 1992 at Majority and Controlling Shareholders.
Brown University (Universitas Brunensis), giving a Public Lecture
for the Regional Finance Course in 2014 at LPEM FEB UI, AACSB Appointment Basis
Cooperative and Attachment, from 2015 to present from AACSB Initial appointment as the President Commissioner of BNI at the
International Accreditation Institute. In 2018, he actively participated Extraordinary General Meeting (EGM) on November 2, 2017, based
in the 1st Roundtable at the Southeast Asian Economic and Trade on EGM the decision deed No. 02 November 2, 2017 and received
Seminar and the CSIS Global Leaders Forum in Washington DC, approval from the Financial Services Authority (OJK) on March 14,
and the Key Risk Management Challenges Training in 2018 by the 2018. Since April 5, 2018, has been assigned as a Member of the
Banking Professional Certification Institute Banking Professional Nomination and Remuneration Committee.
Certification Institute (LSPP) in 2017 (Risk Management Certification
for Independent Commissioners at a maximum level 2). Tenure
November 02, 2017 - until the closing of the GMS 2020 (First Period).
Position History
He began his career at the Faculty of Economics and Business at
Universitas Indonesia (FEB UI) in 1986 and during his career served as
Economics Post Graduate Program Secretary from 1995 to 1998, Vice
Dean for Teaching, Education and Community Service from 1998 to
2001.

Company Profile
Wahyu Kuncoro
Vice President Commissioner
Citizenship, Domicile, Age and Educational History Concurrent Positions and Affiliate Relations
Warga Negara Indonesia, berdomisili di Jakarta. Lahir di Surakarta While serving as a BNI Commissioner, he currently serves as Agro &
Indonesian citizen, domiciled in Jakarta Born in Surakarta in 1969, is Pharmaceutical Businesses Deputy since 2016. He has no affiliated
currently 49 years old on December 2018. He earned his Bachelor’s relationships with members of the Board of Directors and other
degree in Agriculture from Universitas Sebelas Maret, in 1993 and members of the Board of Commissioners.
a Bachelor’s degree in Economics from Universitas YAI in 2003, and
then earned a Master’s degree in Management from Universitas Appointment Basis
Gadjah Mada in 2005. He has Obtained Level 1 Risk Management First appointed as BNI Commissioner at the General Meeting of
certification held by the Risk Management Certification Agency Shareholders (GMS) on March 10, 2016 based on GMS Deed No. 8 on
(BSMR) in 2016 (Risk Management Certification for Commissioners at March 10, 2016, and received approval from the Financial Services
a maximum level 2). Authority (OJK) on January 25, 2017. At the GMS on March 16,
2017, was appointed as Vice President Commissioner of BNI based
Position History on the AGMS deed No. 42 dated March 16, 2017. Since February
He began his career in the Finance Ministry in 1996 and throughout 14, 2017, has been assigned as a Member of the Nomination and
his career has served as Assistant Deputy for Services III Business Remuneration Committee.
Sector, Ministry of SOE (2013), Assistant Deputy of Banking and
Insurance Business, Ministry of SOE (2014), Deputy of Infrastructure Tenure
Business, (2015), Deputy of Agro Industry and Pharmaceutical March 10, 2016 - until the closing of the GMS 2021 (First Period)
Enterprises Ministry of BUMN (2016) and Commissioner of PT
Angkasa Pura II (Persero) (2012-2016).

ANNUAL
REPORT 2018
Revrisond Baswir
(Independent Commissioner)
Citizenship, Domicile, Agie and Educational History Concurrent Positions and Affiliated Relationships
Indonesian citizen, domiciled in Yogyakarta Born in Pekanbaru While serving as an Independent Commissioner at BNI, he does not
in 1958, is currently 60 years old on December 2018. He received any concurrent positions in other companies or institutions. He has
his Bachelor degree in Accounting from Faculty of Economics and no affiliated relationships with members of the Board of Directors
Business from Universitas Gadjah Mada, Yogyakarta in 1983, Master and other members of the Board of Commissioners, or with the
of Business Administration from Western Michigan University, Majority and Controlling Shareholders.
USA in 1991 and Doctor of Economics from Universitas Airlangga,
Surabaya in 2011. He actively participated in the Executive Risk Appointment Basis
Management Refreshment Program training and attended the Appointed as BNI Commissioner at the General Meeting of
“Anti Money Laundering and Prevention of Terrorism Funding in the Shareholders (GMS) dated March 17, 2015 based on GMS Deed No.
Financial Services Sector” seminar in 2018. He has Obtained Level 34 dated March 17, 2015, and received approval from the Financial
2 Risk Management certification held by the Risk Management Services Authority (OJK) on June 24, 2015. In the GMS dated March
Certification Agency (BSMR) in 2016 (Risk Management Certification 10, 2016, was appointed Independent Commissioner, and received
for Independent Commissioners at a maximum level 2). OJK approval on January 25, 2017, Since June 24, 2015 has been
assigned as a Nomination and Remuneration Committee Member.
Position History Additionally, on February 14, 2017 and March 30, 2017, was assigned
He began his career as a Lecturer at FEB UGM in 1983, During his as Risk Monitoring Committee Chairman, and Integrated Governance
career he served as Expert Staff for the Ministry of Human Rights Committee Chairman.
of the Republic of Indonesia (2000), Expert Staff for the Regional
Representative Council (2005), Center Head for Populist Economics Tenure
Studies UGM (2005-2007 and 2013-2014), Public Policy Committee March 10, 2016 - until the closing of the GMS 2021 (First Period)
Member at the Ministry of SOEs (2006-2011 and 2015-2016),
Commissioner and Audit Committee Chairman for PTPN XIII,
Pontianak (2008-2013), Commissioner for PTPN VIII, Bandung (2013-
2014), Commissioner and Audit Committee Chairman for PTPN XI,
Surabaya (2014-2015).

Company Profile
Pataniari Siahaan
Indonesian citizen, domiciled in Jakarta Born in Balige in 1946, is While serving as an Independent Commissioner at BNI, he is currently
currently 72 years old on December 2018. He obtained his Bachelor a Member of the MPR-RI Assessment Institute from 2015-present,
of Engineering degree in civil engineering from Universitas Trisakti Editorial Board of the Prioris Law Journal from 2013- present, and
in 1978, and a Bachelor of Engineering degree in civil engineering Lecturer at Universitas Trisakti Faculty of Law from 2011- present. He
transportation from Universitas Krisnadwipayana in 2006, then has no affiliated relationships with either the members of the Board
obtained his Master of Law degree from Universitas Trisakti in 2007, of Directors and other members of the Board of Commissioners or
and a Doctorate degree in Law from Universitas Trisakti in 2011. He with the Majority and Controlling Shareholders.
actively participated in the Executive Risk Management Refreshment
Program training in Frankfurt & Bern, Germany and attended an Appointment Basis
“Anti Money Laundering and Prevention of Terrorism Funding in the First appointed as Commissioner of BNI at the Annual General
Financial Services Sector” seminar in 2018. He has Obtained Level Meeting of Shareholders (AGMS) dated March 17, 2015 based on
2 Risk Management certification held by the Risk Management GMS Deed number 34 on March 17, 2015, and received approval
Certification Agency (BSMR) in 2016 (Risk Management Certification from the Financial Services Authority (OJK) on June 25, 2015. Later
for Independent Commissioners at a maximum level 2). in the GMS held on March 10, 2016, he was appointed Independent
Commissioner based on AGMS deed No. 8 dated March 10, 2016 and
Position History received approval from OJK on January 25, 2017. On June 25, 2015
He began his career in the House of Representatives / People’s was assigned as a Member of the Nomination and Remuneration
Consultative Assembly in 1999 and throughout his career he has Committee. On March 30, 2017 was assigned as Chairman of the
served as the Chairman of the MPR RI Decision Socialization Team Audit Committee.
in the 1945 Constitution, the Legislative Leaders of the House of
Representatives and various positions of the chairmen and members Tenure
of the DPR / MPR RI. March 10, 2016 - until the closing of the GMS 2021 (First Period)

ANNUAL
REPORT 2018
Ahmad Fikri Assegaf

Indonesian citizen, domiciled in Jakarta, Born in Jakarta in 1968, While serving as an Independent Commissioner at BNI, he currently
is currently 50 years old on December 2018. He graduated from serves as Vice Chairman of the Regional Management Council Rajah
the Universitas Indonesia in 1991, and graduated with a Master’s Tann Asia (2016-present), and Co-Managing Partner of Assegaf
Degree in Law from Cornell Law School, Ithaca, New York in 1994. He Hamzah & Partners (2017 - present). He also serves as a Member of
actively participated in the “Anti Money Laundering and Prevention the Kemayoran Complex Management Center Supervisory Board
of Terrorism Funding in the Financial Services Sector” Seminar in (2015-2020), Member of the Judicial Commission Member Selection
2018. He has Obtained Level 2 Risk Management certification held Committee (2015-present) and Honorary Board Member of the
by the Banking Professional Certification Institute (LSPP) in 2017 Capital Market Legal Consultants Association (2015-2018). He has
(Risk Management Certification for Independent Commissioners at a no affiliated relationships with either the members of the Board of
maximum level 2). Directors and other members of the Board of Commissioners or with
the Majority and Controlling Shareholders.
Position History
He began his career as a Lawyer in a Law Firm in Jakarta in 1993. In Appointment Basis
2000 he established www,hukumonline,com, the largest legal portal First appointed as Commissioner of BNI at the Annual General
in Indonesia. Then, in 2001 he established Law Firm Assegaf, Hamzah Meeting of Shareholders (AGMS) on March 16, 2017 based on GMS
& Partners. He served as Managing Partner at Assegaf Hamzah Deed No. 42, dated March 16, 2017 and received approval from
& Partner (2008-2016), Supervisory Board Member, Kemayoran the Financial Services Authority (OJK) on July 19, 2017. On July 31,
Complex Management Center (2015- 2017). 2017 was assigned as a Member of the Audit Committee, since
April 5, 2018 was assigned as Chairman of the Nomination and
Remuneration Committee.
Tenure
March 16, 2017 - until the closing of the GMS 2022 (First Period)

Company Profile
Sigit Widyawan
(Independent Commissioners)
Citizenship, Domicile, Age and Educational History

Indonesian citizen, domiciled in Solo. Born in Wonogiri in 1965, Concurrent Positions and Affiliated Relationships
currently 53 years old as of December 2018. He earned a Bachelor’s While serving as an Independent Commissioner at BNI, he currently
degree in Economics from Universitas Negeri Sebelas Maret in March does not have any concurrent positions in other companies or
1988, a Master’s degree in Accounting from Universitas Indonesia in institutions. On September 13, 2018, was assigned as a Member of
2001. He actively participated in the “Anti-Money Laundering and the Nomination and Remuneration Committee. He has no affiliations
Prevention of Terrorism Funding in the Financial Services Sector” with members of the Board of Directors or other members of the
Seminar, and the Key Risk Management Challenges training in 2018. Board of Commissioners.
He has Obtained Level 2 Risk Management certification held by
the Banking Professional Certification Institute (LSPP) in 2018 (Risk Appointment Basis
Management Certification for Independent Commissioners at a Initial appointment as a BNI Independent Commissioner at the AGMS
maximum level 2). dated March 20, 2018 based on the AGMS Minutes No. 37 dated
March 20, 2018, and received approval from the Financial Services
Position History Authority (OJK) on September 7, 2018. Since September 13, has
He started his career at PT Wijaya Karya (Persero) as a finance staff in been assigned as a member of the Nomination and Remuneration
the Trade Division in 1989 and during his career has served as Head Committee.
of Taxation at PT Wijaya Karya (Persero) Concrete Products Division
(1994 - 1997), Head of Finance at PT Wijaya Karya Beton (1997 - 2001), Tenure
Finance Director at Roda Jati Grup (2002 - 2013), Director at PT Roda March 20, 2018 - until the closing of the GMS 2023 (First Period)
Pembangunan Jaya (2003 - 2015), and Independent Commissioner at
PT Jasamarga (Persero) Tbk (2015 - 2018).

ANNUAL
REPORT 2018
Bistok Simbolon
(Commissioner)
Indonesian citizen, domiciled in Jakarta, Born in Tapanuli Utara While serving as a Commissioner at BNI, he currently also serves as
in 1956, is currently 62 years old on December 2018. He earned a Special Staff of the Cabinet Secretariat since February 2017. He has no
Bachelor of Law degree from Universitas Sumatera Utara, in 1984 and affiliated relationships with members of the Board of Directors, other
a Master of Economics degree from Universitas Indonesia in 2004. He members of the Board of Commissioners
actively participated in Key Risk Management Challenges training in
2018 and attended the “Anti Money Laundering and Prevention of Appointment Basis
Terrorism Funding in the Financial Services Sector” Seminar in 2018. Appointed as Commissioner of BNI at the General Meeting of
He has Obtained Level 1 Risk Management certification held by Shareholders (AGM) dated January 12, 2016 based on the EGMS
the Banking Professional Certification Institute (LSPP) in 2017 (Risk Deed number 01 dated January 12, 2016, and received approval
Management Certification for Commissioners at a maximum level 2). from the Financial Services Authority (OJK) dated May 10, 2016. On
May 10, 2016 was assigned as a Member of the Nomination and
Position History Remuneration Committee. On February 14, 2017 was assigned as a
He began his career in the Cabinet Secretariat since 1986 and Member of the Risk Monitoring Committee.
throughout his career he served as Head of the Bureau of Politics,
Defense, Ratification and Legal Issues of the Cabinet Secretariat Tenure
(2006-2011), Deputy Secretariat of the Cabinet on Politics, Law and January 12, 2016 - until the closing of the GMS 2021 (First Period).
Security (2011-2015) Deputy Cabinet Secretary (2015-January 2017).

Company Profile
Joni Swastanto
(Commissioner)
Indonesian citizen, domiciled in Jakarta, Born in Yogyakarta in 1956, While serving as a member of the Board of Commissioners at BNI, he
is currently 62 years old on December 2018. He earned a Bachelor of currently does not have any concurrent positions in other companies
Economics from Universitas Gadjah Mada, Yogyakarta in 1981 and a or institutions. He has no affiliations with the members of the Board
Master’s Degree in Economics from Colorado State University, USA of Directors or other members of the Board of Commissioners.
in 1985, and a Doctorate in Economics from Universitas Indonesia in
2007. He actively participated in Key Risk Management Challenges Appointment Basis
training in 2018 and attended the “Anti Money Laundering and First appointed as BNI Commissioner at the Extraordinary General
Prevention of Terrorism Funding in the Financial Services Sector” Shareholders’ Meeting on March 10, 2016 based on AGMS Deed No.
Seminar in 2018. He has Obtained Level 1 Risk Management 8 dated March 10, 2016, and received approval from the Financial
certification held by the Banking Professional Certification Services Authority (OJK) on April 20, 2016. On April 20, 2016 was
Institute (LSPP) in 2015 and a Refresher in 2017 (Risk Management assigned as a Member of the Nomination and Remuneration
Certification for Commissioners at a maximum level 2). Committee. On February 14, 2017, he was assigned as a member of
the Risk Monitoring Committee, and on September 14, 2017 was
Position History assigned as a Member of Integrated Governance.
He served as Director of the Bank 3 Supervision Department at Bank
Indonesia (2008), Director of the Banking Information and Licensing Tenure
Department at Bank Indonesia (2008-2011), Semarang Chief March 10, 2016 - until the closing of the GMS 2021 (First Period)
Representative at Bank Indonesia (2011-2013), Head of the Banking
Information and Licensing Department at Bank Indonesia (2013),
Head of the Banking Licensing and Information Department at the
Financial Services Authority (2013 - 2015), Deputy Commissioner of
Strategic Management IIB at the Financial Services Authority (June
2015-2016).

ANNUAL
REPORT 2018
Marwanto Harjowiryono
(Commissioner)
Kewarganegaraan, Domisili, Usia dan Riwayat Pendidikan Executive Director, Asian Development Bank (2009- 2011) General Fiscal
Indonesian citizen, domiciled in Jakarta, Born in Yogyakarta in 1959, Balance, Ministry of Finance (2011-2013).
is currently 59 years old on December 2018. He earned a Bachelor’s
degree of Economics degree from Universitas Gadjah Mada in 1983, and Concurrent Positions and Affiliated Relationships
a Master of Arts degree from Vanderbilt University, USA in 1991, and a While serving as a BNI Commissioner, he currently has served as
Doctorate degree in Public Policy from Universitas Gadjah Mada in 2009. Director General for Treasury at the Ministry of Finance since 2013. He
He attended A Three-day Training and Directorship Certification program has no affiliated relationships with members of the Board of Directors
for Commissioners and Directors at the Ministry of SOEs in Jakarta in and other members of the Board of Commissioners.
2007, and Executive Education Training Programs: Senior Leadership
Program, University of Melbourne in Australia in 2011, and Leadership Appointment Basis
Decision Making Training, Harvard Kennedy School, USA in 2013, and First appointed as Commissioner of BNI at the General Meeting of
various short courses related to Fiscal Policy at IMF, World Bank and at Shareholders (GMS) on March 16, 2017 based on GMS Deed No. 42,
Harvard University. In 2018, he actively participated in the Executive and obtained approval from the Financial Services Authority (OJK)
Risk Management Training Refreshment Program in Germany and the on March 16, 2017. On July 31, 2017 was assigned as a Member of
“Key Risk Management Challenges in 2018” Training in Makassar. He has Nomination and Remuneration Committee.
Obtained Level 1 Risk Management certification held by the Banking
Professional Certification Institute (LSPP) in 2017 (Risk Management Tenure
Certification for Commissioners at a maximum level 2). March 16, 2017 - until the closing of the GMS 2021 (First Period)
Position History
He began his career in the Ministry of Finance in 1983 and during his career
has served as the Budget Analysis Bureau Head, Ministry of Finance (1998-
2001), Foreign Cooperation Bureau Head, Ministry of Finance (2003-2004),
Public Relations Bureau Head, (2004-2006), Executive Board Head, and the
Bureaucracy Reform Team Deputy Head, Ministry of Finance (2007-2009),
Expert Staff for the Minister of Finance of State Expenditure (2006-2009).

Company Profile
BOARD OF DIRECTORS
PROFILE
Achmad Baiquni
(President Director)
Kewarganegaraan, Domisili, Usia dan Riwayat Pendidikan Concurrent Positions and Affiliated Relationships
Indonesian citizen, domiciled in Jakarta, Born in Surabaya in 1957, While serving as President Director of BNI, he currently does not hold
is currently 61 years old, He earned a Bachelor of Economics degree concurrent positions either in the Company or other Institutions, He
in Development Studies from Universitas Padjadjaran, in 1982 and a has no affiliated relationships with the other members of the Board of
Master of Business Management from Asian Institute of Management, Directors and members of the Board of Commissioners.
Makati, Philippines in 1992. In 2018 he actively participated in the
Risk Management Refresher Program training held by BARa Risk Appointment Basis
Forum in 2017, Discovery and Dream workshop in the framework of Appointed as President Director of the Company on March 17, 2015,
compiling the BNI Corporate Plan 2019-2023 held by Bank BNI and based on AGMS decision deed No. 34 on March 17, 2015 and received
McKinsey, and followed the Compliance Anti-Money Laundering and approval from the Financial Services Authority after a Fit and Proper
Prevention of Terrorism Funding Forum in Financial Services Sector Test based on OJK Letter No. SR-63/D.03/2015 April 16, 2015.
by Bnk BNI. He has obtained Level 5 Risk Management certification
in the Executive Program held by the Risk Management Certification Tenure
Agency (BSMR) in 2006 and a Refresher in 2017. March 17, 2015 until GMS 2020 close (First Period).
Position History
He began his career in BNI in 1984 and throughout his career has
served as Consumer Director of PT Bank Negara Indonesia (Persero)
Tbk (2003-2006), Corporate Director of PT Bank Negara Indonesia
(Persero) Tbk (2006-2008), Business Director Small and Medium
Enterprises and Sharia PT Bank Negara Indonesia (Persero) Tbk (2008-
2010), Finance Director of PT Bank Rakyat Indonesia Tbk (2010-2015).

ANNUAL
REPORT 2018
Herry Sidharta
(Vice President Director)
Citizenship, Domicile, Age and Educational History Perum Jamkrindo (2013-2014), Director of Human Resources
Indonesian citizen, domiciled in Jakarta Born in Yogyakarta in and General Perum Jamkrindo (2014-2015), Corporate
1957, is currently 61 years old on December 2018, He earned Director of PT Bank Negara Indonesia (Persero)Tbk (2015-
a Bachelor of Economics degree in Financial Management 2017).
from Universitas Pancasila Jakarta, in 1982 and a Master
of Business Administration from Rensselaer Polytechnic Concurrent Positions and Affiliated Relationships
Institute, New York, USA in 1995. In 2018 he actively attended While serving as Director of BNI, he currently does not
training in the Discovery and dream workshop for the BNI hold concurrent positions either in the Company or other
2019-2023 Corporate Plan, the Design Workshop for the BNI Institutions, He has no affiliated relationships with the other
2019-2023 Corporate Plan from BNI and McKinsey, book members of the Board of Directors and members of the Board
launch and review “Turbulence Sport in Indonesia” organized of Commissioners.
by the Ministry of Youth and Sports, and attended Workshop
Delivery for the BNI 2019-2023 corporate plan, Digital Appointment Basis
Leadership forum, BNI Q2 2018 Business Meeting, APU PPT Appointed as Vice President Director of the Company on
Refreshment, Corporate Governance Perception Index held March 17, 2015, based on AGMS decision deed No. 34 dated
by BNI, Speakers in the / Pancasila Festival held by BSMR March 17, 2015.
and BNI in 2018. He has Obtained Level 5 Risk Management
certification held by the Banking Professional Certification Tenure
Institute (LSPP) in 2015 and a Refresher in 2017. March 17, 2015 until GMS 2022 close (First Period).
Position History
He started his career in BNI in 1983 and throughout his
career has served as Corporate Leader (2008-2009), Leader
of Medium Enterprises (2009-2010), Head of Small Business
Division of PT Bank Negara Indonesia Tbk (2010), Director
Finance Perum Jamkrindo (2011-2013), Director of Operations

Company Profile
Putrama Wahju Setyawan

(Managing Director Corporate Business)
Indonesian citizen, domiciled in Bekasi, Born in Yogyakarta While serving as Director of BNI, he currently does not
in 1969, is currently 49 years old on December 2018. He hold concurrent positions either in the Company or other
graduated with a Bachelor degree in Forestry from Universitas Institutions, He has no affiliated relationships with the other
Gadjah Mada in 1994 and a Master of Management members of the Board of Directors and members of the Board
Accounting from Universitas Gadjah Mada in 1996. In 2018 he of Commissioners.
actively participated in non-formal education, including the
Discovery and dream workshop training in the preparation of Appointment Basis
the BNI Corporate Plan 2019-2023 organized by the Company First appointed as BNI Medium Business Director on March
and McKinsey. He has Obtained Level 5 Risk Management 10, 2016, based on the AGMS decision deed No. 8 dated
Certification held by the Risk Management Certification March 10, 2016 and received approval from the Financial
Agency (BSMR) in 2016 and a Refresher in 2017 in 2018. Services Authority after a Fit and Proper Test based on OJK
Letter No. SR-121/D.03/2016 dated July 15, 2016.
Position History
He started his career in BNI in 1998 and during his career has Tenure
served as Corporate Rescue and Settlement Division Head of March 10, 2016 until GMS 2021 close (First Period).
PT Bank Negara Indonesia (Persero) Tbk (2011-2014), BUMN
and Government Institution Division Head of PT Bank Negara
Indonesia Tbk (Persero)Tbk (2014 - 2015), Commercial and
Small Business Rescue and Settlement Division Head of
PT Bank Negara Indonesia (Persero)Tbk (2015 – 2016), and
Medium Business Senior Executive Vice President (SEVP) of PT
Bank Negara Indonesia (Persero) Tbk (2016).

ANNUAL
REPORT 2018
Adi Sulistyowati
(Managing Director Institutional Relations)
Indonesian citizen, domiciled in Jakarta Born in Purbalingga While serving as Director of BNI, she currently does not hold
in 1967, is currently 51 years old on December 2017, concurrent positions in other Companies or Institutions,
Graduated from Universitas Krisnadwipayana University in She has no affiliated relationships with the other members
1993. Actively participated in training including the Discovery of the Board of Directors and members of the Board of
and dream workshop in the preparation of the BNI Corporate Commissioners.
Plan 2019-2023 organized by BNI and McKinsey, participated
in the Focus Group Discussion (FGD) on “Implementation of Appointment Basis
superior products in rural areas with the Ministry of Village First appointed as BNI Dirctor on March 17, 2015, based
partnership pattern” organized by the Ministry of Villages, on AGMS decision deed No. 34 dated March 17, 2015 and
Development of Disadvantaged Areas and Transmigration. received approval from the Financial Services Authority after
She has Obtained Level 5 Risk Management Certification held a Fit and Proper Test based on OJK Letter No. SR-92/D.03/2015
by the Banking Professional Certification Institute (LSPP) in May 22, 2015.
2015 and a Refresher in 2017.
Tenure
Position History March 17, 2015 until GMS 2020 close (First Period).
She started her career in BNI in 1990 and throughout her
career served as Regional Head of Jakarta Senayan PT Bank
Negara Indonesia (Persero) Tbk (2010-2012) and Network and
Service Division Head of PT Bank Negara Indonesia (Persero)
Tbk (2012 -2015).

Company Profile
Rico Rizal Budidarmo

(Managing Director Treasury & International Banking)
Citizenship, Domicile, Age and Educational History 2014) Director Risk and Compliance of PT Bank Tabungan
Indonesian citizen, domiciled in Jakarta Born in Bandung in Negara (2014 - 2015).
1963, is currently 55 years old on December 2018, He earned
a Bachelor of Economics degree in Management Economics Concurrent Positions and Affiliated Relationships
from Universitas Gadjah Mada, in 1987, and earned a Master As well as serving as Director of BNI, he currently serves
of Business Administration (MBA) in Finance & MIS from Stern as Director of Research and Development of Bank’s Risk
Business School at New York University in 1996, and earned Management (BaRa), He has no affiliated relationships with
a Doctorate in Business Management in Artificial Intelligence the other members of the Board of Directors and members of
from Institut Pertanian Bogor in 2010, and earned a Master’s the Board of Commissioners.
degree in Law from Universitas Gajah Mada in 2017. In
2018, he actively participated in the Discovery and dream Appointment Basis
workshop training in the preparation of the BNI Corporate First appointed as BNI Director on March 17, 2015, based
Plan 2019-2023 organized by Bank BNI and McKinsey, AGMS decision deed No. 34 dated March 17, 2015 and
Treasury Level Advance Certification Training held by the received approval from the Financial Services Authority based
Banking Professional Certification Institute and participating on Letter No. SR-65/D.03/2015 April 16, 2015.
in “Daiwa Investment Conference Tokyo 2018” conference in
Tokyo organized by Daiwa Capital Markets America Inc. He Tenure
has Obtained Level 5 Risk Management Certification held by March 17, 2015 until GMS 2020 close (First Period).
the Banking Professional Certification Institute (LSPP) in 2012
and a Refresher in 2017.
Position History
He started his career at BRI in 1989 and during his career
he served as GM / EVP Risk Management Division of PT
Bank Rakyat Indonesia (Persero) Tbk (2009-2013), GM / EVP
Treasury of PT Bank Rakyat Indonesia (Persero) Tbk (2013-

ANNUAL
REPORT 2018
Anggoro Eko Cahyo

(Managing Director Finance)
Citizenship, Domicile, Age and Educational History Position History

Indonesian citizen, domiciled in Tangerang. Born in Jakarta in He started his career in BNI in 1996 and during his career has
1969, currently 49 years old as of December 2018. Obtained served as Head of Jakarta City Regional Office PT Bank Negara
a degree in Industrial Engineering and Management from Indonesia (Persero)Tbk (2010-2011), Head of Jakarta BSD
Institut Teknologi Indonesia, in 1992 and a Master’s degree in Region PT Bank Negara Indonesia Tbk (2011), Network and
Agribusiness from Institut Pertanian Bogor in 2002. Services Division Head of PT Bank Negara Indonesia (Persero)
In 2018 he actively participated in training including the Tbk (2011-2012) and Human Capital Division Head of PT Bank
Discovery and Dream Workshop in the framework of Preparing Negara Indonesia Tbk (2012-2015).
the BNI Corporate Plans for 2019-2023 held by BNI and
McKinsey, the Executive Education “Talent Management” Concurrent Positions and Affiliated Relationships
Program at Harvard Business School Boston, the Executive As well as serving as BNI Director, he currently serves as
Education “Design Thinking Program” Program at Stanford Chairman of the Indonesia Payment System Association
University San Francisco, and participated as a speaker at (ASPI) since 2016, He has no affiliated relationships with the
the Seminar on “Digital Economic Trends: era of Electronic other members of the Board of Directors and members of the
Transactions, Opportunities and Challenges “held by Bisnis Board of Commissioners.
Indonesia in 2018, participated in the Focus Group Discussion
(FGD) “Digital Economic Challenges in Indonesia” organized Appointment Basis
by the Republic of Indonesia National Economic and Industrial First appointed as BNI Director on March 17, 2015, based
Committee. Has obtained Level 5 Risk Management certification on AGMS Decision Decree No. 53 dated May 27, 2015 and
held by the Banking Professional Certification Institute (LSPP) in approval from the Financial Services Authority for the Fit and
2017. Proper Test based on the Financial Services Authority Letter
No. SR-90/D.03/2015 dated May 22, 2015.
Tenure
March 17, 2015 until GMS 2020 close (First Period)

Company Profile
Catur Budi Harto

(Managing Director Small Business and Network)
Indonesian citizen, domiciled in Jakarta Born in Demak As well as serving as Director of BNI, he is currently the
on 13th of 1964, is currently 54 years old, He received his Chairman of the Certified Wealth Manager’s Association since
Bachelor degree in Agronomy from Institut Pertanian Bogor April 25, 2017, He has no affiliated relationships with the
and a Master of Management degree from Prasetya Mulya other members of the Board of Directors and members of the
Management College in 2002. Actively participating in Board of Commissioners.
training including the Discovery and dream workshop in the
framework of compiling the BNI Corporate Plan 2019-2023 Appointment Basis
organized by the McKinsey Company, and participated in Appointed as BNI Director on March 16, 2017, based on
the National Startup Agritech Conference 2018 held by the AGMS decision deed No. 57 on July 25, 2017, based on AGMS
Institut Pertanian Bogor Alumni Association (IPB) in 2018. He decision deed No. 42 dated March 16, 2017 and received
has Obtained Level 5 Risk Management certification held by approval from the Financial Services Authority after a Fit and
the Risk Management Certification Agency (BSMR) in 2016. Proper Test based on OJK Letter No. KEP-136/D.03/2017 dated
July 19, 2017.
Position History
He began his career at PT Bank Rakyat Indonesia (Persero)Tbk, Tenure
and throughout his career served as Deputy Head of Credit March 16, 2017 until GMS 2022 close (First Period).
Card Division of PT Bank Rakyat Indonesia Tbk (2011-2013),
Regional Leader of Banjarmasin PT Bank Rakyat Indonesia
Tbk (2013- 2014), Head of Mass Banking Division of PT Bank
Rakyat Indonesia (Persero) Tbk (2014-2015), Senior Executive
Vice President of Network and Services of PT Bank Rakyat
Indonesia Tbk (2015-2016), and Director of Commercial
Funding, Digital Banking & Distribution PT Bank Tabungan
Negara (2016-2017).

ANNUAL
REPORT 2018
Bob Tyasika Ananta

(Managing Director Risk Management)
Indonesian citizen, domiciled in Jakarta Born in Surakarta While serving as BNI Director, he currently serves as Chairman
in 1963, is currently 55 years old on December 2018. He of the Indonesia Change Management Forum (ICMF), He has
earned a Bachelor degree in Accounting from Universitas no affiliated relationships with the other members of the
Gajah Mada, in 1986 and a Master of Finance degree from the Board of Directors and members
University of Oregon, USA in 1989. Actively participated in
the ASEAN Financial Innovation Network training organized Appointment Basis
by the ASEAN Financial Innovation, the Discovery and First appointed as BNI Director on March 17, 2015, based
dream workshop in the framework of compiling the BNI on AGMS decision deed No. 34 dated March 17, 2015 and
Corporate Plan 2019-2023 held by Bank BNI and McKinsey, received approval from the Financial Services Authority after
the Workshop on Early Warning System for Financial a Fit and Proper Test based on OJK Letter No. SR-64/D.03/2015
Conglomerates organized by the Financial Services Authority, April 16, 2015.
Training Risk Management Refresher Program held by BARa
Risk Forum, and the Assessor Refreshment Test held by the Tenure
Banking Professional Certification Institute (LSPP) in 2018. He March 17, 2015 until GMS 2020 close (First Period).
has Obtained Level 5 Risk Management certification in 2016
from the Banking Professional Certification Institute (LSPP)
and a Refresher in 2017.
Position History
He started his career at BNI in 1996 and during his career
served as General Manager of BNI Foreign Branch Offices in
Hong Kong (2008-2010), International Division Head (2010-
2011), and Strategic Planning Division Head (2011-2015).

Company Profile
Endang Hidayatullah
(Managing Director Compliance)
Indonesian citizen, domiciled in Bogor. Born in Sukabumi While serving as Director of BNI, he also serves as Chairman of
in 1970, is currently 48 years old on December 2018. He the Banking Compliance Director Communication Forum and
obtained a Bachelor’s degree in Civil Law from Universitas Steering Committee in the Indonesian Human Capital Forum.
Padjajaran in 1993, Master’s in Marketing Management He has no affiliations with the members of the Board of
from STIE Nusantara in 2005. Actively participated in Directors or other members of the Board of Commissioners.
training included the Discovery and Dream Workshop in the
framework of compiling the BNI Corporate Plan 2019-2023 Appointment Basis
organized by BNI and McKinsey , Compliance Anti Money Appointed first as Director of BNI on March 20, 2018, based
Laundering and Prevention of Terrorism Funding Forum in on AGMS decision deed No. 37 dated March 20, 2018 and
the Financial Services Sector, the National Convention on received approval from the Financial Services Authority after
Draft Indonesian National Work Competency Standards a Fit and Proper Test based on OJK Letter No. 13/KDK.03/2018
(RSKKNI) General Banking Division organized by the Financial dated July 5, 2018.
Services Authority, Workshop on “Legal Issues Issues related
to digital economic development in Indonesia “organized Tenure
by the Business Law and Bankruptcy Forum, and the 2018 March 20, 2018 until GMS 2023 (First Period)
International Business Integrity Conference (IBIC) organized
by the Corruption Eradication Commission (KPK). He has
obtained level 5 Risk Management certification from the Risk
Management Certification Agency (BSMR) in 2018.
Position History
Joined BNI in 1996 and has served as Legal Division Deputy
Head of PT Bank Negara Indonesia (Persero) Tbk (2012 -
2015), and Legal Division Head of PT Bank Negara Indonesia
(Persero) Tbk (2015 - 2018).

ANNUAL
REPORT 2018
Tambok P. Setyawati
(Managing Director Compliance)
Born in 1964, domiciled in Jakarta. Born in Jakarta in 1964, While serving as BNI Director, he does not hold concurrent
is currently 54 years old on December 2018. He gained a positions in other Companies of Institutions. Has no affiliated
Bachelor’s of Agriculture degree in Soil Science from Institut relationships with the other members of the Board of
Pertanian Bogor in 1987, a Master’s degree in Accounting Directors or members of the Board of Commissioners.
Management from the Universitas Indonesia in 1995. He
actively participated in the Risk Management Refresher Appointment Basis
Program training organized by the Banking Professional Initial appointment as Director of BNI on March 20, 2018,
Certification Institute (LSPP), Discovery and dream workshop based on AGMS decision deed No. 37 dated March 20, 2018
for the preparation of the BNI Corporate Plan 2019-2023 and received approval from the Financial Services Authority
organized by Bank BNI and McKinsey, as well as participated after a Fit and Proper Test based on OJK Letter No. 11/
in the Bank Indonesia Seminar “Payment Gateway” held KDK.03/2018 dated July 5, 2018.
by Bank Indonesia in 2018. She has Obtained Level 5
Risk Management certification in 2016 from the Banking Tenure
Professional Certification Institute (LSPP) and a Refresher in March 20, 2018 until GMS 2020 close (First Period)
2017.
Position History
Joined BNI in 1996 and served as CEO Region Jakarta
Kemayoran PT Bank Negara Indonesia (Persero) Tbk (2015-
2016), and SEVP Digital Banking PT Bank Negara Indonesia
(Persero) Tbk (2016). Also served as Finance Director of PT
Krakatau Steel (Persero) Tbk (2016-2018).

Company Profile
Dadang Setiabudi
(Managing Director Information Technology & Operations)
Indonesian citizen, domiciled in Jakarta. Born in Cimahi in While serving as BNI Director, he does not hold concurrent
1962, currently 56 years old as of December 2018. Gained a positions in other companies and institutions. Has no
Bachelor of Economics degree in Accounting from Universitas affiliated relationships with the other members of the Board
Padjajaran in 1987 and a Master’s degree in Agribusiness in of Directors and members of the Board of Commissioners.
Soil Science from Institut Pertanian Bogor in 1999. In 2018,
actively participated in the Discovery and dream workshop Appointment Basis
training in the framework of compiling the BNI Corporate Appointed as Director of BNI on March 20, 2018, based
Plan 2019-2023 organized by BNI and McKinsey, the “Oracle on AGMS decision deed No. 37 dated March 20, 2018 and
Open World” Annual Conference in San Francisco organized received approval from the Financial Services Authority
by Oracle Corporation, participated in the Irving Fisher after a Fit and Proper Test based on OJK Letter Letter No. 12/
Committee International Seminar on Big Data organized KDK.03/2018 dated July 5, 2018.
by Bank Indonesia, and participated as a speaker at the
2018 IBEX forum held by Perbanas. Obtained level 5 Risk Tenure
Management certification held by the Risk Management March 20, 2018 until GMS 2023 (First Period)
Certification Agency (BSMR) in 2018.
Position History
He began his career at PT Bank Rakyat Indonesia (Persero)
Tbk in 1988. During his career he served as Micro Business
Network Division Head at PT Bank Negara Indonesia (Persero)
Tbk in 2013 and as Director Information Technology at BPJS
Kesehatan (2014- 2016). Joined BNI in 2016, and before
serving as Director, he served as Information Technology and
Digital Banking SEVP at PT Bank Rakyat Indonesia (Persero)
Tbk (2016-2018).

ANNUAL
REPORT 2018
SENIOR EXECUTIVE VICE PRESIDENT

PROFILE
Yuddy Renaldi
SEVP Remedial & Recovery
Currently 54 years old. Holds a Bachelor’s degree in Economics

Accounting from Universitas Trisakti in 1990 and a Master’s degree
in Management from STIE IPWI Jakarta. Has obtained level 5 Risk
Management certification held by the Risk Management Certification
Agency (BSMR). During 2018, actively participated in various training
including Discovery and Dream Workshop in the framework of preparing
the BNI Corporate Plan 2019-2023 organized by BNI and McKinsey.
Appointed as SEVP Remedial & Recovery based on Specific Time Work
Agreement No. DIR/298 on May 5, 2017.
Ronny Venir
SEVP Medium Business
Currently 51 years old. Holds a Bachelor’s degree in Animal Husbandry from

Universitas Padjajaran in 1993 and a Master’s degree in Agribusiness from
Institut Pertanian Bogor in 2003. Started his career at BNI in 1995 and during
his career he served as Padang Regional Head at PT Bank Negara Indonesia
(Persero) Tbk (2016), Jakarta City Regional Head PT Bank Negara Indonesia
(Persero) Tbk (2017) and Head of the Small Business Business Division at PT
Bank Negara Indonesia (Persero) Tbk (2018). Appointed as SEVP Medium
Business based on Board of Director’s Decree No. KP/146/DIR/R dated April
13, 2018.
Company Profile
EXECUTIVE OFFICERS
PROFILE
Kiryanto
Corporate Secretary (April 25 , 2016 - January 28, 2019)
Currently 54 years old. Obtained a Bachelor’s degree in Government Science

from Universitas Gadjah Mada in 1989 and a Master’s degree in Finance from
Universitas Indonesia in 2002. Appointed as Corporate Secretary based on
Board of Director’s Decree No. KP/161/DIR/R dated April 18, 2016. Appointed
Corporate Secretary on April 25, 2016 to January 28, 2019.
Meiliana
Corporate Secretary (March 22, 2019 - Present)
Currently 46 years old. Holds a Master’s degree in Agribusiness from

Institut Pertanian Bogor. Appointed as PGS Head of Corporate Secretary
& Communication Division based on Board of Director’s Decree No.
KP/01.005265/2019/HCT/R dated January 28, 2019. Subsequenty, she
serves as the Corporate Secretary on March 22, 2019, based on the Board of
Directors’ Decision Letter No. KP/118/DIR/R.
Muhammad Gunawan Putra

Head of Internal Control Unit
Currently 48 years old. Holds a Bachelor’s degree in Economics in Accounting

from Universitas Gajah Mada in 1995, Registered Accountant in 1996 and
gained a Master of Business Administration degree in Strategic Management
from Universitas Gajah Mada in 2009, and became a Chartered Accountant (CA)
from the Association Indonesian Accountant (IAI) in 2015. Appointed as Head
of Internal Control Unit based on Board of Director’s Decree No. KP/125/DIR/R
dated 21 April 2017.
Risang Widoyoko
Head of Compliance Division
Currently 52 years old. Holds a Bachelor’s degree in Economics and

Accountancy from the Faculty of Economics, Accounting Department,
Universitas Gadjah Mada in 1992, and a Master’s degree in Management
from the Post Graduate Faculty at Universitas Lambung Mangkurat in 2004.
Appointed as Head of the Compliance Division based on Board of Director’s
Decree No. KP/147/DIR/R dated April 13, 2018.
ANNUAL
REPORT 2018
Wicaksono Sarwo Edi

Head of BNI Corporate University Division
Currently 54 years old. Holds a Master’s degree in Finance Management

and Banking Universitas Gadjah Mada. Appointed as Head of BNI
Corporate University Division based on Board of Director’s Decree No.
KP/101/DIR/R dated April 10, 2017.
Julius D. Aritonang
Head of Commercial Remedial and Recovery Division
Currently 47 years old. Holds a Masters degree in Financial Management

& Banking from Universitas Indonesia. Appointed as Commercial
Remedial and Recovery Division based on Board of Director’s Decree No.
Iwan Setiawan
Head of Corporate Remedial and Recovery Division
Currently 50 years old. Holds a Bachelor’s degree in Civil Law from Universitas
Padjadjaran. Appointed as Head of the Corporate Remedial and Recovery
Division based on Board of Director’s Decree No. KP/482/DIR/R dated
December 20, 2018.
Anang Basuki
Head of Credit Administration Division
Currently 49 years old. Holds a Bachelor’s degree in Accounting from

Universitas Gadjah Mada. Appointed as Head of Credit Administration Division
based on Board of Director’s Decree No. KP/482/DIR/R dated December 20,
2016.
Company Profile
Okki Rushartomo Budiprabowo

Head of Card Business Division
Currently 38 years old. Holds a Bachelor’s degree in Industrial Engineering

from Institut Teknologi Bandung. Appointed as Head of the Card Business
February 06, 2018.
Benny Yoslim
Head of Corporate and Multinational Business 1 Division
Currently 38 years old. Holds a Master’s degree in Business Management

from Institut Teknologi Bandung. Appointed as the Head of Corporate
and Multinational 1 Division based on Board of Director’s Decree No. KP
011/DIR/R dated January 5, 2018.
Warda Nadjamuddin
Head of Corporate and Multinational Business 2 Division
Currently 47 years old. Holds a Master’s degree in Management from

Universitas Sam Ratulangi. Appointed as Head of Corporate and
Multinational 2 Division based on Board of Director’s Decree No. KP/147/
DIR/R dated April 13, 2018.
Eko Setiawan
Head of Middle Business Division
Currently 48 years old. Holds a Master’s degree in Finance from

Universitas Gadjah Mada. Appointed as Middle Division Leader based on
Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018.
ANNUAL
REPORT 2018
Edy Awaludin
Head of Small Business 1 Division
Currently 50 years old. Holds a Master’s degree in Agribusiness

Management from Institut Pertanian Bogor. Appointed as Head of
Small Business 1 Division based on Board of Director’s Decree No. KP/
023/DIR/R dated January 17, 2019.
Bambang Setyatmojo
Head of Small Business 2 Division

Universitas Gadjah Mada. Appointed as Head of Small Business 2
November 1, 2018.
A.A.G. Agung Dharmawan

Head of SOE and Government Institutions Division

Universitas Gadjah Mada. Appointed as Head of SOE and Government
Institutions Division based on Board of Director’s Decree No. KP/406/
DIR/R dated 28 August 2017.
Anang Fauzie
Head of E-Banking Division
Currently 48 years old. Holds a Bachelor’s degree in Computer

Engineering from Universitas Gunadarma. Appointed as Head of
E-Banking Division based on Board of Director’s Decree No. KP/061/
DIR/R dated March 2, 2018.
Company Profile
G.C. Koen Yulianto

Head of Institutional Relations Division
Currently 52 years old. Holds a Master’s degree in Management

from Universitas Semarang. Appointed as Head of Institutional
Relations Division based on Board of Director’s Decree No.
KP/411/DIR/R dated November 30, 2018.
Johansyah
Head of Legal Division
Currently 37 years old. Holds a Bachelor’s degree in Law from

Universitas Hasanuddin. Appointed as Head of the Legal Division
based on Board of Director’s Decree No. KP/342/DIR/R dated
October 12, 2018.
Eko Setyo Nugroho

Head of International Division
Currently 49 years old. Holds a Master’s degree in Business

Administration Technology from Institut Teknologi Bandung.
Appointed as Head of International Division based on Board of
Director’s Decree No. KP/147/DIR/R daed April 13, 2018.
Teddy Wishadi
Head of Transactional Banking Services Division
Currently 47 years old. Holds a Master’s degree in Computer Science

from Universitas Indonesia. Appointed as Head of Transactional
Banking Services Division based on Board of Director’s Decree No.
KP/482/DIR/R dated December 20, 2016.
ANNUAL
REPORT 2018
Sigit Eri Soelistianto

Head of Data Management Division
Currently 49 years old. Holds a Bachelor’s degree from the Faculty of

Economics, Universitas Indonesia majoring in Accounting and a Master’s
degree in Professional Accounting Science from Universitas Indonesia.
Appointed as Head of Data Management Division based on Board of Director’s
Decree No. KP/210/DIR/R dated May 12, 2016.
Efita Praharani
Head of Human Capital Management Division
Currently 51 years old. Holds a Bachelor’s degree in Psychology from

Universitas Gadjah Mada and obtained a Master of Science degree in
Administrative Sciences from Universitas Indonesia. Appointed as Head of
Human Capital Management Division based on Board of Director’s Decree No.
KP/292/DIR/R dated August 23, 2018.
J. Donny Bima Herjuno

Head of Consumer Product Management Division
Currently 47 years old. Holds a Bachelor’s degree in Management

from Universitas Indonesia. Appointed as Head of Consumer Product
Management Division based on Board of Director’s Decree No. KP/274/
DIR/R dated August 3, 2018.
Aryanto Purwadi
Head of Bank Risk Management Division

Institut Pertanian Bogor. Appointed as Head of Bank Risk Management
August 3, 2018.
Company Profile
Neny Asriani
Head of Wealth Management Division
Currently 48 years old. Holds a Master’s degree in Management

from Universitas Terbuka. Appointed as Head of Wealth
Management Division based on Board of Director’s Decree No.
KP/391/DIR/R dated August 11, 2017.
Ahmad Fikri
Head of Operational Division
Currently 51 years old. Holds a Bachelor’s degree in Plant Pest & Disease
from Universitas Sriwijaya. Appointed as Head of Operational Division
based on Board of Director’s Decree No. KP/172/DIR/R dated April 26,
2016.
Afthon Shodaq Noor

Head of Information Technology Operations Division
Currently 47 years old. Holds a Master’s degree in Finance from Universitas

Gadjah Mada. Appointed as Head of Information Technology Operations
Division based on Board of Director’s Decree No. KP/137/DIR/R dated April 5,
2018.
Moh. Hisyam
Head of Consumer Loan Processing and Collection Division

Universitas Ibnu Khaldun. Appointed as Head of Consumer Loan Processing
and Collection Division based on Board of Director’s Decree No. KP/213/DIR/R
dated May 12, 2016.
ANNUAL
REPORT 2018
Putu Bagus Kresna

Head of Budgeting and Control Division
Currently 46 Financial years old. Holds a Master’s degree in Financial

Management from Universitas Indonesia. Appointed Head of Budgeting and
Control Division based on Board of Director’s Decree No. KP/147-DIR-R dated
April 13, 2018.
Dandy Perwandi S.
Head of Asset Management and Procurement Division
Currently 47 years old. Holds a Master’s degree in Finance / Banking from

the University of Monash. Appointed as Head of Asset Management and
Procurement Division based on Board of Director’s Decree No. KP/036/DIR/R
dated February 07, 2018.
Fauzi
Head of Network Management Division
Currently 51 years old. Holds a Bachelor’s degree in Development from

Universitas Andalas. Appointed as Head of Network Management
February 6, 2018.
Teddy Erdius E. Saputra

Head of Subsidiary Development Division

Institut Pertanian Bogor. Appointed as Head of Subsidiary Development
September 10, 2018.
Company Profile
Hermita
Head of Consumer Sales Division

Institut Pertanian Bogor. Appointed Head of Consumer Sales Division
based on Board of Director’s Decree No. KP/032/DIR/R dated February 6,
2018.
Mucharom
Head of Strategic Planning Division
Currently 49 years old. Holds a Master’s degree in International Business

Management from Universitas Gadjah Mada.. Appointed as Head of
Strategic Planning Division based on Board of Director’s Decree No.
Babas Bastaman
Head of Commercial and Small Business Risk Division
Currently 51 years old. Holds a Master’s degree in Small and Medium Industry
from Institut Pertanian Bogor. Appointed as Head of Commercial and Small
Business Risk Division based on Board of Director’s Decree No. KP/463/DIR/R
dated October 16, 2017.
Retno Murwani
Head of Corporate Credit Risk Division
Currently 51 years old. Holds a Master’s degree in Social Sciences from

Universitas Gadjah Mada. Appointed as Head of Corporate Credit Risk Division
based on Board of Director’s Decree No. KP/027/DIR/R dated January 20, 2016.
ANNUAL
REPORT 2018
Muhammad Faisal Jazuli

Head of Information Technology Solutions and Security Division
Currently 42 years old. Holds a Master’s degree in Business Administration

Management from Institut Teknologi Bandung. Appointed as Head of
Information Technology Solutions and Security Division based on Board of
Director’s Decree No. KP/26/DIR/R dated April 25, 2017.
Josdi Situmorang
Head of Policy Governance Division
Currently 54 years old. Holds a Master’s degree in Agribusiness from Institut

Pertanian Bogor. Served as Head of Policy Governance Division based on
Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018.
Legendariah Bur Rasuanto

Head of Treasury Division

Universitas Indonesia. Appointed as Head of Treasury Division based on Board
of Director’s Decree No. KP/147/DIR/R dated April 13, 2018.
Indomora Harahap
Head of Marketing Communication Division
Currently 49 years old. Holds a Master’s degree in Business Management

and Technology Administration from Institut Teknologi Bandung.
Appointed as Head of Marketing Communication Division based on
Board of Director’s Decree No. KP/016/DIR/R dated January 15, 2019.
Company Profile
Novianto Harry Kristono

Head of Medan Regional Office
Currently 54 years old. Holds a Master’s degree in Financial Management from

Universitas Sriwijaya. Appointed as Head of Medan Regional Office based on
Board of Director’s Decree No. KP/147/DIR/R dated April 13, 2018.
Hari Sundjojo
Head of Padang Regional Office
Currently 50 years old. Holds a Bachelor’s degree in Accounting from

Universitas Merdeka Malang. Appointed as Head of Padang Regional Office
based on Board of Director’s Decree No. KP/168/DIR/R dated April 27, 2018.
Dodi Widjajanto
Head of Palembang Regional Office
Currently 52 years old. Holds a Master’s degree in Agribusiness from Institut

Pertanian Bogor. Appointed as Head of Palembang Regional Office based on
Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018.
Afien Yuni Yahya

Head of Bandung Regional Office
Currently 50 years old. Holds a Master’s degree in Professional Path

Management from Universitas Indonesia. Appointed as Head of Bandung
Regional Office based on Board of Director’s Decree No. KP/032/DIR/R
ANNUAL
REPORT 2018
Mochamad Harsono
Head of Semarang Regional Office
Currently 54 years old. Holds a Bachelor’s degree in Management from

Universitas Mahasaraswati. Appointed as Head of Semarang Regional Office
based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018.
Muhammad Jufri
Head of Surabaya Regional Office

Universitas Trisakti. Appointed as Head of Surabaya Regional Office based
on Board of Director’s Decree No. KP/011/DIR/R dated January 5, 2018.
Faizal Arief Setiawan

Head of Makassar Regional Office ar
Currently 48 years old. Holds a Master’s degree in Finance from

Universitas Gadjah Mada. Appointed as Head of Makassar Regional Office
based on Board of Director’s Decree No. KP/031/DIR/R dated January 23,
2019.
Suhardi Petrus
Head of Denpasar Regional Office
Currently 50 years old. Holds a Master’s degree in Financial Management from

Universitas Wijaya Putra. Appointed as Head of Denpasar Regional Office
based on Board of Director’s Decree No. KP/032/DIR/R dated February 6, 2018.
Company Profile
Muhammad Arafat
Head of Banjarmasin Regional Office
Currently 48 years old. Holds a Master’s degree in Financial Management

from Universitas Hasanuddin. Appointed as Head of Banjarmasin
Regional Office based on Board of Director’s Decree No. KP/307/DIR/R
dated September 7, 2018.
Yanar Siswanto
Head of Jakarta Senayan Regional Office

Institut Pertanian Bogor. Appointed as Head of Jakarta Senayan Regional
Office based on Board of Director’s Decree No. KP/172/DIR/R dated April
24, 2016.
Haris Agus Handoko

Head of Manado Regional Office
Currently 51 years old. Holds a Master’s degree in Financial Management

from Universitas Hasanuddin. Appointed as Head of Manado Regional
Office based on Board of Director’s Decree No. KP/219/DIR/R dated June
8, 2018.
Yessy Kurnia Dyah W.

Head of Jakarta Kota Regional Office
Currently 48 years old. Holds a Master’s degree in Agribusiness Management

from Universitas Pembangunan Nasional Veteran Surabaya.. Appointed as the
Head of the Jakarta Kota Regional Office based on Board of Director’s Decree
No. KP/324/DIR/R dated September 24, 2018.
ANNUAL
REPORT 2018
Henry Panjaitan
Head of Jakarta BSD Regional Office
Currently 49 years old. Holds a Master’s degree in Banking from

University of South Australia. Appointed as the Head of the Jakarta
BSD Regional Office based on Board of Director’s Decree No. KP/016/
DIR/R dated January 15, 2019.
Feri Andajaya
Head of Jakarta Kemayoran Regional Office
Currently 51 years old. Holds a Master’s degree in Bussiness Administration

& Technology from Institut Teknologi Bandung. Appointed as Head of
Jakarta Kemayoran Regional Office based on Board of Director’s Decree No.
Setiawan Jahja Adie

Head of Papua Regional Office

Universitas Jember. Appointed as Head of Papua Regional Office based
on Board of Director’s Decree No. KP/031/DIR/R dated January 23, 2019.
Arif Suwasono
Head of Yogyakarta Regional Office
Currently 52 years old. Holds a Master’s degree in Management from STIE

Artha Bodhi Iswara. Appointed as Head of Yogyakarta Regional Office
based on Board of Director’s Decree No. KP/585/DIR/R dated December
28, 2017.
Company Profile
Wiwi Suprihatno
Head of Malang Regional Office
Currently 47 years old. Holds a Bachelor’s degree in Administration

from Universitas Brawijaya and Master’s degree from Mahasaraswati.
Appointed as Head of Malang Regional Office based on Board of
Director’s Decree No. KP/032/DIR/R dated February 6, 2018.
Yohanes Iwan Kurniawan

Head of BNI Contact Center Unit
Currently 48 years old. Holds a Master’s degree in Accounting

Management from Universitas Gadjah Mada. Appointed as Head of BNI
Contact Center Unit based on Board of Director’s Decree No. KP/1711/
HCT/1/R dated September 29, 2017.
Rommel TP. Sitompul

Head of Syndication Business Unit
Currently 48 years old. Holds a Master’s degree in Marketing

Management from Universitas Persada Indonesia YAI. Appointed as Head
of Syndication Business Unit based on Board of Director’s Decree No.
KP/1990/HCT/1/R dated 16 October 2018.
Saktimaya Murti
Head of Financial Institution Pension Fund Unit
Head of Financial Institution Pension Fund Unit

from Universitas Jendral Soedirman. Appointed as Head of Financial
Institution Pension Fund Unit based on Board of Director’s Decree No.
KP/482/DIR/R dated December 20, 2016.
ANNUAL
REPORT 2018
Tennisiana Soekesi
Head of E-Channel Unit
Currently 49 years old. Holds a Master’s degree in Computer Science from

Universitas Indonesia. Appointed as Head of E-Channel Unit based on
Board of Director’s Decree No. KP/126/DIR/R dated 25 April 2017.
Grace Daturante Pong Samma

Head of Service Quality Unit

from Universitas Kristen Indonesia. Appointed as Head of Service
Quality Unit based on Board of Director’s Decree No. KP/482/DIR/R
dated December 20, 2016.
Syafrudin
PGS Head of Customer Analysis & Portfolio Management Unit
Currently 50 years old. Holds a Master’s degree in Accounting

Management from Universitas Gadjah Mada. Appointed as Head
of Customer Analysis & Portfolio Management Unit based on
Board of Director’s Decree No. KP/01.002785/2019/TBS/R dated
January 14, 2019.
Company Profile
EMPLOYEE PROFILE
AND EMPLOYEE COMPETENCY
DEVELOPMENT KARYAWAN
TOTAL EMPLOYEES BASED ON POSITION LEVEL
Total Employees Based on Position Level (number of employees)

Position Level 2018 2017
Male Female Total Male Female Total
≥ Vice President 196 42 238 182 42 224

Assistant Vice President 755 322 1,077 730 276 1,006
Manager 1,803 1,190 2,993 1,692 1,101 2,793
Assistant Manager 4,743 4,842 9,585 4,078 4,191 8,269
Assistant 5,451 7,684 13,135 5,576 8,592 14,168
Basic Employee 196 - 196 749 - 749
Total 27,224 27,209
TOTAL EMPLOYEES BASED ON EDUCATION LEVEL
TTotal Employees Based on Education Level (number of employees)

Education Level 2018 2017
Doctorate Degree 5 4 9 3 4 7
Master’s Degree 1,556 1,028 2,548 1,509 963 2,472
Bachelor’s Degree 10,031 11,392 21,423 9,718 11,334 21,052
Diploma 872 1.641 2,513 995 1,883 2,878
Primary – Senior High School 680 15 695 782 18 800
Total 27,224 27,209
TOTAL EMPLOYEES BASED ON EMPLOYMENT STATUS
Total Employees Based on Employent Status (number of employees)

Employent Status 2018 2017
Permanent 12,485 13,401 25,886 11,866 12.775 24,641

Contract 446 443 889 1,141 1,427 2,568
Trainee 213 236 449 - - -
Total 27,224 27,209
ANNUAL
REPORT 2018
TOTAL EMPLOYEES BASED ON AGE GROUP
Total Employees Based on Age Group (number of employees)

Age Group 2018 2017
>50 Years 664 302 966 813 344 1,157

>45-50 Years 1,946 1,322 3,268 2,030 1,379 3,409
>40-45 Years 1,888 1,407 3,295 1,928 1,482 3,410
>35-40 Years 1,769 1,805 3,574 1,881 1,950 3,831
>30-35 Years 2,449 2,884 5,333 2,507 3,027 5,534
>25-30 Years 3,432 4,795 8,227 3,404 5,061 8,465
≤25 Years 996 1.565 2.561 444 959 1.403
Total 27,224 27,209
TOTAL EMPLOYEES BASED ON GENERATION
Total Employees Based on Generation (number of employees)

Generation 2018 2017
Baby Boomer 130 34 164 282 85 367

Gen X 5,815 4,474 10,289 6,041 4,727 10,768
Gen Y 7,199 9,572 16,771 6,684 9,390 16,074
Total 27,224 27,209
EMPLOYEE COMPETENCY DEVELOPMENT
COMPETENCY DEVELOPMENT POLICY
The following are the new programs implemented in 2018 to support the development of BNI employee competencies:
• Implementation of BNI Learning Wallet (BLW), a personal budget given to each employee that is used and managed by
the employees to improve and develop their competencies. BNI Learning Wallet realization up to the end of 2018 included
31,237 applications with a total participation of 20,169 employees.
• Implementation of BNI Smarter, namely the employee development framework through learning & sharing, a combination
of informal on-the-job learning or discussions with superiors and coworkers, and formal learning in a structured manner
in the classroom (real class and virtual class). This Learning & Development follows a 70:20:10 model, where the largest
portion of learning & sharing activities actually occurs when employees interact with other parties and when completing
their work. The development framework works through the bni.corpu.co.id website so employees can access it online
anywhere and anytime. As of the end of 2018, 25,788 employees followed learning activities and 7,537 employees were
involved in sharing activities.
Company Profile
• Implementation of BNI Expert Locator, an online tool for knowledge sharing between employees and
experts in problem solving and knowledge creation. Up to the end of 2018, more than 623 employees have
been designated as BNI Experts in more than 674 areas of expertise, including: corporate communication,
audit, policy, compliance, risk management, credit remedial and recovery, banking operational
management, procurement management, strategic planning, data management, IT assessment, project
management, financial analysis, credit analysis and credit process, project financing, and portfolio analysis.
Furthermore, all employees may interact with these appointed experts.
• BNI’s Assessment Center Reactivation is a Center of Digital Assessment and Evaluation (BNI CODAE) placing
BNI as the only State-Owned Bank with a digital format Assessment Center. Digitizing the BNI CODAE
assessment process helps improve service effectiveness and the quality of assessment results. During 2018,
BNI CODAE conducted assessments (soft skills and hard skills) for all employees at all organization levels,
including employees at BNI subsidiaries.
• Implementation of Daily Exercise Employee Program 46 (DEEP 46), a learning program designed in the
form of daily quizzes to gain insight into employees’ understanding of the necessary knowledge to help
their daily work as well as a reminder of essential, information related to work.
The number of DEEP46 participants throughout 2018 can be seen in the following table.
DEEP46 Participants
Small Credit 4.574

Consumer Lending 1.956
Services – Teller 7.954
Services – CS 3.465
Services – Leaders 2.959
Auditor 759
Emerald RM 237
Small Credit Agricultural Commodities 970
Sales 1.744
Legal, Governance, Risk and Compliance 27.092
Commercial Credit 820
Treasury 2.256
Human Capital 230
Procurement of goods/services 3.085
Brevet Branch Management 2.321
Total Partisipasi 60.422
• Implementation of Leadership Programs: including Digital Leadership for All Levels, Leadership for
Club 46 Program, Internships at Overseas Development Offices for the 10 best graduates from each
program, Advanced Management Development Program (AMDP), General Management Program (GMP),
Management Development Program (MDP), Management Trainee Program (MT) and Officer Development
Program (ODP).
ANNUAL
REPORT 2018
• Implementation of Four Disciplines of Execution (4DX) with seven internal consultants called “7 Samurai”. Up to the end
of 2018, the realization of 4DX implementation in BNI can be seen in the following graphic.
Number of teams in
the WIG Sessions 4,159 teams
Number of teams
receiving a Bronze 3,206 teams
Certificate
4DX Number of teams

Implementation receiving a Bronze 1,684 teams Realization
Silver Certificate
Number of teams
receiving a Bronze Gold 1,214 teams
Certificate
Sustainability Index 70.87%
Company Profile
COMPETENCY DEVELOPMENT BASED ON POSITION LEVEL
Competency Development Table Based on Position Level In 2018

No. Position Level Learning Program Learning Objectives Number of
Participants
1. ≥ Vice President Banking Operation Increase employee’s competency in banking 6

operations.
Corporate Core Function Increase employee’s competency in support 13

areas, such as law, information technology, HR
management, language, quality management,
procurement of goods and services,
accounting, and so on.
Credit and Business Increase the competency of employees in the 65

field of credit which is the main business of
BNI.
Governance, Risk, and Increase employee’s competency in the areas 25

Compliance of governance, risk, and compliance.
Leadership Increase employee’s competency in terms of 72

leadership.
Marketing, Sales, and Service Increase employee’s competency in 10

marketing, sales, and services to support BNI
business.
Professional Certification Provide certification in various fields, such 77

as Credit Certification, Sales Certification, IT
Certification, and so on.
Strategic Initiative Increase employee’s competency through 27

public learning, both inside and outside the
country.
Transactional Banking Increase employee’s competency in the 2

field of cash management services for non-
individual customers.
Treasury and Global Banking Increase the competency of employees in the 0

field of treasury and global banking.
Total Vice President 297
ANNUAL
REPORT 2018

Participants
2. Assistant Vice President Banking Operation Increase employee’s competency in banking 86

operations.

accounting, and so on.

BNI.

Compliance of governance, risk, and compliance.

leadership.

business.

Certification, and so on.

country.

individual customers.

field of treasury and global banking.
Total Assistant Vice President 1,865
Company Profile

Participants
3. Manager Banking Operation Increase employee’s competency in banking 115

operations,

accounting, and so on
Credit and Business Increase the competency of employees in the 1,417

BNI

Compliance of governance, risk, and compliance

leadership

business

Certification, and so on

country

individual customers

field of treasury and global banking
Total Manager 4,419
ANNUAL
REPORT 2018

Participants
5. Assistant Manager Banking Operation Increase employee’s competency in banking 374

operations,
Corporate Core Function Increase employee’s competency in support 1,286


BNI

Leadership Increase employee’s competency in terms of 1,006

leadership
Marketing, Sales, and Service Increase employee’s competency in 3,653

business
New Entry Provide debriefing to employees who have 558

just joined BNI so they can carry out their
duties in their definitive positions later.
Professional Certification Provide certification in various fields, such 1,550


country


Total Assistant Manager 12,865
Company Profile

Participants
6. Assistant Banking Operation Increase employee’s competency in banking 173

operations,
Corporate Core Function Increase employee’s competency in support 1,891


BNI


leadership
Marketing, Sales, and Service Increase employee’s competency in 4,704

business



country


Total Assistant 12,503
ANNUAL
REPORT 2018

Participants
7. Basic Employee Banking Operation Increase employee’s competency in banking 0

operations,


BNI


leadership

business




Total Basic Employee 150
During 2018, to develop employee competencies, BNI trained 28,590 employees (including 1,796 terminated employees), with
an average of 165.31 times per employee. The explanation be the next table below.
Total Total Training Hours (in Training Hours per Total Training per Total Employees Trained
Participant hours) Employee Employee (people)
4,452,413 7,871,298 293,77 165,31 26,794*
*) including 1,796 terminated employees
Company Profile
As of 2018 Learning Realization based on Learning & Development Model 70:20:10
2018 Learning Realization based on Learning & Development Model 70:20:10

Development Method ∑ Class ∑ Participant
Experiential Learning On the Job Training (OJT) 543 931

"70"
In Service Training (IST) 135 196
Short Overseas Assignment 3 27
Social Learning Coaching 375 675

"20"
Mentoring 935 1,332
Role Play 12,487 28,974
Formal Learning In-Class Learning 15,080 15,544

"10"
e-Learning 27,502 29,688
Certification 13 868
EVALUATION OF COMPETENCY DEVELOPMENT IMPLEMENTATION
To ensure that employee learning had an impact on productivity, the learning is measured. The learning and sharing impact
measurements set by BNI, include:
1. Circle 1: to measure the learning experience, namely the learner’s level of satisfaction with the learning program. The
employee’s level of satisfaction can be influenced by the learning material / modules, facilities, infrastructure and
facilitators. This employee satisfaction level is calculated using the Net Promoter Score method, where in 2018 the NPS
score was 62.07 (generally deemed excellent).
2. Circle 2: to measure the learning gained, namely the employee’s increased knowledge and skills after participating in the
learning program. In 2018, the evaluation result for circle 2 was 55.90.
3. Circle 3: to measure the behavior change, namely changes in the participant’s behavior and abilities, as well as the
application of the training results in the workplace. In 2018, the evaluation results for circle 3 was 11.27.
COMPETENCY DEVELOPMENT COSTS
Every year, 5% of the human capital budget is for learning. In 2018 Rp385.34 billion was used to increase employee capacity
and capability, both through centralized learning by BNI Corporate University, or through decentralization by each Unit and
by the employees themselves using their BLW budget. Based on the learning budget realization, 28,590 employees followed
training for an average participation rate of 165.31 per employee. This high learning participation was due to digital learning
through BNI SMARTER.
Competence Cost Growth

Description
2018 2017
In Currency In Percent
(Million Rp) (Million Rp)
Education & Training 382,013.34 348,150.11 33,863.23 9.73%
ANNUAL
REPORT 2018
SHAREHOLDER
COMPOSITION
BNI SHAREHOLDER COMPOSITION AS OF DECEMBER 31, 2018
BNI Shareholder Composition as of December 31, 2018

No. Shares Total Ownership
Ownership Share Percentage
1 Government 11,189,193,875 60.00000%

2 Public:
• Indonesian Individuals 214,792,074 1.15178%
• Cooperatives 1,016,329 0.00545%
• Foundations 101,774,354 0.54575%
• Pension Funds 163,280,124 0.87556%
• Insurance 442,488,323 2.37276%
• Banks 1,766,636 0.00947%
• Limited Liability Companies 508,838,625 2.72855%
• Other Business Enterprises 5,298 0.00003%
• Mutual Funds 646,867,810 3.46871%
• Foreign Individuals 2,891,622 0.01551%
• Foreign Business Enterprises 5,375,741,388 28.82643%
Total 18,648,656,458 100.00000 %
20 LARGEST BNI SHAREHOLDERS COMPOSITION AS OF DECEMBER 31, 2018
20 Largest BNI Shareholders

No. Investor Name Address Status Number of Percentage
Shares Ownership
MINISTRY OF SOE. JALAN MEDAN
REPUBLIC OF
1. NEGARA REPUBLIK INDONESIA MERDEKA SELATAN NOMOR 13, 11,189,193,875 60.0000000%
INDONESIA
JAKARTA 10110
BPJS KETENAGAKERJAAN - PROGRAM JENDRAL GATOT SUBROTO No.79, LIMITED LIABILITY
2. 432,350,768 2.31840%
JHT JAKARTA COMPANY
BNYMSANV RE BNYMSANVLUX RE S/A 46 RUE MONTOYER B-100 FOREIGN BUSINESS
3. 234,646,936 1.25825%
ESPRING INV-2040084086 BRUSSELS, BELGIUM ENTERPRISE
HSBC BANK PLC S/A PRUDENTIAL
LAURENCE POUTNEY HILL FOREIGN BUSINESS
4. ASSURANCE COMPANY OBA ESI HBEU 188,236,000 1.00938%
LONDON, EC4R OHH ENTERPRISE
AS AGENT
EPF BUILDING, JL. RAJA
BNYMSANV RE BNYMLB RE EMPLOYEES FOREIGN BUSINESS
5. LAUT 50350, KUALA LUMPUR 163,303,600 0.87569%
PROVIDENTFD BOARD -2039844119 ENTERPRISE
MALAYSIA
JPMCB NA AIF CLT RE-STICHTING OUDE LINDESTRAAT 70, 6401 DJ FOREIGN BUSINESS
6. 137,983,700 0.73991%
DEPOSITARY APG EME MRKT EQ POOL HEERLEN, THE NETHERLANDS ENTERPRISE
JPMCB NA RE-VANGUARD 100 VANGUARD BOULEVARD, FOREIGN BUSINESS 0.63964%
7. 119,284,300
INTERNATIONAL VALUE FUND MALVERN, PA 19355, USA ENTERPRISE
JPMCB NA RE-VANGUARD EMERGING 100 VANGUARD BOULEVARD, FOREIGN BUSINESS
8. 114,862,386 0.61593%
MARKETS STOCK INDEX FUND MALVERN, PA 19355, USA ENTERPRISE
JPMCB NA RE-VANGUARD TOTAL 100 VANGUARD BOULEVARD FOREIGN BUSINESS
9. 114,079,127 0.61173%
INTERNATIONAL STOCK INDEX FUND MALVERN PA 19355, USA ENTERPRISE
Company Profile
No. Investor Name Address Status Number of Percentage

Shares Ownership
168 ROBINSON ROAD 37-01 FOREIGN BUSINESS
10. GIC S/A GOVERNMENT OF SINGAPORE 102,173,541 0.54789%
CAPITAL TOWER, SINGAPORE ENTERPRISE
SSBTC 26AD S/A INV GLOBAL STRATEGY 49 AVENUE J.F. KENNEDY L-1855, FOREIGN BUSINESS
11. 100,468,400 0.53874%
FD-2144606346 LUXEMBOURG ENTERPRISE
CITIBANK NEW YORK S/A DIMENSIONAL 6301 BEE CAVE RD. BUILDING FOREIGN BUSINESS
12. 89,706,241 0.48103%
EMERGING MARKETS VALUE FUND ONE, AUSTIN TX 78746, USA ENTERPRISE
PRUDENTIAL TOWER JL. JEND.
13. PT PRUDENTIAL LIFE ASSURANCE - REF SUDIRMAN KAV. 79,SETIABUDI, INSURANCE 85,155,716 0.45663%
JAKARTA
CITIBANK NEW YORK S/A GOVERNMENT BANKPLASSEN 2, 0151 OSLO, FOREIGN BUSINESS
14. 83,069,200 0.44544%
OF NORWAY - 15 NORWAY ENTERPRISE
SAUDI ARABIAN MONETARY
HSBC BANK PLC S/A SAUDI ARABIAN FOREIGN BUSINESS
15. AUTHORITY PO BOX 2992, 79,580,600 0.42674%
MONETARY AUTHORITY ENTERPRISE
RIYADH
JL LAUSER NO 73, KEBAYORAN
16. YKP BNI FOR PROGRAM LTI BNI FOUNDATION 76,236,227 0.40880%
BARU
SSB 2Q27 S/A ISHARES CORE MSCI 400 HOWARD STREET, SAN FOREIGN BUSINESS
17. 68,661,700 0.36819%
EMERGING MARKETS ETF-2144613424 FRANCISCO CALIFORNIA 94105 ENTERPRISE
BNYM RE BRIDGE BUILDER 615 EAST MICHIGAN STREET
FOREIGN BUSINESS
18. INTERNATIONAL EQUITY FUND- MILWAUKEE WISCONSIN 53202, 66,565,800 0.35695%
ENTERPRISE
2039926979 AMERIKA SERIKAT
MENARA MATAHARI LT.7 JL.
BOULEVARD PALEM RAYA,
19. PT AIA FINL - UL EQUITY INSURANCE 64,152,700 0.34401%
BENCONGAN KELAPA DUA,
TANGERANG
GEDUNG AXA TOWER KUNINGAN
PT AXA MANDIRI FINANCIAL SERVICES
20. CITY LT. 17, JL. PROF, DR SATRIO INSURANCE 58,663,800 0,31457%
S/A MANDIRI DINAMIC MONEY RP
KAV. 18, KARET, SETIABUDI
BNI SHAREHOLDERS WITH OVER 5% OWNERSHIP COMPOSITION AS OF DECEMBER 31, 2018
BNI Shareholders with over 5% Ownership Composition

Investor Name Number of Shares Percentage Ownership
Republic of Indonesia 11,189,193,875 60.00000%
COMPOSITION OF SHAREHOLDERS WITH LESS THAN 5% AS OF DECEMBER 31, 2018
Shareholders with less than 5% Ownership

No, Public Total Number Percentage
Shareholders Shareholders of Shares Ownership
National Financier
1 Indonesian Individuals 41,461 214,792,074 1.15178%
2 Cooperatives 18 1,016,329 0.00545%
3 Foundations 41 101,774,354 0.54575%
4 Pension Funds 183 163,280,124 0.87556%
5 Insurance 121 442,488,323 2.37276%
6 Banks 4 1,766,636 0.00947%
7 Limited Liability Companies 204 508,838,625 2.72855%
8 Other Business Enterprises 5 5,298 0.00003%
9 Mutual Funds 325 646,867,810 3.46871%
Sub Total 42,362 2,080,829,573 11.15806%
ANNUAL
REPORT 2018
No, Public Total Number Percentage

Shareholders Shareholders of Shares Ownership
Foreign Shareholders
10 Foreign Individuals 140 2,891,622 0.01551%
11 Foreign Business Enterprises 1,493 5,375,741,388 28.82643%
Sub Total 1,633 5,378,633,010 28.84194%
TOTAL 43,995 7,459,462,583 40%
BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS SHARE OWNERSHIP COMPOSITION AS OF DECEMBER 31, 2018
BNI Board of Commissioners and Board of Directors share ownership Composition

Name Position Number Percentage
of Shares Ownership
BOARD OF COMISSIONERS
Ari Kuncoro President Commissioner / Independent 0 0.00%
Commissioner
Wahyu Kuncoro Vice President Commissioner 0 0.00%
Pataniari Siahaan Independent Commissioner 0 0.00%
Revrisond Baswir Independent Commissioner 0 0.00%
Ahmad Fikri Assegaf Independent Commissioner 0 0.00%
Bistok Simbolon Commissioner 0 0.00%
Joni Swastanto Commissioner 0 0.00%
Marwanto Harjowiryono Commissioner 0 0.00%
Sigit Widyawan Independent Commissioner 0 0.00%
BOARD OF DIRECTORS
Achmad Baiquni President Director 0 0.00%
Herry Sidharta Vice President Director 0 0.00%
Putrama Wahju Setyawan Director 138,442 0.00%
Catur Budi Harto Director 0 0.00%
Rico Rizal Budidarmo Director 0 0.00%
Anggoro Eko Cahyo Director 153,526 0.00%
Adi Sulistyowati Director 324 0.00%
Bob Tyasika Ananta Director 82,891 0.00%
Endang Hidayatullah Director 51,368 0.00%
Tambok P, Setyawati Director 24,880 0.00%
Dadang Setiabudi Director 0 0.00%
Remarks: The Board of Commissioners and Board of Directors do not have indirect ownership in BNI shares.
Company Profile
LIST OF SUBSIDIARIES AND/OR

ASSOCIATED ENTITIES
SUBSIDIARIES
Name Business Field Share Year of Operational Total Assets Domicile

Ownership Establishment Status (Rp Million)
PT Bank BNI Sharia Banking 99,94% 2010 Operating 41,040,203 Jakarta

Syariah
PT BNI Consumer Finance 99,99% 1983 Operating 1,322,611 Jakarta

Multifinance
PT BNI Brokerage and underwriter, include 75,00% 1995 Operating 869,813 Jakarta
Securites securities trading, including acting
as a guarantor and investment
advisor
PT BNI Life Life Insurance Services 60,00% 1997 Operating 17,283,191 Jakarta
Insurance
BNI Remittance Services 100,00% 1998 Operating 4,931 Hongkong

Remittance
A brief description of each Subsidiary is described as follows:
PT BANK BNI SYARIAH

BNI Syariah was established by Establishment Deed No. 160 dated March 22, 2010. BNI Syariah is a sharia commercial bank
resulting from the spinoff of PT Bank Negara Indonesia (Persero) Tbk Sharia Business Unit (“UUS BNI”) from PT Bank Negara
Indonesia Tbk (“BNI Bank”). The establishment was approved at the Bank BNI Extraordinary General Meeting of Shareholders
on October 5, 2009. The separation was pursuant to Bank Indonesia Regulation No. 11/10/PBI/2009 concerning Sharia Business
Units. The establishment was conducted with Bank Indonesia licenses, through two stages, namely approval of the principle
license and the business license. On February 8, 2010, the Bank obtained the principle license from Bank Indonesia to conduct
the spinoff of UUS BNI, based on letter No. 12/2/DpG/ Dpbs. The separation of UUS BNI was confirmed through Separation
Deed No. 159 dated March 22, 2010. A deposit of capital, as stated in the deed of incorporation, was made by the founder for
the effective spin-off on June 19, 2010.
On May 21, 2010, the Bank obtained a business license from Bank Indonesia pursuant to the Governor of Bank Indonesia
Decision No. 12/41/KEP.GBI/2010. With the separation becoming effective on June 19, 2010 the Bank first started its business
activities. The Bank operated as a foreign exchange bank starting on July 9, 2010 based on a Copy Letter of the Deputy
Governor of Bank Indonesia Decision No. 12/5/KEP.DpG/2010 dated July 9, 2010. The Bank’s purpose and objective as a Sharia
commercial bank resulting from the separation, was to carry out banking business based on sharia principles, in accordance
with the provisions in the prevailing laws and regulations.
On December 29, 2017, BNI as the parent company injected an additional capital investment of Rp1 trillion into BNI Syariah, for
large business growth to increase sharia-based businesses that have large growth potential.
ANNUAL
REPORT 2018
BNI Syariah continuously improves its network services, and PT BNI MULTIFINANCE
pays attention to sharia compliance to ensure all BNI Syariah BNI Multifinance was established on April 8, 1983 based
products have been tested by the Sharia Supervisory Board on Notarial Deed by Kartini Muljadi, S.H., No. 21. BNI
and comply with applicable sharia rules. Multifinance under the name of PT BNI-AMEX Leasing is a
cooperation between PT Bank Negara Indonesia (Persero)
In terms of information technology, BNI Syariah, as a Tbk. (BNI) and American Express Leasing Corporation (AMEX).
subsidiary of PT Bank Negara Indonesia (Persero) Tbk, The Company’s name has been amended several times with
is supported by the joint use of advanced information the last one to PT BNI Multifinance, being notarized by deed
technology systems with ISO 9001 2008 certification. No. 103 dated June 27, 1994. The Company commenced its
BNI Syariah’s business operations are supported by commercial operations in 1983.
competent human capital. Currently BNI Syariah has 4,973
employees (including 1,816 outsourced employees), with The company is engaged in funding Investments, Working
the competency development process continuously being Capital, Multipurpose and Operating Leases. Its business
conducted so that every employee becomes the best in their activities are supported by reliable human resources (the
field. number of employees as at December 31, 2018 was 111
people), and operates 7 branch offices in Medan, Lampung,
To operate its business, as of December 31, 2017 BNI Syariah Bogor, Semarang, Surakarta, Yogyakarta and Surabaya as well
operated 3 Regional offices, 68 Branch Offices, 202 Sub- as points of sales in Bandung. The head office is located at
Branch Offices, 15 Cash Offices, 23 Mobil Mobile Services, BNI Life Insurance Building 5th Floor, Jalan Aipda KS. Tubun
and 52 Payment Points. In addition, BNI Syariah customers No. 67, Jakarta.
can also utilize the Sharia Channelling Office (SCO) network
spread across 1,490 outlets throughout Indonesia that will The PT BNI Multifinance Board of Commissioners and Board
continue to grow in line with asset growth. The Bank’s head of Directors composition is based on AGMS minutes deed No.
office is located at Gedung Tempo Pavilion 1 Jl. H.R Rasuna 05 dated September 04, 2018 and is as follows
Said Kav. 11, Jakarta.
Board of Commissioners
The PT Bank BNI Syariah Board of Commissioners and Board President Commisioner : Rosa de Lima Dwi
of Directors composition is based on the AGMS minutes deed Mutiari
No.104 dated April 27, 2018 and is as follows: Commisioner : Retno Murwani
Board of Commissioners Board of Director

President Commissioner : Fero Poerbonegoro Direktur Utama : Hasan Gazali
Independent Commissioner : Rizqullah Pulungan*
Commissioner : Imam Budi Sarjito * Director of Business : Linda Saragih
* effective undergoing the OJK fit and proper test process since March 25, 2019 Director of Finance and Operational : Fajar Agustianto
*effective undergoing the OJK fit
Board of Directors and proper test process since January 22, 2019
President Director : Abdullah Firman
Wibowo
Director of Consumer Business : Dhias Widhiyati
Director of Finance and Operational : Wahyu Avianto
Director of Compliance : Tribuana Tunggadewi
Dewan Pengawas Syariah

Chairman : K.H Ma’ruf Amin
Member : Hasanudin
Company Profile
PT BNI SEKURITAS
BNI Sekuritas (BNI Sekuritas) was established based on notarial deed No. 22 on April 12,1995 in
Jakarta. The deed was amended by deed No. 39 by the same notary dated May 3, 1995. As per
the Company Articles of Association, the Company’s business activities include securities trading,
including brokerage and underwriting and other activities associated with these activities by
observing Market Supervisory Agency capital and Financial Institution (Bapepam- LK) and other
statutory laws and regulations in force. BNI Sekuritas obtained a license as a securities broker,
underwriter of stocks and investment manager from the Chairman of Bapepam-LK through decree
No. KEP-19/PM/1995, No. KEP-020/PM/1995 dated August 8, 1995 and No. KEP-07/PM-MI/1995
dated October 23, 1995, which were transferred to PT BNI Asset Management by decree No. Kep-
480/BL/2009 dated December 31, 2009. To implement independence of investment managers by
Bapepam-LK No. V.D.11 an annex to the Chairman of Bapepam-LK decree No. Kep-480/BL/2009
dated December 31, 2009 on Investment Manager Guidelines, the Company completed the
separation / division of business (spin-off ) of the business operations division for investment
management by forming a new group called PT BNI Asset Management. The establishment process
was approved at the BNI Sekuritas Extraordinary General Meeting of Shareholders on March 1, 2011,
with ownership of 99.99%.
In mid 2011, the BNI Sekuritas ownership structure was strengthened by the joining of a strategic
investor, namely SBI Sekuritas Co. Ltd., Japan to participate in the company, so the composition of
BNI Sekuritas ownership till now is 75% owned by PT Bank Negara Indonesia (Persero) Tbk. and 25%
owned by SBI Sekuritas Co. Ltd.
As a company registered with the Financial Services Authority (OJK), BNI Sekuritas is licensed as an
underwriter, securities broker, and mutual fund selling agent.
As at 31 December 2018, BNI Sekuritas business operations were conducted by 279 professional
employees, who provided services to customers through 16 branch offices and 51 Investment
Galleries. PT BNI Sekuritas Head Office is located at Sudirman Plaza Indofood Tower, 16th Floor, Jl.
Jendral Sudirman Kav. 76-78, Jakarta 12910, Indonesia
The PT BNI Sekuritas Board of Commissioners and Board of Directors composition is based on GMS
minutes deed No. 11 dated June 28, 2017 and is as follows:
Commissioner : Suhendry Hafni
Independent
Commissioner : Ryosuke Hayashi
Board of Directors
President Director : Adiyasa Suhadibroto
Director : Reza Benito Zahar
Director : Geger Nuryaman Maulana
ANNUAL
REPORT 2018
PT BNI LIFE INSURANCE

BNI Life was originally established under the name “PT Floor, Unit 42, Denpasar/Jl Raya Puputan No. 108 B Renon,
BNI Life Insurance Jiwasraya” based on Deed No. 24 dated Palembang/Palembang Icon Mall, 2nd Floor, Unit 70). The
November 28, 1996 in Jakarta. On November 26, 2004, address of BNI Life headquarters is Centennial Tower Lt. 9, Jl.
the Company changed its name to PT BNI Life Insurance, Gatot Subroto Kav 24-25, South Jakarta.
which was endorsed by the Minister of Justice and Human
Rights of the Republic of Indonesia through No. C-31600 The PT BNI Life Insurance Board of Commissioners and Board
HT.01.04.TH,2004 dated December 29, 2004. In accordance of Directors composition is based on the GMS minutes deeds
with the Articles of Association , the Company’s scope of No. 35 dated October 9, 2018 and No.105 dated December
activities is conducting business in life insurance including 28, 2018 and is as follows:
life insurance business with Islamic principles. The Company
obtained a license as a life insurance company based on the Board of Commissioners
Ministry of Finance of the Republic of Indonesia Number President Commissioner/ : Parikesit Suprapto
305/KMK.017/1997 dated July 7, 1997. The Company also Independent
obtained a license to open a branch office with Islamic Commissioner : Darwin Suzandi
principles based on the Ministry of Finance of the Republic of Commissioner : Kazuhiko Arai
Indonesia No. KEP-186/KM.6/2004 dated May 19, 2004. The Independent Commissioner : Husain Abdullah
Company commenced commercial operations in 1997. Independent Commissioner : Henry Cratein C. Suryanaga
In early May 2014, Sumitomo Life Insurance Company Board of Directors

(Sumitomo Life) officially became one of BNI Life’s President Director : Shadiq Akasya
shareholders. The equity participation amounted to Rp4.2 Director of Finance : Eben Eser Nainggolan
trillion with a 40% ownership interest in BNI Life, which was Director : Hidenobu Ito
realized in September 2014. Sumitomo Life is one of the Director : Naruyoshi Kuwata
largest insurance companies in Japan.
SYARIAH SUPERVISORY BOARD
The strategic cooperation with Sumitomo Life Insurance Chairman : Dr. (HC) K.H. Ma'ruf Amin
accelerated business growth and provided huge space to Member : Ir. Agus Haryadi, AAAIJ, FIIS, ASAI
gain future business opportunities. As proof of Sumitomo Life Member : Prof. Dr. H. Utang Ranuwijaya, MA
Insurance’s seriousness in the BNI Life business development,
they have placed representatives in BNI Life management as
Commissioners, Directors, and professional experts.
BNI Life offers various insurance products such as life, health,

education, investment, pension and sharia insurance. BNI
Life’s business operations are supported by human resources
competent in the insurance field. Currently BNI LIFE has
833 employees with competencies that continues to be
developed to provide the best service to customers.
To operate its business, as of December 31, 2018 BNI Life

Insurance operates 7 (seven) service offices (Jakarta/Jl Aipda
KS Tubun No.67, Bandung/Cihampelas Walk, GFNo 28-29),
Semarang/Thamrin Square, Jl MH Thamrin No.5, Yogyakarta/
Jogja City Mall Level 1 Unit 40, Surabaya/Grand City Mall, 2nd
Company Profile
BNI REMITTANCE LIMITED (BNI REMITTANCE)

BNI Remittance Limited (BNI Remittance) is a BNI subsidiary was founded by BNI Hong Kong on
November 19, 1996, based on Certificate of incorporation No. 574748 under the name “High
Motivation Company”, and changed its name to BNI Nakertrans Ltd in 1997.
To further optimize its business activities in accordance with the rules of the local authorities, after a
comprehensive business assessment, it was decided to separate the BNI Nakertrans Ltd management
from BNI Hong Kong as well as change the name to BNI Remittance Ltd, in 2009.
BNI Remittance is currently registered as a Money Service Operator with register number 12-08-00768
and subject to Hong Kong Custom and Excise Department.
To conduct its business, BNI Remittance manages outlets spread across three areas of Hong Kong,
namely Keswick Main Office in Hong Kong Island, Tsuen Wan Branch Office and Yuen Long Branch
Office in New Territories and Hung Hom Branch Office in Kowloon. BNI Remittance Central Office is
located at Flat/RM5 on G/F, Nos 1-7 Keswick Street, Causeway Bay, Hong Kong,
Besides providing services through these outlets, BNI Remittance collaborates with BNI in its financial
inclusion program, providing financial access through the widest possible digital services for
Indonesian Migrant Workers (PMI) in Hong Kong. Since the beginning of 2015, customers can more
freely carry out financial transactions through 6 BNI ATM machines in Hong Kong with the same
service features as ATM machines in Indonesia including cash withdrawals, balance checks, transfers
between BNI accounts and other banks, credit / ticket purchases and bill payments. In mid 2017, BNI
Remittance introduced a Mobile Banking service in Hong Kong to further strengthen its effective and
efficient digital banking services for customers to manage their finances.
The BNI Remittance Board of Commissioners and Board of Directors composition is based on GMS
minutes deed No.0574748 dated 31 July 2016 and is as follows:
Board of Director
Director : Eko Kristianto
ASSOCIATED ENTITIES
Nama Bidang Usaha Kepemilikan Tanggal dan Tahun Status Operasi Domisili
Saham Pendirian
PT Sarana Bersama Pengembangan

Investments 8.00% 1981 Operating Jakarta
Indonesia
PT Swadharma Nusantara Pembiayaan Financing 7.35% 1992 Operating Jakarta
PT Bursa Efek Indonesia Stock Exchange 1.20% 1977 Operating Jakarta
Securities
PT Kustodian Sentral Efek Indonesia 2.50% 1988 Operating Jakarta
Settlement
PT Pemeringkat Efek Indonesia Securities Rating 0.64% 1994 Operating Jakarta
PT Bank Mizuho Indonesia Financial Services 1.00% 2003 Operating Jakarta
PT Bank Sumitomo Mitsui Indonesia Financial Services 0.52% 2004 Operating Jakarta
PT PANN Pembiayaan Maritim Financing 48.4% 1974 Operating Jakarta
ANNUAL
REPORT 2018
BNI GROUP
STRUCTURE
Negara Indonesia Public

60% 40%
75,00% 100% 99,99% 60,00%

Sekuritas 1995 Kiriman Uang 1997 Pembiayaan 1983 Asuransi Jiwa 1996
0,06%
99,94%
Perbankan Syariah 2010
99,9% 17,5% 1,20% 7,35%

PT BNI Asset Management PT Penyelesaian Transaksi PT Bursa Efek Pembiayaan 1993
2011 Elektronik Indonesia (PTEN) Indonesia (IDX
2017
0,14% 1,00% 8,00% 1,00% 0,52% 48,4%

Pemeringkat Efek Lembaga Penyelesaian Investasi 1981 Jasa Keuangan Jasa Keuangan Pembiayaan
1994 Efek1988 2003 2004
PT Sarana Bersama
0,50% Pengembangan Indonesia
1,50%
As of 2018, the Company did not have any Joint Venture Companies or
Special Purposes Vehicles (SPV).
Company Profile
SHARE ISSUANCE
CHRONOLOGY
Initial Public Offering (IPO) Limited Public Offering II

On 28 October 1996, BNI undertook an initial public offering On July 30, 2007, the Extraordinary General Shareholders’
of 1,085,032,000 Class B shares with a par value per share of Meeting approved the issuance up to 1,992,253,110 new
Rp500 (full amount) and offering price per share of Rp850 (full Class C shares through Limited Public Offering II with a par
amount) to the public in Indonesia. The shares began trading value per share of Rp375 (full amount).
on the Jakarta and Surabaya Stock Exchanges (currently
Indonesia Stock Exchange or IDX) on 25 November 1996. Each owner of 20 old shares whose name was registered in
the BNI Shareholders List as of August 9, 2007 at 16.00 WIB
Limited Public Offering I was entitled to 3 pre-emptive rights where each right entitled
On 30 June 1999, BNI undertook a Limited Public Offering the owner to buy a new share at a price of Rp2,025 (full
I (“LPO I”) through the issuance of pre- emptive rights of amount) per share. From the Limited Public Offering II, BNI
151,904,480,000 Class C shares with a par value per share raised Rp747,094 additional share capital and Rp3,287,218
of Rp25 (full amount). Each holder of 1 share was entitled additional paid-in capital with Rp195,280 shares issuance
to buy 35 new shares for Rp347.58 (full amount) per share. costs. The initial trading took place on August 13, 2007 at
As a result of LPO I, BNI increased its capital by 683,916,500 the Jakarta Stock Exchange and Surabaya Stock Exchange
Class C shares to the public on July 21, 1999 and the (currently IDX).
LPO I listed in the Jakarta and Surabaya Stock Exchanges
(currently IDX). On April 7, 2000 and June 30, 2000, BNI also Limited Public Offering III
issued 151,220,563,500 Class C shares to the Government On November 25, 2010, at the Extraordinary General
of Indonesia through the recapitalization program under Shareholders’ Meeting, the shareholders decided, among
Government Regulation No. 52 year 1999. other matters, to increase the issued and paid-up capital
through a limited public offering with preemptive right (LPO
Recapitalization III) to shareholders for the issuance of 3,374,715,948 new Class
On March 30, 2000, the Minister of Finance approved BNI’s C shares with a par value per share of Rp375 (full amount),
recapitalization amounting to Rp61.8 trillion, which was Rp9 with an offer price of Rp3,100 per Preemptive Right that could
trillion higher than the amount stated in the Government be traded inside and outside the Indonesia Stock Exchange
Regulation No. 52 year 1999. In connection with the increase (IDX) from December 10, 2010 to December 16, 2010, taking
in the recapitalization amount, which was approved in the into account the applicable provisions in the capital market
Government Regulation No. 32 year 2000, BNI issued an sector. From the LPO III, BNI obtained Rp1,265,519 additional
additional 44,946,404,500 Class C shares without pre-emptive share capital and Rp8,950,869 additional paid-in capital, net
rights. of shares issuance costs.
On July 20, 2001, BNI’s capital was reduced by 1,965,701,500

Class C shares in connection with the refund of excess
recapitalization funds to the Government of Indonesia. The
refund was approved by the shareholders at the Extraordinary
General Shareholders’ Meeting held on 25 June 2001.
ANNUAL
REPORT 2018
Names of Stock Exchanges where the Company’s shares are listed

All BNI shares are listed on the Indonesia Stock Exchange.
BNI Share Issuance Chronology

Nominal
Date Description Shares Offering Rate Number of Shares
Value
Series-A @Rp500 - 1
Initial Public Offering (IPO)
November 1996
Series -B @Rp500 850 4,340,127,999
Total Capital Issued and Paid 4,340,128,000
Series-A @Rp500 - 1
Rights Issue (1:35) Series -B @Rp500 850 4,340,127,999
June 1999
Series -C @Rp25 347,58 151,904,480,000
Series-A @Rp500 - 1
Issuance of new shares
without pre-emptive rights Series -B @Rp500 850 4,340,127,999
June 2000
Series -C @Rp25 347,58 196,850,884,500
Series-A @Rp500 - 1
Repayment of excess amount
Series -B @Rp500 850 4,340,127,999
July 2001 in Government Bonds
Series -C @Rp25 347,58 194,885,183,000
Series-A @Rp7,500 - 1
Reverse Stock Split (15:1) Series -B @Rp7,500 12,750 289,341,866
December 2003
Series -C @Rp375 5,213.7 12,992,345,533
Rights Issue (20:3) Series -B @Rp7,500 12,750 289,341,866
13 August 2007
Series -C @Rp375 2,025 14,984,598,643
Divestment of Republic of
Indonesia Shares to BNI ex Series -B @Rp7,500 12,750 289,341,866
August 2010 green shoe
Series -C @Rp375 2,025 14,984,598,643
Rights Issue (110,473:500,000) Series -B @Rp7,500 12,750 289,341,866
10 December 2010
Series -C @Rp375 3,100 18,359,314,591
Company Profile
BOND ISSUANCE
CHRONOLOGY
Bank BNI also issued capital debt instruments in the form of Medium Term Notes (MTN) through a limited offer called “BNI
Subordinated MTN I Year 2018” with a write down feature that can be calculated as a component of capital, which was
registered at the Financial Services Authority supervision administration with an effective date of June 8, 2018 for a total
principal amount of Rp100 billion.
On June 22, 2017, BNI obtained an effective statement from OJK through letter number S-349/D.04/2017 to issue Sustainable
Bonds I BNI Phase I 2017 (“Bonds”). The value of bonds issued amounted to Rp 3 trillion, for a period of 5 years, with a coupon
of 8% per annum that will be paid quarterly. The BNI Bonds were issued on July 11, 2017 and listed on the Indonesia Stock
Exchange on July 12, 2017. The first coupon payment to the bondholders was made on October 11, 2017.
Acting as Underwriters were PT BNI Sekuritas, PT Mandiri Sekuritas, PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo
Premier Securities and PT BCA Sekuritas. Acting as Trustee was PT Bank Rakyat Indonesia (Persero)Tbk.
Based on POJK No. 07/2017 and Regulation No.IX.C.11, in the framework of the issuance of this Bond, BNI has obtained a
rating for long-term debt from PT Pemeringkat Efek Indonesia (“Pefindo”) for the period April 25, 2017 until April 1, 2018 in
accordance with their letter No. RC-393/PEF-DIR/IV/2017 dated 25 April 2017, with an idAAA rating (Triple A). BNI will perform
the issued bond rating annually as long as the obligations on such securities have not been paid off.
On 2018, BNI also issued capital debt instruments in the form of Medium Term Notes (MTN) through a limited offer called
“BNI Subordinated MTN I Year 2018” with a write down feature that can be calculated as a component of capital, which was
registered at the Financial Services Authority supervision administration with an effective date of June 8, 2018 for a total
principal amount of Rp100 billion.
The issuance of the Subordinated MTN purpose was to fulfill OJK Regulation No. 14/POJK.03/2017 article 24 and article 37
concerning Recovery Plan, where systemic banks are required to have capital debt instruments no later than December 31,
2018.
The BNI Subordinated MTN I Year 2018 was offered at a fixed interest rate of 8.00% p.a. for a period of 5 (five) years. Arrangers
for the issuance of the Subordinated MTNs were BNI Sekuritas, Danareksa Sekuritas, and Mandiri Sekuritas. The Legal
Consultant was Hanafiah Ponggawa & Partners. The notary was Ir. Nanette Cahyanie, SH. The Indonesian Central Securities
Depository (KSEI) acted as the Paying Agent.
In the framework of issuing this Subordinated MTN, the Company received a national ranking idAA (Double A) from PT
Pemeringkat Efek Indonesia.
ANNUAL
REPORT 2018
Name of the Exchange Where the Company’s NCD is Listed
All BNI’s NCDs have been listed on the Indonesia Stock Exchange
BNI Bond Issuance Chronology
Description Issued Effective Tenor Currency Number of Offer Maturity Loan Payment Rating Trustee
Date Date Bonds Price Date Rates Status
Interest Payment
Rate Status
Global Bond April 27, - 5 USD 500,000,000 98.89 April 27, 2017 4.125% Lunas - BB (S&P) HSBC
2012 Years p.a
BNI July 11, June 22, 5 IDR 3,000,000,0000 100.00 July 11, 2022 8.00% p.a Not Yet Paid idAAA idAAA BRI
Sustainable 2017 2017 Years (Pefindo) (Pefindo)
Bonds I Phase
I Year 2017
Tabel kronologi Medium Term Notes (MTN)
Description Issued Effective Tenor Currency Value Maturity Discount Payment Ranking Trustees
Date Date (million) Date Rate Status
2018 2017
PT Bank
Rakyat
MTN
August 10, August 10, Indonesia
Subordinated I - 60 months Rp 100,000,000 8.00% Not Yet Paid idAA *
2018 2023 (Persero)
BNI Year 2018
Tbk.
*Obligasi baru diterbitkan di tahun 2018.
Company Profile
Bond Interest Payments Chronology
The Global Bond has an annual interest of 4.125% on the principal amount of the loan. This interest is paid by the Company
every 6 (six) months with the maturity date of the bond interest payment falling on October 29, 2012.

Global Bond Interest Payment Chronology
Interest Date of Interest Payment Interest Payment Status

Number-
1. October 29,2012 Paid Off
2. April 29, 2013 Paid Off
3. October 28, 2013 Paid Off
BNI Bond Funds Usage Realization Results in trillion Rupiah
Type of Public Effective Result of Public Offering Value Funds Usage Plan Realization of Funds Remaining
Offering Date Usage Funds
from
Public
Offering
Amount Cost of Net Ekspansi Total Credit Total
of Public Public Kredit Expansion
Offering Offering
Results
BNI Sustainable June 22,

Rp3 Rp 0.0074 Rp 2,992 Rp 2,992 Rp 2,992 Rp 2,992 Rp 2,992 -
Bonds phase I of 2017 2017
ANNUAL
REPORT 2018
OTHER SECURITIES ISSUANCE AND/OR

LISTING CHRONOLOGY
In 2017, the Company issued a NCD for a maximum of Rp3 trillion with an issuance realization of Rp2.7 trillion, in several series.
Arrangers for the issuance of the BNI NCD were Danareksa Sekuritas, BNI Sekuritas, Mandiri Sekuritas, and BCA Sekuritas. Legal
Consultant used was Hanafiah Ponggawa & Partners. Notary used was Fathiah Helmi, SE. PT Kustodian Sentral Efek Indonesia
(KSEI) acted as Paying Agent. The NCD issuance was a Company strategy to increase rupiah liquidity.
After issuing this NCD, the Bank received a national ranking for Negotiable Certificates of Deposit (NCD) from PT Pemeringkat
Efek Indonesia (PEFINDO): idAAA (Triple A).
Stock Exchange the Company’s NCD is listed
All BNI NCDs are listed on the Indonesia Stock Exchange
BNI Other Securities Issuance Chronology
Description Issued Date Effective Tenor Mata Value (million) Maturity Discount Rate Payment Rating Trustee
Date Uang Date Status
2018 2017
NCD Phase I
NCD Phase I December -
- 6 month Rp 390.000 7,00% Paid Off - -
Series A 16, 2016
NCD Phase I March 16, -

- 9 month Rp 20.000 7,20% Paid Off - -
Series B 2017
NCD Phase I June 23, -

- 370 days Rp 42.000 7,55% Paid Off - -
Series C June 16, 2017
NCD Phase I 2016 December -

- 18 month Rp 415.000 7,75% Paid Off - -
Series D 15, 2017
NCD Phase I June 15, -

- 24 month Rp 1.231.000 8,25% Paid Off - -
Series E 2018
NCD Phase I June 14,

- 36 month Rp 925.000 8,40% Not Yet Paid Off - - -
Series F 2019
NCD Phase II
NCD Phase II October 2, -
- 370 days Rp 225.000 7,20% Paid Off - -
Series A 2017
NCD Phase II March 26,

- 18 month Rp 390,000 7,60% Paid Off - - -
Series B September 2018
27, 2016
NCD Phase I I September
- 24 month Rp 770.000 7,90% Paid Off - - -
Series C 26, 2018
NCD Phase II September

Series D 26, 2019
NCD Phase III

NCD Phase III March 15,
- 370 days Rp 2.195.000 7,55% Paid Off - - -
Series A 2018
NCD Phase III September

- 18 month Rp 350.000 7,90% Paid Off - - -
Series B March 10, 3, 2018
NCD Phase III 2017 February

Series C 28, 2019
NCD Phase III February

Series D 24, 2020
Company Profile
NAME AND ADDRESSES OF INSTITUTIONS

AND/OR SUPPORTING PROFESSIONS
TRADING AND STOCK LISTING INFORMATION
PT Bursa Efek Indonesia
Gedung Bursa Efek Indonesia, Tower 1
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190, Indonesia
Tel : (62-21) 5150515
Fax : (62-21) 5154153
Website : www.idx.co.id
Email : listing@idx.co.id
PUBLIC ACCOUNTANT OFFICE SECURITIES ADMINISTRATION BUREAU

Purwantono, Sungkoro & Surja PT Datindo Entrycom
Indonesia Stock Exchange Building Tower 2, 7th Floor Jl. Hayam Wuruk No. 28, Jakarta 10120
Jl. Jend. Sudirman Kav. 52-53 Tel : (62-21) 3508077
Jakarta 12190, Indonesia Website: www.datindo.com
Tel : (62-21) 52895000 Email: corporatesecretary@datindo.com
Fax : (62-21) 52894100
Website: www.ey.com/id
SECURITIES RATING AGENCIES CUSTODIAN

Standard & Poor‘s PT Kustodian Sentral Efek Indonesia
30 Cecil Street Prudential Tower 17th Floor Singapore 049712 Gedung Bursa Efek Indonesia, Tower 1, Lantai 5
Tel : (65) 6438 2881 Jl. Jend. Sudirman Kav. 52-53
Website : www.standardandpoors.com Jakarta 12190, Indonesia
Tel : (62-21) 5152855
Moody‘s Singapore Pte Ltd Fax : (62-21) 52991199
50 Raffles Place #23-06 Singapore Land Tower 048623 Website : www.ksei.co.id
Tel : (65) 6398 8300 Email : helpdesk@ksei.co.id
Fax : (65) 6398 8301
Website : www.moodys.com NOTARY
Fathiah Helmi, S.H.
PT Fitch Ratings Indonesia Graha Irama Lantai 6-C
Prudential Tower Lt. 20 Jl. HR Rasuna Said Kav 1-2 Bl X-1
Jl. Jenderal Sudirman Kav. 79 Kuningan Timur, Setia Budi Jakarta 12950
Jakarta Selatan 12910 Tel : (021) 529 07304, (021) 529 07305, (021) 529 07306
Tel : (62-21) 5795 7755 Fax : (021) 526 1136
Fax : (62-21) 5795 7750 Email : fhchozie@gmail.com
Website : www.fitchratings.com
PT Pemeringkat Efek Indonesia (Pefindo)

Panin Tower - Senayan City, 17th Floor
Jl.Asia Afrika Lot.19
Tel : (62-21) 7278 2380
Fax : (62-21) 7278 2370
Website : www.pefindo.com
ANNUAL
REPORT 2018
AWARD AND
CERTIFICATION
Award
Award Name Award Name Award Name

Rated 1 Digital Brand Wealth Management Best e-Commerce 2017 Best Millenial Segment Solution
Conventional General Bank Event: Event:
Event: Card Center Manager MasterCard Awards
Digital Brand Awards 2018 Organizer: Organizer:
Organizer: VISA MasterCard
Infobank & isentia Date Date
Date September 19, 2018 December 7, 2018
April 25, 2018

Information & Communication Sector The 2018 Treasury & Cash Management Non- Best Remittances Provider in Southeast Asia 2017
Event: FI in Indonesia Event:
IT Governance Award 2018 Event: Best Deal & Solution Award 2017
Organizer: Global Finance Worlds Best Treasury and Cash Organizer:
Forum TI BUMN Management Provider Awards 2018 Alpha Southest Asia
Date Organizer: Date
Desember 24, 2018 Global Finance February 13, 2018
Date
January 22, 2018
Company Profile

Best Sales Volume From Issuing Bank Corporate Strategic Partner (CSP) Conventional General Bank Credit Card
in Indonesia 2017 Event: Event:
Event: Half Day Seminar 2018 Wealth Management 7th Digital Brand Awards 2018
JCB Award of Appreciation Digitalization of Chance or Threat Organizer:
Organizer: Organizer: Infobank & isentia
JCB Certified Wealth Managers’ Association (CWMA) Date
Date Date April 25, 2018
February 28, 2018 April 5, 2018
Award Name Award Name Award Name:

The Best Digital Brand 2013-2017 Bank Umum The Most Popular Bank for Mortgage Products Bronze Winner Promising Company in Strategy
Konvensional Event: Marketing
Event: Rumah 123 Real Estate Awards 2018 Event:
7th Digital Brand Awards 2018 Organizer: BUMN Marketeers Awards 2018
Organizer: Rumah123.com Organizer:
Infobank & Isentia Date MarkPlus
Date April 26, 2018 Date
April 25, 2018 May 2, 2018
Award Name: Award Name Award Name

Silver Winner Promising Company in Branding General Champion Porseni BUMN 2018 Rated A for HR Transformation
Campaign Event: Event:
Event: Porseni BUMN 2018 HR Excellence Award 2018
BUMN Marketeers Awards 2018 Organizer: Organizer:
Organizer: BUMN SWA & Universitas Indonesia
MarkPlus Date Date
Date May 5, 2018 May 7, 2018
May 2, 2018
ANNUAL
REPORT 2018
Award Name:
Peringkat ll Overall
Award Name: Award Name: Event:
Rating A for Learning & Development Strategy Rating A for Compensation and Benefit Strategy Satisfaction, Loyalty, Engagement Award 2018
Event: Event: Organizer:
HR Excellence Award 2018 HR Excellence Award 2018 Infobank dan Marketing Research lndonesia (MRI)
Organizer: Organizer: Date
SWA & Universitas Indonesia SWA & Universitas Indonesia May 17, 2018
Date Date
May 5, 2018 May 7, 2018
Award Name: Award Name

Peringkat 1 Satisfaction (ATM) The Best Government Bank in Service Excellence
Acara: Event: Award Name
Satisfaction, Loyalty, Engagement Awards 2018 Banking Service Excellence Awards 2018 Successfully Implementing Corporate
Organizer: Organizer: Transformation
Infobank dan Marketing Research lndonesia (MRI) Infobank dan Marketing Research lndonesia (MRI) Event:
Date Date Anugerah Manajemen Indonesia 2018
May 17, 2018 June 5, 2018 Organizer:
SWA & PPM Manajemen
Date
July 18, 2018

Top KPR (People’s Mortgage 2018 The Best Performance Bank 1st Best Call Center Bank Umum
Event: Event: Event:
Top Bank 2018 Bisnis Indonesia Financial Award 2018 Banking Service Excellence Awards
Organizer: Organizer: Organizer:
Business News Bisnis Indonesia Infobank dan PT Rintis Sejahtera
Date Date Date
August 10, 2018 August 27, 2018 August 30, 2018
Company Profile

1st Best CRM (Cash Deposit Machine) 1st Best Transaction Growth as Acquirer Bank 1st Best Phone Banking General Bank
Banking Service Excellence Awards Transaction Banking Awards 2018 Banking Service Excellence Awards
Infobank dan PT Rintis Sejahtera Infobank dan PT Rintis Sejahtera Infobank dan PT Rintis Sejahtera
Date Date Date
August 30, 2018 August 30, 2018 August 30, 2018

2nd Best Collecting Agent The Remittance Product and Service of The Year Best Bank SimPel/SimPel iB Implementation
23rd Infobank Award The Asian Banker Excellence in Retail Financial FIN OJK EXPO 2018
Organizer: Service Awards Organizer:
Infobank Organizer: Otoritas Jasa Keuangan
Date The Asian Banker International Date
August 30, 2018 Date September 14 – 15, 2018
August 30, 2018
Award Name Award Name

Award Name
Best ICT Implementation in Sales & Marketing BNI Emerald
Bank Innovative SimPel Implementation
Event: Event:
Event:
Indonesia Best eMark Award Service Quality Award 2018
FIN OJK EXPO 2018
Organizer: Organizer:
Organizer:
Telkom University & SWA Service Excellence & Service Quality Monitoring
Otoritas Jasa Keuangan
Date Date
Date
September 26, 2018 October 17, 2018
September 14 – 15, 2018
ANNUAL
REPORT 2018

Best Beneficiary 2018 Best lll KUR Distribution Best MSME Support Bank (Bank BUKU 3 & 4)
ATM Bersama Awards 2018 KUR BI Award
Artajasa Kementerian Koordinator Bidang Perkekonomian BI
Date Republic Indonesia Date
November 6-8, 2018 Date November 27, 2018
November 22, 2018

Peserta Sistem BI-RTGS dan BI-SSSS Terbaik Best Bank Offices for Managing Cash Deposits The Top 50 Companies for 2018
Kelompok Bank BUKU 3 & 4 in All Indonesian Areas Included the Remote, Event:
Event: Outermost, and Nearest Areas Best of The Best Awards 2018
BI Award Event: Organizer:
Organizer: BI Award Forbes Indonesia
BI Organizer: Date
Date BI November 29, 2018
November 27, 201 Date
November 27, 201
Award Name
Best Affinity Debit Card Program Award Name Award Name
Event: Best Innovative Acquiring Best Affluent Debit Card Program
MasterCard Awards Event: Event:
Organizer: MasterCard Awards MasterCard Awards
MasterCard Organizer: Organizer:
Date MasterCard MasterCard
December 7, 2018 Date Date
December 7, 2018 December 7, 2018
Company Profile
Award Name
Most Creative Acquisition Campaign Award Name Award Name
Event: Best State Owned Enterprise Top 50 Big Capitalization Public Listed Company
MasterCard Awards Event: Event:
Organizer: The 10th IICD Corporate Governance Conference The 10th IICD
MasterCard and Award Organizer:
Date Organizer: Indonesian Institute for Corporate Directorship
December 7, 2018 AEI, Perbanas, PT Citra Negeri Amanah (IICD)
Date Date
December 10, 2018 December 10, 2018
Award Name Award Name

Best Service Cash Management Most Trusted Company Based on Corporate
Event: Governance Perception Index (CGPI)
EUROMONEY Market Leader Real Estate 2018 Event:
Organizer: Good Corporate Governance Award 2018
EUROMONEY Organizer:
Date SWA & IICG
December 28, 2018 Date
December 19, 2018
ANNUAL
REPORT 2018
Certification
Certification Name Certification Name

Quality Management Systems ISO 9001:2015 Provision of In House Learning
Organizer: and Certification Name
SAI Global e-Learning/Digital Learning for BNI Employees Information Technology (IT) Operation Services
Date Organizer: Organizer:
January 11, 2018 - January 10, 2021 SGS SGS
Date Date
March 9, 2017 – January 18, 2019 9 September 2018 – 26 September 2019
Certification Name
SNI ISO 9001:2015 Banking Operations for
Certification Name
Certification Name Guarantee Letter, Real Time Gross Settlement
Tier lll Design
Information Technology (IT Security (RTGS) & Remmittance Services
Organizer:
Management) Organizer:
Uptime Institute Certified
Organizer: SGS
Date
SGS Date
September 2018
Date November 5, 2018 - November 5, 2021
September 14, 2018
Certification Name
Certification Name Tier lll Facility
SNI ISO 9001:2015 Satisfactory Surveillance Organizer:
Audits) Uptime Institute Certified
Organizer: Date
SGS December 31, 2018
Date
November 5, 2018
Company Profile
NAMES AND ADDRESSES OF

SUBSIDIARIES, ASSOCIATED ENTITIES,
BRANCH OFFICES AND OVERSEAS
REPRESENTATIVES AND REGIONAL
OFFICES
SUBSIDIARIES
Subsidiary Address/Tel/Fax/Website Subsidiary Address/Tel/Fax/Website

Office Office
PT Bank BNI Gedung Tempo Pavilion 1 PT BNI Life BNI Life Tower Lantai 21 The Landmark Center
Syariah Jl. HR. Rasuna Said Kav. 11 Kuningan, Insurance Jl. Jend. Sudirman No. 1 Jakarta 12910
Jakarta 12950 Tel.: (021) 2953 9999
Tel.: (021) 29701946 Fax.: (021) 2953 9998
Fax.: (021) 29667935 www.bni-life.co.id
Email: info@bnisyaria Email: customer-care@bni-life.co.id
Customer Care: (021) 5021 7626
PT BNI Gedung BNI Life Insurance Lantai 5 SMS Center: 0811117626
Multifinance Jl. Aipda K.S. Tubun No. 67 Petamburan,
Jakarta Pusat 10260 BNI Remittance BNI Remittance Limited Flat/RM5 on GF,
Hotline: (021) 290 22555 Nos 1-7 Keswick Street, Causeway Bay Hong
Fax. (021) 290 22146 Kong
www.bnimultifinance.co.id Tel.: +852 28908082
Fax.: +852 28908182
PT BNI Securities Sudirman Plaza Indofood Tower Lantai 16
Jl. Jend. Sudirman Kav. 76 - 78
Jakarta 12910
Tel./Call Center: (021) 2554 3946
Fax.: (021) 5793 5831
Email: bnisec@bnisecurities.co.id
www.bnisecurities.co.id
ASSOCIATED ENTITIES
Associated Entity Office Address Tel/Fax/Website
PT Sarana Bersama Setiabudi 2 Building, Suite 502A, -

Pengembangan Indonesia (“SBPI”) Jl HR Rasuna Said, Kav. 62
Kuningan, Jakarta, 12920
PT Kustodian Sentral Efek Indonesia Gedung Bursa Efek Indonesia Telp : (62-21) 515 2855
(“KSEI”) Tower 1, Lt.5 Fax : (62-21) 5299 1199
Jl. Jend. Sudirman Kav. 52-53, Call Center : (62-21) 0800 186 5734
Jakarta, 12190 Website : www.ksei.co.id
PT Pemeringkat Efek Indonesia Panin Tower - Senayan City, 17th Floor Tel: (62-21) 7278 2380
Jl. Asia Afrika Lot.19 Fax: (62-21) 7278 2370
Jakarta 10270, Indonesia Website: www.pefindo.com
PT Bank Mizuho Indonesia Sinarmas Land Plaza Tower 2, Tel : (62-21) 3925222
Jl. M.H. Thamrin No.51, Website : www.mizuhobank.co.id
Jakarta Pusat 10350
PT Bank Sumitomo Mitsui Indonesia Menara BTPN Lantai 35-37, Tel : (62-21) 80862500
Jalan Dr. Ide Anak Agung Gde Agung Kav. 5.5-5.6, Website : www.smbc.co.id
Kuningan Timur
Jakarta Selatan 12190
ANNUAL
REPORT 2018
OVERSEAS BRANCH OFFICES, SUB

BRANCH OFFICES, REPRESENTATIVES
OFFICES AND REGIONAL OFFICES
OVERSEAS BRANCH OFFICES
Overseas Branch Office Address/Tel/Fax/Website
Singapore Branch Office 39 Robinson Road #01-02,

02-02 and 06-01/04
Robinson Point
Singapore 068911
Tel.: +65 6225 7755
Fax.: +65 6225 4757
Hong Kong Branch Office G/F Far East Finance Center,
16 Hartcourt Road
Hong Kong
Tel.: +852 25299871, 28618600
Fax.: +852 28656500
Tokyo Branch Office Kokusai Bld 1st Floor 3-1-1 Marunounchi Chiyoda-Ku
Tokyo 100-0005, Japan
Tel.: +81 3 3214 6565, 3214 5621
Fax.: +81 3 3212 6428, 3201 2633
London Branch Office 30 King Street,
London EC2V 8AG
Tel.: +44 (0) 20 7776 4646
Fax.: +44 (0) 20 7776 4699
New York Branch Office One Exchange Plaza 5th Floor
Broadway
New York NY. 10006 USA
Tel.: +1 212 943 4750
+1 212 943 4760
Fax.: +1 212 344 5723
Seoul Branch Office 8th Floor Wise Tower,6-4, 5-ga Namdaemun-ro, Jung-gu Seoul
Tel.: +82 2-6386-8046
OVERSEAS SUB BRANCH OFFICES
Overseas Sub Branch Office Address/Tel/Fax/Website
Osaka Sub Branch Office Nakanoshima Festival Tower

17th Floor 2-3-18 Nakanoshima Kita-ku Osaka 530-0005, Japan
Tel.: +81 6470 83823
Fax.: +81 6470 83823
OVERSEAS REPRESENTATIVES OFFICES
Overseas Representative Office Address/Tel/Fax/Website
Yangon Representative Office BNI Yangon Office 3rd Floor Room

#0303A Sakura Tower 339
Bogyoke Aung San Road Kyauktada
Township – Myanmar
Company Profile
REGIONAL OFFICES
Regional Office Address/Tel/Fax/Website
Medan Regional Office Jl. Pemuda No. 12, Lantai 4 Medan 20151
Tel.: (061) 4567110, 4567002
Fax.: (061) 4567105, 4515754
Padang Regional Office Jl. Dobi No. 1, Lantai 3 Padang 25138
Tel.: (0751) 890005-08
Fax.: (0751) 890010-11
Palembang Regional Office Jl. Jend. Sudirman No. 132 Palembang 30126
Tel.: (0711) 361961-65, 321046
Fax.: (0711) 361966, 374160
Bandung Regional Office Jl. Perintis Kemerdekaan No. 3, Bandung 40117
Tel.:(022) 4240431-39, 4240534
Fax.:(022)4240432-4214926-4213107
Semarang Regional Office Jl. Letjen. MT. Haryono No. 16, Semarang 50122
Tel.: (024) 3556747, 3556746
Fax.: (024) 3547686, 3520636
Surabaya Regional Office Jl. Jend. A. Yani No. 286, Gedung Graha Pangeran Lt. 3-4, Surabaya 60292
Tel.: (031) 8292820 - 26
Fax.: (031) 8292805, 8292841
Makassar Regional Office Jl. Jend. Sudirman No. 1 Lt.3, Makassar 90115
Tel.:(0411)3620355-56,3621926
Fax.: (0411) 3619562, 3625395
Denpasar Regional Office Jl. Raya Puputan Renon No. 27 - Lantai 2, Renon Denpasar 82265
Tel.: (0361) 263304 - 08
Fax.: (0361) 227874, 263319
Banjarmasin Regional Office Jl. Lambung Mangkurat No. 30, Banjarmasin 70111
Tel.: (0511) 3353689, 3357063
Fax.: (0511) 3354409, 3357066
Jakarta Senayan Regional Office Jl. Jend. Gatot Subroto No. 55, Jakarta Pusat 10210
Tel.: (021) 2500025, 5706057 (Hunting)
Fax.: (021) 2500033
Manado Regional Office Jl. Dotulolong Lasut No. 1
Manado 95122
Tel.: (0431) 868019, 862777
Fax.: (0431) 851852/865458
Jakarta Kota Regional Office Jl. Lada No. 1 - Jakarta 11110
Tel.: (021) 6901131- 2601090,2601148
Fax.: (021) 6901131, 6901182,2601165, 2601179
Jakarta BSD Regional Office Gedung BNI Kantor Wilayah Jakarta BSD, Lt.7 Kav. Sunburst Lot.1-5
Jl. Pahlawan Seribu Lengkong Gudang BSD City,
Kota Tangerang Selatan, Banten.
Tel.: (021) 80826860
Fax.: (021) 29514074
Jakarta Kemayoran Regional Office Jl. Lada No.1 Lt.2, Jakarta 11110
Tel.: (021) 2601177
Fax.: (021) 2601165
Papua Regional Office Jl. Kelapa II Entrop, Kota Jayapura, Papua 99224
Tel.: (0967) 5355311, 522354
Fax.: (0967) 533316
Yogyakarta Regional Office Jl. Trikora No.1, Yogyakarta 55122
Tel: (0274) 376287
Fax: (0274) 2872414
Malang Regional Office Jl. Jend. Basuki Rahmat No.75-77, Malang 65179
Tel: (0341) 3611945-47
Fax: (0341) 324565, 354767
ANNUAL
REPORT 2018
INFORMATION AVAILABLE
ON THE WEBSITE
In accordance with the OJK regulation

No.8/POJK.04/2015 regarding the
issuers or public company websites,
BNI’s company website includes
important information on shareholders,
the company group structure, financial
performance analysis, financial
statements of the last 5 years and the
profiles of the Board of Commissioners
and Board of Directors. The information
presented on the website is updated
regularly.
Home
News, promotions, events and basic loan rates
Personal
Contains information on deposits, debit card loans, retirement savings, bancassurance
Business
Contains information on business, international and treasury banking
Wealth
Contains information on service products, promotions and BNI’s priority banking programs such as BNI Emerald
Company Profile
Company b. Dividend Policy

Contains information About BNI : c. Rating Report
1. Vision and Mission d. Analyst Coverage
2. Awards 3. Stock Performance, including:
3. Corporate Culture a. Share Price
4. Organizational Structure b. Chronology of Share Listing
5. Commissioners Structure c. Shareholder Structure
6. Directors Structure 4. Investor News and Calendar, including:
7. Information of Secretary to the Board of Commissioners a. Announcements to Investors
b. Investor Calendar
Governance c. BNI Dividend Schedule and Announcement
1. Guidelines and Policies 5. Investors and Related Institutions Contacts
2. General Meeting of Shareholders (GMS) including : 6. Corporate Social Responsibility, including:
a. GMS notices a. A description of the BNI Sharing Program, which
b. GMS call consists of: Program Form and Scope
c. GMS summary results and minutes b. BNI Go Green Program description
3. Information of Committees below the Board of c. Kampoeng BNI Program description, and
Commissioners d. KAMI Bersama BNI Program
4. Guidelines and Rules the Board of Commissioner, the
Board of Director and Governance integrated. E-Banking
5. Whistle Blowing Reporting System (WBS) Contains information on BNI ATMs, BNI SMS Banking, BNI
6. Code of Ethics Internet Banking, BNI Mobile Banking, BNI Phone Banking,
7. Articles of Association O-Branch, Agent46, TapCash, Online Debit, UniQu, BNI Ipay
8. Patriot Acts Certification and AML, Governance Report, and BNI Smartpay.
and
9. The annual report the implementation of Good Contact
Corporate Governance and integrated governance. Contains information on Branch Locations, Global Network
and BNI Contacts
Information on Investor Relations:
1. Reports and Presentations including:
a. Annual Report
b. Sustainability Report
c. DPLK BNI Report
d. Consolidated Financial Statement (audited)
e. Financial Statements Quarter
f. Financial Statements Monthly
g. PKBL Report
h. Corporate Presentation
2. Corporate Financial Performance, including:
a. Financial Highlights
ANNUAL
REPORT 2018
EDUCATION AND/OR TRAINING FOR THE BOARD OF

COMMISSIONERS, BOARD OF DIRECTORS, COMMITTEES,
CORPORATE SECRETARY, AND INTERNAL AUDIT UNIT
BOARD OF COMMISSIONERS’ COMPETENCY DEVELOPMENT
During 2018, BNI’s Board of Commissioners attended various competency improvement programs, such as training,
workshops, conferences and seminars, as per the following table:
Tabel Pengembangan Kompetensi Dewan Komisaris

Name Position Competency Development / Time and Place Type of Training and
Training Material Organizer
Ari Kuncoro President 1st Roundtable on Southeast Asian April 17, 2018 Center for Strategic &
Commissioner Economic and Trade Washington DC Interntaional Studies (CSIS)
/ Independent
Commissioner
CSIS Global Leaders Forum July 23, 2018 Center for Strategic &
Washington DC Interntaional Studies (CSIS)
Compliance Forum: “Anti Money August 30, 2018 BNI Corporate University
Laundering and Prevention of Jakarta
Terrorism Funding in the Financial
Services Sector”
“Key Risk Management Challenges September 27 – 28, 2018 Bankers Association for Risk
in 2018” Makassar Management (BARA)
Wahyu Vice President “Risk Management on Credit November 6 – 7, 2018 Peak Pratama Indonesia
Kuncoro Commissioner Process” Yogyakarta
Revrisond Independent "Executive Risk Management July 2 – 9, 2018 Dusseldorf, Lembaga Pengembangan
Baswir Commissioner Refreshment Program" Frankfurt & Bern, Jerman Perbankan Indonesia (LPPI)
Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Laundering and Prevention of
Services Sector”
Pataniari Independent "Executive Risk Management July 2 – 9, 2018 Dusseldorf, Lembaga Pengembangan
Siahaan Commissioner Refreshment Program" Frankfurt & Bern, Jerman Perbankan Indonesia (LPPI)
Services Sector”
Ahmad Fikri Independent Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Assegaf Commissioner Laundering and Prevention of
Services Sector”
Sigit Independent Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Widyawan Commissioner Laundering and Prevention of
Services Sector”
Bistok Commissioner Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Simbolon Laundering and Prevention of
Services Sector”
Company Profile
Name Position Competency Development / Time and Place Type of Training and
Training Material Organizer
Joni Swastanto Commissioner Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Services Sector”
Marwanto Commissioner "Executive Risk Management July 2 – 9, 2018, Dusseldorf, Lembaga Pengembangan
Harjowiryono Refreshment Program" Frankfurt & Bern, Jerman Perbankan Indonesia (LPPI)
BOARD OF DIRECTORS’ COMPETENCY DEVELOPMENT
During 2018, BNI’s Board of Directors attended various competency improvement programs, such as training, workshops,
conferences and seminars, as per the following table:
Board of Directors’ Competency Development

Name Position Competency Time and Place Type of Organizer
Development/Training Material Training
Achmad President Opening Assesment KPKU January 29, 2018 Meeting KPKU
Baiquni Director Jakarta
High Level International Conf New Growth March 27, 2018 in Conference IMF
Models in a Changing Global Landscape Fairmont Jakarta
Discovery and Dream workshop in the April 12, 2018 Jakarta Workshop BNI dan
framework of preparing the BNI Corporate Gedung BNI MC Kinsey
Plan 2019-2023 Kantor Pusat
Herry Sidharta Vice Discovery and Dream workshop in the April 30, 2018 Jakarta Workshop BNI dan
President framework of preparing the BNI Corporate Gedung BNI MC Kinsey
Director Plan 2019-2023 Kantor Pusat
Design Workshop in the framework of May 21-22, 2018 Jakarta Workshop BNI & MC Kinsey
preparing the BNI Corporate Plan 2019-2023
Workshop Delivery in the framework of June 06, 2018 Jakarta Workshop BNI
preparing the BNI Corporate Plan 2019-2023
Digital leadership forum August 07, 2018 Jakarta Workshop BNI
Business Meeting BNI Semester II 2018 August 09-10, 2018 Workshop BNI
Jakarta
Speaker at the Pancasila entrepreneurship August 13, 2018 Jakarta Meeting Universitas
Festival Pancasila
Refreshment APU PPT August 30, 2018 Jakarta Refreshment BNI
Level V Risk Management Certification September 24, 2018 Refreshment BSMR
Program Jakarta
Book launch and review “Turbulence in November 15, 2018 Meeting Kementerian
Indonesian Sport” Jakarta Pemuda dan
Olah Raga
Corporate Governance Perception Index November 19, 2018 Meeting BNI
Jakarta
Putrama Managing Book launch and review “Turbulence Sport in November 15, 2018 Meeting Kementerian
Wahju Director Indonesia” Jakarta Pemuda dan
Setyawan Corporate Olah Raga
Business
Corporate Governance Perception Index November 19, 2018 Meeting BNI

Jakarta
ANNUAL
REPORT 2018

Discovery and dream workshop in the Thursday April 12, 2018 Workshop BNI dan
framework of preparing the BNI corporate Jakarta in BNI Building MC Kinsey
plan 2019-2023 Head Office, 32 floor
Update BSMR V April 12, 2018 Jakarta Risk Culture BSMR
and Strategic
Trend In
Indonesian
Banking
Design Workshop in the framework of June 6, 2018 Jakarta in Workshop BNI REN Division
preparing the BNI corporate plan 2019-2023 BNI Head Office
Compliance Forum: “Anti Money Laundering August 30, 2018 Sosialisasi BNI Divisi BNV
and Prevention of Terrorism Funding in the Jakarta BNI Building
Financial Services Sector” Head Office 25 floor
Catur Budi Managing National Startup Agritech Conference 2018 February 6, 2018 Jakarta Conference Himpunan
Harto Director Convention Hall ICE – Alumni IPB
Small BSD City
Business &
Talk Show Creative Santri Kreatif Preneure March 6, 2018 Jakarta Forum Nahdatul Ulama
Network
Indonesia Bengkel Kreatif Hello (NU)
Indonesia, Tangerang
Speaker: Refinement Training for Small March 16, 2018 Forum Internal BNI
Segments and KUR 2018 & Supervision of Bandung, Bandung
WBN Regional Office Regional Office
Speaker: Small Segment Refreshment and March 19, 2018, Forum Internal BNI
Grain Absorption Program Surabaya, Surabaya
Regional Office
Half Day Meeting CWMA 2018 April 5, 2018 Jakarta Meeting CWMA
Speaker: Preparation Workshop for the Pilot April 9, 2018, Jakarta, Workshop Coordinating
Tea Plantation Development Plan Coordinating Ministry Ministry for
for Economic Affairs Economic Affairs
Discovery and dream workshop in the April 12, 2018 Jakarta Workshop BNI and
framework of preparing the BNI corporate McKinsey
plan 2019-2023
Speaker: Opening of the HNS and HCS April 20, 2018, Bogor, Workshop Internal BNI
Workshop Novotel Bogor
Anggoro Eko Managing FGD Digital Economy Challenges in Indonesia March 12, 2018, Jakarta, Meeting National
Cahyo Director Coordinating Ministry Economic
Finance for Economic Affairs, Jl. and Industrial
Medan Merdeka Barat Committee of
No. 7 the Republic of
Indonesia
Meeting “Optimizing Momentum, Jakarta, March 28, Meeting Bank Indonesia
Strengthening Structure” Accompanied by 2018, Function Room,
the 2017 Indonesian Economic Report Book Gedung Thamrin Lantai
Launch 4 BI
Meeting on Digital Economy Trends: Era of April 4, 2018, Jakarta, Meeting Bisnis Indonesia
Electronic Transactions, Opportunities and The Westin Hotel
Challenges dari Harian Bisnis Indonesia Kuningan
As resource at Coffee Break with Joint Chiefs April 10, 2018, Jakarta, Meeting Kapolda Metro
of Police regarding "Skimming" Gedung Promoter Polda Jaya
Metro Jaya
Discovery and dream workshop in the Thursday April 12, 2018 Workshop BNI
framework of preparing the BNI corporate Cakrawala Room 32
plan 2019-2023 Floor
As resource at the "Building a New Era of April 25, 2018, Jakarta, Meeting Artajasa
Indonesian Payment Systems" Event Grand Hyatt Hotel
Business Forum on Food and Beverage 02 May 2018 Seminar BNI
Industry in the Framework of the 4.0 Industrial Grha BNI, 25th Floor
Revolution
Company Profile

Discussion on Financial Stability Study 18 May 2018 Seminar Bank Indonesia

"Challenges in Financial System Stability Multipurpose
Amid the Uncertainty of Global and Domestic Room - Sjafruddin
Development" Prawiranegara Tower,
3rd Floor, Bank
Indonesia
Design Workshop for the Preparation of BNI 21 May – 22 May 2018 Workshop BNI
Corporate Plans 2019-2023 Grha BNI, 25th Floor
Delivery Workshop for the Preparation of BNI 06 June 2018 Workshop BNI
Corporate Plans 2019-2023 Grha BNI, 25th Floor
Invitation as Speaker for RHB Fintech 10 July 2018 Seminar RHB Bank
Luncheon: QR Code, NPG, and The Future of Business Meeting
Indonesia E-Payment Room, Ritz Carlton
Pacific Place
Digital Leadership Forum 07 August 2018 Seminar BNI
Grha BNI, 25th Floor
Macquaire ASEAN Conference 2018 29 August 2018, Conference MacQuarie
Singapore
Refreshment of AML-CTF (Anti-Money 30 August 2018, Grha Refreshment BNI &
Laundering and Counter-Terrorism Financing) BNI, 25th Floor Indonesian
Financial
Transaction
Reports and
Analysis Center
(INTRAC)
Discussion of 2019 State Budget Plan Are Our 5 September 2018 Seminar Ministry of
Expenditures Healthy and Fair? Ballroom of Mandarin Finance
Oriental Hotel, Jakarta
Sharing Session With Moody's Specialist (Dr. 10 October 2018 Seminar BNI
Steven Cochcrane, Phd & Dr. Olga Loiseau- Cakrawala Room, 32nd
Aslanidi, Phd) Floor
Business Forum of “Indonesian Economic 24 October 2018 Seminar BNI
Outlook In the Political Year 2019” Grha BNI, 25th Floor
Professional Recognition Program of Certified 21 November 2018 Training Indonesian
Professional Management Accountant (CPMA Junior Ballroom, LG Institute of
PRP) Level, Management
Ritz Carlton Hotel, Mega Accountants
Kuningan - Atmajaya
Jakarta Christian
University
BNI Sharing Session with Prasetiya Mulya 29 November 2018 Seminar BNI
Executive Learning Institute Grha BNI, 25th Floor
Business Forum of "Challenges & 12 December 2018 Seminar BNI

Opportunities for Healthy Ecosystems in Grha BNI, 25th Floor
Indonesia in the Industrial Era 4.0"
Rico Rizal Managing Conference JP Morgan ASIA Ritz Carlton Hotel, Mega Conference JP Morgan
Budidarmo Director Kuningan
Treasury and
International
Daiwa Investment Conference Tokyo 2018 Jakarta Conference Daiwa
Workshop Design Corporate Plan 2018 with 29 November 2018 Workshop BNI and
McKinsey McKinsey
Discovery and dream workshop in the Grha BNI, 25th Floor Workshop BNI REN Division
framework of preparing the BNI corporate _ MC Kinsey
plan 2019-2023
CSIS-BNI Roundtable on U.S Southeast Asia 12 December 2018 Conference CSIS
Financial and investment Relations
High Level Discussion Forum CSIS-BNI Grha BNI, 25th Floor Conference CSIS
ANNUAL
REPORT 2018

Business Meeting Semester II 2018 August 9-10, Meeting REN Division

2018, Gedung BNI
Pejompongan Jakarta
Compliance Forum: “Anti Money Laundering August 30, 2018, BNI Workshop PPATK
and Prevention of Terrorism Funding in the Head Office Jakarta
Financial Services Sector”
Digital Leadership Forum September 7, 2018, BNI Workshop BNI
Head Office Jakarta
Certification Training Treasury Level Advance September 8, 2018, Training Lembaga
Hotel Pulman Jakarta Sertifikasi
Profesi
Perbankan
Indonesia Economy and Investment Outlook December 12, 2018 Workshop INT Division &
2019 Hongkong Bisnis Indonesia
Adi Managing As resource at the Development of January 30, 2018 Meeting Ministry of
Sulistyowati Director Transmigration Areas at the Ministry of Jakarta Villages
Institutional Villages
Relations
FGD Implementation of superior products January 31. 2018 FGD Ministry of
in rural areas with the Ministry of Villages Jakarta Villages
partnership pattern
SPAN Socialization with TNI AU January 31, 2018 Meeting TNI AU
Jakarta
As resource at the Ministry of Education and March 14, 2018 Jakarta Meeting Ministry of
Culture Natonal Meeting Education and
Culture
SPAN Socialization with Ministry of Defence March 7, 2018 Jakarta Meeting Ministry of
Defence
plan 2019-2023
National Employment Meeting April 25, 2018 Jakarta Meeting Ministry of
Social Affairs
Bob Tyasika Managing KEIN Meets The CEO "Managing Economic January 17, 2018 Meeting KEIN
Ananta Director Potential 2018" Jakarta
Risk
KPKU BUMN Executive Briefing "Socialization January 24, 2018 Meeting Ministry of SOEs
Management
of Indonesian Payment System Association Jakarta
Provisions (KASPI)"
Panel Discussion & Book Launch Bpk Aswin January 26, 2018 Workshop Aswin Wirjadi
Wirjadi "Game Changing" Jakarta
Meeting Indonesia Outlook 2018 February 6, 2018 Jakarta Meeting Indonesia
Outlook
Banking Industry Financial Prospects & Digital February 21, 2018 Meeting - PERBANAS
Challenges by Bpk Agus DW Martowardjojo Jakarta PERBANAS
ASEAN Financial Innovation Network March 7, 2018 Jakarta Workshop ASEAN Financial
Innovation
International Leadership Meeting March 8, 2018 Bali Meeting Bank Indonesia
"Transformational Leadership in the Next Era: - Bank
Issues, Challenges, and Strategy" Indonesia
Business Forum: Corporate Financing through March 19, 2018 Jakarta Meeting Business Forum
Purchasing Corporate Bonds
2018 Retail Banking Forum March 21, 2018 Jakarta Meeting Retail Banking
Forum
Meeting Virtual Currency: What and how is March 26, 2018 Jakarta ISEI - Meeting ISEI
the risk for the wider community
The Power of Collaboration Koran SINDO March 27, 2018 Jakarta SINDO - SINDO
Meeting
plan 2019-2023
Company Profile

Annual Bankers Gathering May 15, 2018, Pacific Workshop PERBANAS

Place Jakarta
Book Launch and Discussion Financial May 18, 2018, Bank Meeting Governor BI
stability - Challenges in financial system Indonesia Jakarta
stability amid global and domestic
developments
PWC Survey : Digital Banking in Indonesia July 10, 2018, The Meeting PwC
2018 Westin Jakarta
The Indonesia Green Finance Roundtable July 23, 2018, Sahid International SMI
"The Role of Government Facilities & Sudirman Center Meeting
Innovative Finance Instruments" Jakarta
Workshop Early Warning System July 27, 2018 Jakarta Workshop OJK
Konglomerasi Keuangan
BARa Risk Forum August 1, 2018, Mandiri Meeting BARa
Club Jakarta
The 3rd Asia Pasific Research in Social Science August 15, 2018, JS International UI
and Humanities (APRiSH) Convention & Luwansa Jakarta Meeting
Innovation in Disruption Era
Meeting Refreshment APU PPT August 30, 2018, BNI Meeting PPATK
Head Office Jakarta
BNI Talk "Banking On The Millenial September 4, 2018, BNI Workshop BNI
Perspective" Head Office Jakarta
Program SESPIBANK Overview Bank Strategic September 13, 2018, Meeting LPPI
Management LPPI Kemang Jakarta
Assessor Refreshment Test September 27 28, 2018 Refresher LSPP
LSPP Fatmawati Jakarta
Meeting FGD "Assessing Potential Financing October 10, 2018, Meeting Ministry
Scheme of PV Solar Rooftop Installation in Double Tree Hilton of Energy
Housing and Commercial Buildings" Hotel Jakarta and Mineral
Resources
Business Forum: Outlook Indonesian Jakarta, October 24, Workshop BNI REN Division
Economy in Political Year 2019 2018, BNI Head Office
Public Discussion Meeting Financial System November 1, 2018, Meeting Ministry of
Policy Response to Recent Economic Gedung Juanda – Aula Finance
Developments Jakarta
Meeting Indonesian Risk Management November 6, 2018, Meeting LPPI
Outlook 2019 Achieving High Performance Pullman Hotel Jakarta
Amid political Risk
IAEI Meeting "Building the Economy through November 15, 2018, Meeting IAEI
Islamic Banking Inclusion" IAIN Sultan Amai
Gorontalo Gorontalo
Meeting SGDs in the Industry 4.0 Era December 7, 2018, Meeting Bappenas / PPN
Bappenas / PPN Ministry
Ministry Jakarta
Economic OMeeting utlook 2019 - Banking December 10, 2018, Meeting IBI
Business in the Digital Age: Risk and Plaza Mandiri Jakarta
Mitigation
Endang Managing BSMR Level 5 March 30, 2018 Jakarta Sertification BSMR
Hidayatullah Director
Compliance
Workshop Discovery & Dream Corporate Plan April 12, 2018 Jakarta Workshop BNI and
BNI 2018 McKinsey
Meeting "The Active Role of Banking June 26, 2018, Hotel Meeting Banking
Compliance Safeguard Stability through Fairmont Jakarta Compliance
Prevention of Terrorism Funding" Director
Communication
Forum
ANNUAL
REPORT 2018

Workshop " Legal Issues related to the July 24, 2018, Hotel Workshop Business and
development of digital economy in Bidakara Jakarta Bankruptcy Law
Indonesia" Forum
Training FKDKP 2nd generation 2018 August 1-2, 2018, Hotel Training Banking
Aston Makassar Compliance
Director
Communication
Forum
Business Meeting Semester II 2018 August 9-10, 2018, BNI Business BNI REN Division
Pejompongan Jakarta Meeting
Rakerda Serikat Pekerta DPD WJY with the August 25, 2018 Bogor Working SP BNI
theme How to be a great leader Meeting
Compliance Forum: “Anti Money Laundering August 30, 2018 Jakarta Meeting BNI BNV Division
and Prevention of Terrorism Funding in the
Financial Services Sector”
National Convention Workshop Draft September 26, 2018, Workshop OJK
Indonesian National Work Competency Hotel Pullman Central
Standards (RSKKNI) for General Banking Park Jakarta
Socialization of Achievements and Direction November 15, 2018, Socialization OJK
of Implementation for the Financial Hotel JS Luwansa
Conglomerate’s Integrated Regulatory and Jakarta
Oversight Functions
Sharing Session with the theme Digital November, 22 23, Sharing Forum Human
Leadership in Millennial Era 2018, Hotel The Rinra Session Capital
Makassar Indonesia (FHCI)
Sharing session with the theme Driving November 29, 2018, Sharing Prasetiya Mulya
Business Agility in Discruptive Era Ballroom Grha BNI Lt. 25 Session Executive
Jakarta Learning
Institute
KPK Coordination Meeting with Banking, November 29, 2018 Working KPK
Insurance and KSEI Partners Jakarta Meeting
International Business Integrity Confrence December 4-5, 2018 Converence KPK
(IBIC) 2018 Jakarta
Awards Presentation Bringing About CG December 10, 2018, Award Event Indonesian
Changes: Opportunitites and Challenges for Hotel Le Meridien Institute for
Directors Jakarta Corporate
Directorship
(IICD)
Tambok P. Managing Refresher BSMR April 2, 2018 Jakarta Refresher LSPP
Setyawati Director
Workshop Discovery and Dream Corporate April 12, 2018 Jakarta Workshop BNI and
Retail
Plan BNI 2018 McKinsey
Business
Workshop HNS and HCR 2018 April 19, 2018 Bogor Workshop BNI
Business Forum Food and Beverage Industry May 2, 2018 Jakarta Workshop BNI
in the framework of 4.0 Industrial Revolution
Workshop Transactional Banking Solutions May 28, 2018 Jakarta Workshop
2018
Tourism Business Forum July 25, 2018 Jakarta Workshop BNI
Business Meeting BNI Semester II 2018 August 9-10, 2018 Workshop BNI
Jakarta
Refresher APU PPT August 30, 2018 Jakarta Refresher BNI
The Thousand National Indonesian Women's September 14, 2018 Workshop Ministry of SOEs
Organizations and ICW Congress Yogyakarta
Cyber security and Banking Technology from September 26, 2018 Workshop BNI and JP
the User and IT Perspective Jakarta Morgan
Media Workshop: Special Card Product October 4, 2018 Jakarta Workshop BNI
Programs and Innovations IMF – WB Annual
Meeting 2018
Company Profile

Grand Launch of CNBC Indonesia and CEO October 10, 2018 Bali Workshop BNI
Summit
Financial Institutions Expo (Fin Expo) October 27, 2018 Workshop
Jakarta
Bank Indonesia Meeting: Payment Gateway October 31, 2018 Meeting BI
Jakarta
Workshop Road Map Retail Banking Sector November 2, 2018 Workshop BNI
until 2023 Jakarta
Workshop BSL Division November 10, 2018 Workshop BNI
Jakarta
Knowledge Sharing: IT Strategic Plan (ITSP) November 14, 2018 Workshop BNI
BNI Jakarta
Consumer Sales Workshop SLN Division 2019 November 28, 2018 Workshop BNI
Jakarta
Sharing Session with Prasetiya Mulya November 29, 2018 Workshop BNI
Executive Learning Institute: Bpk. Ruben Jakarta
Saragih, MM., MA.
REI National Working Meeting 2018 December, 2018 Bali Workshop Real Estate
Indonesia
Retail Banking Sector Workshop 2018 December 7-8, 2018 Workshop BNI
Jakarta
Dadang Managing As a Resource Universitas Padjajaran February 2, 2018 UNPAD UNPAD
Setiabudi Director golden accounting birthday with the theme BANDUNG Aula Graha
Information "disruptive technology and innovation Sanusi Unpad Bandung
Technology &
Operational
Level 5 Risk Management Certification Body February 17, 2018 GARP BSMR
Jakarta
Exclusive Invitation to plug and play fintech March 5 -6, 2018 PlUG And PlUG And PLAY
dan insurtech Singapore PLAY
Award from iCiO " THE MOST INNOVATIVE CIO March 7, 2018 The Ritz iCiO Award iCiO
2018" Carlton Pasific Place 2018
Jakarta
Pertamina Digital Expo January 25-27, 2018, Meeting Pertamina
Pertamina Office
Jakarta
plan 2019-2023
EXPO 2.0 April, 2018, Djakarta PlUG And PlUG And PLAY
Theatre XXI Ballroom PLAY
Jakarta
Blockchain The Next Digital Revolution in March 7, 2018 The Ritz CTI SUMMIT CTI
Every Industry Carlton Jakarta Pasific 2018
Place Jakarta
As a Resource Infobank Digital Leadership May 8, 2018, Hotel Meeting Infobank
Forum Digital Mastery for Business Leader Grand Sahid Jaya
Tranformation in Disruption Era
Sharing Session with LKPP Utilization of May 16, 2018 Jakarta Sharing KBUMN
marketing opportunities for SOE products Session
through E-Catalog
Receiving award Raked I in the category June 5, 2018, Hotel Awards Infobank
E-Banking at the banking services excellence Shangrilla, Jakarta
award 2018 event
Irving Fisher Committee Internasional July 26, 2018, Nusa Dua Meeting Bank Indonesia
Meeting on Big Data Bali
Refresher APU Oleh PPATK August 30, 2018 Jakarta Socialization BNI
ANNUAL
REPORT 2018

FGD Operational Back Office strengthening September 7, 2018, FGD BI

back office, operational risk awareness and Hotel Pullman Jakarta
future challenges
Digitization in the Business Era September 14, Ballroom Meeting UNPAD
Bidakara Grand Savoy
Bandung
Indonesian Banking Award (Rated 1 the best September 26, 2018, Banking Tempo Group
digital banking services) Hotel JS Luwansa Awards
Kuningan Tempo Group
Jakarta
Annual Meeting 2018 IMF World Bank Group October 2018 Bali Annual IMF
Meeting
EXPO October 16, 2018, PlUG And PlUG And PLAY
Soehanna Hall The PLAY
Energy Building Jakarta
F5 Networks International Technology Center October 19-20, 2018 Meeting F5
Seattle Seattle USA
Oracle Open World October 22-26, 2018 Annual Oracle
San Fransisco Convention
Joint communication plan for developing November 1, 2018 Meeting BI
report integration Jakarta
Speaker at IBEX 2018 November 15, 2018, Meeting PERBANAS
Hotel Fairmont Senayan
Jakarta
OJK 7th National Meeting November 13, 2018 Meeting OJK
Jakarta
SENIOR EXECUTIVE VICE PRESIDENT COMPETENCY DEVELOPMENT
During 2018, members of Executive Vice Preseident attended various competency improvement programs, such as training,
Name Position Competency Development / Time and Place Type of Organizer

Training Training
Material
Yuddy Renaldi SEVP Remedial BSMR Level 5 February 17, 2018 Certification BSMR
& Recovery Jakarta
Sharing Session THEME: "Indonesia May 18, 2018 Jakarta Workshop BNI
Post Commodity Bonanza and Its
Implications in the Banking Sector"
Sharing Session & Competency May 28, 2018 Jakarta Workshop BNI University
Improvement in Facing Legal
Problems
Workshop "Anti Money Laundering August 30, 2018 Workshop BNI
Refreshment" Jakarta
Workshop Cyber Security & September 26, 2018 Workshop BNI
Banking Technology Jakarta
Ronny Venir SEVP Discovery and Dream Workshop April 12, 2018 Workshop Gedung BNI Kantor
Commercial in the Context of BNI's 2019-2023 Jakarta Pusat
Banking Corporate Plan Preparation BNI Head Office
Building
Providing guidance on May 7, 2018 Jakarta Workshop BNI
"Profitability Optimization
Through Portfolio Management
and Risk Awareness", To Business
Management Group Leaders &
Credit Risk Managers "
Company Profile
Name Position Competency Development / Time and Place Type of Organizer

Training Training
Material
Briefing on Transactional Banking May 28, 2018 Jakarta Workshop BNI

Solutions Workshop 2018
Workshop "Anti Money Laundering August 30, 2018 Workshop BNI University
and Prevention of Terrorism Jakarta
Funding in the Financial Services
Sector"
DDI 2018 Refreshment Assessment September 5, 2018 Refreshment PT DDI
Jakarta
Examiner in the SVP and VP Brevet October 3, 2018 BNI
Credit Comprehensive Exams Jakarta
Speaker at the WJK SP DPD October 13, 2018 Workshop BNI

Leadership Development Program Jakarta
Speaker at the Shipping Industry November 24, 2018 Workshop BNI

Training event for the Middle Batam
Credit Center (SKM).
AUDIT COMMITTEE COMPETENCY DEVELOPMENT
During 2018, members of the Audit Committee attended various competency improvement programs, such as training,
Audit Committee Competency Development

Name Position Competency Development / Training Time and Place Type of Training and
Material Organizer
Pataniari Siahaan Chairman "Executive Risk Management July 2 – 9, 2018, Dusseldorf, Lembaga Pengembangan
Refreshment Program" Frankfurt & Bern, Jerman Perbankan Indonesia
(LPPI)
Laundering and Prevention of Terrorism
Funding in the Financial Services Sector”
Ahmad Fikri Assegaf Member Compliance Forum: “Anti Money August 30, 2018, Jakarta BNI Corporate University
Laundering and Prevention of Terrorism
Funding in the Financial Services Sector”
Donnaria Silalahi Member - - -
Lungguk Gultom* Member - - -
*) has served as a Member of the Audit Committee since January 2, 2018
NOMINATION AND REMUNERATION COMMITTEE COMPETENCY DEVELOPMENT
During 2018, members of the Nomination and Remuneration Committee attended various competency improvement
programs, such as training, workshops, conferences and seminars, as per the following table:
ANNUAL
REPORT 2018
Nomination and Remuneration Committee Competency Development

Name Position Period Competency / Training Development Time and Place Type of Training and
Material Organizer
Ari Kuncoro Chairman September 13 1st Roundtable on Southeast Asian April 17, 2018 Center for Strategic &
December 31, 2018 Economic and Trade Washington DC Interntaional Studies
(CSIS)
CSIS Global Leaders Forum July 23, 2018 Center for Strategic &
Washington DC Interntaional Studies
(CSIS)
Compliance Forum: “Anti Money August 30, 2018, BNI Corporate University
Services Sector”
“Key Risk Management Challenges in September 27 – 28, Bankers Association for
2018” 2018 Makassar Risk Management (BARA)
Wahyu Member September 13 “Risk Management on Credit Process” November 6 – 7, 2018 Peak Pratama Indonesia
Kuncoro December 31, 2018 Yogyakarta
Revrisond Member September 13 "Executive Risk Management July 2 – 9, 2018 Lembaga
Baswir December 31, 2018 Refreshment Program" Dusseldorf, Frankfurt Pengembangan
& Bern, Jerman Perbankan Indonesia
(LPPI)
Services Sector”
Pataniari Member 13 September - 31 "Executive Risk Management July 2 – 9, 2018 Lembaga
Siahaan Desember 2018 Refreshment Program" Dusseldorf, Frankfurt Pengembangan
& Bern, Jerman Perbankan Indonesia
(LPPI)
Services Sector”
Bistok Member September 13 Compliance Forum: “Anti Money August 30, 2018, BNI Corporate University
Simbolon December 31, 2018 Laundering and Prevention of Jakarta
Services Sector”
2018” 2018, Makassar Risk Management (BARA)
Joni Member September 13 Compliance Forum: “Anti Money August 30, 2018, BNI Corporate University
Swastanto December 31, 2018 Laundering and Prevention of Jakarta
Services Sector”
Marwanto Member September 13 - "Executive Risk Management July 2 – 9, 2018 Lembaga
Harjowiryono December 31, 2018 Refreshment Program" Dusseldorf, Frankfurt Pengembangan
& Bern, Perbankan Indonesia
Jerman (LPPI)
Sigit Member September 13 Compliance Forum: “Anti Pencucian August 30, 2018, BNI Corporate University
Widyawan December 31, 2018 Uang dan Pencegahan Pendanaan Jakarta
Terorisme di Sektor Jasa Keuangan”
2018” 2018 Makassar Risk Management (BARA)
Reny Anggota September 13 - - -
Wiriandhani December 31, 2018
Efita Anggota September 13 Pengetahuan Dasar di Bidang Dana October 26, 2018 Lembaga Sertifikasi
Praharani December 31, 2018 Pensiun Jakarta Profesi Dana Pensiun
Company Profile
RISK MONITORING COMMITTEE COMPETENCY DEVELOPMENT
During 2018, members of the Risk Monitoring Committee attended various competency improvement programs, such as training,
Risk Monitoring Committee Competency Development

Name Position Period Competency / Training Time and Place Type of Training
Development Material and Organizer
Revrisond Baswir Chairman January 1, “Executive Risk Management July 2 – 9, 2018 Lembaga
December 31, Refreshment Program” Dusseldorf, Frankfurt Pengembangan
2018 & Bern, Jerman Perbankan Indonesia
(LPPI)
Compliance Forum: “Anti August 30, 2018, BNI Corporate
Money Laundering and Jakarta University
Prevention of Terrorism
Funding in the Financial
Services Sector”
Bistok Simbolon Member 1 Januari – 31 Compliance Forum: “Anti August 30, 2018, BNI Corporate
Services Sector”
“Key Risk Management September 27 28, Bankers Association
Challenges in 2018” 2018, Makassar for Risk Management
(BARA)
Joni Swastanto Member December 2018 Compliance Forum: “Anti August 30, 2018, BNI Corporate
Services Sector”
“Key Risk Management September 27 28, Bankers Association
Challenges in 2018” 2018, Makassar for Risk Management
(BARA)
Irwan Rinaldi Member 1 Januari – 31 - - -
Desember 2018
Kartika Siwi Member Desember 2018 - - -
INTEGRATED GOVERNANCE COMMITTEE COMPETENCY DEVELOPMENT
During 2018, members of the Integrated Governance Committee attended various competency improvement programs, such as
training, workshops, conferences and seminars, as per the following table:
Integrated Governance Committee Competency Development

Name Position Period Competency / Training Time and Place Type of Training and
Development Material Organizer
Revrisond Chairman January 1 “Executive Risk Management July 2 – 9, 2018 Lembaga

Baswir December 31, Dusseldorf, Frankfurt Pengembangan
2018 & Bern, Jerman Perbankan Indonesia
(LPPI)
Refreshment Program” August 30, 2018, BNI Corporate
Jakarta University
Joni Member January 1 Compliance Forum: “Anti Money August 30, 2018, BNI Corporate
Swastanto December 31, Laundering and Prevention of Jakarta University
2018 Terrorism Funding in the Financial
Services Sector”
“Key Risk Management Challenges September 27 – 28, Bankers Association
in 2018” 2018, Makassar for Risk Management
(BARA)
ANNUAL
REPORT 2018
Krisna Wijaya Member Januari 1 - June - - -

26, 2018
Parikesit Member December 13 –31 Banking Risk Management Level 2 May 15, 2018, Sertifikasi - Lembaga
Suprapto 2018 Jakarta Sertifikasi Profesi
Perbankan
Risk Control Self Assesment in November 29, 2018, Sekolah Tinggi
Insurance Industry & Key Risk Jakarta Manajamen Asuransi
Indicators Trisakti (LPMA – STPA
Trisakti)
Compliance Forum: “Anti Money August 30, 2018, BNI Corporate
Laundering and Prevention of Jakarta University
Services Sector”
Utang Member January 1 A Half Day Training “Risk November 29, 2018, Lembaga
Ranuwijaya December 31, Management” Jakarta Pengembangan
2018 Manajemen Asuransi
Sekolah Tinggi
Manajamen Asuransi
Trisakti (LPMA – STMA
TRISAKTI)
Workshop Pra-Ijtima’ (Annual October 4, 2018, Dewan Syariah
Meeting) Syariah Supervisory Board Jakarta Nasional
Islamic Financial Institutions 2018 Majelis Ulama
Insurance and Sharia Pension Funds Indonesia
Rizqullah Member January 1 Traing Refreshment Risk April 7, 2018, Jakarta BSMR
December 31, Management
2018
Services Sector”
Hasanuddin Member January 1 - - -
December 31,
2018
Rosa Lima Dwi Member January 1 Nasional Seminar "Banking May 8, 2018, Jakarta APPI & OJK
Mutiari December 31, Financing Companies"
2018
National Seminar "Financing June 26, 2018, APPI dan OJK
Industry in the Capital Market" Jakarta
Financing Company Risk December 11, 2018, BSMR
Management Sertification Jakarta
Services Sector”
Eddy Siswanto Member January 1 New Paradigm in Infrastructure October 9, 2018, IMF dan Kementerian
December 31, Financing (the 2018 IMF-World Bank Tanjung Benoa, Bali Keuangan RI.
2018 Annual Meetings)
Services Sector”
Suhendry Member December 13 –31 Compliance Forum: “Anti Money August 30, 2018, BNI Corporate
Hafni 2018 Laundering and Prevention of Jakarta University
Services Sector”
Workshop Assesor (Update Tool November 2, 2018, Lembaga Sertifikasi
Assesment Process) Jakarta Profesi Perbankan
(LSPP)
Company Profile
Setyowati Anggota 1 Januari – 31 - - -

Desember 2018
CORPORATE SECRETARY COMMITTEE COMPETENCY DEVELOPMENT

During 2018, the Corporate Secretary did not attend external training. However, Corporate Secretary attended seminars as a
resource person at the following:
1. West Java Province Regional Financial Stability Discussion Forum on November 15, 2018, held by Bank Indonesia in
Jakarta,
2. Intelligence Analysis on the Effects of National Economic Development on National Security, on December 12, 2018 in
West Java organized by the Indonesian National Army (TNI).
INTERNAL CONTROL UNIT COMPETENCY DEVELOPMENT
During 2018, BNI’s Internal Control Unit attended various competency improvement programs, such as training, workshops,
conferences and seminars, as per the following table:
Internal Control Unit Competency Development
Competency Development / Training Material Place
Auditor Refresher (concerning Internal Audit and BNI’s business / organization January and March 2018
development)
Training Internal Control COSO January 2018
Training Design Thinking January 2018
Training Report Writing January 2018
Training Improving Self Confidence March 2018
Seminar “Quo Vadis BUMN” by the Ministry of SOEs April 2018
Seminar "Leadership as a Role Model for Culture Building and the Fraud System” July 2018
Workshop "Anticipating OTT in Corruption Crime" July 2018
National Conference III - 2018: "The Role of Internal Auditors in Improving August 2018
Governance, Risk and Control in a Disruptive Era"
Sharing Vision CITPE (Certified IT Procurement Expert) August 2018
Workshop "Investigative Interview Skills" August 2018
National Conference II - 2018 at The Trans Resort Bali: "Nurturing Agile Internal August 2018
Auditors in Disruptive Times"
Workshop "Effective Fraud Mitigation" August 2018
Workshop "Affect on the The Procurement of Goods / Services Audit Related to the August 2018
Rising Number of Irregularities in the Procurement Process"
Workshop "Fraud Prevention and Detection: Forensic Data Analytics Approach" October 2018
Workshop "Urgency and Application of Financial Audit and Tax Examinations in the October 2018
BUMN and BUMD Environment"
National Conference X IAIB - 2018: "Fostering an Innovative Internal Auditing as a Key November 2018
Element in Innovative Banking"
Workshop "Mobile Forensic Investigation Course" November 2018
CITPE Training and Certification (Certified IT Procurement Expert) November 2018
IT Governance, Risk Management, Assurance & Cyber Security Summit November 2018
Audit Training Digital Banking, Future of Internal Audit in Digital Era, Workshop December 2018
Sharing Session “Driving Business Agility in the Disruptive Era” December 2018
ANNUAL
REPORT 2018
Management Discussion
And Analysis
172 ECONOMIC AND INDUSTRY REVIEW
176 OPERATIONAL REVIEW
223 MARKETING ASPECT
234 FINANCIAL REVIEW
295 TAX
298 TRANSFER PRICING DOCUMENT
301 FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)
303 OTHER MATERIAL INFORMATION
ANNUAL
REPORT 2018
ECONOMIC AND
INDUSTRY REVIEW
In the middle of an Indonesian economic situation that did not change

significantly in 2018, coupled with the increasingly depressed Rupiah against
the US Dollar, BNI again proved its consistency and continued to make a
positive contribution to the country. Net profit rose by 10.3% compared to
2017, mainly due an increase in income including interest and sharia income,
both of which are the main driving forces of our banking operations.
Management
Discussion
And Analysis
PEREKONOMIAN GLOBAL
The continuing conditions in the United States (US) remain a happened in the US. The economic & political conditions of the
major concern. The trade war intensity between the United States European Zone are more unique, with some EZ members having
and China not only caused tensions between the two countries their own problems. Dramatic power struggles in Italy between
directly, but also affected the trading partners of the United States the populist camp and pro-European Union (EU) lawmakers have
and China. The trade war began when US President Donald Trump resulted in the failure of the new coalition government. This raises
expressed his desire to impose tariffs on Chinese goods exported concerns over the Italian economy, considering that the country
to the US. The tariffs reached more than US$500 billion covering has the third largest economy in Europe. 36% of Italy’s debt is
1,300 categories of imported goods including shipping parts, owned by foreign investors and is equivalent to 135% of Italy’s
batteries, flat screen televisions, medical, satellite and military Gross Domestic Product (GDP) or €2.3 trillion8. Developments in
equipment. In return, China will also impose tariffs on US products France also contributed negatively with demonstrations against
including aluminum, airplanes, cars, pork products and soybeans1. rising fuel prices, higher taxes and cost of living becoming serious
The number and types of goods subject to tariffs continues to problems. The cost of diesel fuels has increased by 23% in the
change as negotiations are continuing between both countries, last 12 months, reaching €1.5, the highest price since the 2000s9.
so that the trade war does not expand. The US is arguing that that The number of problems in the EZ has resulted in the region’s
they are doing this to reduce its trade balance deficit in an effort to economic growth stagnating. In the first quarter of 2018, it only
bolster the US economy. grew 2,4% (YoY), lower than the fourth quarter - 2017 of 2.7%. Then
it remained stable at 2.2% (YoY) in the second quarter - 2018 before
During 2018, the US central bank Federal Reserve interest rate falling to 1.6% ( YoY) in quarter III – 201810 and returned lower to
policy caught the world’s attention. The Fed raised the benchmark reach 1.2% (yoy) in Q4 - 2018.
interest rate 4 (four) times, each by 25 bps (basis points), so that it
currently stands at 2.50% 2. The increases took place in March, June, Turning to China, the US-China trade war caused the Chinese
September and December 2018 following US inflation increasing economy to contract in 2018. After growing moderately 6.8%
above 2%, and the unemployment rate reaching 3.9% 3. The US (YoY) in the first quarter – 2018, China’s economy slowed to 6.7%
unemployment rate in 2018 touched its lowest in 49 years when it (YoY ) in the second quarter - 2018 and continue to decline to 6.5%
reached 3.7% in October 20184. Lower unemployment increased (YoY) in the third quarter - 2018 and carrying 6.4 (yoy) revenues
disposable income and US spending, which in turn triggered US by percent or lower during the fourth quarter in 2018.11. The tariff
inflation. During 2018 it was consistently above 2%, and in June war with the US has meant China’s export performance has been
and July 2018 reached its highest level of 2.9% 5 due mainly to depressed, as the US is China’s main export destination market.
the improving public spending capabilities. Inflation stagnated Currently, several trade agreements are being negotiated between
towards the end of the year due to a decline in energy prices and the two countries, to reduce the impact of the trade war, especially
this was considered not too worrying. Employment absorption concerning the tariffs on the export goods of both countries.
was trending higher and helped push down the unemployment Another impact that put pressure on the Chinese economy was
rate. As a country whose growth depends on public consumption, the relocation of factories from China to other countries. This
a low unemployment rate will further encourage the momentum strategy was so to ensure production and sales continued to run
for economic growth. The US economy in 2018 increased each normally, and could still be exported to the US, as the trade war
quarter, reaching 2.6% (YoY) in Q1, rising to 2.9% (YoY) in Q2, then applied to China only. The slowing economic growth was also
3% (YoY) in Q36 , and finished the year at 3.1% (yoy). This increase caused by China’s growing level of domestic debt worries. As a
was supported by the public purchasing power improvement and result of its high debt, the Chinese government plan is to tighten
the large-scale infrastructure development policies of President lending. However, the impact could also depress economic growth.
Trump. To encourage development, President Trump plans to issue
more US Treasury to finance development, which will add to their In Japan, the negative interest rate policy has not consistently
attractiveness, and encourage investors to buy the US Treasuries as helped Japan’s economic growth. After contracting 1.3% (YoY) in
a minimal risk investment instrument. Q1, it grew 1.5% (YoY) in Q2 - 2018 but fell to 0.1% (YoY) in Q3 –
2018, and in Q4 - 2018 was stagnated at 0%12. Japanese inflation
In the European region, the Eurozone (EZ) economy’s continued to improve leaving behind the era of deflation in 2016,
improvement, marked by improving inflation, pushed the and the era of low inflation in 2017. In 2018 Japanese inflation was
European Central Bank to reduce its stimulus to buy securities. The closer to 2%. Japanese inflation reached its highest in February
amount of bond purchases, originally valued at € 30 billion per 2018 at 1.5%, while overall inflation in 2018 was 0.3%13. While core
month, was reduced to € 15 billion per month in June 2018 and will inflation remained relatively low. These conditions encourage the
be terminated at the end of December 20187. The bond purchase BOJ to keep its benchmark interest rate at -0.10%.
scheme has lasted for a decade since the European debt crisis
occurred in 2010. This decision on termination does not necessarily
mean an acceleration of the monetary tightening policy as
ANNUAL
REPORT 2018
INDONESIAN ECONOMY
In 2018, the Indonesian economy grew moderately and The negative impact caused by the CAD lead BI to be pre-emptive
reached 5.18% (YoY) by quarter IV-2018. In the first quarter - and ahead of the curve towards its benchmark interest rate, in this
2018 the economy grew 5.06% (YoY) and then increased to case through BI’s 7 days Repo Rate which increased by 175 bps
5.27%(YoY) and 5.17% in the second quarter - 201814. The high (base points) in 2018. Within the country, other than the widening
growth in the second quarter was supported by an increase in CAD, BI was focused on the trade balance deficit. Cumulatively,
household expenditure that grew 5.14%, contributing 55.43% Indonesia’s trade balance deficit reached US$8.57 billion, way
to the Indonesian economy15. In lll - 2018, growth in household below the trade surplus of US$ 11.84 billion in 2017. Indonesia’s
expenditure was 5.01% and 5.08%16 however the Indonesian exports in 2018 reached US180.06 billion, a growth of 6.65%, while
economy continued to grow aided by the largest Asian Games, the imports reached US$188.63 billion, a growth of 20.15%.20
2018 Asian Games.
Indonesian inflation throughout 2018 was at the level of 3.13%17,

1
Press Release US Trade Representatives, menyangkut data Perdagangan Amerika Serikat
dan China
which is within the BI target range of 3.5 ± 1% in 2018. The 2
US Federal Reserve menyangkut data suku bunga acuan Amerika Serikat (Fed Fund Rate)
controlled inflation was influenced by low core inflation and 3
US Bureau Labor Statistic
lower volatile food inflation, while price inflation was relatively
4
Ibid
5
Ibid
well maintained. BI’s success in maintaining inflation cannot 6
US Bureau of Economic Analysis
be separated from its function of joint coordination with the 7
European Central Bank
Government both at the central and regional levels. Until the end
8
CNBC: Italy Crisis Heres What You Need to Know, 30 Mei 2018
9
Reuters: French “Yellow Vest” Protest in Their Thousand for Fifth Saturday, 15 Desember
of 2018, inflation was maintained helped by the decline in world 2018
oil prices. 10
Eurostat
11
National Bureau of Statistic of China
12
Economy and Social Research Institute of Japan
One serious problem in 2018 was the current account deficit 13
Japan Ministry of Internal Affairs and Communication
(CAD). The CAD ratio to GDP trended higher in 2018. In quarter 14
Biro Pusat Statistik
I - 2018, CAD reached 2.17% of GDP, then increased to 3.02% in
15
Ibid
16
Ibid
the second quarter – 2018, to grow to 3.37% of GDP in the third 17
Ibid
quarter - 201818. Indonesia’s GDP CAD in Q4 -2018 reached 3.57% 18
Bank Indonesia
wider than in previous quarters. Import growth had sharply
19
Badan Koordinasi Penanaman Modal (BKPM)
surpassed export growth and led to an increasingly large trade Biro Pusat Statistik
20
balance deficit. In addition, the export and import services balance

sheet also experienced an ever-increasing deficit. However, Foreign
Direct Investments (FDI) in 2018 continued to increase despite
the heavy capital outflows in the stock market and capital market.
The continual to growth in Indonesian investments demonstrated
confidence in the Indonesian economy. Indonesian investments
in 2018 grew by 4.11% from the previous year, with Q4 - 2018
investments reaching Rp185.9 trillion, Making it the highest quarter
in 2018. Investments in Q3 - 2018 reached Rp173.8 trillion, lower
than Rp176.3 trillion in Q2 – 2018, and Rp185.3 trillion in Q1- 201819.
The need to address the widening CAD, and its negative impact on
the rupiah exchange rate, has become an immediate focus for the
Government.
Management
Discussion
And Analysis
INDONESIA’S BANKING INDUSTRY DEVELOPMENT AND BANK BNI’S POSITION
As of November 2018, bank lending had grown by 12.7% (YoY) higher than 8.2% in December 2017. For funding, third party
funds collected by banks as of November 2018 grew by 7.2% lower than 9.4% in December 2017. The growth slowdown in
third party funds impacted banking asset growth and by November 2018 had reached 9.1%, or lower than 9.8% in December
2017.
Compared with the banking industry and its peers group, BNI growth was higher both for assets and for funding. Compared to
the November 2018 period for the industry and peers groups, as of December 2018, BNI’s loans had grown 16.2%, while BNI’s
funds had grown 12.1% higher, and as a result BNI’s assets grew by 14.0%, again higher than the industry and peers group.
BNI Position Based on Asset Growth, Loans Disbursed and TPF (Bank Only)
Bank Assets (%) Loans Disbursed (%) Funds from Third Parties (%)
Industri 9.1 12.1 7.2

BBRI 15.1 15.0 14.7
BMRI 9.7 13.9 8.3
BBCA 8.1 18.8 6.9
BBNI 14.0 16.2 12.1
Source: for peers data - Bank Indonesia Monthly Bank (LBU) Report as of September 2018
BNI Position compared to Peers BNI Position compared to Peers

based on Asset Growth (%) based on Loan Growth (%)
15.1
18.8 16.2
14.0 15.0
9.7 9.1 13.9 12.1
8.1
BBRI BMRI BBCA Industri BBNI

BNI Position compared to Peers

based onThird Party Funds Growth (%))
14.7
12.1
8.3
6.9 7.2
ANNUAL
REPORT 2018
OPERATIONAL
REVIEW
BNI conducts its business and activities in the banking sector 6. State treasury paper and Government Guarantee Letters;
in accordance with the Articles of Association as set forth in 7. Bank Indonesia Certificates (SBI);
Deed No. No. 52, May 22, 2018. Its main activities are: 8. Bonds;
1. Raising funds from the public in the form of deposits 9. Futures Trading in accordance with the laws and
such as demand deposits, time deposits, savings regulations;
deposits, and / or other equivalent; 10. Other securities instruments with a maturity in
2. Granting loans; accordance with the laws and regulations);
3. Issuing debt instruments; 11. Transferring money, both for its own interest, or the
4. Buying, selling, or guaranteeing, at its own risk, as interest of the customer;
well as for the interest and the order of clients (money 12. Placing funds on, borrowing funds from, or lending funds
orders including bills accredited by the Company as a to other banks, either by using mail, telecommunications
Bank whose validity period does not take longer than is facilities as well as with performance notes, checks, or
customary in the trading of such documents); other means;
5. Debt instruments and other trade paper whose validity 13. Receiving payment for securities and performing
period does not take longer than is customary in the calculations with or among third parties;
trading of such documents; 14. Providing a place to store goods and securities;
Management
Discussion
And Analysis
15. Conducting care for the interests of other parties BUSINESS DEVELOPMENT STRATEGY 2018
pursuant to a contract;
16. Placing funds from customer to other customers In line with the Company’s Vision and Mission, BNI strives to
in the form of securities that are not listed on a make the best contribution to encouraging economic growth
stock exchange; and development for the welfare of society as a whole. It is
17. Providing financing and/or performing other implemented through coordination and cooperation with
activities, including activities based on sharia other institutions from countries, governments, individuals,
principles, in accordance with the provisions communities, fellow financial companies, and other private
stipulated by competent authorities; entities. In addition to its contribution to the nation and the State,
18. Conducting factoring, credit card business and BNI seeks to assert its existence by striving to become one of the
trusteeship; major players in the financial sector, especially banking, through
19. Conducting foreign currency activities by comprehensive financial services to all banking customers, and
complying with the provisions stipulated by the value added benefits to all stakeholders: customers, investors,
authorities; employees, and the financial industry. BNI’s short-term plan was
20. Conducting equity participation in banks or other based on its long-term plan, taking into account the most recent
companies in the financial sector; internal and external factors. During 2018, BNI has succeeded in
21. Conducting temporary capital investments carrying out its plans with four main themes, namely Selective,
to address the consequences of credit failure, Digitalize, Market Penetration, and Organization Capabilities.
including financing failure based on Islamic
principles, subject to retracting ownership SELECTIVE
interests in accordance with the provisions 1. Enhancing business for customers in ministries, institutions,
stipulated by competent authorities; state-owned enterprises, and corporations through
22. Acting as a founder of the pension fund and comprehensive financial solutions.
pension fund manager in accordance with the a. Focusing on priority financing in the infrastructure
provisions of the laws and regulations; sector, manufacturing industry and financing in other
23. Conducting financial services, commercial sectors.
banking, and other investment banking; b. Increasing TPF and State Budgets (Ministries and
24. and performing other activities commonly Institutions), SOEs, Private Corporations and Debtor
conducted by the bank that are not contrary to Funds.
legislation. c. Optimizing financing through the acquisition of
selective corporate bonds.
In addition to the main business activities, the 2. Increasing Medium business in priority industries in
Company provides supporting business activities accordance with regional potential.
to optimize the utilization of available resources to a. Undertaking customer Take over in selective industries
support the main business activities, as long as it is and optimizing the value chain of Corporate customers.
not contrary to the laws and regulations. b. Improving Credit quality by restructuring and phasing
out bad loans through securitization.
Selain kegiatan usaha utama tersebut, Bank dapat c. Expanding funds in regional institutions, regional
melakukan kegiatan usaha penunjang dalam rangka governments, and BUMD, as well as debtor funds.
optimalisasi pemanfaatan sumber daya yang dimiliki 3. Strengthening Small businesses through optimizing Supply
untuk mendukung kegiatan usaha utama sepanjang Chain Financing for Corporate Customers, community /
tidak bertentangan dengan peraturan perundang- business centers, and supporting government programs.
undangan. a. Expanding Credit through outlets and digital-based
optimization.
b. Expanding Credit by optimizing value chain and supply
chain financing from Corporate debtors.
c. Expanding Credit through linkage financing.
ANNUAL
REPORT 2018
d. Optimizing the government programs role as a basis ORGANIZATION CAPABILITIES

for growth. 1. Optimizing organizational capabilities to support
4. Increasing CASA with digital business models focusing business achievement
on Closed Loop Transaction and optimizing customer a. Increasing employee productivity
transactions. b. Improving the effectiveness and efficiency of
a. Optimizing the use of debtor demand deposits and business processes
maintaining the ratio of demand deposits to debtors’ c. Developing the IT to support the business
KMK.
b. Developing closed loop transactions for Corporate The strategy for 2018 has generally been implemented
and Commercial customers and their supply chains well. BNI’s loan growth grew above the industry average
through utilization of product and service solutions. growth, driven by the growth in the corporate segment’s
loans, focusing on the infrastructure and processing sector.
DIGITALIZE For the medium segment, the loan increase was supported
Strengthening the consumer business in collaboration by optimizing the Corporate customer value chain and
with business partners and providing financial transaction customer take overs from selective industries based on
solutions with a focus on e-commerce and the millennial regional potential. Loan growth in the small segment was
generation. the result optimizing the value chain and supply chain
a. Developing digital channel acquisitions. financing and maximizing our role in government programs
b. Working on potential millennial through digital (KUR). In addition, support came from additional channels,
enhancement. namely agen46 and digital-based lending to facilitate loan
c. Focusing e-commerce through feature development and applications. Loan growth above the industry average is
strategic partnerships. carried out by following the principle of prudence so that
d. Improving customer engagement through the Non-Performing Loans (NPL) can be maintained, and has
development of a personal credit card management decreased and produced relatively high returns.
application.
MARKET PENETRATION The increase in the consumer business was accomplished

1. Improving outlet performance by strengthening market by selling BNI Griya, BNI Fleksi, Credit Cards and other credit
penetration for both deposits and loans. by working on the potential millennials through digital
a. Developing the office networks organically and development. To grow the digital business and to work on
inorganically and supporting digital branches. the potential millennials, BNI has launched a QR-based
b. Optimizing outlets to support the business target’ mobile payments including, Yap!, Cinta chat, and BNI Call
achievement. application (1500046 Virtual Assistant). To provide a better
c. Improving outlet performance and productivity. user experience for customers, BNI has opened 8 (eight)
d. Improving efficiency initiatives and work processes. digital branches.
e. Optimizing Agen46 to expand the network and to
achieve small and consumer business performance. The strategy for increasing TPF focuses on closed loop
2. Increasing subsidiaries’ market share through increased transactions to ensure all customer transactions stay
synergy, digital development and inorganic growth. within BNI. The closed loop transactions for Corporate and
a. Strengthening the comprehensive Risk Culture Commercial customers, together with their supply chains,
and Risk Management through integrated risk was developed by utilizing product and service solutions,
management. one being by increasing cash management transactions.
b. Increasing synergy with BNI Group. In addition, to increasing customer transactions through
c. Developing Digital and improving Financial Inclusive. e-commerce, several feature and strategic partnerships have
d. Strengthening the Subsidiaries’ HC to improve Cross been developed.
Utilization.
e. Strengthening Subsidiary Companies through
Corporate Action and Unorganic Growth
Management
Discussion
And Analysis
OVERVIEW OF OPERATIONS PER BUSINESS SEGMENTS
Bank BNI’s operating segments comprises: Corporate; Commercial and Small; Consumer and Retail;
Treasury and International; Head Office; Subsidiaries.
CORPORATE
Corporate segment activities include corporate customer loans, deposits and other transactions.
LOANS
The Bank BNI 2018 Corporate segment loans strategy, productivity, business prospects and achievement
strategies are described as follows.
CORPORATE SEGMENT LOANS EXPLANATION

BNI”s Corporate segment handles loans of over Rp300 billion for individual customers and group
customers in State-Owned Enterprises, and large National and Multi-National Enterprises in Indonesia.
CORPORATE SEGMENT LOANS 2018 STRATEGIES

BNI’s short-term plans follow the long-term plans after taking into account the latest internal and
external factors. During 2018, BNI carried out its plans as follows.
1. Loan expansion focusing on financing upstream to downstream government infrastructure projects
for corporations and SOEs.
a. Increasing new borrowers and optimizing the existing borrowers focusing on infrastructure
projects.
b. Increasing new borrowers and optimizing the existing borrowers in other priority sectors.
2. Increasing middle segment loans focusing on prospective industries.
a. Acquisitions through Corporate Borrowers Supply Chain Financing.
b. Selectively taking over new borrowers from Bank Book III and Book IV in line with priority
sectors.
c. Optimizing existing borrowers facilities based on merit.
CORPORATE SEGMENT LOAN PRODUCTIVITY IN 2018

BNI’s loan portfolio continues to be well diversified and covered BNI’s priority sectors. The following lists
the 10 (ten) major individual and group debtors business sectors at the end of 2018.
List of 10 (Ten) Business Sector Individual Large Debtors

Individual Debtors Total (Rp million)
Large Trading and Retail 12,599,313

Other Financial Intermediaries (Non Bank) Other than Leasing 4,063,915
Government Administration and Economic and Social Policy 3,207,737
Cigarettes 2,661,670
Electricity 2,354,596
Coal Trading 2,082,439
Telecommunication Services 1,592,559
Large Trading and Retail 1,350,497
Ship Building and Repairing Industry 904,382
Total 32,543,883
ANNUAL
REPORT 2018
10 major group business sectors

Group Debtors Jumlah (Rp juta)
Oil and Gas Mining 10,845,192
Pulp Industry, Paper and Cardboard / Paper Board, Agribusiness and Food, Financial Services, Real Estate 10,820,499
and Developer
Oil Palm Plantations, Financial Services, Automotive, Telecommunications Services, Food and Beverage 9,584,752
Telecommunication Services 8,618,945
Toll Road Building 7,722,691
Other Civil Buildings, Building Construction 7,688,815
Palm Oil Plantations, Rubber Plantations, and Other Gum Producers, Sugar Industry and Sugar Processing 6,943,903
Fertilizer industry 6,865,002
Palm Oil Plantations 6,326,393
Total 89,030,733
Total corporate segment loans reached Rp222.9 trillion in 2018, an increase of 18.6% or Rp44.1 trillion compared to Rp188.0
trillion in 2017. Based on type of loans disbursed in 2018, the majority of corporate loans were Working Capital Loans, which
accounted for 58.2% of the total, or Rp152.9 trillion, while the remaining 41.8% or Rp109.9 trillion were Investment Loans. The
Corporate segment loan growth is shown in the following table:
Corporate Segment Loansi

2018 2017 Growth
Product
(Rp Billion) (%) (Rp Billion) (%) (Rp Billion) (%)
Investment Loans 109.903 41,8% 94.052 43,0% 15.851 16,9%
Working Capital Loans 152.925 58,2% 124.706 57,0% 28.220 22,6%
Total 262.828 100,0% 218.758 100,0% 44.070 20,1%
CORPORATE LOAN BUSINESS PROSPECTS AND STRATEGIES

Business prospects are still promising and Corporate loans are projected to grow 15% in the manufacturing, oil palm
plantations, other business services sectors. Based on this the corporate segment has adopted the following strategies for
2019:
1. IIncreasing loans in the Manufacturing, Plantation, Infrastructure, Tourism and other business services sectors.
2. Optimizing value chains and transactional banking from customers so as to increase fee-based income.
3. Maintaining loan quality through prudent loan financing processes and monitoring borrowers, especially those that
included on the watchlist.
4. Speeding up the business processes.
THIRD PARTY FUNDS / SAVINGS

Bank BNI Corporate Segment Third Party Funds / Savings 2018 productivity, business prospects and achievement are
presented as follows:
EXPLANATION OF CORPORATE SEGMENT TPF

The Corporate Segment (Business Banking) Third Party Funds (TPF) covers a number of deposit funds and operational
activities, owned and / or managed by institutional customers (Ministry, SOE, Non Banking Financial Institutions, Universities.
Institutional customers in the form of national, multinational companies, BUMN, BUMD, Hospitals, Ministries and other
Government Institutions). In recent years fintech-based companies have emerged, also with substantial funds. Business
Banking TPF include Savings, Deposits or Giro, based on the customer needs. Products are offered to selected institutions in
packages tailored to their needs.
Management
Discussion
And Analysis
CORPORATE SEGMENT TPF STRATEGY IN 2018

In line with BNI’s strategy to achieve quality asset growth and a good level of profitability through an optimal funding
structure, in 2018 BNI took the initiative to increase customer business solutions through the following initiatives:
1. Focusing on 20 (twenty) Ministries and Institutions, 23 (twenty three) Major SOEs, various educational institutions,
Regional Governments and Hospitals, and other financial, oil and gas and corporate service institutions.
2. Increasing BNI’s role in public services, especially the central government program.
3. Optimizing electronic-based solutions in managing Tax Revenues and Non-Tax Receipts.
4. Improving corporate transaction solutions through e-channel payment services, receipts and management of customer
financial information.
5. Increasing fee-based income with innovative operational service solutions in various industrial sectors.
6. Optimizing value chain and supply chain using Financial Supply Chain Management solutions to encourage the growth of
low-cost funds.
7. Cross selling transactional services and bank guarantees to customers.
CORPORATE SEGMENT TPF PRODUCTIVITY 2018

Corporate Segment TPF Productivity is presented as follows:
Corporate Segment Total Funds

Description 2018 2017 Growth
(Rp trillion) Composition (Rp trillion) Composition (Rp trillion) (%)

(%) (%)
Giro 148 53.2% 125 52.0% 23 18.1%

Deposits 113 40.5% 103 42.6% 10 10.6%
Savings 18 6.4% 13 5.4% 5 36.2%
Total 279 100.0% 241 100.0% 38 15.6%
Total Corporate Segment Deposits in 2018 reached Rp279 trillion, an increase of 15.6% or Rp38 trillion compared to Rp241
trillion the previous year, due to:
1. Increased deposits from the state budget (ministries and institutions), state-owned enterprises, private corporations and
debtor funds.
2. Expanded institutional funds, LGs, BUMDs and Debtors.
3. Increased CASA with digital business models that focus on closed loop transactions and optimization of customer
transactions
Corporate Segment Total Accounts

(Account Units) Composition (Account Units) Composition Account Units (%)

(%) (%)
Giro 323,834 50.2% 285,840 44.3% 37,994 13.3%

Deposits 21,061 3.3% 18,678 2.9% 2,383 12.8%
Savings 299,886 46.5% 82,337 12.8% 217,549 264.2%
Total 644,781 100.0% 386,855 60.0% 257,926 66.7%
Total BNI Corporate Segment Accounts in 2018 reached 644,781, an increase of 66.7% or 257,926 accounts compared to 2017.
CORPORATE SEGMENT TPF PROSPECTS OF AND STRATEGIES

The Corporate Segment TPF prospects include:
1. The potential from the total State 2019 Budget of Rp2,461 trillion is large, and BNI aims to capture Rp389 trillion of the
funds distributed.
2. Potentially large corporate business and its derivatives.
ANNUAL
REPORT 2018
The 2019 strategic plan for the corporate segment includes: both domestic and international, online tax payments, virtual
1. Capturing the business potential from the 2019 state and accounts for collection, billing payments, and supply chain
regional budget funds (20 Ministries and Institutions, financing. These cash management transactions will help
Hospitals, Educational Institutions and Regional grow TPF and indirectly maintain BNI’s liquidity. The main
Governments) Cash Management application provided by BNI for customers
2. Increasing the Corporate Customer Derivation Business is BNIDirect. It is an secure website application that can be
(SOE, Non Banking Financial Institution, Universities and accessed from anywhere, anytime, and using any media. The
Other Private Corporations) BNIDirect website can be accessed via https: //bnidirect.bni.
3. Optimizing Debtor Funds by encouraging central co.id using computers or cellphones, through the flexible and
and corporate debtor financial activities to use cash easy to install BNIDirect Mobile.
management services.
4. Developing system solutions and transactions based on CORPORATE SEGMENT OTHER TRANSACTIONS STRATEGIES
customer needs. IN 2018
5. Acquiring new customers. During 2018, BNI followed strategies to increase cash
management transactions, including:
OTHER TRANSACTIONS 1. Maintaining and acquiring SOE/Corporation Customers
Bank BNI Corporate Segment other transactions 2018 that have a significant ecosystem.
productivity, business prospects and achievement are 2. Researching and identifying potential revenue (PNBP)
presented as follows: and expenditure flow in top 10 Ministries/Institutions in
order to provide business solutions.
EXPLANATION OF CORPORATE SEGMENT OTHER 3. Exploring and identifying corporate customers derivative
TRANSACTIONS IN 2018 businesses and value chains to provide close loop
The feature products BNI offers to Corporate Segment transaction solutions.
customers include BNI Cash Management products where 4. Expanding the scope of transaction access to the
customers can independently manage their corporate commercial customer segment by optimizing the
financial cash flow more regularly and monitor them online. potential of BNI debtors in each region.
BNI Cash Management products include many features,
including: transfer overbooking, transfers between banks,
CORPORATE SEGMENT OTHER TRANSACTIONS PRODUCTIVITY IN 2018

In 2018 the number of cash management account units reached 118,359 accounts, an increase of 25.46% compared to 94,341
accounts in 2017. This was due to the BNI’s success in maintaining their corporate customers’ trust, so they remain committed
to using BNIDirect as their transaction tool.
Total Cash Management Accounts

(Account Units) Composition (Account Units) Composition (Account Units) Composition

(%) (%) (%)
Cash Management 118,359 100 94,341 100 24,018 25.46
During 2018, BNI successfully increased its presence as the bank of choice for customers through its efficient, effective, safe
and reliable cash management services. This resulted in total integrated cash management services transactions through
BNIDirect growing 15.0% to 21.28 million transactions with a value of Rp1,605 trillion, providing fee-based income growth of
11.7% to reach Rp521 billion in 2018.
Management
Discussion
And Analysis
BNIDirect Transactions
Description 2018 2017 Composition
Total Transactions (million 21.28 18.7 15.0%

Rupiah)
Nominal Transactions (trillion 1,605 1,295 23.9%
Rupiah)
Fee Based Income (billion 590 528 11.7%
Rupiah)
Total Users 65,675 52,594 24.9%
The performance improvements above were the result CORPORATE SEGMENT OTHER TRANSACTIONS PROSPECTS
of several strategic initiatives in 2018. These included AND STRATEGIES
BNI succeeding in increasing its penetration of banking 2019 is a political year and the prospects for increasing BNI
transactional services in the corporate customer segment Cash Management transactions is still wide open, especially
(including SOE and Government), and expanding its presence in the digital segment, through cooperation with fintech
in the commercial customer segment by optimizing BNI’s companies whose transaction activities synergize with BNI
potential borrowers in each region. BNI also succeeded cash management. For the ministry and agency segments,
in gaining and building public services trust through its there are big opportunities to optimize the state budget
efficiency and transparency of bureaucracy within various funding for central and regional government projects. The
government ministries and agencies. These included regional SOE and private segments are predicted to be
electronic real-time online tax payment through BNI e-Tax, somewhat restrained at the beginning of the year, but the
and payment of customs and import of goods through BNI belief is they will continue to grow with good prospects, if
e-PIB, payment for passports, online land tax payments the right products/solutions are chosen.
through e-PBB, and participation in various BumDes
government programs. BNI’s cash management solutions After looking at the potential for 2019 and learning from the
succeeded in helping customers by delivering increasingly experiences in 2018, BNI Cash Management will improve by
efficient business processes so as to increase the customers’ following different business strategies than the previous year.
productivity. The electronic solutions built also helped create They include:
efficient work processes within BNI so as to improve services 1. Acquiring new customers by focusing on potential high
for customers. The increase in the value chain with financial transaction customers.
supply chain transactions has begun to show good potential. 2. Penetrating on BNI customers who have not yet used
transactional solutions.
As in previous years, BNI’s banking transactional services 3. Increasing the number of active customers who use cash
gained numerous awards in 2018, including: management transactions.
1. Best Treasury and Cash Management in Indonesia 2018 4. Increasing the number of features used by BNI
from Global Finance Magazine. customers.
2. Best Cash Management Solution In Southeast Asia 2018
from Alpha Southeast Asia Magazine.
3. Best Overall Cash Management in Indonesia 2018 based
on a survey by Euromoney Magazine.
ANNUAL
REPORT 2018
CORPORATE SEGMENT INCOME AND PROFITABILITY

Corporate Segment Income and Profitability is presented as follows:
Tabel Pendapatan dan Profitabilitas Segmen Korporasi

(Rp million) (Rp million) (Rp million) (%)
Interest income and Sharia income-net *) 12,813,111 12,428,601 384,510 3.1%

Premium income -net
Other operating income 3,376,656 2,803,803 572,853 20.4%
Allowance for impairment losses (1,431,145) (2,107,854) 676,709 (32.1%)
Other operating expenses (5,541,492) (4,166,494) (1,374,998) 33.0%
Operational profit 9,217,130 8,958,056 259,074 2.9%
Income (expense) non-operating-net 21 (7) 28 (400.0%)
Income before tax expense 9,217,151 8,958,049 259,102 2.9%
Total assets 258,869,706 215,887,752 42,981,954 19.9%
Total liabilities 270,621,130 248,980,052 21,641,078 8.7%
*) including internal transfer pricing components between operating segments
In 2018 the Corporate segment Interest income and Sharia income-net reached Rp12.8 trillion, an increase of 3.1% compared
to Rp12.4 trillion in 2017. Operational profit in 2018 reached Rp 9.2 trillion, an increase of 2.9% compared to Rp 9 trillion the
previous year. Both these increases were due to the Corporate segment loan growth of 20.1%, increased total funds of 18%,
and the BNI Direct transaction fee based income increase of 11.7%.
COMMERCIAL AND SMALL

The Commercial and Small Segments include loans, customer deposits and other transactions for small to medium scale
customers.
COMMERCIAL
LOANS
Bank BNI Commercial Segment Loans in 2018 productivity, business prospects and achievement are presented as follows:
EXPLANATION OF COMMERCIAL SEGMENT LOANS

BNI’s Commercial Segment (Medium Segment) provides loans between Rp15 billion and Rp300 billion to individual customers
and group customers.
COMMERCIAL SEGMENT LOANS IN 2018

To pursue profit growth through increased interest income from loan expansion, the Commercial Segment business strategies
included:
1. Targeting the leading industries and key players.
2. Acquisition ex borrowers (win back) in leading industry sectors
3. Pipeline Management
4. Financing national and government projects
5. Value chains and corporate supply chains
Related to quality improvement, the Commercial Segment established a team to focus on handling & managing loans at risk
(restructuring collectability 1, Pre NPL and NPL). Substantial additional income comes from fee-based income, and looks at
potential transactions from existing borrowers, and the value chain of the entire lending business. In addition, it is also always
implanted that the Commercial Segment business is not only limited to loans, but also all business transactions that can be
offered to borrowers.
Management
Discussion
And Analysis
2018 achievements
1. Expansion through the acquisition of other Bank borrowers with a proven past performance by looking at potential
economic sectors.
2. Joint loans at risk monitoring and handling by establishing a dedicated SRM-RM specifically.
COMMERCIAL SEGMENT LOANS PRODUCTIVITY IN 2018

In 2018, BNI’s Commercial segment Loans grew 6.4%, compared to overall bank lending of 7.2%, and average BNI loan
disbursement growth of 16.2%. The BNI Medium Segment covers all major Indonesian cities through 33 (thirty three) Medium
Loan Centers.
Segment Growth (Medium)

74,731
70,261
61,330
51,147
2015 2016 2017 2018
The Medium Segment lending included Working Capital Loans that contributed Rp48.3 trillion or 64.6%, while the remaining
Rp26.5 trillion or 35.4% were for Investment Loans. 31.4% of the Commercial Segment Loans were for the restaurant and hotel
trade sector, followed by 26.2% for the industrial sector. The following shows the breakdown of Commercial) Segment lending
by sector:
Tabel Penyaluran Kredit Segmen Komersial (Menengah) Berdasarkan Sektor
2018 2017 Pertumbuhan
Sector
(Billion Rp) Composition (Billion Rp) Composition (Billion Rp) YoY (%)
(%) (%)
Trading, Restaurant and Hotel 23,497 31.4% 23,220 33.0% 277 1.2%
Mining 2,007 2.7% 1,947 2.8% 60 3.1%
Industry 19,585 26.2% 20,285 28.9% (701) (3.5%)
Agriculture 3,622 4.8% 3,173 4.5% 449 14.1%
Construction 7,787 10.4% 6,977 9.9% 809 11.6%
Transportation, Warehousing, and 7,940 10.6% 6,307 9.0% 1,633 25.9%
Communication
Electricity, Gas and Water 456 0.6% 624 0.9% (167) (26.8%)
Business Services 7,082 9.5% 5,870 8.4% 1,212 20.6%
Social Services 2,755 3.7% 1,857 2.6% 898 48.4%
Total 74,731 100.0% 70,261 100.0% 4,470 6.4%
In line with the government policy direction, namely equitable development, the commercial segment focused on
government strategic industries, especially transportation, warehousing and communications, and enhancing the
communities’ economic welfare through growth in the agricultural sector.
ANNUAL
REPORT 2018
In addition, for quality business growth, growth was directed SMALL

towards businesses with the potential to continue growing
without being affected by disruptions, such as social services, LOANS
by significantly increasing lending in these areas in 2018. Bank BNI Small Segment Loans in 2018 productivity, business
prospects and achievement are presented as follows.
Internally BNI’s Commercial Segment continued to make
improvements in order to focus on achieving profits, EXPLANATION OF SMALL SEGMENT LOANS
and improvements were made in the human resources, BNI’s Small Segment (Medium Segment) provides loans up to
technology and business processes. Human resources Rp15 billion to individual customers and group customers.
improvements included increasing loan officers’ skills through
hard and soft skills programs, as well as quickly ensuring the SMALL SEGMENT LOANS STRATEGIES IN 2018
number of officers matched the increasing business needs. These positive achievements in 2018 can be seen in the
On the technology side, the Commercial Segment developed many developments carried out by BNI, including optimizing
automation fund systems so that business processes run outlets as point of sales, transforming the digital-based loan
faster and are more agile. management, focusing on clustering patterned financing,
and optimizing supply chain financing for corporate
COMMERCIAL SEGMENT LOANS PROSPECTS AND customers. BNI as a state-owned bank is an agent for
STRATEGIES development, and BNI’s commitment can be seen in its
In 2019, the Commercial Segment will continue focusing on support of government programs, especially those related to
the Corporate supply chain, business process improvements, community welfare improvements through its provision of
and loan quality improvements. loans to MSMEs. Activities carried out by BNI included:
1. Social Forestry
BNI has set a series of target achievement strategies Helping communities around the PT Perhutani forest to
including: grow crops using forest land to improve their welfare. BNI
1. Expanding selectively in priority sectors and in potential also provides funding through its KUR program to make
regions it easier for farmers to obtain capital through installment
2. Focusing on the major players in the priority sectors of schemes adjusted to the planting season. Loans
each region disbursed to 3,170 farmers amounted to Rp18.8 billion.
3. Supply chain for selected corporate, by maximizing In addition, BNI through other SOEs, assisted in
the potential value chain of Corporate and commercial normalizing post-flood damaged irrigation / waterways
borrowers. for 6 (six) villages covering a total area of about 1,265 ha
4. Developing digital capabilities by digitizing processes and 1,1 Km of village roads.
and monitoring 2. Planting season controls
a. Digitizing loan applications This activity is a form of BNI’s participation in the
b. Utilizing Big Data government’s program to increase agricultural
5. Improving loan quality through comprehensive production so as to achieve food self-sufficiency.
monitoring and management of loans at risk. The purpose of this activity is to oversee the 2018/2019
6. Increasing synergy and business potential by OKMAR planting season, and BNI’s involvement includes
encouraging closed loop transactions, increasing CASA providing cheap, easy financing, together with assistance
through cross selling, including cash management and and offtakers for food crops farmers in various regions
customer value chains. in Indonesia, in synergy with the SOEs “Present for the
Country’ and the Ministry of Agriculture.
Management
Discussion
And Analysis
The activities include:

a. Distributing farm cards in accordance with the Definitive Plan for Group Needs (RDKK)
b. Distributing KUR Tani
c. Planting agricultural commodities
d. Providing CSR, seed and alsintan to support the program’s continuation
e. Grain absorbency and other commodities by cooperating with other SOEs as Offtakers (to absorb the farmers’ crops)
as a form of SOE synergy.
3. Rejuvenation of People’s Palm Oil

Funding palm oil farmers in collaboration with the Palm Oil Plantation Fund Management Agency (BPDP KS) to improve
their welfare.
4. Financing coffee farmers in Garut and Malang
This funding is BNI’s support to increase the production and welfare of coffee farmers to enable exports.
5. Financing salt farmers
BNI’s participation to increase national salt production by financing salt farmers, currently running in Sumenep, Indramayu
and Kupang. The total funding given by BNI through CSR and KUR to 320 salt farmers reached Rp7.3 billion.
SMALL SEGMENT LOAN PRODUCTIVITY

Small Segment Loan Growth is presented as follows.
Small credit growth per product type
2018 2017
Outstanding Loan
Growth
Product
Outstanding NPL Outstanding NPL (%)
(Rp billion) (%) (Rp billion) (%)
KUR 20.289 0,7% 14.194 1,9% 42,9%

Non KUR 45.774 2,0% 42.285 3,0% 8,3%
Total 66.063 1,6% 56.479 2,7% 16,9%
In 2018, the small segment recorded a faster growth of 16.9%, compared to the previous year. Small loans as of December
31, 2018 reached Rp66.0 trillion an increase of Rp9.6 trillion over the previous year. In small segment NPL credit quality also
improved with the NPL ratio decreasing from 2.7% in 2017 to 1.6% in 2018.
During 2018 BNI also distributed people’s business loans (KUR) amounting to Rp15.9 trillion to 147,691 borrowers. Of this 54%
is for the production sector that includes the agricultural, industrial and services sectors. In addition, BNI also plays a role in
supporting the Government’s MSMEs and people’s economy program in developing through the Social Forestry program,
Farmer Entrepreneurship, Farmer Cards, People’s Palm Oil Rejuvenation and the movement to protect the growing season.
Based on economic sector, the majority of small segment loans were disbursed to the restaurant and hotel trade sector with
57.4%, followed by the manufacturing and agriculture sector, and the hunting and farming facilities sector with 10.8% and
9.9% respectively.
Small Segment Loan Disbursements by Sector

Growth 2017- NPL NPL
2018 2017 Composition
2018 2018 2017
Economic Sector
(Billion Rp) (Billion Rp) (%) (%) (%) (%)
Industry 7,109 5,388 31.9% 10.8% 1.4% 2.6%

Trading, Restaurant and
37,896 34,697 9.2% 57.4% 1.9% 2.8%
Hotel
Agriculture 6,541 4,227 54.7% 9.9% 1.0% 2.1%
Business Services 6,131 5,369 14.2% 9.3% 1.6% 3.0%
ANNUAL
REPORT 2018
Growth 2017- NPL NPL

2018 2017 Composition
2018 2018 2017
Economic Sector
(Billion Rp) (Billion Rp) (%) (%) (%) (%)
Transportation, warehous-
ing, and communication 1,848 1,583 16.7% 2.8% 1.0% 2.9%
Construction 2,670 2,347 13.8% 4.0% 2.2% 2.4%

Electricity, Gas and Water 100 70 42.9% 0.2% 0.0% 0.3%
Mining 313 227 37.9% 0.5% 0.2% 0.9%
Social Services 3,454 2,571 34.3% 5.2% 1.2% 2.8%
Total 66,063 56,479 16.9% 100% 1.6% 2.7%
SMALL SEGMENT LOANS PROSPECTS AND STRATEGIES

Small loan financing opportunities are still wide open, given the number of MSMEs in Indonesia that has reached ± 58 million
people. BNI’s small segment works on this large financing potential through an outlet network and through digital channels.
Continuing the positive performance trend in 2018, BNI’s Small segment is optimistic in achieving its 2019 targets through the
following strategies:
1. Growth strategy
a. Optimizing supply chain financing from customers and corporate borrowers.
b. Establishing the government programs as the basis for growth
c. Increasing the synergies with SOEs to accelerate loan growth in the production sector
d. Focusing financing in business centers using clustering patterns
e. Improving digital-based loan processes
2. Loan quality strategy
a. Improving risk management through an improved early warning system.
b. Improving the collection management system.
c. Intensifying the collection of KUR claims
SMALL SEGMENT INCOME AND PROFITABILITY

Commercial and Small Segment Income and Profitability is presented as follows.
Commercial and Small Segment Income and Profitability

(Rp Million) (Rp Million) (Rp Million) (%)
Interest income and Sharia income-net *) 8,571,831 6,807,866 1,763,965 25.9%

Premium income -net - -
Allowance for impairment losses (3,787,622) (2,306,273) (1,481,349) 64.2%
Other operating expenses (2,547,390) (2,702,085) 154,695 (5.7%)
Operational profit 3,543,320 2,958,520 584,800 19.8%
Income (expense) non-operating-net 184 22 162 736.4%
Income before tax expense 3,543,504 2,958,542 584,962 19.8%
Total assets 135,308,561 121,160,933 14,147,628 11.7%
Total liabilities 14,658,291 121,311 14,536,980 11,983.2%
*) including internal transfer pricing components between operating segments
Management
Discussion
And Analysis
In 2018 interest income and sharia income -net for the Commercial and Small segments reached Rp8.6 trillion, an increase of
25.9% compared to Rp6.8 trillion in 2017. The operating profit in 2018 reached Rp3.5 trillion, an increase of 19.8% compared
to Rp3.0 trillion the previous year. This increased Profitability was due to the 42.9% growth in People’s Business Loans (KUR)
disbursed, and growth in loan disbursed to the agricultural economy sector.
CONSUMER AND RETAIL

The Consumer and Retail business segment includes consumer Gold.
financing loans including mortgage loans, credit cards and other b. Premium Credit Card: BNI Style Titanium, BNI Visa
transactions for consumer customers, and includes loans given Platinum, BNI JCB Precious, BNI Mastercard World
to retail individuals. and BNI Visa Infinite.
c. Credit Card Co-Branding: BNI-Garuda, BNI-LOTTE
LOANS Mart, BNI-Bank Sumsel Babel, BNI-Bank BJB, BNI-Bank
Bank BNI Consumer and Retail Segment Loans in 2018 DKI, BNI-Pertamina and BNI Ferrari.
productivity, business prospects and achievement are presented d. Affinity Credit Card: Kartu Universitas, Kartu Ikatan
as follows. Alumni, and Kartu Komunitas.
e. Corporate Credit Card: BNI Visa Corporate Card Gold,
EXPLANATION OF CONSUMER AND RETAIL SEGMENT LOANS BNI Visa Corporate Card Platinum and BNI American
Consumer and Segment loan products consist of mortgages, Express Business Card.
credit cards, payrolls, auto loans and others. f. Private Label Credit Cards: BNI Travelling Card, BNI
1. Mortgages Health Card and BNI Distribution Card.
BNI Griya is a loan facility intended for individuals wanting g. BNI Cash Card: a revolving loan without collateral
to own residential properties, apartments, shops / houses that can be converted into fixed installments, and
and villas, both new or second-hand. This facility can also can only be used to make cash withdrawals at an
be used to purchase plots of land, developing, renovating, ATM or Teller.
refinancing, takeovers, top ups through the BNI Griya 3. Payroll Loan
Multiguna program. BNI Fleksi: a BNI Unsecured Loan available to active
2. Credit Cards employees and retirees who channel their salaries and
Credit Cards are consumer loan products with the large retirement benefits through BNI.
market share in the industry. BNI Credit Card products 4. Others
includes: BNI Instan, a loan product guaranteed by BNI Deposits,
a. Regular Credit Card: BNI Visa Silver, BNI Mastercard Savings and Current Accounts.
Silver, BNI Visa Gold, BNI Mastercard Gold and BNI JCB
CONSUMER AND RETAIL SEGMENT LOANS, PRODUCTIVITY, PROSPECTS AND, STRATEGY ACHIEVEMENT FOR 2018
Consumer and Retail Loan Performance

(Rp billion) (Rp billion) (Rp billion) (%)
Mortgage 40,753 37,066 3,687 9.9%

Payroll Loan 23,744 17,687 6,057 34.2%
Credit Card 12,558 11,635 923 7.9%
Others 2,680 5,057 (2,377) (47.0%)
Subtotal 79,735 71,445 8,290 11.6%
Consumer and Retail Loans in 2018 reached Rp79.7 trillion, an increase of 11.6% from Rp71.4 trillion in 2017. Consumer loans
increased in 2018 to Rp8.3 trillion. Payroll Loans is still the main driver in consumer loan growth, and grew 34.2%, supported by
optimizing the Corporate Segment and institutions database. Consumer loan growth was also supported by ease of processes
and digital marketing (BNI DigiLoan).
ANNUAL
REPORT 2018
BNI Griya
BNI Griya is a loan facility intended for individuals wanting BNI Griya Productivity
to own residential properties, apartments, shops/houses BNI Griya portfolio disbursed in 2018 amounted to Rp40.8
and villas, both new or second-hand. This facility can also billion, an increase of 9.9% compared to Rp37.1 billion in
be used to purchase plots of land, developing, renovating, 2017. Total BNI Griya increased to Rp37.1 trillion in 2018.
refinancing, takeovers, top ups through the BNI Griya The BNI Griya distribution in 2018 focused on the primary
Multiguna program. property market segment in cooperation with Developers,
while the secondary property market segment was through
BNI Griya Strategy for 2018 Property Agent channels and outlet optimization.
The 2018 BNI Griya distribution strategy, focused on Selected
Partners (including the millenials segment), and Selected Tabel Produktivitas BNI Griya
Developers, as well as Existing Customers. In the primary Description 2018 2017 Growth
property market segment, BNI Griya expanded cooperation
with Developers throughout Indonesia and provided ease of (Rp billion) (Rp billion) (Rp billion) (%)
use and speed in the loan application process for prospective
borrowers who bought new property from the BNI selected BNI Griya 40,753 37,066 3,687 9.9%
developer. In the secondary property market segment, BNI
Griya cooperated with a number of Property Agents, as well
as conducted joint gatherings to increase the number of BNI BNI Griya Prospects and Strategy
Griya applications, especially for the purchase of second- BNI Griya 2018 growth of 9.9% (YoY). In 2019 BNI Griya’s
hand properties. projection is quite optimistic and is expected to grow close
to 12.0%.
BNI Griya lending is focused on customers with fixed income,
and optimizes the role of branches, especially in large cities, BNI Griya marketing strategies for 2019 include:
to speed up the credit process. In addition to acquiring new 1. Focusing on potential fixed income customers: HLB, BIN,
borrowers, loan distribution is also achieved through the Top LMC1, LMC2, and Non Fixed Income customers: Emerald
Up credit facility program for existing customers meeting customers and Existing Borrowers by working on the
certain criteria. BNI Griya lending is also carried out in potential chain business through synergy with Business
synergies with Business Banking (Corporate, Commercial and Banking (Corporate, Commercial and Retail) and with
Retail) and subsidiaries, segment directors, business owners, subsidiaries to provide potential for Consumer Banking,
and employees of BNI institutional partners, including especially by targeting segments for directors, business
providing loans for construction developers. owners, institutional employees and collaborating partners.
In 2018 BNI Griya disbursed facilities in the form of light 2. Optimizing all branch networks / outlets throughout
and fixed interest rates for the first 4 (four) years, providing Indonesia as BNI Griya marketing channels, as well as
certainty regarding installments to the borrowers. BNI increasing the ease and speed of the BNI Griya process,
also marketed a housing finance program for the Milenials including increasing cooperation with property business
segment through BNI Griya Gue with attractive features, partners including Developers and Property Agents
including lighter installments at the beginning of the loan 3. Marketing BNI Griya to the Millenials segment as follows:
that gradually increased based on projected future increases a. Digitizing the loan application process and
in income. For BNI’s joint venture partners, the instant strengthening BNI Griya marketing through
approval program provided fast approval to simplify the BNI strategic partnerships with online property media.
Griya loan application documents. BNI also participated in b. Optimizing Big Data (crawling from Business
distributing the Housing Financing Liquidity Facilities (FLPP) Directory, Higher Education, Market Place, and
program for low-income communities (MBR), in collaboration Social Media) to obtain data on qualified Griya
with the Ministry of Public Works and Public Housing. Millenials.
c. Massive online and social media campaigns focused
BNI Griya Awards in 2018 on providing education to the Millennial segment
1. Top Bank 2018 (Top Mortgages (People’s Housing Loans) regarding the importance of having a home early
2018)) on.
2. Rumah 123 Real Estate Awards 2018 (The Most Popular
Bank for Mortgage Products)
Management
Discussion
And Analysis
BNI Fleksi
BNI Fleksi is a BNI Unsecured Loan product available to BNI Fleksi Productivity
active employees and retirees who channel their salaries and BNI Fleksi grew 34.2% to Rp23.7 trillion, from Rp17.7 trillion
pension benefits through BNI. in 2017, and was dominated by the increased Payroll Loans
to SOE customers, Ministries, Government Agencies, Selected
BNI Fleksi 2018 Strategy Companies.
During 2018 BNI Fleksi focused on expanding to low risk
customers (SOE, PNS, selected institutions, Taspen Pre- Tabel Produktivitas BNI Fleksi
Pension and Pensioners/Asabri/Dapen SOE), in addition to Description 2018 2017 Growth
the Fleksi payroll program with acquisition strategies through
cross selling to selected Fleksi payroll customers/borrowers (Rp billion) (Rp billion) (Rp billion) (%)
(selected company) through the customer payroll base.
BNI Flexi 23,744 17,687 6,057 34.2%
The increase in the number of payroll accounts during 2018
saw the potential for an increase in BNI Fleksi in cooperation
with several SOE, government ministries/agencies, and BNI Fleksi Prospects and Strategies
selected private companies. BNI’s Payroll Loan growth is the key driver for potential
borrowers, and also the increasing productivity age and
Various BNI Fleksi programs were carried out during 2018, millennial generation are potential borrowers for BNI Fleksi’s
including the ease of BNI Fleksi applications that can be growth in 2019.
submitted at any of the nearest BNI branches or digitally, with
a fast processing time. To increase BNI Fleksi’s loan expansion in 2019, the strategy
will be to focus on Selected Partners and Existing Customers,
The increase in BNI Fleksi’s portfolio was also the result of including:
channeling loan facilities to pensioners through BNI Fleksi 1. Penetrating potential payroll customers (SOE, ASN,
Pension (BFP). This product is a loan facility for prospective TNI POLRI, and corporate customers employees, and
pensioners who will retire up to a maximum of 5 (five) years conducting managed cooperation with SOEs and
ahead, with an attractive loan limit, up to a maximum of up Ministries
to Rp500 million, for a period of up to 15 (fifteen) years, with a 2. Focus on Pre-retirement Employees and Pension
competitive interest rate. institutions including Taspen Asabri and SOE Pension
Funds.
The distribution to BNI Fleksi Pension prospective pensioners 3. Developing digitized products and utilizing data
was carried out in cooperation with several pension analytics and implementing programs for providing
institutions, including Taspen and Asabri and SOE institutions, short-term loans for FleksI borrowers, especially payroll,
as well as with fronting agents. The increase in BNI Fleksi non-payroll customers and millenials.
was also supported by the flexible marketing channels 4. Increasing loyalty programs for active customers in
including ATMs, Mobile Banking, SMS Banking, as well as the selected partners through communication and activity /
accelerated 1 (one) day SLA loan process, simplification of event media, as well as ease of additional top up / facility.
documents and ease of process. 5. Developing ease and monitoring for the loan process
through digitalization, and optimizing the role of
branches as office channeling.
6. Developing BNI Fleksi features to accommodate the
needs of Pre-Permanent Employees.
In 2019 BNI Fleksi expansion and acquisition will focus on

low-risk government institutions employees.
ANNUAL
REPORT 2018
Credit Card 2018 Credit Card Performance

The growth in card number and increase in credit card sales
Credit cards are a means of payment using a card that can volumes, through e-commerce penetration programs, and
be used by individuals or corporations to make payments the introduction of new products, increased BNI Credit
for obligations that arise such as shopping transactions, and Card sales volumes at the end of 2018 to Rp38,924 billion,
cash withdrawals. Credit cards are one of the consumer loan or an increase of 11.31% compared to 2017, while credit
products. card outstandings in 2018 amounted to Rp12,558 billion,
an increase of 7.9% compared to 2017. During 2018, BNI
2018 Credit Card Strategy organized attractive programs for BNI Credit Card holders,
In 2018, BNI Card Business with a “Start from the Card” and developed new products to expand the market for BNI
tagline focused on increasing BNI Credit Card Portfolios Credit Card users including:
and increasing Fee Based Income. Portfolio enhancements 1. Continuing to work with favored e-commerce merchants
involved increasing credit card acquisition penetration from a such as Traveloka, Tokopedia, Bukalapak, Blibli, Tiket.
captive database, and focusing on acquisition in the Business com, Shopee, Garuda, Agoda, JD.id, Lazada and
Banking managed Selected Companies. To increase sales other favorite e-commerce merchants, in the form of
volume in 2018, BNI carried out the following strategies: regular, tactical, 0% installment, and BNI Rewards Point
1. Working on potential millennials through Digital redemption programs.
Enhancements with the development of payments using 2. In addition to collaborating with e-commerce
a QR Code using the Yap application. merchants, the continuity program is still ongoing for
2. Collaborating with strategic e-commerce merchants other favored merchants by adding 0% installments,
with usage programs, either through discount programs discount programs, vouchers, and redemption points
/ price discounts, installments or BNI Rewards Point at The Duck King, Sushi Tei, Bakerzin, Shaburi, Kintan,
redemption. Pepperlunch, Pizza HUT, Excelso, Accor Group Hotels, The
3. Increasing sales volume penetration outside Jakarta Body Shop, Lotte Mart, Electronic City, Erafone, iBox, Best
by increasing credit card promo programs at local Denki, ACE Hardware, Informa, Toys Kingdom, Ranch
merchants through discount programs, cashback, BNI Market, Farmer Market, Gramedia and other merchants.
Rewards Point and installments. 3. Became a credit card pioneer whereby points can
4. Increasing acquisitions with digital channels via e-forms. be redeemed at online merchants such as Garuda
5. Increasing Corporate Card acquisitions for Selected Indonesia, Tokopedia, Blibli, Sepulsa, Dinomarket and
Companies based on managed Business Banking. blanja.com.
6. Cooperating with the Ministry of Home Affairs, Ministry 4. Participated in various major events such as the Java Jazz
of Foreign Affairs, Ministry of Communication and Festival, Japan Travel Fair, Inacraft, Garuda Online Travel
Information, Ministry of Industry, Ministry of Law and Fair (GOTF), Mommy and Me, Mid Night Sales Ramadan
Human Rights, Ministry of Transportation, Ministry of Senayan City, Cool Japan Travel Fair, Indonesia Maternity
Religion, Corruption Eradication Commission and various and Baby Expo, The Crazy Toys Sale and other big events.
other Government Agencies.
7. Launching BNI Affinity Ikanas STAN Credit Card. 2018 Credit Card Awards
8. Developing a Credit Card Management Application to In 2018 Credit Cards received several awards, including:
increase Customer loyalty. 1. First Ranked Conventional Commercial Bank Digital
Brand Credit Cards at the Infobank 7th Digital Brand
2018 Credit Card Productivity Awards.
Credit Card Performance 2. The Best E-Commerce 2017 from Visa.
Description 2018 2017 Growth 3. Best Milenials Segment Solutions BNI Style Titanium
(Billion Rp) (Billion Rp) (%) from Mastercard Appreciation Night 2018.
4. Most Creative CC Acquisition Campaign from Mastercard
Transaction Value 38,924 34,970 11.3%
Appreciation Night 2018.
Fee Based 1,558 1,389 12.1% 5. Best Sales Volume From Issuing Bank in Indonesia 2017
Income
from JCB Award of Appreciaton.
Outstanding 12,558 11,635 7.9% 6. The Best Digital Brand Bank Umum Konvensional from
Infobank 7th Digital Brand Awards.
7. Promising Company In Branding Campaign “Silver
Winner” from BUMN Marketeers Awards 2018.
8. Promising Company In Strategic Marketing “Bronze
Winner” from BUMN Marketeers Awards 2018.
Management
Discussion
And Analysis
Credit Card Prospects and Strategies

In 2019, in line with the digitalization development, credit card usage in the community will increase, resulting in an increase in
the credit card business prospects. To capture these opportunities the BNI Credit Card business will focus on several strategies
including:
1. Increasing acquisitions through Captive Data Optimization and Application-Based Digital Acquisition Development.
2. Strengthening e commerce transaction penetration by focusing on top strategic partners, and developing features.
3. Focusing on promotion and communication with merchants in the “leisure experience” category including travel, dining
and entertainment.
4. Developing a new business Commercial Card in collaboration with Fintech and Supply Chain Financing.
5. Increasing regional sales volume contributions through regional wisdom programs.
6. Optimizing the Big Data capability through enhanced customer propensity models.
7. Increasing customer loyalty, by developing the Personal Credit Card Digital dashboard application further.
8. Launching new BNI Credit Card products and features.
To support the 2019 strategies, several acquisition programs will be carried out:
1. Increasing acquisitions through Captive Data optimization.
2. Placing Direct Sales In Branches.
3. Collaborating with the Big Partner Database.
BNI Instan
BNI Instan Total Accounts
BNI Instan or Cash Collateral Credit (C3), is a is a loan facility Product 2018 2017 Growth
product for BNI customers guaranteed by deposits in the (account (account (%)
form of BNI Savings / Deposits / Giro, or guaranteed by units) units)
Indonesian Retail Bonds (ORI) purchased at BNI or other
BNI Instan 1,904 2,115 (9.98%)
Banks, or at Securities Companies as selling agents and
stored in the Sub Registry accordingly to the provisions.
In 2018 the total number of BNI Instan accounts reached
BNI Instan Strategy in 2018 1,904 accounts, down 9.9% compared to 2,115 accounts the
BNI Instan Expansion during 2018 focused on providing previous year.
facilities to existing customers and accelerating bookings
through managed institutions, SOE Corporations, Ministries, BNI Instan Prospects and Strategies
Universities and exiting customers and selected partner BNI Instan is still the driving force for third party fund
employees using digital enhancement support. BNI Instan retention, and focuses on Accelerating bookings through
features were developed by allowing collateral in the form of managed institutions, SOE corporations, Ministries and
individual bonds in addition to ORI. Universities as well as existing customers and selected
employees with the support of digital enhancements, as well
BNI Instan Productivity in 2018 as developing BNI Instan features.
In 2018 BNI Instan products decreased by 59.3% (YoY), the
BNI Instan portfolio in 2018 amounted to Rp925 billion,
down from Rp2.3 trillion the previous year. BNI Instan THIRD PARTY FUNDS
products are used as a support strategy for funds retention Bank BNI Consumer and Retail Segment Third Party Funds in
and to increase overall consumer loan growth. 2018 productivity, business prospects and achievement are
presented as follows:
BNI Instan Performance
Product 2018 2017 Growth
(Billion Rp) (Billion Rp) (%)
BNI Instan 925 2,275 (59.3)
In 2018 the number of BNI Instan accounts/reached 1,904, a

decrease of 9.9% compared to 2,115 accounts the previous
year.
ANNUAL
REPORT 2018
EXPLANATION OF CONSUMER AND RETAIL SEGMENT TPF Deposito

Consumer Banking Third Party Fund products include savings BNI Deposito is a time deposit with attractive interest rates in
and deposit products. various currencies (IDR/USD/SGD/JPY/HKD/EUR/GBP/AUD).
SAVINGS CONSUMER AND RETAIL - TPF SEGMENT STRATEGY IN 2018

BNI Savings products consist of:
1. Tabungan Plus (Taplus), a savings account that provides SAVINGS STRATEGIC
PLUS services with various features and benefits. The various choices of savings products offered by BNI
2. Taplus Bisnis, a savings product intended for businesses are tailored to the customers’ needs at every stage of their
and non-businesses, both individuals and non- life. During 2018 the consumer segment TPF strategy
individuals, equipped with features and amenities that was conducted towards dominant/selected customer
provide convenience and flexibility to support business relationships. TPF growth optimization also focused on
ventures. increasing the number of closed loop transactions through
3. TAPPA (Taplus Pegawai/ Member), a savings account Digital Services, and merchant optimization, which had an
for Employees/Members of a Company/Organization/ impact on increasing sustain funds.
Association / Professional Organizations cooperating with
BNI as a means of savings, with an Employee / Member Taplus
identity card. In 2018, BNI Taplus was present to enliven the world “2018
4. Taplus Muda, a savings product catering for young Asian Games” by adding variants to its the Asian Games
people with ages ranging from 15 to 25 years that can be debit card for the Indonesian people and became the official
submitted individually or as a Co-Brand with Universities savings card for volunteers at the event. In terms of product
that cooperate with BNI. development, by looking at the market where many people
5. Taplus Anak, a savings product to help teach children to who do not want to get savings interest, BNI Taplus added
save from an early age, intended for children under 17 a choice of products by issuing savings without savings
years old. interest. As the core savings product with the largest
6. Emerald Saving, a savings product for the Emerald portfolio, BNI Taplus plays an important role in achieving
customer segment TPF growth. This year, to enhance customer engagement
7. BNI Dollar, a deposit product denominated in foreign with BNI, BNI Taplus introduced a major program, BNI Taplus
currencies (USD/SGD/AUD) with more stable and secure Surprise aimed at gathering fresh funds from individual
exchange rates providing convenience for transactions. customers, with direct prizes as a form of appreciation.
8. Tapenas, a term savings to help realize future financial
planning goals with more certainty and security. Taplus Bisnis
9. Simpanan Pelajar, savings for students in early childhood, In an effort to increase transactional banking, BNI innovated
kindergarten, elementary, junior high, senior high school, the savings products sharing features and benefits for the
Madrasah (MI, MTs, MA) or equivalent issued nationally entrepreneurial segment to enable monitoring financial or
by banks in Indonesia, with simple requirements and business transaction flow. The entrepreneurial segment is a
simple and interesting features, in the context of financial target market that is taken seriously and BNI Taplus Bisnis is
education and inclusion to encourage a culture of saving being offered to make it easy for entrepreneurs to transact
early. with banks. Special program that target the entrepreneurial
10. Tabunganku, a savings product for individuals with segment include the Taplus Bisnis acquisition program
easy and light requirements issued jointly by banks in through the Lively Entrepreneurship program, the Merchant
Indonesia to foster a culture of saving and to improve the Reward program, BNI Taplus Bisnis-KUR Retail Bundling,
welfare of society. collaboration with strategic partners, Business Center
11. BNI Pandai, a savings product for individuals with Program, and acquisition of BNI Taplus Bisnis Sahabat Agen
easy and light requirements issued by BNI with the 46. In 2018, Taplus Bisnis growth focused on increasing closed
characteristics of a Basic Savings Account (BSA) that can loop transactions, inline with business processes through
be opened throughout BNI branch offices or through increased entrepreneurial segment transactions, including
agents. increasing the number of merchant transactions, and
12. Tabungan Indonesia Pintar (PIP), a Student Savings optimizing merchant management in all branches / outlets.
(Simpel) account, a government welfare aid program
handled through BNI.
Management
Discussion
And Analysis
Payroll card. We also collaborated with Telkomsel to organize the BNI

In an effort to increase low-cost fund collection (CASA), Taplus Muda program with 2GB extra Telkomsel quota prizes.
especially by increasing savings balances, BNI has been At the end of 2018, BNI Taplus Anak was present to support
marketing BNI Taplus and BNI TAPPA products specifically the Young Singers Concert called “Naura” in Bandung and
for customer employees, and companies/institutions who sponsored the Indonesia Maternity, Baby, and Kids Expo 2018
are BNI Customers/Borrowers in the Business Banking (IMBEX) event at JCC Jakarta City.
sector (Corporate , Commercial, and Retail). The BNI payroll
company employees receive various benefits including BNI Tapenas
KTA Fleksi loan facilities with competitive interest rates, BNI Tapenas is a time savings account used by customers’
and BNI KPR Griya fast processing. In addition, BNI payroll future planning, to help realize their financial plans in a more
customers can also enjoy debit shopping promos in the secure and safe way. BNI Tapenas provides free customer life
form of discounts or cashback, products bundling with insurance protection and is BNI’s commitment to providing
other savings products such as taplus kids and tapenas, more certainty for customers to achieve their future plans.
loyalty payroll programs and promo info on smartphones During 2018, there were several BNI Tapenas promotions,
after installing BNI Experience apps from the Play Store. The including a bundling program between BNI Tapenas and
loyalty payroll programs implemented in 2018 in 60 selected other BNI Savings products, including Taplus Anak, Taplus
companies aims to increase payroll customer loyalty across Bisnis, and Taplus Pegawai. The BNI Tapenas promotion
the regions. program gave away free direct prizes to Customers including
Precious Metals and the latest Samsung and Iphone flagship
Taplus Anak and Taplus Muda gadgets. In addition, to make BNI Tapenas account opening
In 2018, BNI Taplus Anak returned to at least 100 (one easier, BNI developed a new channel enabling opening
hundred) schools spread nationwide in collaboration with through BNI Mobile Banking, providing practicality so that
CIA Magazine (Creativity in Action) during the BNI Taplus Customers opening BNI Tapenas do not have to go to the BNI
Anak and 2018 Asian Games campaigns. One feature that outlets.
drew the attention of the schools visited by BNI and the CIA
Magazine was the BNI Taplus Anak Debit Card and BNI Taplus Government and Financial Inclusion Programs
Muda design made especially for the 2018 Asian Games. In addition to general customers, BNI savings products
These Debit Cards not only function as an ATM and Debit have basic saving account characteristics that are also used
card, but also function as BNI Tapcash (electronic money). In to support government programs in terms of channeling
the schools, knowledge about BNI and the many benefits of government aid funds to support the financial inclusion
saving from an early age was given, and the CIA Magazine programs such as:
team introduced the Asian Games in a fun way, including the 1. BNI Student Savings for Smart Indonesia Program (PIP)
Asian Games’ history, participating countries, and mascot from the Ministry of Education and Culture, and the
philosophy. In the schools visited by BNI other activities Ministry of Religion.
offered included BNI-Edupatrol products, which provides 2. BNI Pandai for the Family Hope (PKH) and Non-Cash Food
enormous benefits for Schools, Parents and Students. To Aid (BPNT) programs from the Ministry of Social Affairs,
complement the school’s financial management needs, as well as social assistance programs that use regional
the BNI-Edupatrol offer is very effective when bundled budgets in several provinces.
with the BNI Taplus Anak and BNI Taplus Muda. We also 3. BNI Pandai and TabunganKu for the Farmer Card Program
fully understand the current market trends, and one of the from the Ministry of Agriculture.
popular start-ups for the nation’s children this year is the 4. BNI Pandai and KUSUKA Card (Marine and Fisheries
Ruangguru Application, and we collaborated with Ruangguru Business Players) from the Ministry of Maritime Affairs
for regular programs and tactical programs during Ramadhan and Fisheries.
and Eid al-Fitr. In 2018, BNI Taplus Muda also presented 5. BNI Pandai for Mekaar PNM Program, a program for
many activities aimed at increasing engagement with the underprivileged mothers who are customers of PNM.
millennial community. We collaborated with partners who 6. Special Non-Individual Savings as a subsidy program for
have expertise in millennial activities, including BNI Java Jazz Farmer Groups (Poktan) from the Ministry of Agriculture.
Festival 2018 (Java Promosindo), SkyRun 2018 (Labschool), 7. BNI Pandai, TabunganKu, BNI Simpel for waste saving/
Sky Avenue (Labschool), Cravier (Labschool), I Loop Run movement programs which is a combination of
(Telkomsel) , UI-Half Marathon (ILUNI UI), Yellow ILUNI environmental education and financial inclusion.
Program (ILUNI UI), and ITB Half-marathon (ITB Alumni). In 8. BNI Smart for E-retribution programs for markets in
addition, we also carried out several programs that are close several provinces.
to millennial hobbies including the Sketch Your Card program
which is a design competition for the BNI Taplus Muda debit
ANNUAL
REPORT 2018
DEPOSITO STRATEGY
Deposito is a customer investment instrument where customers can place funds with a variety of options and competitive
interest rates.
Through digitalization BNI has made it easier for customers to hold deposits, where they can safely, quickly and easily open
their own deposit accounts through internet and mobile banking features. It is hoped that digitalization will meet the needs of
the millennia segment and customers looking for convenience during their various busy activities.
CONSUMER AND RETAIL SEGMENT TPFR PRODUCTIVITY
Consumer and Retail segment TPF productivity is presented as follows:
Total Third Party Fund Accounts

(Account Units) Composition (%) (Account Units) Composition (%) (Account Units) (%)
Savings 43.181.705 99.0% 32.797.198 99.0% 10.384.517 31.7%

Deposits 364.988 1.0% 337.216 1.0% 27.840 8.2%
TOTAL 43.546.693 100.0% 33.134.405 100.0% 10.412.357 31.4%
The increase in savings accounts in 2018 included an acquisition program involving payroll cooperation with Companies/
Institutions, especially those who are BNI Customers/Borrowers in the Business Banking sector (Corporate, Commercial and
Retail), and through school to school and campus to campus acquisition programs, and the 2018 Government Programs with
several Government Ministries and Institutions such as the Program Bantuan Sosial non tunai, Program Indonesia Pintar (PIP)
and Program Simpanan Pelajar (Simpel).
Total Third Party Funds

(Million Rp) Composition (Million Rp) Composition (Million Rp) (%)

(%) (%)
Tabungan 189,708,216 73.0% 169,812,480 73.0% 19,895,737 11.7%

Deposito 68,486,923 27.0% 62,807,329 27.0% 5,919,426 9.5%
TOTAL 258,195,139 100.0% 232,619,809 100.0% 25,815,163 11.1%
In line with the increase in the number of accounts, total third party funds at the end of 2018 reached Rp238.2 trillion, or an
increase of 11.1% compared to 2017, due mainly to savings increasing by 11.7 % to Rp189.7 trillion, deposits increasing by 9.5%
to Rp68.5 trillion.
Awards related to the Savings in 2018 as follows:

1. Innovative Simpel Implementation Bank (FIN OJK EXPO 2018)
2. The Best Bank for Simpel / Simpel iB Implementation (FIN OJK EXPO 2018)
3. Top Brand 2018 Category Installment Savings: BNI Tapenas.
4. Top Brand 2018 Category Child Savings: BNI Taplus Anak.
5. Reader Choice Award Mother and Baby Indonesia, Education Savings Category.
Management
Discussion
And Analysis
PERFORMANCE PROSPECTS AND STRATEGIES
Savings Products Prospects and Strategies 4. Increasing customer preferences and customer
Economic growth is expected to increase by 5.3% in 2019 experience and enhancing BNI’s image in transactional
which will have an impact on the potential for deposits banking, through education and activation of e-channel
growth which is expected to grow between 9.0% to 10%. facilities, massive usage debit programs or e-channel
BNI is committed to seeing the growth of its special savings transactions.
continuing above the industry, by continually increasing 5. Developing digital applications for convenient
digital transactions, strategic partnerships, and developing acquisition channels and transactions; and opening a
business models, thus BNI’s savings are expected to grow by digital account through a smartphone and pening digital
24%. accounts through the EDC Android machine.
6. Developing Digipoin, a loyalty program in the form of
The focus for increasing deposits, especially CASA, will reward points, for BNI savings customers by actively
focus on the entrepreneurial, employees, and millennial adding savings balances, e-channel transactions and
savings sectors, through increased acquisitions, closed loop debit cards.
transactions, and increasing e-channel transactions both POS
and e-commerce, and optimizing the role of Agen46, with Deposit Products Prospects and Strategies
strategic policies focusing on: Deposits are still one of the safer placement instruments
1. Entrepreneurship: for customers, and can also be used as collateral for loans.
Acquiring and increasing Tabungan Bisnis balances Growth in consumer deposits is expected to grow by 23%.
through merchant transaction activities and EDC The strategy to gain Deposits in 2019 will be focused on
optimization both with activation and enhancement increasing digital transactions, and bundling with Savings,
of e-channel transactions, and collaborating with the Tapenas products marketing
Business Centers, as well as optimizing the Agent 46 role.
Increasing Tabungan Bisnis balances through a customer DEBIT CARD BUSINESS
and debtor financing and management program.
2. Employees: EXPLANATION OF CONSUMER AND RETAIL SEGMENT CARD
a. Increasing Payroll balances and accounts through BUSINESS
acquisition and loyalty programs to selected companies,
and payroll customer retention programs, as well as BNI continues to maintain its position as one of the leading
utilizing payroll applications for acquisitions. Payroll banks in the credit card business and continues to develop its
program sales through bundling payroll with BNI Fleksi debit card business.
or BNI Griya and various e-channel facilities and usage
debit programs. BNI debit cards come in many choices with typical Indonesian
3. Millennials: batik designs including BNI Silver Debit Cards, BNI Gold
a. Increasing Millennial segment Savings through formal Debit Cards, BNI Platinum Debit Cards and BNI Emerald
and non-formal approaches with education institutions World MasterCard Cards (especially for priority customers).
and first jobbers and massive acquisitions through the In addition, BNI is continuing to expand its cooperation with
School to School program (Ayo menabung Bersama BNI), non-profit communities with its Affinity Debit Cards, and
Campus to Campus (Level 3 Taplus Muda), Social Media with business communities with its Co-brand Debit Cards
Activation and Cross Selling Products through customer including Ferrari by BNI, LotteMart Wholesale Debit Card,
service officers, and collaborating with the Ministry of Garuda Debit Card, Multimart Debit Cars and Indogrosir
Education and Culture, or Ministry of Religion to channel Debit Cards and others.
the Program Indonesia Pintar (PIP). To attract customers
from this generation, BNI will develop saving education
activities for digital transactions.
ANNUAL
REPORT 2018
DEBIT CARD STRATEGIES IN 2018 DEBIT CARD PRODUCTIVITY IN 2018

To increase BNI 2018 Debit Card usage the following
strategies were conducted: Tabel Kinerja Pertumbuhan Kartu Debit 2018
1. Conducting a campaign program that included Transaction Debit Growth 2018 Growth 2017
increasing customer transactions habits (cash less Improvement (YoY) (YoY)
customers).
Sales Volume 21.7% 20.1%
2. Increasing the debit card transaction frequency, in
an effort to establish a usage experience and brand Number of Circulating 39.8% 41.0%
Cards
awareness, as well as increasing customer loyalty
through an attractive activation program and usage Card transaction 24.9% 19.6%
program. Frequency 33.3% 26.5%
The BNI Debit Card Strategies implemented in the BNI Debit In 2018, BNI’s debit card sales volume growth in 2018
Card flagship program during 2018 included: reached 21.7% (YoY), higher when compared to 20.1% (YoY)
1. 2018 National Promos in 2017. This is driven by the 24.9% increase in the number of
Debit card promotion programs throughout 2018 BNI debit cards transactions in 2018 compared to 2017.
at merchants where customers routinely conduct
transactions including Supermarkets, Convenience BNI Debit Card Awards in 2018, included
Stores, Department Stores and Restaurants. 1. Best Millennial Segment Solution (MasterCard Award 2018)
Collaborating with favorite merchants to establish and 2. Best Innovative Acquiring for QR (MasterCard Award 2018)
increase public awareness of the benefits of debit cards 3. Best Affluent Debit Card Program (MasterCard Award 2018)
as a substitute for cash. 4. Most Creative Acquisition Campaign (MasterCard Award
2. BN’s I 2018 debit card flagship program included 2018)
Supermarkets / Convenience Stores, Restaurants,
Bookstores, Cinemas and leading Home Furnishing DEBIT CARD PROSPECTS AND STRATEGIES
promos. The BNI debit card promos were carried out In 2019, sales volume growth focused on the following
in collaboration with BNI’s leading E-Commerce in strategies:
collaboration with favorite amusement rides. 1. Increasing customer preferences and customer experience
3. 2018 Local Promos and increasing debit card transactions through usage debit
BNI Debit Card also cooperated with local merchants programs for both POS and e-commerce transactions,
in the areas outside the Jabodetabek area to get closer while focusing on the Top 10 Merchant.
to BNI Debit cardholders located close by. Partnership 2. Increasing customer debit card usage in collaboration with
collaboration with several business communities is also merchants and e-commerce in accordance with market
being increasingly enhanced, especially with loyalty developments and millennial generation behavior.
programs and activations. 3. Increasing the number of Debit Cards transactions through
4. Co-Brand Promo attractive activation programs and usage programs,
Programs with the intention of providing appreciation including promo programs for customers optimizing
not only to BNI customers but also BNI business online and offline media, and also as communication and
partners. For Cobrand Garuda BNI debit cardholders, updating programs / campaigns.
customers can receive Triple Miles per transaction using
the kartu#debit Cobrand Garuda BNI card. The LotteMart DEBIT CARD OR CO BRAND FEATURE DEVELOPMENT
Wholesale Co-brand debit card program provides There are several plans in 2019 for developing debit card
monthly cashback for every customer transaction features to improve security and convenience for customers
at LotteMart Wholesale. For BNI BNIIndogrosir debit in conducting transactions, including:
cardholders BNI provides additional benefits when 1. Collaboration between BNI Debit Card brand and selected
customers use their BNI-Indogrosir debit cards. institutions
2. Development of the 3D secure debit card master
3. Development of a B-secure feature for the Private Label
Debit Card e-commerce transactions, to support the
National Payment Gateway (GPN) program
Management
Discussion
And Analysis
CONSUMER AND RETAIL SEGMENT INCOME AND PROFITABILITY

The Consumer and Retail Segment income and profitability is presented as follows:
Consumer and Retail Segment Income and Profitability

Interest income and Sharia income-net *) 10,775,890 9,558,035 1,217,855 12.7%

Premium income -net - - - -
Allowance for impairment losses (1,285,949) (1,538,979) 253,030 (16.4%)
Operational income 7,129,110 4,933,529 2,195,581 44.5%
Non-Operating (Expense)/Income-Net 14,074 16,352 (2,278) (13.9%)
Income before tax expense 7,143,184 4,949,881 2,193,303 44.3%
Total assets 78,206,547 69,216,585 8,989,962 13.0%
*) termasuk komponen internal transfer pricing antar segmen operasi

In 2018 Interest income and Sharia income-net in the Consumer and Retail segment reached Rp10.8 trillion, an increase of
12.7% compared to Rp 9.6 trillion in 2017. While the Consumer and Retail segment operational profit in 2018 reached Rp7.1
trillion, an increase of 44.5% compared to Rp5.0 trillion the previous year.
TREASURY AND INTERNATIONAL
The Treasury and International segment treasury activities 2. Forex - TOM

including foreign exchange transactions, money markets, Foreign exchange buying and selling where transaction
capital markets and fixed income, including international settlement is carried out 1 (one) working day after the
banking business and overseas branch supervision. date of the transaction agreement.
3. Forex – SPOT
TREASURY Foreign exchange buying and selling where transaction
Bank BNI Treasury Segment 2018 productivity, business settlement is carried out 2 (two) working days after the
prospects and achievement strategies are presented as date of the transaction agreement.
follows: 4. Forex - Bank Notes
Transactions involving the exchange of physical
EXPLANATION OF TREASURY SEGMENT ownership of the currency (banknotes) involved in the
BNI Treasury products are classified into transactional transaction. Can be distinguished by;
products, investment products, and hedging products. a. Banking Transactions
Banknote deposits or withdrawals from customer
TRANSACTIONAL accounts with the same currency. Revenue for
Transactional product consists of Forex-TOD, Forex-TOM, branches is fee income in lieu of exchange.
Forex-SPOT, and Forex-Bank Notes. Details regarding b. Trading Transactions
transactional products are described as follows: Buying or selling banknotes. Branch revenue is from
1. Forex - TOD foreign exchange differences.
Foreign exchange trading where the transaction
agreement and transaction settlement are carried out on
the same day.
ANNUAL
REPORT 2018
INVESTMENTS HEDGING
Treasury investment products consist of Deposit on Call (DOC), 1. Currency Forward
Money Market Account (MMA), and retail bonds. Details Sale and purchase of foreign currencies where
regarding investment products are described as follows. settlement is carried out more than two business days
1. Deposit on Call (DOC) after the transaction date. The exchange rate used for
a. Placement of funds for a minimum period of 3 days up this forward transaction takes into account forward
to 30 days. points.
b. The interest rate is based on interbank interest rates. 2. Domestic Non-Deliverable Forward (DNDF)
c. Can be withdrawn at any time. Standard foreign exchange against rupiah derivative
d. Minimum placement Rp100 million or USD 75 transactions (plain vanilla) is Forward transactions with
thousand. fixing mechanisms carried out in the domestic market.
The fixing mechanism is a transaction settlement
2. Money Market Account (MMA) mechanism without the movement of principal funds
a. Placement of funds for a minimum period of one by calculating the difference between the Forward
day up to 1 year. transaction rate and the reference rate on a certain date
b. b. The interest rate is based on interbank interest specified at the fixing date.
rates. 3. Currency Swap
c. Can be withdrawn at any time. ‘Buy and Sell’ transactions for one currency against
d. Minimum placement Rp1 billion or USD 100 another currency that is carried out simultaneously with
thousand. the same counterparties.
3. Retail Bond 4. Currency Option
Bonds are evidence of indebtedness by the issuer, which Agreement to provide a right and not an obligation of
will be repaid at maturity in accordance with the terms the seller (option writer) to the buyer (option holder) to
and conditions previously established. Bond transactions buy or sell a certain amount of nominal currency in the
that can be made between the Treasury Division and foreseeable future at a predetermined price (strike price)
Individual Clients for transactions include: on or before the specified time (expiry date).
a. In the primary market including corporate bonds 5. Interest Rate Swap (IRS)
and nonretail government bonds. Agreement between two parties to exchange a series of
b. In the secondary market including corporate bonds, fixed interest payments (fixed rate) in one currency with
retail government bonds, a series of fluctuating interest payments (variable rate) in
c. Non-retail government, and other countries’ the same currency (or vice versa), without the exchange
government bonds of principal loans
4. Depo Swap 6. Cross Currency Swap (CCS)
A Depo Swap is an investment product in foreign An agreement between two parties to exchange
currency with a maximum rate of return with the principal and interest payments in different currencies.
principal investment placement guaranteed 100%. The exchange loan principal uses the exchange rate at
Depo Swap is a combination of forex transactions in inception.
the form of FX Swap and deposit. In this transaction 7. Call Spread Option
the customer converts their forex currency into other A Structured Product with a combination of 2 Currency
foreign currencies and reconverts the forex currency in Option transactions i.e. Buy Call Option (purchase with
the future for the tenor at exchange rates established the right to purchase a particular currency) and Sell
at the start of the transaction agreement. The foreign Call Option (sale with the right to purchase a particular
exchange gain on foreign exchange transactions (forex currency), for the same nominal amount and Time
gain) becomes the optimal return on the customer’s Period, but with different strike prices for each Buy Call
investment fund placement. Option and Sell Call Option. The CSO transaction must
5. Market Linked-Dual Currency Investment (ML-DCI) be made through Dynamic Hedging with the aim that
ML-DCI is a structured product that is a combination hedging executors are not exposed to exchange rate risk
of foreign exchange savings products and FX Options. due to market rates beyond the Sell Call Option strike
This product provides a high return when compared to price. Dynamic Hedging is executed by performing
conventional savings products as it combines savings several CSO transactions in accordance with the number
products linked to exchange rate movements. This of market rate frequencies exceeding the Sell Call Option
product has non-capital protected characteristics / does strike price, and the CSO with dynamic hedging as part
not guarantee the principal investment. of the initial CSO transaction in one unit.
Management
Discussion
And Analysis
TREASURY SEGMENT STRATEGY IN 2018

In 2018, the Treasury segment strategies included the following:
1. Increasing the capacity and capability of outlet staff to fit 5. Participating actively in close loop transaction programs
the business needs in order to beat the competition. through business units and subsidiaries.
2. Managing Securities Portfolios actively whilst 6. Marketing strategies both above / below the line to
maintaining risks through both primary and secondary increase brand image and market penetration.
markets. 7. Managing short-term liquidity by utilizing facilities
3. Managing the Bank’s Net Open Position to maximize FX determined by Bank Indonesia through GMW Averaging
gain and other instruments
4. Developing FX and Fixed Income Market product 8. Developing and implementing digital treasury
warehousing to meet customer needs. applications according to customer needs.
TREASURY SEGMENT PRODUCTIVITY

The following relates to BNI forex transactions performance against interbank based on transaction volume and profit.
Forex Gain by Volume and Profit Growth:

Product 2018 2017 Pertumbuhan (%)
BASED ON VOLUME (IN USD MILLION)

SPOT 68,586 66,963 2.4
FORWARD 1,259 1,301 (3.2)
SWAP 52,547 77,720 (32.4)
CCS, IRS 839 311 169.8
Total 123,231 146,295 (15.8)
BASED ON PROFIT (IN MILLION RP)

FOREX GAIN 433,036 813,901 (46.8)
Forex Gain Capital Gain - Interbank Trading

VSpot transaction volume increased by 2.4% as the bank’s In 2018, Bond trading transaction volumes rose 27.22% from
business activities increased. While on a volume basis, Rp82.49 trillion in 2017 to Rp104.94 trillion. However, the
forward transactions experienced a slight decline, caused by transaction profit decreased 30.17%, from Rp81.47 billion to
a change in the hedging pattern of customers who preferred Rp56.89 billion. This was partly influenced by the increase in
hedging instruments through Cross Currency Swaps and the Fed Fund benchmark interest rate (Fed Fund Rate) in 2018
Interest Rate Swaps. The CCS and IRS transaction volume that put pressure on the market. It increased by 1.00% during
in 2018 reached US$839 million, an increase of 169.8% 2018, from 1.50% in January 2018 to 2.50% in December
compared to US$311 million in 2017. Swap transaction 2018.
volumes decreased, in line with the declining liquidity market
conditions in 2018. Together with the Fed Fund Rate movement, BI also increased
the BI 7 Days Reverse Repo by 1.75 bps during 2018,
In 2018, BNI’s Forex gain declined in the midst of volatile which at the beginning of January 2018 stood at 4.25%,
market conditions, and the rupiah exchange rate weakening and by the end of December stood at 6.00%. In addition,
against the dollar, which touched Rp15,238 per US dollar. increased global uncertainty due to trade war between the
Nonetheless, BNI was still able to record a gain in forex US and China, and the crises in Argentina and Turkey, also
profits of Rp433.04 billion in 2018, supported by increased contributed to a negative sentiment in the market.
customers, easy access to domestic and international
markets, and competitive prices and reliable human
resources.
ANNUAL
REPORT 2018
Capital Gain - Interbank Trading Volume and Profit Growth

Volume Profit Volume Profit Volume Profit
(Rp billion) (Rp billion) (Rp billion) (Rp billion) (%) (%)
Obligasi Trading 104,935 57 82,485 82 27 (30)
Capital Gain - Bonds and Securities

By Q4 - 2018 outstanding securities had reached Rp.88.8 In the midst of the volatile bond market conditions in 2018,
trillion, the majority of which were placed in government BNI recorded fee-based profits from the sale of securities
bonds, an increase of 14.9% from the position last year. of Rp539 billion, from mitigation processes carried out,
Although the majority are placed in government bonds especially related to market risk for hedging transactions.
and BI instruments, BNI continued to diversify into several
corporate bonds as a form of yield enhancement within the
measured risk limits and corridors.
Capital Gain-Bonds and Securities Growth by Volume and Profit

Volume Profit Volume Profit Volume Profit
(Rp billion) (Rp billion) (Rp billion) (Rp billion) (%) (%)
Bonds and Securities 63,946 539 110,088 718 (42) (25)
TREASURY SEGMENT PROSPECTS AND STRATEGIES INTERNASIONAL

To reach the 2019 targets, the following strategies will be Bank BNI International Segment 2018 productivity, business
implemented: prospects and achievement are presented as follows :
1. Managing liquidity through DPK and FNK instruments
optimally to encourage growth in the bank’s business EXPLANATION OF INTERNATIONAL SEGMENT
2. Developing customers for all treasury products The International Segment offers Financial Institution
3. Increasing the capacity and capability of outlet staff in business Services in the Overseas and the Domestic Branch
line with growing business needs Offices including banking products including BNI Smart
4. Managing Securities Portfolios actively whilst Trade, Remittance, International Desk, Custody, and Trustee.
maintaining risks in the both primary and secondary
markets OVERSEAS BRANCH OFFICES
5. Managing the Bank’s Net Open Position to maximize FX Overseas Branch Offices (OBO) Products and Services include:
gains
6. Optimizing excess liquidity management for instruments LOAN PRODUCTS
that provide the best return (yield) while taking into In accordance with BNI’S Road Map, as a business bridge
account daily liquidity conditions between Indonesia and the world, the loan products offered
7. Making BNI a one stop for financial solutions by the OBO focus on facilitating Indonesian companies in
8. Expanding market segments for institutions and product developing their business overseas, including:
segments 1. Local Loan
9. Promoting Treasury products and activities. A loan facility offered by the OBO to Indonesian business
10. Developing and implementing treasury digital groups or counterparties for their overseas Indonesian
applications based on customer needs companies, either bilaterally or syndicated. The types
11. Developing an agile TRS organizational structure based of loans offered are Working Capital Loans, Investment
on business needs Loans and term loans.
Management
Discussion
And Analysis
2. Offshore Loan d. Transferring SBLC

A loan facility provided by the OBO to domestic debtors e. Cancelling SBLC
to finance working capital short-term needs, as well as to f. Realizing SBLC
finance the procurement of capital goods for the purpose g. Un-used SBLC
of rehabilitation, modernization and expansion to be 5. Inward Bill Collection
completed in the medium or long term. An activity for:
3. Trade Loan a. The Collecting Bank to instruct collection from the
A facility provided by the OBO based on Trade Finance Remitting Bank to the Presenting Bank, or
transactions conducted by Indonesian business groups b. The Presenting Bank to instruct collection from the
or counterparties for overseas Indonesian companies. Remitting Bank.
6. Outward Bill Collection
Third Party Fund Products An activity as Remitting Bank to send commercial
OBO with full banking licenses, such as Singapore, Hong documents, or accompanied by financial documents
Kong, Tokyo and Seoul, can collect third party funds from (draft/promissory note), and to instruct collection to the
local customers through OBO products including Savings, Presenting Bank, or through overseas Collecting Bank,
Deposits, and Current accounts. Details relating to overseas for submission to the Drawee on the basis of payment or
third-party fund products include: acceptance.
1. Savings 7. Bank Guarantee
Deposit service developed to accommodate the needs of Bank guarantees issued on behalf of customers such
individual customers. as for the establishment of the company, employment
2. Giro contracts, etc. for full cover or by using an existing credit
Deposit service for individuals and corporate customers facility.
to meet the needs of operational activities with checking 8. Remittance
facilities as an attraction. Is a written order at the request of an individual or legal
3. Deposits entity (ordering customer or institution) to a remitting bank/
Funding service with maturities ranging from 1 month to institution, to send a sum of money to another designated
12 months, owned by the OBO, providing a special rate party (beneficiary customer or institution).
in each OBO, according to the license owned, to selective 9. Financial Institution business services
customers. Financial Institution business products and services
include the following Business to Business (B2B) services:
Products and Services a. Bank Guarantee Under Counter (BGUC)
The products and services offered by all OBO include. The issuance of Bank Guarantees based of request
1. Export Letter of Credit and with a sure guarantee from the correspondent
Where the bank receives the original LC including pre- bank (The Instructing Party).
advice and amendments from: b. Bank to Bank Financing – Refinancing
a. Issuing Bank to be forwarded to the Beneficiary A derivative for a trade finance transaction where
Second Advising Bank BNI provides financing on bills held by Bank
b. First Advising Bank to be forwarded to the correspondents for trade finance transactions.
Beneficiary c. Bank to Bank Financing-Trade Advance Financing
2. Opening Import Letter of Credit Refinancing by BNI for the Issuing Bank, in the form
A bank activity to open LC (master LC) including Pre- of payment for LC / SKBDN, or non-LC / SKBDN, to
advice and amendments (amendment LC) as a guarantee the Nominated Bank.
of conditional payment on the basis of instructions or d. Bank to Bank Financing-Forfaiting
requests from Applicants or in its own name. Purchasing the right to collect Banker’s Acceptances
3. Confirming Letter of Credit (B/A) held by the Bank as a Correspondent
A bank activity to ensure payments of a LC and advise Nominated Bank (forfaitee) in respect of L/C or
amendments upon request or appointment by the SKBDN transactions with discount without recourse.
Opening Bank as required under the LC. e. Risk Participation
4. Standby Letter of Credit (SBLC) Is the partial transfer of risk owned by an applicant
A bank activity to execute Standby Letter of Credit (SBLC) bank to BNI in a funded or unfunded form that is
transactions, s subject to UCPDC or ISP, covering: related to trade transactions agreed upon between
a. Publishing SBLC the applicant bank and other banks.
b. Extending SBLC
c. Confirming SBLC
ANNUAL
REPORT 2018
International Banking Services

The International Segment offers Financial Institution business Services in the Overseas and the Domestic Branch Offices
including BNI Smart Trade, Financial Institutions, Remittances, International Desks, Custody, and Trustees.
Bni Smart Trade

BNI Smart Trade is classified as a trade product, trade service, and trade finance. Details of the Smart Trade-related products are
described as follows:
BNI Smart Trade
Trade Product Trade Service Trade Financing
Letter of Credit Open Negotiation
SKBDN Advising Discounting
Bank Garasi Realization Refinancing
Doc Collection Settlement Bills Payment
Trade Products
1. Letter of Credit 3. Bank Guarantee
Letter of Credit is a guarantee of payment instruments A Bank Guarantee is a guarantee of payment instruments
issued by the bank (Issuing Bank) to recipients issued by the bank to guarantee recipients (Beneficiary)
(Beneficiary) which is subject to Uniform Customs and if the guaranteed party is in breach of contract (tort).
Practice for Documentary Credits (UCP). Bank Guarantees are subject to Bank Indonesia
2. Domestic Letter of Credit Regulations or Uniform Rules for Demand Guarantee
A Domestic Letter of Credit is a guarantee of payment (URDG) or International Standby Practices (ISP).
instruments issued by the bank (Issuing Bank) to 4. Documentary Collection
recipients (Beneficiary), which is subject to Bank Documentary Collection is a payment system for world
Indonesia Regulations and is used for domestic trade trade conducted through banking services in the form
transactions. of undocumented bills subject to Uniform Rules for
Collections (URC).
Trade Services
Trade Services is a trade business that provides services to customers to receive products/services in the framework of trade
transactions, or export/import and domestic trade. Trade services include:
1. Open 3. Realization
Opening is a service for the issuance of an instrument Realization is a service to deliver/submit trade
(L/C, SKBDN, Bank Guarantee), which ensures certainty documents to the recipient of the documents as the
of payment, or underwrites contract performance, by importer/purchaser, with agreed conditions.
the beneficiary with the conditions agreed upon by the 4. Settlement
parties to the agreement. Settlement is a service to settle trade transactions
2. Advising in the form of transaction payments that have been
Advising is a delivery service such as verification of the implemented or agreed. This trade service transaction
validity/correctness of an L/C, SKBDN, Bank Guarantee makes payments to the exporters/sellers via bank
transmitted by overseas and domestic correspondent transfers.
banks for delivered to the recipient/beneficiary.
Management
Discussion
And Analysis
Trade Financing 5. Bank to Bank Financing-Term Loan Facility Bank

Trade Financing is a business managed by the International Granting of credit facilities to other banks either with
Division to provide financing to customers for trade/ the status of BUMN, BUSN, BUMD, or Branch Offices of
commercial transactions with instruments in the form of L/C, Foreign Banks domiciled in Indonesia.
SKBDN, Documentary Collection, Bills Payment, and Invoices 6. Risk Participation
or bills. Trade financing includes. Is the partial transfer of risk owned by an applicant bank
1. Negotiation to BNI in a funded or unfunded form that is related to
Negotiation is the receiving of draft payments drawn trade transactions agreed upon between the applicant
by the beneficiary to a bank on the basis of documents bank and other banks.
presented and declared in accordance with the terms
and conditions of the LC/SKBDN/SBLC with sight tenor. Remittance
2. Discounting Remittance is a written order at the request of individuals
Discounting is the receiving of draft payments drawn by or legal entities (ordering customer or institution) to a
the beneficiary with a bank on the basis of documents remitting bank/institution, to transfer money to another
presented and declared in accordance with the terms designated party (beneficiary customer or institution). Types
and conditions of the LC/SKBDN/SBLC with since tenor. of remittance includes:
3. Refinancing 1. Incoming Fund Transfer or Incoming transfer (ITR) or
Refinancing is the takeover of financing in the form Incoming remittances
of payments secured by an issuance L/C or SKBDN. Remittances from individuals or legal entities through
Financing in the form of refinancing can be carried out at overseas remitting banks in foreign currency/rupiah, or
the time of initial opening or when approaching the due through domestic banks, especially for foreign currency,
date for payment. addressed to BNI as the recipient bank, for recipients’
4. Bills Payment benefit whose names are designated in the remittance,
Bills Payment is financing for exporters/sellers and either as BNI customers or non-customers in the country.
importers/buyers on the basis of a documentary The ITR transaction code in BNI is S06. BNI Wesel PIN
collection/open account transaction. is a Remittance/Incoming Transfer (ITR) service from
overseas, that can be exchanged for cash (without an
Financial Institution Products and Services account) in BNI outlets and BNI paying agents such as Pos
Financial Institution business products and services include Indonesia, Alfamart, and pawnshops. Disbursements are
the following Business to Business (B2B) services: made through a correct PIN number and valid identity
1. Bank Guarantee Under Counter (BGUC) cards (KTP/SIM/ Passport).
The issuance of Bank Guarantees based of request and 2. Outgoing Fund Transfer (OTR) or Outgoing remittances
with a sure guarantee from the correspondent bank (The Unconditional written order from BNI at the request of
Instructing Party). a customer and/or for BNI’s benefit addressed to the
2. Bank to Bank Financing – Refinancing correspondent bank to pay a certain amount of money to
A derivative for a trade finance transaction where BNI a specified person/entity (beneficiary). Includes foreign
provides financing on bills held by Bank correspondents currency remittances to correspondent banks at home
for trade finance transactions. and abroad. The OTR BNI transaction code is S10. BNI
3. Bank to Bank Financing-Trade Advance Financing remittances can be received on the same day (same day
Refinancing by BNI for the Issuing Bank, in the form service) with time limits (cut off time) determined by
of payment for LC / SKBDN, or non-LC / SKBDN, to the each currency. BNI also has multi currency remittances
Nominated Bank. services that can be received in 125 types of currency
4. Bank to Bank Financing-Forfaiting from 160 countries.
Purchasing the right to collect Banker’s Acceptances
(B/A) held by the Bank as a Correspondent Nominated
Bank (forfaitee) in respect of L/C or SKBDN transactions
with discount without recourse.
ANNUAL
REPORT 2018
International Desk 3. Trustee and Agency

1. Loan a. trustee
The International Desk Unit provides loan services in the Acting as a party representing the interests of debt
form of IDR or offshore loans in USD and JPY currencies securities, including:
and Open Account Financing (OAF) for International i. Compiling trusteeship contracts with issuers.
Corporate Clients in Indonesia with competitive interest ii. Monitoring issuers for fulfillment of their
rates based on Stand by LC (SBLC), guaranteed by obligations.
international banking / financial institutions. For granting iii. Submitting reports and information disclosure.
these loans or Open Account Financing (OAF) scheme, iv. Organizing Bondholders General Meeting
the International Desk coordinates with the Credit units (RUPO).
(LMC, SKM, SKC). b. Security Agent
2. Third Party Funds Administration of assets guaranteed by a party based
Cooperation with branches in providing services for on an agreed agreement.
opening Savings, Current Accounts and Deposits for c. Paying Agent
Customers, and foreign and International corporations in Processing payments in accordance with agreements
Indonesia. for activities related to capital market transactions
3. Cash Management such as payment of coupons / interest, dividends,
In collaboration with Transaction Banking Services principal bonds or other debt securities and payment
Division (TBS), marketing BNI Cash Management services for sale / purchase and others.
products to International corporate customers in d. Escrow Agent
Indonesia Managing, monitoring and controlling escrow
4. Credit Card accounts (special accounts) in accordance with
In cooperation with the Business Card Division (BC) offers agreements.
personalized credit cards to foreign individuals as well as
International corporations. Trustee
Trust is a bank business in the form of care for the management
Custody of settlor’s property (owning parties who entrust their property
Based on Law no. 8/1995, custodian and other assets related to be managed by the Trustee / Bank) based on a written
to securities and other services, including receiving dividends, agreement between the Bank as Trustee with the Settlor for
interest and other rights, completing securities transactions, the benefit of the Beneficiary. Based on Otoritas Jasa Keuangan
and representing the account holders as our customers. BNI regulation (POJK) No.27/POJK.03/2015 concerning Bank Custody
Custodial Services offers the following. Management (Trust) as amended by POJK No. 25/POJK.03/2016,
1. Custody Services Trustees can act as:
a. Storage, management and administration of 1. Paying Agent
securities, either script or scriptless, on the 2. Investment Agent
Indonesian Stock Exchange. 3. Borrowing Agent
b. Storage, management and administration of Trustees not only serve corporate clients, individual
securities issued by the government such as customers, but now Trustee customers. Based on POJK No 25/
Government Securities (SUN), Indonesian Retail POJK.03/2016. This is a relaxation of the rules to support the
Bonds (ORI), Shariah Securities (SBSN). tax Amnesty program.
c. Storage, management and administration of
securities in the international market registered at
Euroclear as one international Depository institution.
2. Fund Services
Transaction process services up to the net asset value
calculation (balance sheet, profit / loss, portfolio
reports) for Mutual Funds, Fund Management Contracts
(KPD) and Unit Link. Services provided include Fund
Accounting/ Fund Administration, monitoring, reporting
and publication.
Management
Discussion
And Analysis
INTERNATIONAL SEGMENT STRATEGIES IN 2018

To make BNI a major player in the international trade and payment business for the banking industry in Indonesia, a number
of strategies were followed during 2018. These strategies proved to be effective in boosting international business growth,
especially trade finance income that grew by 25.9% (YoY ). Thanks to the support of the 6 (six) BNI OBO, in Singapore, Hong
Kong, Tokyo, Seoul, London and New York and the 1 (one) Representative Office in Yangoon the OBO assets grew 28.8% (YoY)
while OBO deposits grew 45.9% (YoY).
INTERNATIONAL SEGMENT PRODUCTIVITY, PROSPECTS AND STRATEGIES

The following relates to OBO productivity, prospects and strategies and Domestic International Banking Services.
OVERSEAS BRANCH OFFICES (OBO)

The Overseas Branch Office (KCLN) total assets for 2018 are shown as follows:
Tabel Kinerja Asset KCLN

Description 2018 Composition 2017 Composition Growth
(Rp million) (%) (Rp million) (%) (%)
Local Loan 39,918,309 53.1% 30,734,174 52.6% 29.9%

Others Assets 35,317,273 46.9% 27,682,505 47.4% 27.6%
Total Assets 75,235,582 100% 58,416,679 100% 28.8%
KCLN’s total assets experienced a significant increase, with the total assets for all KCLN reaching Rp75.2 trillion, an increase of
28.8% compared to Rp58.4 trillion the previous year. This was mainly due to an increase in loan, trade finance and securities
transactions. KCLN total loans in 2018 experienced a significant increase, with KCLN successfully booking loans amounting
to Rp39.9 trillion, an increase of 29.9% compared to Rp30.7 trillion the previous year. The KCLN loans disbursed focused on
Indonesia related business, especially for companies conducting export or import activities with Indonesia.
OBO Third Party Fund Products

OBO funds deposited in 2018 included local loan customers and OBO local trade. In addition, the optimizing the accounts of
the Indonesian Embassy / Indonesian Consulate in each OBO country was also carried out.
Tabel Jumlah Dana Pihak Ketiga KCLN

Description 2018 Composition 2017 Composition Growth
Savings 629,243 12.1% 94,409 2.7% 566.5%

Giro 3,049,350 58.7% 2,630,979 73.9% 15.9%
Deposits 1,513,345 29.1% 833,078 23.4% 81.7%
Total 5,191,938 100% 3,558,461 100% 45.9%
During 2018, total OBO deposits amounted to Rp5.2 trillion. The main contribution came from the 4 (four) OBO holding full
branch status that were able to carry out retail transactions, namely: Singapore, Tokyo, Hong Kong and Seoul. To continue to
increase OBO deposits in 2019, increasing the number of local loan customers and OBO local trade will be the main strategy, in
addition to increasing retail deposits.
ANNUAL
REPORT 2018
OBO Services
With a loan expansion strategy emphasizing local loans, and by exploring the business potential of Indonesian customers or
companies that will and have expanded overseas, as well as optimizing business potential / transactions that generate KCLN
fee-based income, the KCLN income in 2018 was as follows:
Overseas Branch Offices Income

2018 Composition 2017 Composition Growth
Keterangan
Net Interest Income 895,117 76.9% 879,585 77.9% 1.8%
Recurring FBI 269,636 23.1% 249,641 22.1% 8.0%

Total 1,164,753 100% 1,129,226 100% 3.1%
Net interest income in 2018 amounted to Rp895.1 billion, an increase of 1.8% compared to Rp879.6 billion the previous year,
mainly due to Loan Interest Income and Trade Finance. KCLN recurring fees increased by 8.0% to reach Rp269.6 billion trillion
compared to Rp249.6 billion in 2017. The biggest growth in KCLN’s recurring fee came from remittance and trade services. This
was supported by an increase in TKI remittances and corporate customer activities at the KCLN, and KCLN expansion activities
both in services to business people in each country and trade refinancing transactions
INTERNATIONAL BANKING SERVICES
Domestic international banking income from trade finance, remittances, financial institutions, custody, trustee and the
international desk in 2018 grew by 25.7% (YoY).
Domestic International Banking Income

Type of Income 2018 2017 Growth
(%)
(Rp billion) Composition (%) (Rp billion) Composition (%)
Fee Based Income 1,594 62.8% 1,303 64.5% 22.4%

Interest Income 943 37.2% 716 35.5% 31.8%
Total 2,538 100% 2,018 100% 25.7%
BNI’s trade finance services and products dominated the domestic international banking business income. The strategies
followed to enable trade business income growth in 2018 to grow by 22% included the following:
1. Exploring potential SBLC / Demand Guarantee issuance transactions, especially from borrowers engaged in infrastructure.
2. Collaborating with Guarantee Companies to work on customers who do not have a non cash loan ceiling, especially for
import transactions.
3. Improving the “close loop transactions” strategy by providing competitive pricing to increase the number of new
customers.
4. Exploring the potential needs for trade transactions for suppliers of BUMN Karya and other potential customers.
5. Synergizing with business units to explore the potential for non-Cash Loan utilization that has not been optimized
In addition, in 2018 the financial institution’s business also recorded encouraging growth. Correspondent banks, both in
Indonesia and abroad, increasingly became more confident in channeling their business through BNI. This can be seen
from the 26% increase in interbank transactions, and the 64% (YoY). increase in the number of transactions slips. With these
increases, the financial institution transaction income increased by 64% (YoY).
Management
Discussion
And Analysis
The remittance business is also quite large, and contributes to the domestic international banking business income. During
2018, remittance income grew by 16%, supported by two main products, namely incoming and outgoing transfers. Incoming
transfer transactions saw significant growth from Malaysia and other countries such as Taiwan and Qatar. In addition, in 2018
BNI Mobile Remittance (BNI More) products in Singapore were launched as a digital-based money transfer to Indonesia facility
for Indonesian Migrant Workers (PMI) in Singapore.
To improve the international banking business, correspondents’ trust of is an important asset for BNI. To maintain
correspondent relationships, BNI actively communicates with correspondent banks as well as expands the scope of good
transactions, by exploring the potential for new cooperation with BNI’s current correspondent banks, as well as by expanding
relationships with banks that are not yet a BNI correspondent bank.
TREASURY AND INTERNATIONAL SEGMENT INCOME AND PROFITABILITY

The Treasury and International segment income and profitability is shown as follows:
Treasury and International Segment Income and Profitability

Interest income and Sharia income-net * 2,086,897 1,860,111 226,786 12.2%

Premium income -net - - - -
Other operating income 2,950,936 3,213,069 (262,133) (8.2%)
Allowance for impairment losses (145,055) (73,992) (71,063) 96.0%
Operational income 2,945,417 2,963,625 (18,208) (0.6%)
Non-Operating (Expense)/Income-Net 2,697 (1,356) 4,053 (298.9%)
Income before tax expense 2,948,114 2,962,269 (14,155) (0.5%)
Total assets 275,552,690 246,499,835 29,052,855 11.8%
*) termasuk komponen internal transfer pricing antar segmen operasi
In 2018 Treasury and Financial Institutions Interest income and Sharia income-net amounted to Rp2.1 trillion, an increase of
12.2% compared to Rp1.9 trillion in 2017. Whereas the Treasury and Financial Institutions segment operating profit in 2018
amounted to Rp3.0 trillion, a decrease of 0.6% or Rp18.2 billion from the previous year.
ANNUAL
REPORT 2018
SUBSIDIARIES
In 2018 BNI Subsidiaries posted a positive

performance with a total profit of Rp648 billion,
a decrease of (10.36%) compared Rp723 billion in
2017, with a profit contribution of 4.29% of BNI’s profit.
Management
Discussion
And Analysis
The development of community and corporate needs for financial services is growing, both in quality
and quantity, requiring banks to provide integrated financial services. With authority limitations, banks
are unable to meet all of their stakeholders needs for financial services so there is a need to involve
subsidiaries. As one of the major banks in Indonesia, the role of BNI and BNI’s Subsidiaries, as BNI Group,
in the financial industry occupies a very strategic position. To this end, BNI continues to improve its
synergy with the subsidiaries so as to provide comprehensive financial services under one umbrella to
customers. Strategic alliances and synergies between the subsidiaries and the BNI parent company have
been built to improve services, so as to contribute optimally to all BNI stakeholders. In accordance with
the applicable banking industry regulations, BNI manages its subsidiaries through equity investments
in subsidiaries engaged in the financial sector. By the end of 2018, BNI owned shares in 10 subsidiaries.
The majority ownership in some of the subsidiaries is intended to establish a strategic alliance to deliver
added value to BNI customers. While minority stakes are held for the purpose of complying with OJK and
BI policies / regulations, as well as to establish business cooperation with BNI partners. The subsidiary
companies where BNI acts as the majority shareholder are: PT Bank BNI Syariah (99.94%), PT BNI Life
Insurance (60.0%), PT BNI Sekuritas (75.0%), PT BNI Multifinance (99, 9%) and BNI Remittance Ltd.
(100.0%). While, the minority share ownerships are PT Sarana Bersama Pengembangan Indonesia (8.0%),
PT Pemeringkat Efek Indonesia (0.14%), PT Kustodian Sentral Efek Indonesia (1.0%), PT Bank Mizuho
Indonesia (1.0 %), and PT Sumitomo Mitsui Indonesia (0.5%). In 2018 BNI Subsidiaries posted a positive
performance with a total profit of Rp648 billion, a decrease of 10.36% compared Rp723 billion in 2017,
with a profit contribution of 4.29% of BNI’s profit.
BNI Subsidiaries Profit Performance

Name of 2018 2017 2016 2015 Growth
Subsidiaries (billion Rp) (billion Rp) (billion Rp) (billion Rp) 2017-2018 (%)
BNI Syariah 416.06 306.69 277.37 228.5 35.66%
BNI Life 177.16 377.80 183.95 160 (53.11%)
BNI Sekuritas 22.06 10.60 12.34 38.9 108.11%
BNI Multifinance 32.06 27.10 7.41 (12.3) 18.30%
BNI Remittance 0.69 0.73 0.21 (0.5) (5.48%)
Total 648.04 722.92 481.28 414.6 (10.36%)
For 2019 BNI has several strategies for business development to improve financial performance, business
growth, customer satisfaction, and the position of Subsidiaries against their peers group and the
industry, including:
• Increasing Subsidiaries asset growth through corporate actions
• Increasing the BNI Group synergy
• Digitizing the Subsidiaries products and services
ANNUAL
REPORT 2018
PT BANK BNI SYARIAH (BNI SYARIAH)
DESCRIPTION, PRODUCTIVITY, INCOME, AND PROFITABILITY

In 2018, BNI Syariah managed to record a positive performance by achieving net profit after tax of Rp416 billion, an increase
of 35.66% from Rp307 billion in 2017, and reached 102.23% of the 2018 target of Rp406 billion. BNI Syariah total assets
amounted to Rp41,040 billion, or 106.19% of the 2018 target of Rp38,648 billion. The asset achievements were driven by
financing and deposits, which grew by 20.30% and 20.82% respectively. Financing in 2018 amounted to Rp28,386 billion, or
104.82% of the 2018 target, with the largest growth coming in commercial financing at 56.9%. Deposits in 2018 amounted to
Rp35,496 billion or 107.07% of the 2018 target.
BNI Syariah’s financial performance during 2018 is shown in the following table:
PT Bank BNI Syariah Financial Performance

2018 2017 Growth
Description
Balance Sheet Category
Assets 41,040,203 34,827,144 6,213,059 17.84%
Investments 12,327,502 10,617,970 1,709,532 16.10%
Placements with BI 4,554,393 5,113,798 (559,404) (10.94%)
Placements with other banks 327,022 328,739 (1,716) (0.52%)
Securities 7,446,086 5,175,433 2,270,653 43.87%
Financing 28,386,197 23,596,718 4,789,479 20.30%
Murabahah / Salam / Istishna Receivables (sale and purchase 18,201,807 16,580,149 1,621,658 9.78%
contract)
Qardh Receivables (Sharia credit cards) 1,564,282 1,479,877 84,405 5.70%
Financing 8,274,741 5,475,003 2,799,738 51.14%
Ijarah 345,366 61,689 283,678 459.85%
Third Party Funds 35,496,519 29,379,291 6,117,228 20.82%
Wadiah Deposits Funds 8,835,445 5,970,787 2,864,658 47.98%
Unrestricted Investing Funds (Mudharabah Muthlaqah) 26,661,074 23,408,505 3,252,570 13.89%
Equity 4,244,484 3,812,000 225,798 5.92%
Profit or Loss Category
Operating income 3,836,743 3,384,295 452,448 13.37%
Income from Fund Distribution 3,567,329 3,174,648 392,682 12.37%
Murabahah Margin 2,212,338 2,090,204 122,134 5.84%
Ijarah Leases 12,244 57,054 (44,810) (78.54%)
Mudharabah Profit Share 123,307 172,440 (49,133) (28.49%)
Musyarakah Profit Share 498,757 336,154 162,603 48.37%
From Bank Indonesia 38,826 6,718 32,108 477.94%
Other TPF Income 148,678 152,051 (3,373) -2.22%
From Other Banks 533,179 360,027 173,152 48.09%
Other operating income 269,413 209,647 59,766 28.51%
Profit share for investors unrestricted 1,007,841 967,942 39,900 4.12%
From Third parties non bank 1,007,227 963,727 43,501 4.51%
From Bank Indonesia - - -
From Other Banks 614 4,215 (3,601) (85.43%)
Operating income after profit share distribution 2,828,901 2,416,353 412,548 17.07%
Expenses (Inc.) allowance for uncollectible accounts 689,828 700,859 (11,031) (1.57%)
Management
Discussion
And Analysis
2018 2017 Growth

Description
Expenses (Inc.) estimated losses on commitments and contin- (215) 415 (630) (151.84%)
gencies
Other operational expenses 1,572,949 1,319,906 253,043 19.17%
Profit or loss operating 566,339 395,174 171,165 43.31%
Profit or loss non operating (16,131) 13,573 (29,704) -218.85%
Profit or loss before taxes 550,208 408,747 141,462 34.61%
Taxes 134,151 102,061 32,089 31.44%
Profit or loss after taxes 416,058 306,686 109,372 35.66%
BNI Syariah ROA and ROE in 2018 amounted to 1.42% (up 0.37%) and 10.39% (down -1.03%), with the increase in ROA in line
with profit growth, and the ROE declined due to an increase in equity from BNI’s additional capital deposits of Rp1 trillion
at the end of December 2017. BOPO in 2018 amounting to 85.37%, a decrease of 2.25% from 87.62% in 2017. There was an
increase in NPF of 0.04% from 2.89% in 2017 to 2.93% in 2018.
BNI Syariah Financial Ratios

Ratio 2018 2017
NPL 2.93% 2.89%
ROE 10.39% 11.42%
ROA 1.42% 1.05%
BOPO 85.37% 87.62%
FDR 79.61% 80.21%
NIM 7.16% 7.58%
CAR 19.15% 20.14%
In recognition of its performance in 2018, BNI Syariah received awards from various institutions including:
No. Name Rating Category Organizer Date

1 Public Relation Awards The Best Public Relation - Third (No 3 Bank Syariah Marketing January 2018
industry) magazine
2 Top Digital Public Top Digital Public Relation 2018 (No 1 Syariah Banking Trasnco research January 2018
Relation Award diindustri)
3 Internal Magazine Bronze The Best Internal Magazine 2018 Private Comp.internal Press Council February
Awards (InMA) (No 3 industry) magazine 2018
4 Top Brand Award Top Brand (No 3 industry) Top Brand category Sha- Marketing February
ria bank saving accounts magazine 2018
5 Indonesia Employee Highly Engaged Organization Banking Bisnis Indonesia March 2018
Engagement Index 2017
6 Karim Award Best Innovative Banking Karim Consulting April 2018
7 Public Relation Award Most popular in the Media -subsidiaries Sharia General Bank PR Indonesia April 2018
category magazine
8 Digital Innovation Award Digital Applications (No.1 industry) Sharia General Bank Warta Ekonomi May 2018
9 Service Excellence Best Performing Satpam (No.1 industry) Bank Umum Sharia InfoBank May 2018
Awards
10 Service Excellence Best Performing Overall Minus E-Banking Sharia General Bank InfoBank May 2018
Awards (No.4 industry)
11 Service Excellence Best Performing Customer Service (No.4 Sharia General Bank InfoBank May 2018
Awards industry)
12 Service Excellence Best Performing Teller (No.5 industry) Sharia General Bank InfoBank May 2018
Awards
ANNUAL
REPORT 2018
No. Name Rating Category Organizer Date

13 Service Excellence Best Performing Telephone (No.3 Sharia General Bank InfoBank May 2018
Awards industry)
14 Service Excellence Best Performing Physical Banking Hall Sharia General Bank InfoBank May 2018
Awards (No.2 industry)
15 Service Excellence Best Performance Excellent Service (No.3 Sharia General Bank InfoBank May 2018
Awards industry)
16 Indonesia Digital Innovative Company in Digital Islamic Sharia Banking Warta Ekonomi May 2018
Innovation Award Service and Applications (No.1 industry)
17 23th Infobank Award Best Assets > Rp 25 Trillion Majalah In- August 2018
Sharia Bank fobank
18 23th Infobank Award Best Assets > Rp 25 Trillion Majalah In- August 2018
Sharia Bank (No.2 industry) fobank
19 Sharia Investor Award Best Assets > Rp 10 Trillion Majalah Investor August 2018
Sharia Bank (No.1 industry)
20 Bisnis Indonesia The Most Innovative Sharia Products Banking Bisnis Indonesia August 2018
Financial Award (No.1 industry)
21 Indonesia Banking The Most Efficient Bank (No.1 industry) Assets > 10 Trillion Majalah Tempo September
Award 2018
22 Indonesia Banking The Most Reliable Bank (No.2 industry) Assets > 10 Triliun Majalah Tempo September
Award 2018
23 Alphasoutheast Asia The Best Commercial Bank In Indonesia Islamic Bank Alphasoutheast September
Award (No.1 industry) Asia 2018
24 7th Infobank Sharia The Best Sharia Bank core capital below Islamic bank Majalah In- September
Awards Rp5 T (No.2 industry) fobank 2018
25 Digital Marketing Award The Best Website - Sharia Bank (No.2 Islamic Bank Majalah Trans September
industry) n Co 2018
26 Indonesia Digital The Best KPR Sharia (No.2 industry) Islamic Bank Trans- co October 2018
Popular Brand
WORK PLAN FOR 2019

To maintain the growth momentum, BNI Syariah has set the following 2019 business strategies
1. Business Strategy
a. Fundraising Strategy by developing the halal ecosystem industry.
b. Fund Distribution Strategy with the main focuses being the infrastructure sector and state-owned enterprises.
2. Functional Strategy
a. Expanding Islamic banking service coverage to all corners of Indonesia with the priority of selling laku pandai
products.
b. Micro business transformation for increased productivity.
c. Implementation of Data Centers to support IT capacity.
d. Setting up transactional infrastructure for Mobile Banking and SMS Banking.
e. Managing competency-based human capital.
f. Optimizing Cooperation Technical Assistance between BNI and BNI Syariah.
3. Optimizing Synergies (including business and shared services synergy with BNI to BNI Syariah and other BNI Subsidiaries)
a. Agency cooperation (Sharia Channeling Outlets/SCO), a synergy by utilizing the main BNI outlet network to provide
sharia services.
b. Supply/Value Chain Financing for BNI commercial customers.
c. Hasanah Card product marketing through the BNI network.
d. Hajj Fund Management (Transito) through collaboration of BNI Syariah and BNI by delegating Hajj funds from the BNI
Transito branch account to BNI Syariah.
e. Use of the Cash Management (BNI Direct) feature by BNI Syariah customers to increase fee-based and management
income of BNI Syariah prime customers.
f. Use of BNI e-channel facilities by BNI Syariah customers to increase fee-based income.
g. Use of BNI remittance and trade finance systems by BNI Syariah customers to optimize international business.
Management
Discussion
And Analysis
PT BNI LIFE INSURANCE (BNI LIFE)

In 2018, BNI Life Insurance posted a net profit after tax of Rp177 billion, a decrease of (52.74%) from Rp375 billion in 2017, or
36.53% of the 2018 target of Rp485 billion. BNI Life total assets amounted to Rp17,283 billion, or 78.54% of the 2018 target of
Rp22,006 billion. The decrease in profit to Rp487 billion from Rp1,282 billion in 2017 was mainly due to the (61.99%) decrease
in Investment Income in 2018.
BNI Life’s financial performance during 2018 is shown in the following table:
PT BNI Life Insurance Financial Performance
2018 2017 2016 Pertumbuhan

Description
(Rp million) (Rp million) (Rp million) (Rp million) (%)
Assets 17,283,191 16,304,038 13,069,216 979,153 6.01%
Productive Assets/Investing 14,998,442 14,566,378 11,304,931 432,064 2.97%
Obligations 12,080,714 10,952,132 8,162,742 1,128,583 10.30%
Equity 5,202,477 5,351,907 4,906,474 (149,430) (2.79%)
Total income 6,113,086 6,987,785 5,721,415 (874,699) (12.52%)
Gross premium income 5,568,467 5,710,686 4,745,531 (142,219) (2.49%)
Net Premium Income 5,510,161 5,577,321 4,635,149 (67,160) (1.20%)
Investing income 487,255 1,281,910 982,169 (794,655) (61.99%)
Non LINK 585,277 774,625 490,299 (189,348) (30.32%)
LINK (98,022) 507,285 471,293 (490,263) (122.16%)
Other Income 115,670 128,555 104,097 (12,884) (10.02%)
Total Expenses 5,942,440 6,619,399 5,549,709 (676,959) (10.23%)
Insurances fee/ claim 4,285,560 5,085,680 4,227,698 (800,120) (15.73%)
Acquisition costs 848,154 801,956 655,447 46,198 5.76%
Business costs 744,003 669,296 611,074 74,707 11.16%
Non Operational Expenses 64,723 62,467 55,490 2,256 3.61%
(income)
PROFIT BEFORE TAXES 170,647 368,387 171,706 (197,740) (53.68%)
TAXES 6,517 6,517 12,244 0 0.00%
NET PROFIT 177,164 374,904 183,950 (197,740) (52.74%)
BNI Life’s ROA and ROE in 2018 amounted to 1.05% and 3.42% respectively and fell (0.93%) and (2.45%) in line with the decline
in profit. BOPO amounted to 97.21%, an increase of 2.48% from 94.73% in 2017, due to the growth in expenses being greater
than revenue growth due decreases investment income. BNI Life’s RBC in 2018 amounted to 735.93%, a decrease of 44.82%
from 780.75% in 2017 in line with the company’s business growth.
BNI Life Financial Ratios

Financial Ratios 2018 2017
ROA 1.05% 1.98%
ROE 3.42% 5.87%
BOPO 97.21% 94.73%
Total Investment/Investment 3.25% 8.80%
RBC 735.90% 780.75%
ANNUAL
REPORT 2018
This performance was achieved by following the 2018 business strategies, with BNI Life’s focusing on obtaining Regular
premium income from the Bancassurance distribution channel, especially in the In Branch units, health premiums from the
Employee Benefits distribution channel, improving customer service, and launching new products tailored to the needs of
the community. In response to the insurance industry development and to anticipate BNI Life’s business growth in 2018 and
the years to come, in 2018 the Regional Branch Manager (RBM) In Branch function was introduced as the regional coordinator,
as a BNI Life PIC, working together with BNI branch leaders in selling insurance products and services to BNI Life customers
referenced by BNI. To offer more choices to customers, in 2018 BNI Life Insurance launched several product initiatives,
including: Basic product BLPM, Pro Illness Care + BLPM, BLPM Pro Hospital and Surgical, Credit Life Insurance (Tenor Expansion)
BNI Griya, Multi Credit Protection Insurance, BLife Fixed Protection, BNI Life Prochild, Smart Protection Plus, PA Protection Plus,
Maxi Health Protection (Telemarketing), SiMUDA Saving Protection. In 2018 BNI Life again won a number of awards, more than
the previous year, including the following:
Tabel Penghargaan BNI Life Tahun 2018
No Name Rating Category Organizer Date
1 B-Life Link Dana Best Link Unit SOE and SOE Subsidiaries Shares 3 Year Berita Satu February 22,
Cemerlang 2018 Period 2018
4 B-Life Link Dana Unit Link Terbaik SOE and SOE Subsidiaries Fixed Income Berita Satu February 22,
Cemerlang 2018 3 Year Period 2018
5 B-Life Link Dana Best Link Unit SOE and SOE Subsidiaries Fixed Income Berita Satu February 22,
Cemerlang 2018 5 Year Period 2018
6 Indonesia Sharia Top 5 Customer Choice Sharia Business Unit in Life Insurance Warta Ekonomi April 30, 2018
Finance Award 2018 2018
7 Service Quality Award Excellent Total Service Quality Life and Health Insurance June 10, 2018
2018 Satisfaction
8 Best Insurance Award Best Life Insurance 2018 Insurance with Assets between Rp 10 Investor July 24, 2018
2018 Trillion - Rp 25 Trillion
9 Insurance Award 2018 Insurance Rating "Very Good" Yearly Financial Performance for 2017 Infobank June 26, 2018
10 Best Insurance Award Best Syariah 2018 Syariah Life Insurance with Assets Investor August 23,
2018 between Rp200 billion - Rp1 trillion 2018
11 Financial Award Highly Committed Company Social Responsibility Bisnis Indonesia August 27,
2018
12 The Best Contact The Best Contact Center Contact Center August 3, 2018
Center Indonesia 2018 Operations"Gold"
13 Sharia Award 2018 Syariah Rating " Very Good " Yearly Financial Performance for 2017, Infobank September 26,
Sharia Business Unit (UUS) 2018
14 Indonesia Insurance Best Financial Performance - Between Assets Rp10-25 trillion Warta Ekonomi September 27,
Consumer Choice Top 5 Best Consumer Choice 2018
Award 2018 Insurance Company,
2019 WORK PLAN

1. Focusing on selling profitable products and increasing the number of policies.
2. Optimizing investment returns and performance in the Link Fund Units.
3. Optimizing captive markets.
4. Increasing the premium ratio.
5. Regional sales integration strategy.
6. Increasing sales quality and productivity.
7. Increasing the human capital productivity.
8. Improving business processes through digital.
9. Maintaining the effectiveness and efficiency of OPEX.
Management
Discussion
And Analysis
PT BNI SEKURITAS (BNI SEKURITAS)

At the end of 2018, BNI Sekuritas managed to record a net profit of Rp22 billion, an increase of 102.25% from Rp10.99 billion
in 2017, reaching 28.2% of the Rp78.25 billion target, operating income in 2018 amounted to Rp253 billion an increase of
9.23% from to Rp232 billion in 2017. The main source of income came from investment management fees (through BNI Asset
Management as a Subsidiary of BNI Sekuritas) with a contribution of Rp93 billion or 36.48% of the total operating income of
BNI Sekuritas, brokerage commissions amounted to Rp80 billion or 31.72% and Investment Banking Fee amounted to Rp.42
billion or 16.68%. BNI Sekuritas total equity brokerage transaction in 2018 amounted to Rp59.5 trillion, a decrease of 0.84%
from Rp58.9 trillion in 2017. The Online transactions reached Rp28.2 trillion against the total Regular transactions of Rp31.2
trillion. The number of active BNI Sekuritas customers in 2018 reached 66,995 customers, up 15% from 58,238 in 2017. In
2018, BNI Sekuritas won awards as “The Most Active Security Company” from KSEI on January 24, 2018, and as the Innovative
Company in Digital Investment Services from Warta Ekonomi.
BNI Sekuritas’ financial performance are shown in the following table:
PT BNI Sekuritas Financial Performance
2018 2017 Growth

Description

Assets 869,813 1,212,406 (342,594) (28.26%)
Obligations 383,600 760,124 (376,524) (49.53%)
Equity 486,213 452,282 33,931 7.50%
Revenue 253,641 232,217 21,423 9.23%
Brokerage commissions 80,453 79,023 1,430 1.81%
Investment management fees 92,536 111,531 (18,995) (17.03%)
Brokerage Comm. From Fix Income Activities 18,583 10,538 8,045 76.35%
Fees from Inves. Banking Activities 42,310 30,657
Increase/(decrease) on net asset value of mutual funds 722 954 (232) (24.35%)
Interest Revenue from Fund Separation and Bonds and Dividends 8,422 4,521 3,902 86.31%
Gain (Loss) on trading of marketable securities –net (21,734) (45,985) 24,251 (52.74%)
Margin and Overdue Revenue 28,960 38,300 (9,340) (24.39%)
Other 3,389 2,679
Operating expenses 221,097 210,303 10,794 5.13%
Other Revenue 19,198 14,686 4,512 30.72%
Interest and Other Financial Expenses (15,747) (15,311) (435) (2.84%)
Total Revenue 272,839 246,904 25,935 10.50%
Total Expenses 236,844 225,615 11,228 4.94%
Profit / Loss before Tax 35,995 21,498 14,497 67.44%
Tax (13,930) (10,588) (3,342) 31.57%
Profit / Loss after Tax 22,064 10,910 11,075 102.25%
BNI Sekuritas’ 2018 ROA was 3.56%, an increase of 1.99% from 1.57% in 2017, with the 2018 ROE reaching 4.72%, an increase of
2.70% from 2.02% in 2017 due to the increase in profit.
ANNUAL
REPORT 2018
PT BNI Sekuritas Financial Ratios PT BNI MULTIFINANCE (BNI MULTIFINANCE)

2018 2017
Financial Ratios DESCRIPTION, PRODUCTIVITY, INCOME, AND
(%) (%)
PROFITABILITY
ROA 3,56% 1,57%
As of December 2018 BNI Multifinance posted a positive
ROE 4,72% 2,02% performance with a net profit of Rp32 billion, an increase of
BOPO 87,17% 90,56% 21.06% from Rp26,480 billion in 2017, reaching 95.72% of
the Rp33 billion 2018. Assets amounted to Rp1,322 billion, an
2019 WORK PLAN increase of 45.36% from Rp907 billion in 2017, reaching 95.7%
For 2019, BNI Sekuritas will continue its strategy to achieve of the Rp1,382 billion 2018 target. Asset growth was driven
better performance with the following strategies. by financing growth of 50.51% from Rp764 billion in 2017 to
1. Increasing synergy and collaboration with BNI Group. Rp1,151 billion in 2018 in line with the growth of liabilities
2. Expanding its Equity business with a focus on (loans) of 61.98% from Rp610 billion in 2017 to Rp988 billion
institutional customers both domestic and foreign. in 2018. Investment/lease financing grew by 98.74% making
3. Expanding the Investment Banking business with a focus up 64.97% of the total financing portfolio. BNI Multifinance
on SOE and Corporate clients. 2018 performance was focused on investment financing
4. Expanding the DCM’s business with a focus on synergy (commercial) in the form of commercial vehicles, heavy
with BNI. equipment for BNI referral customers, repeat orders for BNI
5. Increasing the implementation of GCG, risk awareness Multifinance customers and financing of four-wheel vehicle
and sense of efficiency ownership through the Car Ownership Program (COP) for
6. Expanding the Online Trading business by increasing and those segments including government officials, employees
developing application features. corporations, as well as employees of the BNI Business Group,
as well as 4-wheeled Vehicle Operating Leases for BNI and
the Group. The company conducted consumer financing
(multi products and BNIMF OTO) with a focus on BNI and BNI
Group employees and also started financing factoring with a
focus on selective flow risk customers to maintain a healthy
portfolio.
Management
Discussion
And Analysis
BNI Multifinance’s financial performance is shown as follows:
BNI Multifinance Financial Performance
2018 2017 Growth

Description
Assets 1.322.611 912,422 414.638 41.02%
Deposits 234 42,734 (42.500) -99.45%
Financing 1.151.045 772,621 386.283 44.46%
Leases 747.798 382,388 371.522 87.11%
Consumer Financing 221.855 254,527 (32.298) -2.79%
Factoring 181.329 135,706 47.059 12.91%
CKPN Financing (12.652) (3,854) (8.549) 204.74%
Obligations 987.926 609,905 378.021 57.35%
Equity 334.686 302,517 32.358 8.10%
Operational Income 174.477 114,861 59.616 51.90%
Leases 84.110 42,609 41.501 97.40%
Leases Operations 28.631 30,481 (1.849) -6.07%
Consumer Financing 37.714 17,794 19.921 111.95%
Factoring 24.021 23,978 43 0.18%
Other Operational Income 2.875 1,793 874 60.40%
Total Operational Income 177.352 116,654 60.431 52.03%
Total Operational Expenses 137.808 82,218 55.506 67.61%
CKPN Expenses 11.543 2,777 8.517 315.58%
Other Income (Expenses) 138 2,093 (1.965) -93.41%
Profit before Tax 39.682 36,529 2.959 8.63%
Tax (7.625) (9,473) 2.231 -19.51%
Profit after Tax 32.057 27,056 5.190 18.49%
ANNUAL
REPORT 2018
BNI Multifinance’s 2018 ROA was 3.45%, a decrease of (0.98%) from 4.43% in 2017, while 2018 ROE reached 10.08%, an increase
of 2.69% from 4.43% in 2017 due to profit growth. BOPO reached 77.63%, an increase of 5.44% from 72.19% in 2017. 2018 NPL
reached 1.18%, an increase of 0.86% from 0.32% in 2017. 2018 DER reached 2.85, an increase of 0.83 from 2.02 in 2017 in line
with the increase in loans as a source of funding for financing business expansion.
BNI Multifinance Financial Ratios
Financial Ratios 2018 2017
NPL 1.18% 0.32%

ROA 3.45% 4.43%
ROE 10.08% 7.39%
(Operational expenses/Operational income) 77.63% 72.19%
(Debt Equity Ratio) (times) 2.85 2.02
The BNI Multifinance improved performance received awards from various parties, including the following:
No. Award Rating Category Event Date
1 Human Capital Award Gold/ 6 - Large Multifinance Company - Economic Review, Indonesia May 2018
IV - 2018 Non Tbk Human Capital Award
2 14 th Multifinance Awards Very Good Financial Performance for infobank July 2018
2018 2017
3 Indonesia Enterprise Risk Rating -1/ GOLD Multifinance Company - Economic Review, Indonesia August 2018
Management Award- Non Tbk
III-2018
4 Best Multifinance Company Best in Indonesia Multifinance Company Economic Review, IPMI, Perbanas September
2018 2018 Assets 500B - 1 T (Anak Institute 2018
Perusahaan BUMN)
5 6 th Indonesia Multifinance Best Multifinance Multifinance Company Economic Review, Indonesia October 2018
Award 2018 Company in Assets 500B - 1 T
Indonesia 2018
WORK PLAN 2019

In order to minimize risk in 2019, BNI Multifinance’s business focus is similar to the previous year, and includes:
1. Focusing on selective low risk customers.
2. Focusing on commercial financing (commercial vehicles, heavy equipment, etc.), BNI referral customers and BNI repeat
multifinance customers.
3. Focusing on leading sectors such as manufacturing and infrastructure supporting industries.
4. Consumer financing to run with the target markets of BNI and COP Non-BNI (SOE and SOE Subsidiaries) as well as
multipurpose products and OTO BNIMF for BNI Group employees.
5. Increasing fee-based income.
6. Enlarging the company’s assets through organic and unorganic financing growth by increasing multipurpose / consumer
financing.
7. Pioneering Financing Digitization to accelerate the financing process.
Management
Discussion
And Analysis
BNI REMITTANCE LIMITED (BNI REMITTANCE)

BNI Remittance managed to record a positive performance and recorded a profit of Rp693 million, a decrease of 5.22% from Rp731
million in 2017. Total assets in 2018 amounted to Rp4.9 billion, a decrease of (46.01%) from Rp9.12 billion in 2017. Total remittance
transactions during 2018 reached 212.7 thousand slips, an increase of 22.6% compared to 173.5 thousand slips the previous
year. Conventional Teller transactions reached 77.8 thousand slips, while electronic transactions through BNI ATMs reached 134.9
thousand. The 2018 performance was achieved by increasing remittance services, one being through the cooperation between BNI
and local Money Service Operators (MSO) with a wider outlet network, especially for BNI’s remittance services throughout Hong
Kong. During 2018 there were collaborations with 2 (two) local MSOs, namely BEST Remittance with more than 40 (forty) effective
outlets in July 2018, and Uniforex with more than 100 (one hundred) outlets in December 2018. During 2018, BNI Remittance
organized marketing-based programs including: savings balance improvement program, ATM and Mobile Banking utilization, and
customer get customer program, and BNI digital (E-Form) account opening applications. Through the KAMI program with BNI, BNI
Remittance is also actively conducting capacity building for Indonesian Migrant Workers (PMI) in Hong Kong. The PMI’s enthusiasm
for increased capacity, as well as widening networks among migrant workers, the banking sector and other related parties, can be
seen in the number of participants present at the training held. The training was conducted in two stages, namely soft skills training
in the form of entrepreneurial seminars and hard skills training in the form of skills practice classes.
BNI Remittance’s financial performance is shown as follows:

BNI Remittance Financial Performance

(Rp million) (Rp million) (Rp million) (Rp million)
Total Assets 4,931 9,119 (4,187) (45.92%)
Fixed Assets 410 858 (447) (52.15%)
Current Assets 3,615 4,861 (1,246) (25.63%)
Other Assets 906 3,400 (2,494) (73.36%)
Total Obligations 1,048 3,816 (2,768) (72.53%)
Current Liabilities 1,048 3,816 (2,768) (72.53%)
Other Liabilities - - -
Total Equity 3,883 5,303 (1,420) (26.77%)
Income 11,614 10,133 1,481 14.62%
-
Commision Earned 3,204 3,411 (207) (6.1%)
Exchange gain/Loss 3,079 2,264 815 36.0%
Other Commission 5,332 4,458 874 19.6%
Expenses 10,922 9,402 1,520 16.2%
- Operational Expenses 10,922 9,402 1,520 16.2%
-
Profit before Tax 693 731 (38) (5.22%)
Tax -
Profit after Tax 693 731 (38) (5.22%)
ANNUAL
REPORT 2018
BNI Remittance’s ROA and ROE in 2018 amounted to 14.07% and 17.88%,
respectively increasing by 6.05% and 4.09% from 8.02% and 13.79% in 2017. BOPO
increased to 94.04% in 2018 from 92.79% in 2017.
BNI Remittance Financial Ratios
2018 2017
Rasio
(%) (%)
ROA 14.07% 8.02%
ROE 17.88% 13.79%
BOPO 94.04% 92.79%
DER 0.270 0.720
WORK PLAN 2019

In general, the company’s strategy in 2019 will remain in line with the previous
year, focusing on programs that involve customers directly, including:
1. Customer Awareness
Increasing synergy with parent companies and fellow subsidiaries to conduct
above the line and below the line marketing programs that actively involve
customers through communities in Hong Kong.
2. Customer Experience
Collaborating with the parent company to enhance the experience of BNI
customers in Hong Kong through programs that lead to digital banking,
including:
-- Optimizing the use of ATMs, especially for non-cash service features.
-- Optimizing the use of Mobile Banking.
-- Optimizing the use of E-Forms for opening BNI accounts.
3. Customer Loyalty
Initiating programs to increase customer loyalty, especially focusing on
sustainable capacity-based programs.
Management
Discussion
And Analysis
MARKETING ASPECT
MARKETING STRATEGY communities to meet digital disruption and assess it as an

2018 is the year for BNI’s inauguration as a Digital Financial opportunity to accelerate the achievement of a better life.
Institution. In line with this spirit, BNI from the marketing side
must be able to align corporate brand communications with This message is consistently seen in the campaign
products that will become champions in 2018, especially message boards, and BNI instills it in its corporate brand
digital-based ones. To support this alignment in 2018 BNI communication. In the hope that the Indonesian people
uploaded a corporate brand communication with the will change their attitude/ways to banking and transactions
Campaign Theme: Let ‘s Make a Digital Leap as BNI is Digital. towards digital. For example in festival promos, made with
This theme wants to provide an explanation or promises the aim of participating in celebrating with all customers and
customers and the wider community that with/through BNI’s the public on any national or religious day with BNI digital
digital banking products, they can receive convenience, product promos. This is hoped will increase the awareness
comfort, opportunities, and also improve the economy of the mentioned above as well as help increase usage as BNI is
Indonesian people in general. always present at special customer moments.
Digital banking products that become champions in 2018 Likewise, BNI’s way of delivering messages, has now
were not only corporate banking products but also included intensified through the use of digital media such as BNI
BNI’s retail banking and non-banking products delivered by Online and Social Media. Followers in December 2018
BNI Subsidiaries. This integration is expected to increase BNI’s amounted to 1,184,748 in Twitter @BNI, 152,365 in Instagram
perception as a digital financial institution. @ bni46, and 330,044 in Facebook BNI. Information relates
to promotions (period, coverage area and other provisions)
In terms of marketing, for digital banking products, customer for each BNI product such as Savings, Griya, KUR, BNI Credit
experience became a reality through the theme outlined in Card, BNI Debit Card, promos on the use of electric banking,
the corporate campaign strategy. The message is that BNI and the promotion of subsidiaries that can be accessed by
through digital banking products and services develops in the public through BNI’s promotional micro sites, including
such a way that it will provide the best life experience. BNI bnidigideal.com. However, to maintain BNI’s reach, it also
believes that a good customer experience not only meets the retains some conventional media such as, Above The Line,
needs but also satisfies the wants of its users. Below The Line, Out of Home.
To explain BNI’s changes from conventional banking to digital

financial institutions, BNI introduced the theme of ‘Change’
with the intention of inviting Indonesian customers and
ANNUAL
REPORT 2018
CAMPAIGN REALIZATION
Management
Discussion
And Analysis
To realize BNI’s change to become a Digital Financial To manifest the digital spirit that provides more benefits,
Insitution and BNI Digital, a moment of truth came at the are more efficient, easier and can be reached by all BNI
beginning of 2018 with the YAP product launch which customers, in 2018, were changes brought by BNI to the
was a pioneer of QR payment using three source of funds Travel Fair. In previous years, BNI’s support for travel fair
(electronic money, debit cards and credit cards). With activities was always conducted offline, but this year BNI
these three source of funds, digitizing payments made by collaborated with Garuda Indonesia to hold an Online Travel
BNI became unique, ‘without top up’, where many similar Fair (GOTF 2018). At GOTF, BNI customers and the general
products only have one source of funds. This is in accordance public could see various domestic and international ticket
with the spirit of BNI wanting to improve customer offers through digital channels (websites and applications)
experience. and could enjoy special promos provided through
e-commerce transactions using BNI Debit Cards, BNI Credit
YAP’s customer experience has been implemented in Cards and of course yap!
every Iconic Event. One being Java Jazz, where for the 14th
(fourteen) time, BNI again participated as one of the main The customer journey and customer digital experience could
supporters of this international-scale jazz event. also be seen in the BNI Digimudik 2018 program where
registration was online. This year, customers could register
It started at the BNI Java Jazz Festival 2018 pre-event, namely online to get a seat quota directly from their mobile phone
Java Jazz on The Move x Yap Fest. Differently to previous through the official BNI site or BNI Digimudik micro site. In
years, Java Jazz on The Move in 2018 was held outside the BNI addition, participants could validate their departures by
office so that the public could participate in the event. BNI making transactions using applications in all Jabodetabek
Java Jazz on The Move 2018 successfully became the biggest Area BNI Branch Offices.
pre-event of the Java Jazz Festival and acquired many new
YAP users!, and contributed to the BNI is Digital campaign This program is BNI’s way to maximize its acquisition program
that it is always relevant to millennials. in an effort to increase deposits and also is part of BNI’s
concern to help the government overcome transportation
In addition, at the 2018 Java Jazz music event, YAP! was problems. In accordance with the targets set by the Ministry
introduced throughout for Java Jazz transactions, ranging of SOEs, as well as being part of the 72nd BNI Anniversary, BNI
from food trucks, food courts to merchandise purchases. YAP! helped 7,500 travelers with executive AC buses, trains and
complemented the use of the TapCash card which has been planes. Besides being a loyalty program for BNI customers,
used as the main payment transaction tool at the event. in the BNI DigiMudik 2018 program, BNI also provided free
homecoming facilities for santri and pesantren employees.
In 2018, BNI again became a bank partner in the Inacraft
event, mainly participating in providing financial transaction Digital itself is certainly closely related to millennials, so BNI
services during the event, such as the use of YAP !, TapCash, also participates in supporting events with a target audience
and Electronic Data Capture (EDC) machines for all Inacraft of millennialls such as the 90’s festivals or art performances
tenants. held by high schools or on campus. These include Cravier,
which is held by one of the secondary schools, where all of
Providing these services is a realization of the message of the sales and entry transactions use BNI’s digital products,
change, namely changing customer transaction habits from TapCash and YAP !. Likewise with the Jazz Goes To Campus
cash to cashless. Aside from being a payment tool, visitors event and other concerts attended by BNI as sponsors.
were also brought into the digital customer journey where
visitors could use YAP! and TapCash as an Inacraft entrance Besides participating in sports activities such as; ITB
ticket at a special price. The presence of BNI Digital Branch Marathon, UI Marathon, Plataran X-Trail and support for the
services also facilitated visitors and customers to try BNI’s BNI Taplus volley team in Proliga, to digitize sports, BNI also
digital account opening services. supported the BNI Virtual Run 2018. In this event, running
activities are generally carried out in a limited area, but now
Other BNI products that were present to strengthen BNI’s they are conducted jointly through digital platforms such
branding during Inacraft 2018 included BNI’s People’s as mobile applications, where the participants involved can
Business Credit (KUR) for financing MSMEs, BNI Taplus and run for a specified period. The BNI high light product in this
various types of promotions for using Credit Cards and BNI activity is YAP! which became the media for registering the
Debit Cards. BNI also supported the opening of BNI Taplus race. The highlight of BNI’s support for national and even
accounts with the National Payment Gate Card (GPN), with international sports was its participation in the 2018 Asian
BNI’s EDC already able to receive GPN Cards. Games.
ANNUAL
REPORT 2018
In the biggest event in Asia, BNI appeared as the only “Official OPERATIONAL DISCIPLINE TO IMPROVE PRODUCTIVITY
Prestige Digital Banking Partner”. BNI support included digital
transactions through online and cashless ticket sales for STRATEGIC FOCUS TO IMPROVE PRODUCTIVITY
events using Debit Cards, Credit Cards, TapCash and YAP! and Still based on the vision of forming a highly skilled,
also through BNI EDC in all aspects of sales during the 2018 knowledgeable, and positive attitude in BNI sales, during
Asian Games, as well as provided money changer services 2018 BNI continuously built and instilled the habits and
that were not only limited to the 2018 Asian Games venue. character of a strong Sales Culture. The pattern of sales
BNI also supported athletes and officials to the Asian Games activities conducted were accompanied by monitoring on
by issuing VA Debit Cards to channel pocket money and as a a daily basis the discipline of operationalization, which is a
transaction tool for foreign athletes so they could still enjoy pattern of sales execution which is summarized in the Sales
transactions during their stay in Indonesia. BNI’s support Activity & Performance Management (SAPM) application,
for the cashless society is a manifestation of BNI’s Digital with the aim of reaching a predetermined number of targets.
transformation. All of these matters create operational rhythms that have an
impact on BNI achieving its strategy and business growth.
In addition to facilitating banking transactions during
the 2018 Asian Games, BNI also contributed through The focus strategy is also conducted through Key
philanthropic programs for athletes who have been Performance Indicators (KPI) with a strategy focus, and in
instrumental in making Indonesia famous on the world 2018 the KPI referred to efforts to achieve product sales
sports scene. Athletes such as Ellyas Pical, Djunaedi Abdillah, targets with large yield margins.
Yustedjo Tarik, Tati Soemirah and Lely Sampoerna were
featured on special edition TapCash cards, which were sold in Using the strategy focus pattern, saw an increase in the
the Indonesian Sport Legend edition of the card as a form of achievement per sales in 2018, as the types of products
BNI respect and appreciation. receiving special attention in relation to their profitability saw
a large yield margin, which grew 15.4% compared to 2017, as
In addition to targeting the mass segment, BNI also the following tables and graphs show:
continues to pay attention to the affluent segment and
supported the 2018 Indonesian Masters at the end of 2018. BNI Fleksi Average Booking
BNI’s participation in international golf tournaments is in Subject 2018 2017 2016
line with its mission of advancing Indonesian sports and (Rp million) (Rp million) (Rp million)
providing opportunities for young Indonesian golfers to play
BNI Fleksi 732,9 635,2 563,9
internationally. In line with the Emerald customer products
Average booking
and services which are currently being addressed to the achievement per
‘young mass affluent’ Emerald BNI customers, the digital spirit sales per month
remained relevant to the ‘young mass affluent’ in this event.
BNI Fleksi Average Booking
ACHIEVEMENT Rp732.9
During 2018 BNI received various awards including the
following: Rp635.2
1. Top Brand 2018 Banking and Finance categories:

Rp635.2
a. Junior Savings - BNI Taplus Anak
b. Tabungan Berjangka - BNI Tapenas
2. 2. BUMN Marketeers Awards 2018:
a. Bronze Winner - Promising Company in Strategic
Marketing
b. Silver Winner - Promising Company in Branding
Campaign
3. 3. Indonesia Banking Awards (IBA) 2018:
a. Most Reliable Bank
b. Best Bank in Digital Services
c. Diversity of the Board 2016 2017 2018
Management
Discussion
And Analysis
Other focus strategies were also followed for the main Banking customers with their value chain and business
products, resulting in an increase in the achievement per ecosystem.
sales in 2018 compared to 2017, which grew by 22.0%, as the b. Increasing Fleksi bookings with a Business to Business
following tables and graphs show: (B2B) mechanism to COEs and Ministries
c. Acquiring BNI Fleksi through Digital Channels
BNI Griya Average Booking d. Acquiring BNI Fleksi by maximizing potential customers
Subject 2018 2017 2016 from the Pre and Full Retirement BNI Pension Fund
(Rp million) (Rp million) (Rp million) (BFP)
4. BNI Griya Booking Improvement Strategy
BNI Griya Aver- 1,471.2 1,206.0 934.8
a. Improving BNI Griya bookings through Primary Market,
age Sales Book-
ing per Month including Business Banking customers with the value
chain and business ecosystem.
BNI Griya Average Booking b. Improving BNI Griya bookings through Secondary
Rp1,471.2 Markets
c. Maximizing BNI Griya distribution Leads through
Rp1,206.0 the application of Sales Activity and Performance
Management (SAPM)
Rp934.8
d. Expanding BNI Griya bookings by supporting the
Government Programs through the Housing Financing
Liquidity Facility (FLPP)
5. Credit Card improvement strategy
a. Enhancing Credit Cards in Business Banking with the
value chain and business ecosystem.
b. Increasing Credit Cards through the Millennial segment
c. Acquiring Credit Cards through Canvasing and Event
Exhibitions
d. Acquiring Credit Cards by maximizing BNI Staff
2016 2017 2018 Capacity
e. Optimizing Data for Upselling to Existing Card Holders
MARKETING STRATEGIES FOR PRODUCTIVITY f. Expanding Credit Card acquisitions through the Partner
IMPROVEMENT Websites
1. Sales Productivity Improvement Strategy
a. Optimizing sales management through the application 2019 WORK PLAN
of Sales Activity & Performance Management (SAPM) The 2018 operational rhythm became a pattern of work
b. Coaching and Mentoring and periodic knowledge that will be further enhanced and optimized in 2019, by
transfer to Sales and Supervisor Sales. adjusting to the things that became lessons learned and
c. Giving potential Leads and monitoring, both for developments that occurred in the previous period. One of
funding and lending the adjustments based on business development will be an
d. Sales Motivation Program for both acquisition and effort to move sales to an orientation towards transactional-
retention related strategies, including optimizing BNI’s digital-based
2. Savings Improvement Strategies transactional banking features, together with a strategy
a. Increasing savings expansion by managing business design basis that is both intensified and extensified by
banking customers from the business value chain and referring to providing comprehensive financial solutions
ecosystem through a value chain, close loop transaction and formation
b. Expanding BNI’s savings expansion through Millennial business ecosystem.
acquisition
c. Expanding and Acquiring BNI Savings through MARKET SHARE
entrepreneurial and employee segments. Market share analysis is classified based on total assets, third
3. BNI Fleksi Booking improvement strategy party funds that have been collected, and the amount of
a. Improving BNI Fleksi bookings through databases of loans disbursed by the Bank.
existing Selected Partners payroll, especially Business
ANNUAL
REPORT 2018
Market Share
Description 2018 2017 2016
Total Assets Industry (Billion Rp) 8,068 7,388 6,730

BNI (Billion Rp) 809 709 603
Market Share 10.0% 9.6% 9.0%
Total Third Party Funds Industry (Billion Rp) 5,630 5,289 4,837
Market Share 10.3% 9.8% 9.0%
Total Loans Disbursed Industry (Billion Rp) 5,358 4,782 4,413
Market Share 9.6% 9.2% 8.9%
Comparison of Financial Ratios with Commercial Bank Industry Average
CAR (%) Industry 23.0% 23.2% 22.9%
BNI 18.5% 19.3% 19.4%
BOPO (%) Industry 77.9% 78.6% 82.2%
BNI 70.1% 70.5% 73.6%
ROA (%) Industry 2.6% 2.5% 2.2%
BNI 2.8% 2.8% 2.7%
LDR (%) Industry 94.8% 90.0% 90.7%
BNI 88.8% 90.0% 90.4%
Sources: Indonesia Banking statistics Per December 2018
Grafik Pangsa Pasar BNI Dibandingkan Industri
2018
Total Assets Total Third Party Funds Total Loans Disbursed
10.4% 9.8%
10.3%
89.6% 90.2%
89.7%
2017
Total Assets Total Third Party Funds Total Loans Disbursed
9.8% 9.2%
9.6%
90.4% 90.2% 90.8%
Management
Discussion
And Analysis
MARKET SHARE BASED ON ASSETS In addition, the ending of Quantitative Easing (QE) in both
During the last three years from 2016 to 2018, BNI has Europe and Japan will have an impact by creating a lack
succeeded in placing its position as one of the important of foreign funds entering the Indonesian financial market
players in the Indonesian banking world. One of the compared to the previous year. The US and China trade wars
indicators for the continued increase in BNI’s market share will also continue to cause a impact. Any negative impact
based on assets that reached 10.0% in 2018 compared to could cause a decline in the performance of Indonesian
9.0% and 9,6% in 2016 and 2017. The increase was due to exports to China and the United States, which are 2 (two)
BNI’s success in collecting public funds and managing them of its main export destination countries. The potential for
as the company’s financial assets. factory relocations from China to Indonesia to avoid the tariff
war could have a positive impact on the Indonesian economy.
MARKET SHARE BASED ON THIRD PARTY FUNDS
Amid the weakening Indonesian third party fund market The European plans to ban the use of Crude Palm Oil
due to external macroeconomic conditions, BNI proved (CPO) biofuel starting in 203022. In addition, India is raising
its consistency to survive and continued to increase third Indonesia’s CPO import duty tariff from 30% to 44%23. The
party funds so that it could compete with its competitors in ban on the Indonesian palm oil exports to Europe, and the
national banking. This was evidenced by the BNI’s increasing imposition of tariffs by India, need to be anticipated so as not
market share of third party funds that reached 10,3% in 2018 to harm Indonesia.
compared to 9.8% and 9.0% in 2017 and 2016.
China’s economic growth, which according to the IMF will
MARKET SHARE BASED ON LOANS DISBURSED slow down to 6.2% in 2019, will also affect Indonesia as China
Unlike the double-digit market share of assets and third party is the Indonesian export main market. Export demand from
funds, BNI’s market share based on loans reached 9,6%. This Indonesia is expected to decline, creating the potential for
achievement in 2018 is still better than 2017 and 2016, which widening trade balance deficit.
were recorded at 9.2% and 8.9% respectively. This is one
of BNI’s continuing growth strategies, together with better Given the problematic global economic growth, the main
quality to maintain business continuity in the future. source of economic growth comes from within the country.
In Indonesia, the Government will continue to focus on
FINANCIAL RATIOS COMPAIRED TO THE AVERAGE IN THE encouraging public purchasing power through various
COMMERCIAL BANKING INDUSTRY subsidy programs, with both energy and non-energy
The Capital adequacy (CAR) in 2018 reached 18.5%, a decline subsidies. The Government is also committed to providing
compared to 2017 and still lower than the industry. Operating social protection and improving the welfare of low-income
expenses per operating income (BOPO) decreased in 2018 by residents through the Program Indonesia Pintar (PIP),
70.1% compared to 2017 and are still lower than the industry. Program Keluarga Harapan (PKH), Bantuan Sosial (Bansos)
Return on assets (ROA) was relatively stable at 2.8% in 2018 Pangan, Bidikmisi (Cost of Education for Poor Students),
and higher than industry. In addition, the liquidity level Penerima Bantuan Iuran (PBI) for National Health Insurance
(LDR) decreased by 88.8% in 2018 and is still lower than the (JKN) and Ultra Micro Credit24. The government will continue
industry. to develop the infrastructure with a breakthrough in creative
financing involving the role of state-owned enterprises,
2019 BUSINESS PROSPECTS and the private sector, through Government Cooperation
with Private Companies (PPP) through the availability
Global and National Perspectives payment (AP) scheme. There will be 2,007 kilometers of
road construction / reconstruction / widening, 4 (four) new
In 2019, many world institutions agreed that the global airports, 162 thousand hectares of new irrigation systems,
economy would be supported by the US and developing 27,607 meters of bridge construction and improvements,
countries such as India, ASEAN-5 (especially Indonesia and 415 km of construction / completion of railway tracks, and
the Philippines), Brazil and Mexico21. Externally, there is the 48 dams25. In addition, the Government will continue its KUR
potential for an FFR increase in 2019 if the American economy interest subsidy worth Rp12 trillion with a KUR distribution
continues to grow in accordance with their expectations target of Rp120 trillion and a 7% interest rate intended for
and if the American inflation reached its target of 2% Many financing the MSME productive sector and TKI26. Fertilizer
parties believe the Fed will again raise the FFR a maximum of subsidies using the Tani Card will reach Rp29.5 trillion to
2 times, or at a minimum once. support food security towards national food self-sufficiency27.
The housing interest subsidy from the Government will reach
Rp3.5 trillion for housing loans for Low-Income Communities
(MBR) for 100 thousand housing units28.
ANNUAL
REPORT 2018
To encourage the Indonesian economy, the Government country, there is the potential for the funds to go abroad,
is targeting a new source of economic growth, namely the if for example they give higher returns. If this happens,
Tourism sector. Tourism will be a Government mainstay there will be an impact on Indonesia’s financial sector
as it creates foreign exchange quickly together with the and economy.
large tourism potential in Indonesia. According to the 3. Domestic liquidity conditions are predicted to be
Financial Services Authority (OJK), businesses related to tighter due to several reasons. Firstly, higher loan
the tourism sector include Star Hotels; Budget Hotels; growth compared to deposit growth, reflected in the
Other Accommodation Services; Drinks and Food Outlets; high loan to deposit ratio (LDR). Based on regulation
Restaurants; Rail Transportation; Non-Passenger Road No. 17/11/PBI/2015, the LDR’s lower limit is set at 78%
Transportation; Rivers and Lakes Transportation; Travel and the upper limit at 92%. Secondly, the government
Services; Tourism Facilities in Tourism Areas; Libraries, is increasingly active in issuing retail bonds that can be
Archives, Museums and Other Cultural attractions29. In 2018, purchased by individuals so that there is the potential
the number of foreign tourists visiting Indonesia was 18 for switching from bank deposits (both deposits and
million, an increase from 14 million in 2017, and 12 million in savings) to retail bonds. Currently, the Government-
201630. owned retail bonds consist of Retail Government
Bonds (ORI), Retail Sukuk (SR) and Savings Sukuk (ST).
The number of Government Securities (SBN) issued in
Events happening in 2019 that will affect the Indonesian economy 2019 will reach Rp60 trillion. To facilitate the public, the
include; Government will issue these SBN online with a first come
1. Simultaneous Legislative and Presidential Elections, first served system. If liquidity is tightened, there will be
instead of the previous alternate election system. For the competition for deposits between banks. This will affect
first time, Indonesia will hold joint elections on April 17, funds growth in 2019.
2019. Political temperatures are expected to rise ahead of 4. In line with the Macroprudential Intermediation Ratio
voting. Unlike other countries, generally the elections do (MIR), BI continues to encourage bank lending while
not have a negative impact on the economy. However, expanding funding and financing sources through the
until the election winners are announced, many parties, issuance of securities. These financing alternatives are
especially investors and entrepreneurs, will be waiting a challenge for banks in carrying out the intermediary
before making business decisions. Loan growth in the function. The issued bonds low cost will encourage
first quarter - 2019 will be restrained but is expected to companies to choose financing through bonds. The
increase again after the Legislative Elections (Pileg) and national bank lending growth will become a problem if
Presidential Elections (Pilpres). it does not grow as in 2018, which up to December 2018
2. In 2019 the 3 (three) year holding period limit for had grown by 11.97%31.
repatriated funds from the tax amnesty conducted by
the Government in 2016 will end. This is in accordance
21
PInternational Monetary Fund World Economy Outlook, Oktober 2018
22
CNBC Indonesia: Eropa Melarang Biofuel 2030, 18 Juni 2018
with Law No. 11/2016 concerning the Tax Amnesty. 23
Market.bisnis.com: India Kembali Kerek Pajak Impor CPO Menjadi 44%, 5 Maret 2018
To date, these funds had to be placed in investment 24
Ibid
instruments with a time limit of 3 (three) years within
25
Ibid
26
Ibid
the NKRI financial system. After that, the tax amnesty 27
Ibid
participants will again have the right for these assets 28
Ibid
to remain invested in Indonesia or taken back abroad.
29
Ibid
30
Biro Pusat Statistik
If there are no attractive investment instruments in the 31
OJK
Macro and Micro Assumptions

No Assumption Projected Year
2019 2020 2021
MACRO ASSUMPTION
1 Economy Growth (%) 5.2 – 5.4 5.2 – 5.4 5.3 – 5.5
2 Inflation (%) 3.0 – 4.5 3.0 – 4.0 3.0 – 4.0
3 Rupiah Exchange / US Dollar (Rp) 14,800 –15,200 14,800 –15,200 14,800 –15,200
4 BI 7 Days Repo Rate 5.5 – 6.5 5.5 – 7.0 5.5 – 7.0
Management
Discussion
And Analysis
No Assumption Projected Year
2019 2020 2021
MICRO ASSUMPTION
1 Credit Growth (%) 10.0 – 12.0 10.0 – 12.0 10.0 – 12.0
2 Third Party Fund Growth (%) 8.0 – 10.0 8.0 – 10.0 8.0 – 10.0
BNI BUSINESS PROSPECTS able to adapt to the environment and are agile enough to
BNI’s business prospects are influenced by internal and exploit these opportunities. BNI’s adaptability and agility
external factors. In terms of internal factors, BNI’s ability to capabilities have been proven in historical data in recent
mobilize and allocate resources and maintain and develop years. In recent years during moderate economic growth and
its core capabilities is an important factor in anticipating the financial industry conditions, BNI has been able to grow
and taking business opportunities from existing external higher than the industry, as shown in the following table:
conditions.
Loan Growth
External factors that influence BNI are political, economic, Loan Growth 2018 2017 2016 2015
social, technological, environmental and regulatory
conditions. In general, political conditions are quite BNI 15.9% 12.0% 20.9% 17.4%
conducive to the business world and BNI is always ready to Banking 12.9% 8.2% 7.9% 10.4%
anticipate the dynamics that exist. Social conditions also
support development with the existence of demographic
maps that show that there is sufficient force for the young From the quarterly structure of Indonesia’s economic growth in
generation to be developed and it is estimated that there 2017-2018, the largest contribution to growth, apart from the
will be no horizontal and vertical turmoil that significantly Industrial Trade Sector, was from the Processing Industry Sector,
disrupts the activation of the real sector. In terms of Agriculture (including Forestry and Fisheries), Construction,
technology, internet penetration and widespread use of Transportation and Warehousing, and Communication
devices have caused changes in customer preferences Information with an average growth contribution each of 20%,
to meet their needs which has resulted in the disruption 13%, 10.5%, 5.5%, and 3.8% respectively. The economic structure
of business models in various industrial sectors. In terms is an opportunity for BNI to develop its business, supported by
of the environment and regulations, efforts to minimize its digital capabilities.
environmental, social and governance risks must be done
more transparently through the regulation for sustainable BNI’s financing focus will be adjusted to the potential GDP as
financial implementation in the financial services industry reflected in the 2018 realization. The largest funding in the BNI
and issuers. Corporate Segment was given to the Manufacturing, Agriculture
and Business Services Industry Sectors with a composition of
The condition of the world economy will have a significant 26%, 15% and 13%. The Business Services Industry Sector was
effect on Indonesia’s economy and growth through its the third highest-growth Industrial Sector after the Information
trading partners, and transactions will be reflected in and Communication Industry Sector and the Transportation and
Indonesia’s trade balance and balance of payments. The Warehousing Industry Sector. During the same period, the BNI
condition of the world economic growth in the short-term Middle Segment provided the largest financing to the Industry,
is not expected to be much different from the short-term Trade, Manufacturing and Transportation and Warehousing
economic period of the previous period (2018). This will be Sectors with a portfolio composition of 31%, 26% and 10%
accompanied by several uncertainties in the form of trade respectively. BNI Small Segment largest financing was in Trade,
competition dynamics between countries, political dynamics Manufacturing and Agriculture with a composition of 57%, 11%
between countries, and the implementation of benchmark and 10%.
interest rate policies in developed countries, in addition to
the economic growth dynamics in Indonesia’s main trading In an effort to always be relevant in the era of technological
partners themselves. change, including our efforts to be a pioneer in the use of
information technology, and in accordance with changes in
Although these external conditions will greatly affect BNI customer preferences due to internet penetration and devices,
in carrying out its functions and achieving its performance BNI has and will continue to make significant investments in
targets, the business world offers many excellent growth the development of its technology. Information technology
opportunities in the coming years for companies that are applications will be felt by customers, both individuals and
ANNUAL
REPORT 2018
business entities or other institutions when using BNI financial D, “Digital and Data Driven Institution”
services, and are expected to increase engagement with BNI Optimizing business development that is driven by digital
so that they can provide added value not only for BNI but and data analytics.
also its customers in the long term. Information technology
applications developed include digitizing business processes 2019 BUSINESS DEVELOPMENT STRATEGY
that will have an impact on improving quality, service speed,
process transparency, system interoperability. In addition to After taking into account the world and domestic economic
process digitalization, platform development and transaction conditions, technological developments in the digital
applications that enable interaction between customers era, changes in customer preferences, policies from the
both Business to Business (B to B), Business to Customer (B authorities (monetary, banking, and fiscal), and internal
to C), and Customer to Customer (C to C) will be developed business process improvement plans, in 2019, in line with
so as to increase user experience in every customer trip to the long-term Corporate Plan 2019-2023, BNI will focus
BNI. Development of features and applications like Yap! or on strengthening core business with digital capabilities.
the cash management system will continue to be carried out Indicators for this policy include company value for
appropriately to meet customer needs by optimizing the investors, profitability size, investment rate of return, digital
capabilities of data analytics. transactions, superior service, employee engagement, digital
Support for government programs will continue to be carried capabilities, and synergy between units and subsidiaries.
out not only because BNI is one of the national agents of The business growth will of course take into account good
development, but also the government program and the corporate governance, banking prudential principles,
whole community as the perpetrators can become BNI’s regulatory constraints, and the shareholders’ aspirations. In
business potential. Support for cross-sectoral government terms of regulatory constraints, BNI intends to follow the
development strategies such as infrastructure development, regulation directions, including keeping its NPL ratio far
tourism, transportation, or agriculture will continue. The below 5% with its Capital Adequacy Ratio (CAR) above the
business contribution from this will be quite significant for provisions based on the risk profile where BNI is located.
BNI both for financing distribution and for raising funds and Based on shareholder aspirations, BNI financial targets
fee-based income. Other government programs such as will be better than the previous year‘s achievements and /
People’s Business Credit, Financial Inclusion, Laku Pandai, and or higher than the industry average. The financial targets
social assistance will improve the quality of economic growth include profitability, market share for both loans and third
more quickly and sustainably which will ultimately increase party funds, and achievement of programs mandated by the
BNI’s business as a whole. government to BNI. In addition, the share value is targeted to
be better than in 2019.
LONG-TERM STRATEGY 2019-2023
To achieve these targets, BNI’s strategy in 2019 as outlined in
To achieve BNI’s vision of becoming a “Financial Institution the 2019 BNI Management Policy includes:
that is Superior in Service and Performance”, BNI has prepared • Improving the corporate business by providing integrated
a 2019-2023 Corporate Plan with BNI’s aspiration in 2023 financial solutions in a business ecosystem.
“To Become One of the Most Profitable Financial Institutions • Increasing mid-sized business productivity focused on
in Indonesia”. This aspiration will be achieved through the corporate customer supply chains, business process
BEYOND Traditional Financial Services strategy, namely: improvements, and credit quality improvements.
• Increasing small business expansion by digitizing business
B, “Business Community’s Financial Institution of Choice” processes and improving credit quality and supporting
Optimizing capabilities to be the business community’s national economic equality.
choice. • Accelerating consumer business by focusing on customer
preferences using data analytics.
E, “Ecosystem Orchestrator” • Increasing CASA and FBI by increasing digital transactions,
Orchestrating potential business ecosystems. strategic partnerships and developing new business
models.
Y, “Your Preferred Personal Financial Partner” • Increasing the BNI Group capabilities through increasing
Optimizing services and consumer business solutions to synergy, agile organization initiatives, and big data and
become the main bank for customer transactions analytics.
O, “Organizationally Ready for The Future”

Improving organizational capabilities and human resources
to capture new business opportunities.
N, “National Agent of Development”
Optimizing government programs as a basis for growth.
Management
Discussion
And Analysis
ANNUAL
REPORT 2018
FINANCIAL
REVIEW
The financial review outlined herein refers to the Financial Statements for
the years ended 2018 and 2017 as presented in this Annual Report. The
Financial Statements have been audited by the Public Accounting Firm
Purwanto, Sungkoro and Surja (Member of Ernst and Young Global) and
received a reasonable opinion, in all material respects, the consolidated
financial position of PT Bank Negara Indonesia Tbk and its subsidiaries,
as of December 31, 2017, as well as the consolidated financial and cash
flows for the year then ended, were prepared in accordance with the
Indonesian Financial Accounting Standards.
Management
Discussion
And Analysis
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Consolidated Statement of Financial Position

2018 2017 2016 Growth 2017-2018
Description
(Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (%)
ASSETS
Cash 14,044 11,578 11,168 2,466 21.3
Current Accounts with Bank Indonesia 35,591 32,701 30,147 2,891 8.8
Current Accounts with other banks - net 13,134 21,335 6,298 (8,201) (38.4)
Placements with other banks and Bank Indonesia - net 39,324 28,593 33,662 10,732 37.5
Marketable securities - net 32,044 36,050 23,765 (4,006) (11.1)
Securities purchased under agreements to resell - 679 1,665 (679) (100.0)
Bills and other receivables - net 24,587 15,701 8,932 8,886 56.6
Acceptances receivables - net 20,295 18,106 14,724 2,189 12.1
Derivatives receivables - net 605 217 250 388 179.1
Loans 512,778 441,314 393,275 71,465 16.2
Allowance for impairment losses on loans disbursed (14,892) (14,524) (16,681) (368) 2.5
Government bonds 86,791 79,849 63,006 6,942 8.7
Prepaid taxes 1,624 623 620 1,002 160.9
Prepaid expenses 2,337 2,318 2,411 19 0.8
Equity investments - net 604 713 57 (110) (15.3)
Other Assets - net 11,900 10,381 6,429 1,519 14.6
Fixed Assets - net 26,127 22,805 21,972 3,322 14.6
Deferred tax Assets - net 1,676 891 1,332 785 88.2
TOTAL ASSETS 808,572 709,330 603,032 99,242 14.0
LIABILITIES,TEMPORARY SYIRKAH FUNDS AND
EQUITY
LIABILITIES
Obligations due immediately 4,160 4,868 3,276 (707) (14.5)
Deposits from customers* 578,775 516,098 435,545 62,677 12.1
Deposits from other banks* 14,233 12,177 10,801 2,056 16.9
Borrowings 52,025 44,722 32,388 7,302 16.3
Derivatives payable 322 114 411 208 182.9
Securities sold under agreements to repurchase 21,524 2,390 3,765 19,134 800.6
Acceptances payable 4,417 4,507 4,359 (91) (2.0)
Accrued expenses 876 971 1,047 (95) (9.8)
Taxes payable 481 80 151 401 498.2
Employee benefits 3,512 4,094 3,503 (582) (14.2)
Provisions 178 192 156 (15) (7.7)
Other liabilities 14,608 14,731 11,149 (122) (0.8)
Securities issued* 2,987 3,482 3,482 (495) (14.2)
Subordinated Securities 100 - - 100 -
TOTAL LIABILITIES 698,198 608,427 513,778 89,771 14.8
ANNUAL
REPORT 2018
2018 2017 2016 Growth 2017-2018

Description
(Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (%)
Deposits from customers 26,603 23,350 20,092 3,253 13.9
Deposits from other banks 358 494 489 (136) (27.5)
Mudharabah Sukuk issued - 496 496 (496) (100.0)
TOTAL TEMPORARY SYIRKAH FUNDS 26,961 24,340 21,077 2,621 10.8
Non-controlling interest 2,297 2,311 2,097 (14) (0.6)
Total equity attributable to owner of the parent entity 9,485 9.6
108,077 98,592 87,157
TOTAL EQUITY 110,374 100,903 89,254 9,470 9.4

TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS 808,572 709,330 603,032 99,242 14.0
AND EQUITY
* included funds syirkah temporar
Customer Loan Disbursements and Savings Growth
90.41%
578,775
516,098 512,779
435,545 441,314 88.80%

393,275
85.58%
2016 2017 2018
Simpanan Nasabah Pinjaman yang diberikan LDR (Bank Saja)
ASSETS
In 2018, economic observers and Bank Indonesia projected Indonesia’s economic growth throughout
2018 to be in a range of 5.17% with an inflation rate based on Bank Indonesia’s target of 3.5% where the
inflation rate in November 2018 was 3.23% ( yoy). The Indonesian economic structure is still dominated
by three main business fields, namely agriculture, forestry/fisheries, and trade. Until the second quarter
of 2018, the processing industry had the highest growth of 0.91%, followed by the trade sector at 0.69%,
and construction at 0.57%.
The increasingly depressed Rupiah against the US Dollar in mid-2018 continued until the end of the year
and caused a migration of foreign capital from the Indonesian financial system, with the transaction
balance deficit continuing to grow marked by a deficit in the export-import balance that dominated the
Indonesian economy throughout 2018. This condition is not inseparable from external factors such as
the Fed Fund Rate (FFR) and the American and China trade wars.
Management
Discussion
And Analysis
In the midst of external pressure, Indonesia’s economic situation did not change significantly in 2018.
BNI’s enthusiasm to continue to grow in the midst of heavy external pressure has been tested again,
raising BNI’s awareness that the health level of growth itself is the most important thing in order to
continue to survive in the increasingly competitive banking business. BNI continued to maintain this
throughout 2018 when considering the business growth of the bank itself, one way by being more
selective in choosing the right industrial sector. The era of disruptive economy, which began in 2017,
was again a highlight in 2018, and BNI was required to adapt well in terms of technology and service
innovation.
In 2018, BNI managed to maintain its asset growth in the prospective sectors, reflected by the increase
in total assets to Rp99.2 trillion. With the loans disbursed as the bank’s main business contributing 63.4%
of total assets in 2018. BNI’s loans grew by 16.2%, higher than last year’s 12.2%. The increase in growth
was due to BNI aggressively expanding it’s lending by staying selective, especially regarding asset quality
and paying attention to prudential banking principles. The growth was mainly in loans to SOEs which
grew by 31.6% and private corporate loans which grew 12.9%, with the largest contribution to the
manufacturing industry, restaurant and hotel trade, and business services.
Assets
Growth
2018 2017 2016 Growth 2017-2018
2016-2017
Description
(Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (%) (Billion Rp) (%)
Cash 14,044 11,578 11,168 2,466 21.3 410 3.7

Current Accounts with Bank Indonesia 35,591 32,701 30,147 2,891 8.8 2,554 8.5
Current Accounts with other Banks 13,137 21,338 6,300 (8,201) (38.4) 15,039 238.7
Placements with other banks and Bank 10,731 37.5 (5,069) (15.1)
39,325 28,593 33,662
Indonesia
Marketable securities 32,362 36,359 23,856 (3,997) (11.0) 12,503 52.4
Securities purchased under agreements to (679) (100.0) (986) (59.2)
- 679 1,665
resell
Bills and other receivables 24,745 15,799 15,701 8,946 56.6 6,867 0.6
Acceptances receivables 20,475 18,271 14,809 2,204 12.0 3,462 23.4
Derivatives receivables 606 217 250 388 179.1 (33) (13.2)
Loans 512,778 441,314 393,275 71,465 16.2 48,038 12.2
Allowance for impairment losses - Loans (14,892) (14,524) (16,681) (368) 2.5 2,157 12.9
Government bonds 86,791 79,849 63,006 6,942 8.7 16,843 26.7
Equity investments 785 786 57 (1) (0.1) 729 1.274.6
Fixed assets -net 26,127 22,805 21,972 3,322 14.6 832 3.8
Prepaid taxes 1,624 623 620 1,002 160.9 2 0.4
Prepaid expenses 2,337 2,318 2,411 19 0.8 (92) (3.8)
Deferred tax assets -net 1,676 891 1,332 785 88.2 (441) (33.1)
Other assets - net 11,900 10,381 10,381 1,519 14.6 3,952 -
CKPN (840) (648) (209) (193) 29.8 (439) 209.9
TOTAL ASSETS 808,572 709,330 603,032 99,241 14.0 106,298 17.6
ANNUAL
REPORT 2018
CASH AND CURRENT ACCOUNTS WITH BANK INDONESIA CURRENT ACCOUNTS WITH OTHER BANKS
Cash and current accounts with Bank Indonesia increased Current accounts with other Banks in 2018 decreased by
12.1% from Rp44.3 trillion in 2017 to Rp49.6 trillion in 2018. 38.4% from Rp21.3 trillion in 2017 to Rp13.1 trillion in 2018.
This decline was the result of one of BNI’s asset management
Current accounts with Bank Indonesia increased by 8.8% strategies related to placements in financial assets with
when compared to 2017, in line with BNI’s obligation to potential greater yield such as loans, securities, and
maintain a Minimum Reserve Requirement (GWM) to meet government bonds.
the central bank’s minimum reserve requirement.
PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA
BNI is required to have a Statutory Reserves (GWM) in Rupiah Placements with other banks and Bank Indonesia increased
for its activities as a public and sharia bank, as well as a GWM by 37.5% from Rp28.6 trillion in 2017 to Rp39.3 trillion in
in foreign currencies for its activities in foreign currencies. 2018, due to BNI’s strategy for managing financial assets and
liquidity.
As of December 31, 2017 and 2018, the bank’s MMR was in
accordance with PBI No. 20/3/PBI/2018 concerning Statutory MARKETABLE SECURITIES
Reserves in Rupiah and Foreign Exchange for Conventional Securities are one of the financial instruments owned by BNI
Commercial Banks, Islamic Commercial Banks, and Sharia as an alternative to channeling funds other than loans. BNI’s
Business Units. marketable securities investment portfolio decreased in 2018
by 11.0% to Rp32.4 trillion from Rp36.4 trillion in 2017, partly
Primary GWM is a minimum deposit that must be maintained due to the maturity of Bank Indonesia Certificate of Deposit
by a bank in the form of a giro account with Bank Indonesia. product in 2018.
Secondary GWM and macroprudential liquidity buffer (MLB)
are minimum reserves that must be maintained by banks in There were two types of securities portfolios that decreased
the form of SBI, Government Securities (SUN), State Sharia significantly in 2018, namely the Bank Indonesia Deposit
Securities (SBSN), and excess reserves which are excess Certificate (SDBI) which decreased from Rp11.5 trillion in
Rupiah bank account balances from Primary GWM, GWM LFR 2017 to Rp2.0 trillion in 2018 or 82.8%, and Subordinated
and Macroprudential Intermediation Ratio (MIR). GWM LFR Bonds which decreased by 34.2% to Rp1.5 trillion in 2018.
and RIM are the minimum savings required to be maintained
by the Bank in the form of a giro accounts at Bank Indonesia, In addition to these two securities portfolios, there were other
if the LFR Bank is below Bank Indonesia’s LFR and RIM target securities portfolios that increased in 2018, namely Mutual
(80%), or above BI’s maximum LFR and RIM (92%), and the Funds, Bank Indonesia Securities (SBI), and other Bonds which
Bank’s Minimum Capital Adequacy Ratio (KPMM) is less than increased by 47.1%, 36.3 %, and 14.7% compared to 2017.
14% of BI’s KPMM Credit Incentive.
Minimum Reserve Requirements (MSR)

2018 2017 2016
GWM - RUPIAH 6.53% 6.57% 6.77%
GWM - VALAS 8.01% 8.01% 8.01%
Management
Discussion
And Analysis
Marketable Securities
Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
(Billion (Billion (Billion (Billion (Billion
(%) (%) (%) (%) (%)
Rp Rp Rp Rp Rp
Fair value through 1,180 (14.0) 3,711 78.6
7,249 100.0 8,430 100.0 4,719 100.0
profit or loss
-Mutual funds 4,053 55.9 3,981 47.2 2,430 51.5 72 1.8 1,551 63.8
-Other bonds 2,106 29.1 2,487 29.5 780 16.5 (381) (15.3) 1,708 219.0
-Subordinated (926) (57.9) 441 38.0
674 9.3 1,600 19.0 1,159 24.6
bonds
-Other debt securi- 55 15.2 11 3.1
416 5.7 361 4.3 350 7.4
ties
Available for sale 23,768 100.0 26,806 100.0 17,080 100.0 (3,037) (11.3) 9,726 56.9
-SDBI 1,983 8.3 11,531 43.0 1,096 6.4 (1,997) 36.3) 10,435 952.4
-SBI 7,505 31.6 5,508 20.5 10,530 61.7 1,997 (5,022) (47.7)
-Mutual funds 4,920 20.7 2,119 7.9 889 5.2 2,801 132.2 1,230 138.3
-Other bonds 8,209 34.5 6,555 24.5 3,901 22.8 1,654 25.2 2,654 68.0
-Subordinated 137 19.4 42 6.3
843 3.5 706 2.6 664 3.9
bonds
-Other debt securi- (79) (20.5) 387 -
308 1.3 387 1.4 - 0.0
ties
Held to maturity 1,345 100.0 1,124 100.0 2,057 100.0 221 197.7 (934) (45.4)
Other bonds 1,345 100.0 1,124 100.0 2,057 100.0 221 197.7 (934) (45.4)
Sub Total 32,362 1.0 36,359 1.0 23,856 1.0 (3,997) (11.0) 12,503 52.4
Allowance for im- (9) 2.9 (218) 239.3
(318) (309) (91)
pairment losses.
Total 32,044 36,050 23,765 (4,006) (11.1) 12,285 51.7
Marketable Securities by Issuer

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
(Billion
(Billion Rp (%) (Billion Rp (%) (Billion Rp (%) (%) (Billion Rp (%)
Rp
Corporations 16,284 50.3 13,718 37.7 8,952 37.5 2,566 18.7 4,766 53.2
Banks 6,590 20.4 5,602 15.4 3,279 13.7 987 17.6 2,324 70.9
Bank Indonesia 9,489 29.3 17,039 46.9 11,626 48.7 (7,550) (44.3) 5,414 46.6
Total 32,362 100.0 36,359 100.0 23,856 100.0 (3,997) (11.0) 12,503 52.4
Allowance for
(318) (309) (91) (9) 2.9 (218) 239.3
impairment losses
Nett 32,044 36,050 23,765 (4,006) (11.1) 12,285 51.7
ANNUAL
REPORT 2018
SECURITIES PURCHASED UNDER AGREEMENTS TO RESELL on primary commodity exports to manufacturing, and
(REVERSE REPO) increase its domestic production capabilities to reduce
Securities transactions purchased with agreements to resell imports. Infrastructure development is expected to improve
are securities purchase transactions with an agreement connectivity and be directed to promoting regional
to resell the securities purchased at a predetermined time economic and industrial development.
and price. The reverse repo transactions carried out in 2017
amounting to Rp679 billion fell due in 2018, where during In the context of the manufacturing sector development,
2018 BNI did not conduct any new reverse repo transactions. BNI, as a state-owned bank, again played an important
role in strengthening the government’s strategy that
LOANS DISBURSED subsequently resulted in an increase in loans to SOEs by
The Indonesian economy in 2018 provided several lessons 31.6% and loans disbursed to private corporations growing
that can be the basis for strengthening synergies in 12.9%, mainly in the manufacturing industry, restaurant and
maintaining resilience and boosting economic growth hotel trade, business services and construction. This increase
in 2019. Competitiveness and productivity should be then resulted in an increase in the bank’s main business
improved to encourage growth momentum to a higher composition from 62.2% in 2017 to 63.4% in 2018
level. Indonesia must be able to move from dependence
Loan Composition byType of Debtor

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% % % % %
Rp) Rp) Rp) Rp) Rp)
Corporate 222,910 43.5 188,026 42.6 174,073 44.3 34,884 18.6 13,953 8.0
Medium Commercial 74,731 14.6 70,261 15.9 61,330 15.6 4,470 6.4 8,932 14.6
Small 66,063 12.9 56,477 12.8 50,684 12.9 9,586 17.0 5,793 11.4
Consumer 79,735 15.5 71,445 16.2 65,069 16.5 8,290 11.6 6,376 9.8
International 39,918 7.8 30,734 7.0 21,237 5.4 9,055 29.5 9,497 44.7
Subsidiaries 29,550 5.8 24,369 5.5 20,882 5.3 5,181 21.3 3,487 16.7
Total Loans 512,778 100.0 441,314 100.0 393,275 100.0 71,465 16.2 48,038 12.2
LOANS DISBURSED COMPOSITION

The loans disbursed portfolio structure in 2018 was still The medium-sized commercial segment recorded growth
dominated by the corporate segment at 43.5%, followed of 6.4% or Rp.4.5 trillion compared to 2017. This growth
by the consumer and medium commercial segments at was not as aggressive as in 2017, where the medium-sized
15.5% and 14.6% respectively, the small segment at 12.9%, commercial segment grew 14.6% or Rp8.9 trillion compared
and foreign branches at 7.8%. On a consolidated basis, to 2016. The 2018 growth followed one of BNI’s strategies
subsidiaries contributed 5.8% of total loans. to be more selective in lending to this segment given the
still large risk. During 2018, there were several commercial
The most aggressive growth was in lending to the corporate segment borrowers who increased their business exposure
segment, which rose Rp34.9 trillion or 18.6% from Rp188.0 making them eligible to be managed by the corporate
trillion in 2017 to Rp222.9 trillion in 2018. The small segment segment.
also recorded quite aggressive growth increasing Rp9.6
trillion to Rp66.1 trillion in 2018. In addition, the consumer
segment lending, as one of the drivers of growth, increased
11.6% or Rp8.3 trillion. Loans disbursed by the BNI’s
subsidiaries also grew steadily by 21.3% from Rp24.4 trillion
in 2017 to Rp29.6 trillion in 2018.
Management
Discussion
And Analysis
Overseas Branches Loans Disbursed
Growth Growth
2016 2017-2018 2016-2017
2018 2017
Overseas Branch (Billion
(Billion Rp) (Billion Rp)
Rp)
(Billion Rp) % (Billion Rp) %
BNI New York 7,971 6,489 4,268 1,482 22.8 2,221 52.0
BNI London 6,297 4,148 3,779 2,149 51.8 369 9.8
BNI Tokyo 6,603 3,919 2,708 2,684 68.5 1,211 44.7
BNI Hongkong 7,527 7,032 5,352 495 7.0 1,680 31.3
BNI Singapura 9,108 7,946 4,590 1,161 14.6 3,356 73.1
BNI Seoul 2,285 1,200 540 1,084 90.3 660 122.2
Total 39,789 30,734 21,237 9,055 29.5 9,497 44.7
Overseas Branches Loans Disbursed - Rp Billion
7,971
6,489 6,603
6,297
4,268
4,148
3,919
3,779
2,708
2016 2017 2018 2016 2017 2018 2016 2017 2018

BNI New York BNI London BNI Tokyo
9,108
7,527
7,946
7,032
5,352
4,590
2,285
1,200
540
2016 2017 2018 2016 2017 2018 2016 2017 2018

BNI Hongkong BNI Singapura BNI Seoul
ANNUAL
REPORT 2018
Tabel Komposisi Pinjaman berdasarkan Segmen dan Mata Uang

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% % % % %
Rp) Rp) Rp) Rp) Rp)
Corporate 222,910 43.5 188,026 42.6 174,073 44.3 34,887 18.6 13,953 8.0
Rupiah 181,449 81.4 154,555 82.2 141,044 81.0 26,898 17.4 13,511 9.6
Foreign Currency 41,461 18.6 33,471 17.8 33,029 19.0 7,990 23.9 442 1.3
Medium 74,731 14.6 70,261 15.9 61,330 15.6 4,470 6.4 8,932 14.6
Rupiah 72,292 96.7 67,983 96.8 59,932 96.1 4,310 6.3 9,050 15.4
Foreign Currency 2,439 3.3 2,279 3.2 2,397 3.9 160 7.0 (119) (4.9)
Small 66,063 12.9 56,477 12.8 50,684 12.9 9,586 17.0 5,793 11.4
Rupiah 65,937 99.8 56,360 99.8 50,568 99.8 9,578 17.0 5,791 11.5
Foreign Currency 126 0.2 117 0.2 116 0.2 9 7.5 1 1.0
Consumer 79,735 15.5 71,445 16.2 65,069 16.5 8,290 11.6 6,376 9.8
Rupiah 79,719 100.0 71,380 99.9 65,038 100.0 8,339 11.7 6,342 9.8
Foreign Currency 16 0.0 65 0.1 31 0.0 (49) (75.4) 34 109.4
International 39,918 7.8 30,734 7.0 21,237 5.4 9,055 29.5 9,497 44.7
Rupiah - 0.0 - 0.0 - 0.0 - - - 0.0
Foreign Currency 39,918 100.0 30,734 100.0 21,237 100.0 9,055 29.9 9,497 44.7
Subsidiaries 29,550 5.8 24,369 5.5 20,882 5.3 5,181 21.3 3,487 16.7
Rupiah 29,367 99.4 24,214 99.4 20,582 98.6 5,153 21.3 3,633 17.7
Foreign Currency 183 0.6 155 0.6 301 1.4 28 17.9 (146) (48.4)
Total Loans 512,778 100.0 441,314 100.0 393,275 100.0 71,465 16.2 48,039 12.2
Total Rupiah 428,765 83.0 374,492 84.9 336,164 85.5 54,273 14.5 38,328 11.4
Total Foreign Cur- 84,013 16.4 66,822 15.1 57,111 14.5 17,191 25.9 9,711 17.0
rency
LOANS DISBURSED QUALITY-BANK ONLY

Gross NPL ratio in 2018 stood at 1.9%, an improvement compared to 2.3% in 2017. Net NPL stood at 0.8% in 2018, compared
to 0.7% in 2017. This result was due to BNI’s strategy to be selective in its expansion in low risk sectors, and as a major player
in the region. In addition, BNI also restructured and remedied troubled borrowers who still have the potential for financial and
operational improvements.
In order to anticipate fluctuating macroeconomic conditions, BNI mitigated the loans disbursed risk by increasing reserves
higher than the previous year, which was reflected in the coverage ratio of 152.9% in 2018 compared to 2017 at 148.0%.
The collectability of BNI’s loan portfolio is shown in the following table:
Loans based on Collectibility
Growth Growth
2018 2017 2016 2017-2018 2016-2017
Description
(Billion Rp) (Billion Rp) (Billion Rp)
(Billion Rp) % (Billion Rp) %
Current 482,492 414,371 396,623 68,120 0.2 44,748 12.1
Special Mention 20,248 16,845 12,008 3,404 0.2 4,837 40.3
Substandard 2,028 1,271 1,594 757 0.6 (323) (20.3)
Doubtful 3,009 1,592 839 1,417 0.9 753 89.8
Bad 5,001 7,234 9,212 (2,233) (0.3) (1,978) (21.5)
Total 512,778 441,413 393,275 71,465 0.2 48,039 12.2
Management
Discussion
And Analysis
Loans based on Economic Sector
Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% % % % %
Rp) Rp) Rp) Rp) Rp)
Manufacturing 98,034 19.1 82,744 18.7 73,090 18.6 15,289 0.2 9,654 0.1
Trade, Restaurant and 13,360 0.2 14,810 0.2
89,751 17.5 76,391 17.3 61,581 15.7
Hotel
Trade Services 52,575 10.3 42,309 9.6 38,600 9.8 10,266 0.2 3,709 0.1
Transportation and Com- 5,365 0.2 3,781 0.2
31,351 6.1 25,986 5.9 22,205 5.6
munications
Agriculture 49,185 9.6 46,888 10.6 43,128 11.0 2,297 0.0 3,760 0.1
Mining 18,301 3.6 11,949 2.7 14,184 3.6 6,352 0.5 (2,236) (0.2)
Electricity Gas and Water 24,179 4.7 26,767 6.1 27,006 6.9 (2,587) (0.1) (239) (0.0)
Construction 34,474 6.7 27,499 6.2 20,079 5.1 6,975 0.3 7,420 0.4
Social Services 16,033 3.1 12,149 2.8 11,246 2.9 3,884 0.3 903 0.1
Others 98,896 19.3 88,633 20.1 82,156 20.9 10,263 0.1 6,477 0.1
Total Loans 512,778 100.0 441,314 100.0 393,276 100.0 71,465 0.2 48,038 0.1
LOANS DISBURSED COLLECTIBILITY LEVEL - BANK ONLY

Nominal NPLs recorded a decline from Rp9.4 trillion in 2017 to Rp9.2 trillion in 2018 or a decrease of 2.4%. This shows BNI’s
commitment to maintaining the quality of loans disbursed amid aggressive expansion. Loans in the NPL category are
dominated by customers in the industrial, trade, restaurant and hotel and mining sectors. The fluctuating economic conditions
in 2018 resulted in a number of the borrowers in these sectors becoming NPL.
NPL Per Segment (Bank Only)
NPL by Segment [%, Rp B]
11,042 9,415 9,228
3.6
3.2
3,0 2.8
2.8 2.7
2.7 2.5 Medium, 2.6
2.3 Consumer, 2.1
1.9 Total NPL, 1,9

Corporate, 1.7
Small, 1,6
2016 2017 2018
ANNUAL
REPORT 2018
LOAN WRITE-OFFS AND RECOVERIES - BANK ONLY

For borrowers with no potential, both business and operational, BNI has written-off loan assets
amounting to Rp7.4 trillion during 2018, lower than the Rp.8.7 trillion in 2017. In its execution, BNI
prioritizes bankrupt borrowers and those with legal problems, where maximum efforts have been
exhausted. Compared to the total loans disbursed - bank alone, the written-off loan ratio is relatively low
at around 1.5%. Whereas the recovery of loans amounted to Rp2.7 trillion with a recovery rate in 2018 of
35.7%, an improvement form 25.4% in 2017.
Write Off and Recovery (Bank Only)
Write off & Recovery (Bank Only)
8,730
49.7%
35.7%
25.4% 7.447
Keterangan
3,012
2.657
2,220 Hapus Buku
1,497 Recovery
Recovery to Write Off Ratio
2016 2017 2018
GOVERNMENT BONDS
Government bonds are again an attractive financial instrument with a lower level of risk compared to
other similar financial instruments. BNI’s government bonds increased by Rp6.9 trillion or 8.7% to Rp86.8
trillion in 2018 compared to Rp79.8 trillion in 2017.
In terms of interest rate composition, government bonds with fixed interest rates still dominate BNI’s
portfolio with Government Bond market prices ranging from 76.01% to 122.15% and between 96.70% to
136.51%, as of December 31, 2018 and 2017. As for floating rate bonds, the market price of Government
Bonds ranges from 99.55% to 99.87% and between 99.84% to 99.95% as of December 31, 2018 and 2017.
Government Bonds
Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% % % % %
Rp) Rp) Rp) Rp) Rp)
Fair value through
3,350 3.9 2,936 3.7 706 1.1 414 14.1 2,230 315.9
profit or loss
Available for sale 60,283 69.4 56,237 70.4 43,660 69.3 4,046 7.2 12,577 28.8
Held to maturity 23,158 26.7 20,676 25.9 18,640 29.6 2,482 12.0 2,036 10.9
Total 86,791 100.0 79,849 100.0 63,006 100.0 6,942 8.7 16,843 26.7
Fixed interest rate 80,805 93.1 73,803 92.4 53,284 84.6 7,027 9.5 20,519 38.5
Floating Interest Rate 5,961 6.9 6,046 7.6 9,722 15.4 (60) (1.0) (3,676) (37.8)
Total 86,791 100.0 79,849 100.0 63,006 100.0 6,942 8.7 16,843 26.7
Management
Discussion
And Analysis
Government Bonds by Interest Rate
6.9% 2018 93.1% 7.6% 2017 92.4%
Suku Bunga Mengambang Suku Bunga Tetap
EQUITY INVESTMENT
Equity investment comprises shares in non-public companies engaged in financial services for
long-term purposes. BNI’s total investment at the end of 2018 was Rp785 billion (gross) with its
participation and percentage of ownership detailed as follows:
1. PT Sarana Bersama Pembiayaan Indonesia 8.0%
2. PT Swadharma Nusantara Pembiayaan 7.4%
3. PT Bursa Efek Indonesia 1.2%
4. PT Kustodian Sentral Efek Indonesia 2.5%
5. PT Pemeringkat Efek Indonesia (Persero) 1.9%
6. PT Bank Mizuho Indonesia 1.0%
7. PT Sumitomo Mitsui Indonesia 0.5%
8. PT PANN Pembiayaan Maritim 48.4%
FIXED ASSETS
Net fixed assets in 2018 grew 14.6% from Rp22.8 trillion in 2017to Rp26.1 trillion. During 2018,
management felt that there was no decline in BNI’s fixed assets value during the year due to the
carrying cost of fixed assets not exceeding the estimated recoverable value.
BNI made a permanent revaluation on September 30, 2018 for land and building assets in Indonesia
and abroad with the following details:
Book Value before Book Value After Re- Revaluation Profit

Revaluation valuation (Loss)
Tanah 14,098 15,511 1,414
Bangunan 3,836 5,189 1,353
Jumlah 17,934 20,700 2,766
The Bank’s fixed assets as of December 31, 2018 are insured against the risk of fire and theft with a
sum insured of Rp12.1 trillion, an increase from Rp9.6 trillion as of December 31, 2017. Management
believes that the sum insured is sufficient to cover possible losses on these assets.
ANNUAL
REPORT 2018
Fixed Assets
2018 2017 2016 Growth 2017-2018 Growth 2016-2017
Description
(Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) % (Billion Rp) %
Land 15,557 13,857 13,829 1,700 12.3 28 0.2
Buildings 5,626 4,252 3,850 1,374 32.3 402 10.4
Office Equipment and mo-
10,112 976 10.7
tor vehicles 9,136 8,146 990 12.2
Total acquisition cost 31,295 27,245 25,824 4,049 14.9 1,421 5.5
Assets in settlement 2,714 2,960 2,601 (246) (8.3) 359 13.8
Total acquisition cost 34,009 30,205 28,426 3,803 12.6 1,779 6.3
Accumulated deprecia-
tion
Building 414 783 546 (370) (47.2) 237 43.5
Office Equipment and mo-
7,469 851 12.9 12.0
tor vehicles 6,617 5,908 710
Total accumulated depre-
7,882 7,400 6,454 482 6.5 947 14.7
ciation
Net book value 26,127 22,805 21,972 3,322 14.6 832 3.8
OTHER ASSETS
Other assets rose 14.6% to Rp11.9 trillion in 2018 compared to Rp10.4 trillion in 2017. These comprise
interest receivables from government bonds, customer receivables, foreclosed collateral, customer bills,
other receivables and other assets.
LIABILITIES
Liabilities
2018 2017 2016 Growth 2017-2018 Growth 2016-2017
Description
Obligations due imme- (707) (14,5) 1.592 48,6
4.160 4.868 3.276
diately
Deposits from customers* 578.775 516.098 435.545 62.677 12,1 80.553 18,5
Deposits from Other 2.056 16,9 1.376 12,7
14.233 12.177 10.801
Banks*
Securities Sold under
agreements to repurchase 21.524 2.390 3.765 19.134 800,6 (1.375) (36,5)
Derivatives payable 322 114 411 208 182,9 (297) (72,3)

Acceptances payable 4.417 4.507 4.359 (91) (2,0) 149 3,4
Securities issued* 2.987 3.482 7.227 (495) (14,2) (3.745) (51,8)
Borrowings 52.025 44.722 32.388 7.303 16,3 12.334 38,1
Tax Debt 481 80 151 401 498,2 (70) (46,7)
Provisions 178 192 156 (15) (7,7) 36 23,2
Accrued Expenses 876 971 1.047 (95) (9,8) (76) (7,2)
Employee benefits 3.512 4.094 3.503 (582) (14,2) 591 16,9
Other liabilities 14.608 14.731 11.149 (122) (0,8) 3.582 32,1
Subordinated Securities 100 - - 100 100,0 - -
TOTAL LIABILITIES 698.198 608.427 513.778 89.771 14,8 94.649 18,4
* includes temporary syirkah funds
Management
Discussion
And Analysis
Deposits From Customers

Banking liquidity was an issue during 2018. This is seen in the growth of the banking industry loans being higher than the
growth in customer deposits, with the industry Loan to Deposit Ratio (LDR) being above 90%. During this tight banking
liquidity, BNI was able to show encouraging growth in customer deposits during 2018. Transactional services based on digital
banking became BNI’s main weapon in driving this growth. In addition, to collect cheap funds BNI continued enhancing its
partnerships with institutions or institutional customers, both private, state-owned and government.
During 2018, customer deposits rose by Rp62.7 trillion or 12.1% to Rp578.8 trillion from Rp516.1 trillion in 2017. Giro grew by
18.2% or Rp26.1 trillion from Rp143.2 trillion in 2017 to Rp169.3 trillion in 2018. Savings products also recorded aggressive
growth of Rp23.8 trillion from Rp182.3 trillion in 2017 to Rp206.1 trillion. Deposit products grew 6.7% or Rp12.8 trillion to
Rp203.4 trillion during 2018. This growth was not as aggressive as the growth of demand deposits and savings products due to
BNI’s strategy to focus on funding sourced from CASA.
This strategy resulted in an improvement in BNI’s CASA ratio from 63.1% in 2017 to 64.8% in 2018. This condition also led to a
decrease in the cost of customer deposits (Cost of Funds) by 0.2% from 3.0% in 2017 to 2.8% in 2018.
Customer Deposits from Including Temporary Syirkah Funds
Pertumbuhan Pertumbuhan
2018 2017 2016
2017-2018 2016-2017
Description
% % % % %
Rp) Rp) Rp) Rp) Rp)
Deposits 169,274 29.2 143,162 27.7 122,652 28.2 26,112 18.2 20,510 16.7
Rupiah 126,924 21.9 108,729 21.1 92,024 21.1 18,195 16.7 16,705 18.2
Savings 206,056 35.6 182,295 35.3 158,662 36.4 23,761 13.0 23,633 14.9
Rupiah 191,133 33.0 168,616 32.7 146,446 33.6 22,517 13.4 22,170 15.1
Total Demand Depos- 49,873 15.3 44,142 15.7
375,330 64.8 325,457 63.1 281,315 64.6
its and Savings
Deposits 203,445 35.2 190,641 36.9 154,230 35.4 12,803 6.7 36,411 23.6
Rupiah 170,155 29.4 163,649 31.7 131,198 30.1 6,506 4.0 32,451 24.7
Total Deposits 578,775 100.0 516,098 100.0 453,545 100.0 62,677 12.1 80,533 18.5
Rupiah 488,212 84.4 440,994 85.4 369,668 84.9 47,218 10.7 71,326 19.3
TEMPORARY SYIRKAH FUNDS

Temporary syirkah funds are investments using mudharabah mutlaqah, whereby the fund owner (shahibuh maal) gives
freedom to the fund manager (mudharib/BNI Syariah) to manage the investments with profit sharing according to an
agreement. Temporary syirkah funds consist of mudharabah savings and mudharabah time deposits. Temporary syirkah funds
cannot be classified as liabilities, as BNI Syariah is not required to return the initial funds amount, except due to ignorance or
default that incurred losses. On the other hand, temporary syirkah funds cannot be classified as equity as it has its own due
period and the funds owner does not have the same ownership rights as those of shareholders with voting rights and rights
over profits derived from current assets and other non-investment accounts. Temporary syirkah fund owners receive profit
sharing rewards according to the specified ratio.
ANNUAL
REPORT 2018
NEGOTIABLE CERTIFICATE DEPOSIT (NCD)

To support the Rupiah funding liquidity and strengthen its structure and composition, BNI issued scriptless Rupiah Negotiable
Certificates of Deposit (NCD) in 2017. A total of Rp3.3 trillion NCDs were issued to mature during 2018. The NCDs will be
explained more fully in the Other Financial Information Overview.
DEPOSITS FROM OTHER BANKS

Deposits from other banks are used by BNI as interbank call money facilities. Deposits from other banks in 2018 amounted to
Rp13.9 trillion, an increase of Rp2.1 trillion or 16.9% compared to Rp12.2 trillion in 2017. In addition, for funding sources not to
be concentrated in short-term funding alone, BNI issues Negotiable Certificates of Deposit (NCDs) which have been marketed
through KSEI since 2016.
Deposits from Other Banks

Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Interbank money market
8,459 3,352 1,339 5,107 152.3 2,013 150.3
Current accounts 2,152 2,343 1,899 (170) (7.3) 444 23.4

Time deposits 1,323 839 1,877 484 57.6 (1,038) (55.3)
Negotiable Certificate of 1,163 (3,099) (72.7) 1,002 30.9
4,248 3,246
Deposit
Other deposits 1,136 1,394 2,439 (585) (34.0) (1,045) (42.9)
Total 14,233 12,177 10,801 2,056 16.9 1376 12.7
SECURITIES ISSUED
On June 22, 2017, BNI obtained an effective statement from OJK through letter number S-349/D.04/2017 to issue I BNI Rupiah
Phase I Bonds 2017 (“Bonds”).The value of the bonds issued amounting to Rp3.0 trillion, for a period of 5 years, with a coupon
of 8% per annum to be paid quarterly. The BNI Bonds were issued on July 11, 2017 and listed on the Indonesia Stock Exchange
on July 12, 2017.The first coupon payment to the bondholders was made on October 11, 2017.
In 2018, Sukuk Mudharabah issued by BNI Syariah on May 26, 2015 and listed on the Indonesian Stock Exchange with a
nominal value of Rp500 billion has matured and been paid off.
The Sustainable Bonds are described in the Other Financial Information Overview section.
SUBORDINATION SECURITIES
On June 8, 2018, BNI obtained an effective statement from OJK through letter number S-3/PB.31/2018 to issue BNI’s
Subordinate Medium I Notes in 2018 (“Subordinated MTN”). The value of the Subordinated MTN issued was Rp100 billion, for
a 5-year period, with a coupon of 8% per year to be paid quarterly. BNI MTN Subordination was issued with limited offers. The
first coupon payment to MTN Subordinate holders was made on November 7, 2018.
The proceeds from the issuance of the Subordinated MTN will be used by BNI to strengthen complementary capital (tier 2)
and working capital in the context of business development, especially credit and increase the composition of the structure
of long-term fund associations, in accordance with OJK Regulation No. 11/POJK.03/2016 concerning Minimum Capital
Requirement for Commercial Banks as amended by OJK Regulation No. 34/POJK.03/2016 will be used by the Company to
support increased productive assets.
Management
Discussion
And Analysis
BORROWINGS
Borrowings in 2018 amounted to Rp52.0 trillion, an increase of Rp7.3 trillion or 16.3% compared to Rp44.7 trillion in 2017. This
increase was dominated by banker acceptances, which rose by Rp6.9 trillion or 95.4% compared to 2017. Bankers’ acceptances
are interbank borrowings by BNI from foreign banks aimed at increasing liquidity with a loan term of 6 months which is one of
the BNI’s funding strategies to maintain long-term and short-term composition.
Borrowings
Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Ongoing Loans 73 75 132 (3) (3.4) (57) (42.9)
Liquidity loans to primary

credit cooperatives mem- 1 1 1 - - - -
bers
Bilateral loans 37,010 36,823 27,863 187 0.5 8,960 32.2
Banker acceptances 14,182 7,258 4,240 6,924 95.4 3,019 71.2
Others 759 565 152 194 34.4 (165) (22.6)
Total 52,025 44,722 32,388 7,302 16.3 11,757 35.7
Counterparty Borrowings
Counterparty Nominal Time Period Interest Rate Due Date
Standard Chartered Bank USD 200 Million 5 Years LIBOR 3 Months + 1.95% September 19, 2019
China Development Bank USD 700 Million 10 Years LIBOR 6 Months + 2.85% December 16, 2025
China Development Bank CNY 1.90 Billion 10 Years SHIBOR 6 Months + December 16, 2025
3.30%
Bank Consortium USD 500 Million 3 Years LIBOR 3 Months + 1.00% December 22, 2019
Bank Consortium USD 500 Million 5 Years LIBOR 3 Months + 1.21% December 22, 2021
Bank Consortium USD 500 Million 5 Years LIBOR 3 Months + 1.2% August 30, 2022
Bank of America USD 40 Million 335 Days LIBOR 3 Month + 0.8% August 12, 2019
CoBank Greenwood Vilage Colorado USD 80 Million 359 Days 2.88%-3.55% December 04, 2019
Sumitomo Mitsui Banking Corporation USD 100 Million 3-6 Months 2.94%-314% March 25, 2019
Societe Generale Paris USD 50 Million 4 Years LIBOR 3 Month + 2.30% December 17, 2018
OBLIGATIONS DUE IMMEDIATELY

Obligations due immediately were dominated by BNI’s obligations as an issuer bank (ATM), remittances, check deposit funds,
matured time deposits not yet taken by customers, clearing transactions, tax deposits received by BNI as a perception bank,
and unsettled temporary deposits. The obligations due immediately in 2018 decreased Rp707 billion or 14.5% compared to
2017.
SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE

The securities sold with the promise of repurchase is one of BNI’s alternative non-conventional funding sources to manage
liquidity. This repo transaction is covered in OJK No.33/SEOJK.04/2015 SE concerning Indonesia’s Global Master Repurchase
Agreement. Securities sold under agreement to repurchase amounted to Rp21.5 trillion in 2018, up Rp.19.1 trillion compared
to 2017.
OTHER LIABILITIES
Other liabilities in 2018 amounted to Rp14.6 trillion, a decrease of Rp122 billion compared to Rp14.7 trillion I 2017. Other
liabilities included obligations to policyholders, guarantee deposits, interest payable, unrecognized income, reinsurance
payable, commission and payables of subsidiaries customer.
ANNUAL
REPORT 2018
EQUITY
BNI’s total equity in 2018 amounted to Rp110.4 trillion, up Rp9.5 trillion or 9.4% compared to Rp100.9 trillion in 2017, partly
driven by the achievement of BNI’s net profit which grew 10.3% in 2018.
Together with macroeconomic fluctuations and market pressure, Securities and Government Bonds market prices corrected,
and caused a loss of Rp3.9 trillion during 2018 for Mark to Market Securities and Government Bonds classified as Available for
Sale.
In 2018, BNI revalued the Group’s land and building assets in Indonesia and abroad. In total the increase in carrying value
arising from the revaluation of land and buildings has been recorded as “Other Comprehensive Income” and amounted to
Rp2.7 trillion.
Equity
Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% %
Rp) Rp) Rp) Rp) Rp)
Issued and fully paid Capital 9,055 9,055 9,055 - 0.00 - 0.00
Additional paid in capital 14,568 14,568 14,568 - 0.00 - 0.00
Transactions with non-controlling parties 2,257 2,257 2,257 - - -
Revaluation reserve assets 14,979 12,283 12,285 2,696 21.9 (2) -
Unrealized Gains (Losses) On Available-For-Sale
Marketable Securities And Government Bonds,
(3,914) 22 (1,888) (3,936) (17.706.1) 1,911 -
Net Of Tax
Differences arising from translation of financial

85 93 82 (8) (8.9) 11 13.4
statements in foreign currency
Gains (losses) on defined benefit plan actuarial - - - - - - -
Total retained earnings 71,047 60,314 50,798 10,733 17.8 9,515 18.7
Treasury stock - - - - - - -
Total equity attributable to owners parent
108,077 98,592 87,157 9,485 9.6 11,435 13.1
Non-controlling interests 2,297 2,311 2,097 (14) (0.6) 214 10.2

Total Equity 110,374 100,903 89,254 9,470 9.4 11,649 13.1
Management
Discussion
And Analysis
CONSOLIDATED PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT
Amid the economic situation in Indonesia that did not change significantly in 2018, coupled with the
increasingly depressed Rupiah against the US Dollar, BNI again proved its consistency and continued to
make a positive contribution to the country by recording a net profit growth of 10.3% compared to 2017,
due to the increasing composition of income such as interest and sharia income which was the main
driving force for banking operations.
Profit and Loss Statement

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% %
Rp) Rp) Rp) Rp) Rp)
Interest income and Sharia income-net 35,446 31,938 29,995 3,509 11.0 1,943 6.5
Premium income -net 1,712 1,768 1,342 (56) (3.2) 426 31.7
Other operating income 11,613 11,040 9,552 573 5.2 1,488 15.6
Total operating income 48,771 44,745 41,888 4,026 9.0 3,857 9.4
Other operating expenses (21,783) (20,396) (18,106) (1,387) 6.8 (1,590) 8.5
Allowance for impairment losses (7,388) (7,126) (7,853) (262) 3.7 727 (9.3)
Operational profit 19,599 17,223 14,229 2,377 13.8 2,993 21.0
Income (expense) non operating-net 221 (57) 74 279 (486.4) (131) (177.0)
Income before tax expense 19,821 17,165 14,303 2,655 15.5 2,862 20.0
Tax Expense (4,729) (3,395) (2,893) (1,334) 39.3 (502) 17.4
Income for the year 15,092 13,771 11,410 1,321 9.6 2,360 20.7
Profit for the year attributable to:
Non-controlling interests 77 154 71 (77) (50.3) 83 116.9
Equity holder of the parent entity 15,015 13,616 11,339 1,399 10.3 2,278 20.1
INTEREST INCOME GROWTH
INTEREST INCOME AND SHARIA INCOME

BNI as a financial institution that functions to channel loans to the community while supporting national
economic activities for the success of the government programs, interest income and sharia income
are the company’s main sources of income in generating profits other than operating income. Interest
income and sharia income increased by 11.0% from Rp31.9 trillion in 2017 to Rp35.4 trillion in 2018, with
the largest increase being interest income on loans disbursed that amounted to Rp3.9 trillion.
During 2018, the increase in interest income was not only dominated by loans but also supported by the
increase in other productive financial assets as a result of BNI’s policy to manage the composition of its
financial instruments.
ANNUAL
REPORT 2018
Interest Income from Productive Assets

Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Loans 42,919 39,184 36,304 3,735 9.5 2,881 7.9
Government Bonds and 893 20.8 695 19.3
5,196 4,303 3,608
Marketable Securities
Margin, profit sharing revenue and Sharia 393 12.4 384 13.8
3,567 3,175 2,790
bonus
Placements with Bank Indonesia and other 244 38.8 183 40.7
874 629 447
Banks
Export Bills and other receivables 667 428 260 239 55.9 167 64.6
Others 916 459 359 457 99.6 100 27.9
Total 54,139 48,178 43,768 5,961 12.4 4,409 10.1
Interest Income and Shariah Income Composition

9% 9%
7% 7%
2% 1%
1% 1%
2% 2%
2018 2017
79% 81%
Margin, pendapatan Penempatan pada Lain-lain

bagi hasil dan bonus Bank Indonesia dan Obligasi Pemerintah
Syariah bank lain-lain dan lain-lain
Pinjaman yang Wesel Ekspor dan
Diberikan Tagihan lainnya
INTEREST INCOME FROM DISBURSED LOANS INTEREST INCOME FROM GOVERNMENT BONDS AND
The increase in interest income on loans disbursed amounted MARKETABLE SECURITIES
to 10.0% in 2018 and reached Rp43.1 trillion compared to Government securities and bonds are an alternative for
Rp39.2 trillion in 2017, due to growth in loans disbursed of investment placements that can promise higher returns than
16.2% with no increase in the Lending Rate for the loans. other productive assets including loans. This was marked by
an increase in the securities and government bonds portfolio
During 2018, there was an increase of 7 days repo rate from that increased 2.5% at the end of 2018. The impacted interest
Bank Indonesia from 4.25% to 6.00% which did not have income on government bonds and securities which increased
a direct impact on BNI’s loan portfolio. This is one of BNI’s 20.8%, from Rp4.3 trillion in 2017 to Rp5.2 trillion in 2018.
policies in managing the quality of debtors and supporting
the country’s economic activities when macroeconomic
conditions are still volatile.
Management
Discussion
And Analysis
INTEREST INCOME FROM MARGIN, PROFIT-SHARING REVENUE AND SHARIA BONUS

The Sharia business was relatively stable year-on-year and was one of the promising businesses considering the intense
Sharia business competition in 2018. Margin Interest Income, Sharia Revenue and Bonus Sharing increased by 12.4% from the
previous year .
INTEREST INCOME FROM PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA
In 2018, revenues from placements with other banks and Bank Indonesia increased by 39.3% from Rp629 billion in 2017 to
Rp877 billion in 2018.
INTEREST INCOME FROM BILLS AND OTHER RECEIVABLES

In 2018 interest income from bills and other receivables rose 55.9% from Rp428 billion in 2017 to Rp667 billion in 2018.
INTEREST EXPENSE AND SHARIA EXPENSE

Interest expense and Sharia expense increased by 15.1% in 2018, or Rp2.5 trillion from Rp16.2 trillion in 2017 to Rp18.7 trillion.
Interest Expense and Sharia Expense

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% %
Rp) Rp) Rp) Rp) Rp)
Customer Deposits and Other Banks 13,977 13,230 11,393 747 5.6 1,837 16.1
Borrowings 3,488 1,875 1,231 1,612 86.0 644 52.3
Mudharabah profit sharing expenses 987 919 855 69 7.5 64 7.5
Securities issued 243 216 295 27 12.5 (79) (26.8)
Total 18,696 16,240 13,773 2,455 15.1 2,467 17.9
Interest Expenses and Sharia Expenses Composition
1% 1%
5% 6%
19 12%
2018 2017
75% 81%
Simpanan Nasabah Pinjaman yang Bagi Hasil Mudharabah Efek-efek yang

dan Bank Lain diterima diterbitkan
INTEREST EXPENSE ON CUSTOMER AND OTHER BANKS DEPOSITS

The increase in interest expense on deposits of customers and other banks in 2018 was in line with the growth of customer
deposits. As of the end of 2018, customer deposits increased by 12.1%, and interest expense increased by 5.6% from Rp13.2
trillion in 2017 to Rp13.9 trillion in 2018.
To manage the growth in interest expenses, starting from the beginning of the year BNI sought to improve its customer
deposit composition by increasing low-cost funds, namely demand deposits and savings, as reflected in the CASA ratio. BNI
saw an increase in CASA ratio from 63.1% in 2017 to 65.3% in 2018. This condition caused a decrease in the cost of funds for
customer deposits from 3.0% in 2017 to 2.8% in 2018.
ANNUAL
REPORT 2018
INTEREST EXPENSE ON BORROWINGS

Interest expense from borrowings increased 86.0%, from Rp1.9 trillion in 2017 to Rp3.5 trillion in 2018. This increase is one of
BNI’s funding strategies to maintain the composition of short-term and long-term funds.
INTEREST EXPENSE ON SECURITIES ISSUED

Interest expense on securities issued increased 12.5%, from Rp216 billion in 2017 to Rp243 billion.
INTEREST EXPENSE ON PROFIT-SHARING MUDHARABAH

Interest expense on profit-sharing Mudharabah increased by 7.5%, or Rp69 billion in 2018 in line with the 10.8% increase in
temporary syirkah funds, from 24.3 trillion in 2017 to Rp27.0 trillion in 2018.
INTEREST INCOME AND SHARIA INCOME - NET

Interest income and sharia income increased by 12.7% in 2018, accompanied by an increase in interest expenses and sharia
expenses of 15.1%, resulting in a 11.0% rise in net interest income and sharia income.
PREMIUM INCOME - NET

BNI Life as one of BNI’s subsidiaries contributes to BNI’s income on a consolidated basis. BNI Life recorded a net premium
income of Rp1.7 trillion in 2018, a decrease of 3.2% from Rp1.8 trillion in 2017. This was due to the correction of securities
market prices and government bonds which were the investment means of BNI Life to develop its portfolio.
OTHER OPERATIONAL INCOME

Macroeconomic conditions during 2018 resulted in fluctuations in interest rates and a weakening of the rupiah exchange rate
against foreign currencies. This affected the banking industry in general, including BNI, as reflected in the growth of other
operating income during 2018 by 5.2% compared to 2017. This growth is far smaller than the growth in 2017 when in rose
10.8% compared to 2016.
Other Operating Income

Growth Growth
2018 2017 2016
2017-2018 2016-2017
Description
% %
Rp) Rp) Rp) Rp) Rp)
Fees and commissions 7,802 6,872 6,085 930 13.5 787 12.9
Recovery of assets written off 1,997 1,732 1,378 265 15.3 354 25.7
Gain (loss) on financial assets held for trading
12 (38) (43) 50 (131.3) 5 11.9
Gain (loss) on sale of financial assets classified as avail-

509 720 646 (212) (29.4) 74 11.5
able for sale
Gain on foreign exchange - net 494 908 685 (414) (45.6) 223 32.5
Others 800 846 801 (46) (5.5) (46) 5.5
Total 11,613 11,040 9,552 106 5,2 1,544 15,6
Management
Discussion
And Analysis
Other Operating Income Composition
6.5% 7.7% 4.3% 6.9%

8.2% 4.4%
0.0% 0.1%
15.7% 17.2%
Fees and commissions
Recovery of assets written off
Gain (loss) on financial assets held for trading
2017 2018 Foreign exchange gains - net

Gain (loss) on sale of financial assets classified as
available for sale
62.3%
Others
67.2%
FEES AND COMMISSIONS

Income from BNI’s fees and commissions during 2018 rose by 13.5% from Rp6.9 trillion in 2018 to Rp7.8 trillion. This income
in 2018 amounted to Rp930 billion, and was dominated by income from trade finance transactions, account management,
business cards, bank guarantees, and ATM fee cooperation revenues.
RECOVERY OF ASSETS THAT HAVE BEEN REMOVED

Recovery of written-off assets represents income derived from principal deposits that were written off before 2018. The
recovery of written-off assets income increased by 15.3% from Rp1.7 trillion in 2017 to Rp2.0 trillion in 2018.
GAINS (LOSSES) ON FINANCIAL ASSETS HELD FOR TRADING

The financial assets held for trading gain in 2018 amounted to Rp12 billion compared to a loss of Rp38 billion in 2017.
GAINS ON THE SALE OF FINANCIAL ASSETS AVAILABLE FOR SALE AND HELD FOR TRADING
Gains on the sale of financial assets available for sale decreased 29.4% in 2018 to Rp509 billion from Rp720 billion the previous
year.
GAIN ON FOREIGN EXCHANGE - NET

Net foreign exchange gains decreased by 45.6% to Rp494 billion in 2018, due to the weakening of the Rupiah exchange rate
against foreign currencies.
ANNUAL
REPORT 2018
OTHER OPERATING EXPENSES

Other operating costs increased by 6.8% to Rp21.8 trillion. This single digit growth led to an improvement in the cost to income
ratio (CIR) from 43.9% in 2017 to 42.6% in 2018. The same is also evident in the BOPO ratio that dropped from 71.0% in 2017 to
70.2% in 2018. Improving the two ratios is a benchmark for the company’s condition showing that bank operations in 2018 ran
far more efficiently compared to 2017.
Other Operating Expenses

Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Salaries and allowances 9,519 9,277 8,834 242 2.6 443 5.0
General and administrative 7,667 6,923 6,212 744 10.8 711 11.4
Promotion Expenses 1,291 1,039 946 252 24.2 93 9.8
Guarantee premiums 971 877 729 93 10.6 148 20.3
Others 2,336 2,281 2,085 55 2.4 196 9.4
Total 21,783 20,396 18,806 1,387 6.8 1,591 8.5
Other Operational Expenses Composition
44% Beban Gaji dan Tunjangan 46%
35% Umum dan Administrasi 34%
2018 2017
6% Beban Promosi 5%
4% Premi Penjaminan 4%
11% Lain-lain 11%
SALARIES AND BENEFITS EXPENSES

Salaries and benefits in 2018 increased by Rp242 billion or 2.6% compared to 2017.
GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses increased by Rp744 billion or 10.8% compared to 2017. The largest increase occurred in
the cost of outsourcing workers, depreciation expenses and telecommunications expenses in line with business growth.
PROMOTIONAL EXPENSES
Promotional expenses in 2018 increased 24.2% to Rp1.3 trillion compared to Rp1.0 trillion in 2017. BNI’s increase was felt
necessary by BNI to increase loyalty and good relations with customers, and were carried out in the form of sponsorship, event
management, promotional media and other publications.
GUARANTEE PREMIUM EXPENSES

Guarantee premium expenses are premiums paid by BNI to the Deposit Insurance Corporation (LPS), and they increased by
Rp93 billion or 10.6% in 2018 compared to the previous year. The increase in premiums is in line with the 12.1% increase in
customer deposits in 2018.
OTHER EXPENSES
Other expenses increased by Rp55 billion or 2.4% compared to 2018, and was dominated by contributions to the Financial
Services Authority (OJK), card business transaction expenses, fees for third parties cooperations, and PKBL fund costs in
accordance with the GMS decision.
Management
Discussion
And Analysis
ALLOWANCES FOR IMPAIRMENT LOSSES INCOME FOR THE YEAR

Other expenses increased by Rp55 billion or 2.4% compared As of the end of 2018, BNI’s income for the year increased to
to 2018, and was dominated by contributions to the Financial 10.3% to Rp15.0 trillion.
Services Authority (OJK), card business transaction expenses,
fees for third parties cooperations, and PKBL fund costs in OTHER COMPREHENSIVE INCOME
accordance with the GMS decision.
ITEMS WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
ALLOWANCES FOR IMPAIRMENT LOSSES This comprises fixed asset revaluation gains which increased
The allowance for impairment losses during 2018 increased from a loss of Rp3.8 billion to a profit of Rp2.8 trillion in
by 3.7% compared to 2017, from Rp7.1 trillion to Rp7.4 2018 due to an increase in asset revaluations. In addition,
trillion, mainly due to the increase in the coverage ratio from remeasurement of post employment benefits also increased
148.0% in 2017 to 152.9% in 2018. from the previous loss of Rp148.7 billion to a profit of Rp601.4
billion due to adjustments to PSAK 24.
INCOME BEFORE TAX
BNI’s income before tax increased from Rp17.2 trillion in 2017 ITEMS THAT WILL BE RECLASSIFIED TO PROFIT OR LOSS
to Rp19.8 trillion in 2018, up 15.5%. This comprises adjustments due to the translation of financial
statements in foreign currencies which decreased from the
TAX EXPENSE previous profit of Rp11.4 billion to a loss of Rp8.3 billion.
BNI’s tax expense increased by 39.3% to Rp4.7 trillion. In Also gains from changes in the value of financial assets
accordance with applicable regulations, BNI has complied categorized as available-for-sale decreased from a profit of
with the payment requirements of a single tariff of 20%. Rp2.5 trillion to a loss of Rp5 trillion.
TOTAL COMPREHENSIVE INCOME

BNI’s total comprehensive profit for 2018, after taking into account comprehensive income, amounted to Rp14.2 trillion, a
decrease of 8.8% from Rp15.6 trillion in 2017.
Comprehensive Income
Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Income for the year 15,092 13,771 11,410 1,321,2 9.6 2,360,4 20.7
Other comprehensive loss (2,702,6) (146.3) 924,6 100.2
/ income - after tax (856) 1,847 923
Comprehensive income (1,381,4) (8.8) 3,285,0 26.6

14,236 15,618 12,333
for the year
Comprehensive income for the year Attributable to:
Non-controlling interests (14) 214 73 (228,5) (106.6) 141,2 192.9
Equity holder of the parent (1,152,9) (7.5) 3,143,8 25.5
14,250 15,403 12,259
entity
ANNUAL
REPORT 2018
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT ENTITY

The current year’s earnings per share is calculated by dividing the current year’s profit attributable to the owners of the parent
entity by the weighted average number of common shares outstanding during the year. The net profit after income tax
increased by 10.3% and led an increase in earnings per BNI share from Rp730 per share in 2017 to Rp805 per share in 2018.
Earnings per Share (in rupiah full)

Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
Income for the current year
attributable to equity holder of 15,015,118 13,616,476 11,339,743 1,398,642 10.3 2,277,733 20.1
the parent entity
Weighted average number of
ordinary shares outstanding 18,648,656,458 18,648,656,458 18,588,205,225 - 0.0 60,451,233 0.3
(shares)
Earnings per Share 805 730 610 75 10.3 120 19.7
CONSOLIDATED CASH FLOW STATEMENT
In 2018, cash and cash equivalents increased from Rp92.0 trillion to Rp98.39 trillion, and consisted of net cash outflows from
operating activities of Rp4.3 trillion, net cash outflows from investment activities of Rp9.6 trillion, and net cash inflows from
funding activities of Rp20.6 trillion.
Cash Flow
Pertumbuhan Pertumbuhan
2018 2017 2016
Description 2017-2018 2016-2017
(Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp) (Billion Rp)
Net Cash Flows From
Operating Activities (4,274) 33,626 15,999 (37,951)
17,627
Net Cash Flows From
(9,612) (23,274) (29,400) 13,663
Investing Activities 6,126
Net Cash Flows From
20,609 3,245 8,060 17,416
Financing Activities (4,815)
Net Cash Flow 6,723 13,597 (5,341) (6,874) 18,938
CASH FLOWS FROM OPERATING ACTIVITIES

Net cash flows generated from operating activities for 2018 amounted to Rp4.3 trillion. Net cash flow represents the difference
between cash inflows and cash outflows. The highest cash inflows were derived from an increase in customer deposits, and an
increase in interest income. The highest cash outflows were derived from loan disbursements, interest payments, and other
operating expenses. This means that BNI was able to conduct good business processes by utilizing its operational resources
such as loans, customer deposits, and paying taxes into cash that has been recognized and obtained.
Management
Discussion
And Analysis
CASH FLOWS FROM INVESTING ACTIVITIES

Net cash flows released from investment activities for 2018 amounted to Rp9.6 trillion. The highest cash outflows were derived
from government bond, securities, and fixed assets purchases This indicates that BNI is still making additional investments and
business processes in the form of bonds but has not yet received any cash returns from investments issued during 2018.
CASH FLOWS FROM FINANCING ACTIVITIES

Net cash flows generated from funding activities for 2018 amounted to Rp20.6 trillion. The highest cash inflows were derived
from the increase in loans received and repo debt issued. The highest cash outflows were derived from dividend payments.
This means that BNI is still able to obtain cash in the form of funding from loans received that can cover cash out in the form of
dividends and others.
Du Pont Analysis
Asset Turnover Net Operating Income Operating Income

2.64% 18.74%
2.62% 24.75%
12.11%
2.53% 21.28%
10.13%
14.68%
)Return On Equity (ROE
16.10%
2016 2017 2018 2016 2017 2018 2016 2017 2018
15.60%
15.50%
Other Operating Income Operating Expenses
+ -
15.38% 22.36%
x Leverage
15.11% 18.52%
2016 2017 2018
592.9% 6.16% 15.66%
583.4%
2016 2017 2018 2016 2017 2018

548.3%
Taxes Allowance for

39.56% impairment lossess
2016 2017 2018 - -

25.47%
5.50% 4.54%
19.72%
2016 2017 2018 2016 2018
(13.64%)
2017
ANNUAL
REPORT 2018
FINANCIAL RATIOS
Financial Ratios
2018 2017 2016

Description
(%) (%) (%)
CAPITAL
CAR-Tier I 17.4 17.4 18.3
CAR-Tier II 1.1 1.1 1.1
CAR (Credit Risk, Market, and Operating) 18.5 18.5 19.4
ASSETS QUALITY
NPL Nett 0.8 0.7 0.4
NPL Gross 1.9 2.3 3.0
Adequacy of Reserves Ratio on Non Performing Loans
152.9 148.0 146.0
Profitabilitas
ROA 2.8 2.7 2.7
ROE 16.1 15.6 15.5
Net Interest Margin 5.3 5.5 6.2
Efficiency
BOPO 70.1 71.0 73.6
CIR 42.5 43.9 44.0
Liquidity
LDR 88.8 85.6 90.4
Compliance 85.3 90.4
MSR (Rupiah)
Net Open Position 6.5 6.6 6.8
Posisi Devisa Neto 2.0 2.5 3.4
CAPITAL RATIOS
CAPITAL ADEQUACY RATIO
The capital adequacy ratio (CAR) in 2018 was stable at 18.5%. This stable CAR was due to capital growth in line with the
growth of productive assets in 2018. BNI’s CAR ratio is still much higher than that set by Bank Indonesia through POJK No. 11/
POJK.03/2016 concerning Minimum Capital Requirement for Commercial Banks as amended by POJK No. 34/POJK.03/2016,
which is a minimum of 9% of RWA for banks with a risk profile rating of 2.
ASSET QUALITY RATIOS

NPL RATIO
There are two main strategies implemented by BNI to manage asset quality, the first strategy is to selectively expand loans
given to low risk sectors. The second strategy is to manage troubled borrowers that still have the potential to improve through
remedial and restructuring schemes. This strategy improved BNI’s NPL ratio from 2.3% in 2017 to 1.9% in 2018.
COVERAGE RATIO
To anticipate fluctuating macroeconomic conditions, BNI mitigated the loan disbursement risk by increasing the reserve,
compared to the previous year, which was reflected in the coverage ratio increasing to 152.9% in 2018 compared to 148.0% in
2017.
Management
Discussion
And Analysis
PROFITABILITY RATIOS LIQUIDITY RATIOS
ROA LOAN TO DEPOSIT RATIO AND MACROPRUDENTIAL

BNI’s return on Assets (ROA) increased to 2.8% in 2018 from INTERMEDIATION RATIO
2.7% in 2017, due to the increase in BNI’s potential profits The loan to deposit ratio (LDR) in 2018 increased to 88.8%
from the increase in productive assets during 2018. compared to 85.6% in 2017. This was due to the Company’s
strategy to encourage loan growth supported by sound
ROE deposit growth to improve the banking intermediation
Return on Equity (ROE) is a ratio that measures BNI’s ability function while maintaining credit quality. The ratio is still
to produce net income by maximizing its capital, and within the range set by Bank Indonesia Regulation No. 15/15/
generating a separate profit for the owners or investors. ROE PBI/2013 dated December 24, 2013 that has been amended
increased from 15.6% in 2017 to 16.1% in 2018. several times, most recently by Bank Indonesia Regulation No.
20/4/PBI/2018 concerning Macroprudential Intermediation
NIM Ratios and Macroprudential Liquidity Buffers for conventional
The Net Interest Margin in 2018 decreased to 5.3% compared commercial banks, sharia commercial banks, and sharia
to 5.5% in 2017. The decline was due to BNI’s strategy to business units where the Macroprudential Intermediation
maintain asset quality by not raising loan interest rates during Ratio (RIM) ranges from 80% to 92%.
2018 even though Bank Indonesia had raised its benchmark
interest rate (7 day repo rate) from 4.25% in early 2018 to As of 2018, the RIM ratio stood at 88.8% with total Corporate
6.00% at the close of 2018. (Non-Bank) Securities held amounting to Rp1.6 trillion and
Corporate Securities issued and purchased by Non-Bank
EFFICIENCY RATIOS investors amounting to Rp2 trillion.
BOPO COMPLIANCE RATIOS

BOPO ratio (Operating Expenses to Operational Income)
improved from 71.0% in 2017 to 70.1% in 2018 due to STATUTORY RESERVES
increases in interest income and other operating income of In managing its daily liquidity, BNI endeavors to maintain
12.4% and 3.3% respectively, when compared to 2017. This an optimal liquidity level to support its daily operations and
shows BNI’s ability to generate higher revenue at a more meet Bank Indonesia regulations through Statutory Reserves
efficient cost. (SR). As of December 2018, BNI’s Rupiah Statutory Reserves
stood at 6.5% and Foreign Currency SR at 8.0%. This liquidity
CIR position follows PBI No. 20/3/PBI/2018 concerning Statutory
Cost to Income Ratio (CIR) is a ratio that measures the Reserves in Rupiah and Foreign Exchange for Conventional
efficiency for the operational expenses to yield optimal Commercial Banks, Islamic Commercial Banks and Sharia
income. In 2018 BNI’s CIR improved from 43.9% in 2017 to Business Units, and Foreign Exchange for Conventional
42.5%. This improvement illustrates that during 2018 BNI Commercial Banks, as well as the Board of Governors’
could utilize its resources to the maximum to yield higher Regulation No. 19/4/PADG/2017 concerning Commercial
income. Banks Statutory Reserves in Rupiah and Foreign Exchange for
Conventional Commercial Banks.
NET OPEN POSITION

As at December 2018, the Net Open Position (NOP) was
recorded at 2.0%, a slight decrease compared to 2.5% in 2017.
This figure is still far below the maximum amount set by BI in
PBI No. 5/13/PBI/2003 concerning the Net Open Position for
Commercial Banks, which has been amended several times,
with the latest by PBI No. 17/5/PBI/2015, setting it at 20% of
capital.
ANNUAL
REPORT 2018
OTHER FINANCIAL INFORMATION REVIEW
BANK HEALTH LEVEL
The Bank’s health level is the result of the Bank’s risks and performance assessments. The BNI
Health Level Assessment was carried out using a Risk-Based Bank Rating, both individually and on
a consolidated basis. The Bank’s health level is a means for BNI to identify problems early, establish
future business strategies, develop and implement corrective actions on weaknesses / existing
problems, provides a basis for linking capital with risk, as one of the bases in decision-making and
for increasing competitiveness. Whereas for the supervisory authority it is a means for determining
the strategy and focus of supervision on the Bank.
The Bank’s health level rating looks at the following four (4) factors:
1. Risk Profile
Risk Profile as an overall picture of inherent risk in the Bank’s operations. The risk profile
assessment is conducted by assessing the inherent risks in the Bank’s activities, and the quality
of risk management.
2. Good Corporate Governance (GCG)
Good Corporate Governance (GCG) is an assessment of the Bank’s management quality for
applying corporate governance principles.
3. Earnings
An assessment of profitability factors including a profitability performance evaluation,
profitability sources, sustainability, profitability, and profitability management.
4. Capital
An assessment on Capital factors including an evaluation of Capital and Capital adequacy
management. In assessing capital adequacy, BNI links its capital adequacy to its risk profile.
The Bank Rating assessment is reported to the regulator (OJK) every 6 months in June and
December. BNI ‘s bank health level assessment result for December 31, 2018 reported a “Healthy”
ranking meaning that:
a. The Bank’s condition is generally healthy, and it is considered capable of facing significant
negative effects from changes in business conditions and other external factors.
b. The rating assessment factors (Risk Profile, GCG, Profitability and Capital) are generally good. If
there are any weaknesses, they are insignificant.
BNI’s risk profile, as one of the factors for the CAR assessment for December 31, 2018, was ranked
2 (low to moderate). BNI’s risk profile ranking based on calculations using the Internal Capital
Adequacy Assessment Process (ICAAP), was 9.9%. If coupled with the buffer capital, namely the
Conservation Buffer of 1.875%, the Countercyclical Buffer of 0%, and the Capital Surcharge of
1.125%, then the limit for the Minimum Capital Requirement Ratio (MCRR) was 12.9%. In 2018, BNI’s
MCRR of 18.5% exceeded the specified minimum limit.
Management
Discussion
And Analysis
COMMITMENTS AND CONTINGENCIES
BNI has commitments and contingencies. An overview of the Bank’s commitments and contingencies, as
stated in its contracts, is as follows:
Commitments and Contingencies

2018 2017
Description
Commitments Payable
Unrealized purchases of foreign currency futures 68,881 66,057
Others 510 463
Total 69,391 66,520
Liability Commitments
Unused Credit facilities to borrowers 54,228 49,963
Outstanding Irrevocable letters of credit 12,455 11,630
Unused Sales of foreign currency futures 68,772 66,018
Total 135,455 127,611
Contingency Commitments
Bank guarantees received 17,434 18,032
Interest income in progress 4,064 4,705
Others 194 164
Total 21,692 22,901
Contingency Liabilities
Guarantees issued:
Performance bonds 29,755 29,760
Advance payment bonds 10,679 10,832
Standby letters of credit 9,215 8,269
Garansi bank lainnya 7,940 7,124
Bid bonds 4,174 3,481
Shipping guarantee 4 2
Risk sharing - -
Total 61,767 59,468
Commitments and contingencies that occur in the normal course of the Bank’s activities that have a
credit risk are as follows:
2018 2017
Description
Bank Guarantees issued
Related Party 26,924 23,743
Third Party 35,473 35,725
Irrevocable letters of credit
Related Party 8,152 6,660
Third Party 4,303 4,971
Total 74,223 71,099
ANNUAL
REPORT 2018
Commitments and contingencies that have a credit risk based on collectibility are as follows:
2018 2017
Description
Current 73,847 68,947
Special Mention 2,317 2,140
Substandard 56 -
Doubtful - -
Loss 3 12
Total 74,223 71,099
Bank BNI has also compiled details related to commitments and contingencies growth as shown in the following table:
Growth
2017-2018 2016-2017
Description 2018 2017 2016
(Billion (Billion
(%) (%)
Rp) Rp)
Commitments Payable
Foreign currency future purchases not yet
68,881 66,057 56,936 2,824 4.3 6,121 10.2
paid
Others 510 463 459 48 10.2 4 0.9
Total Commitments Payable 69,391 66,520 57,395 2,872 4.3 6,125 10.1
Commitment Liabilities
Unused Customer Loan Facilities 54,228 49,963 54,548 4,265 8.5 (4,585) (8.4)
Outstanding Irrevocable L/C 12,456 11,630 10,515 825 7.1 1,116 10.6
Outstanding Spot and Derivitive Sales
68,772 66,018 57,065 2,753 4.2 8,952 15.7
Position
Total Commitments Payable 135,455 127,611 122,128 7,845 6.2 5,483 4.5
Contingent Receivables -
Bank Guarantee Received 17,434 18,032 18,697 (599) (3.3) (664) (3.6)
Interest Income in Progress 4,064 4,705 4,476 (641) (13.6) 229 5.1
Others 194 163 142 31 19.0 21 14.7
Total Contingent Receivables 21,692 22,901 23,315 (1,209) (5.3) (414) (1.8)
Contingent Liabilities -
Bank Guarantee issued 61,767 59,468 54,295 2,299 3.9 5,173 9.5
Total Liabilitas Kontijensi 61,767 59,468 54,295 2,299 3.9 5,173 9.5
Total commitment liabilities in 2018 increased by 6.2% compared to 2017, mainly due to the increase in loan facilities to
customers not yet drawn down of 8.5%. Contingent receivables in 2018 decreased by 5.3% compared to 2017, and was
dominated by a 13.6% decrease in Interest Income in progress. However, contingent liabilities increased by 3.9% compared to
2017, due to the increase in bank guarantees issued. Broadly speaking, the commitment and contingency fluctuations are in
line with loan growth, as borrowers are increasingly using the many BNI products and services with competitive features.
GUARANTEED BANK ASSETS
In 2018, there were no guaranteed Bank assets.
Management
Discussion
And Analysis
DERIVATIVES AND HEDGING FACILITIES
BNI conducts derivative transactions both for the benefit of the Bank and the interests of the Customers. As of December 31,
2018, BNI conducted USD-IDR Cross Currency Swap (CCS) transactions for a total asset value of US$120 million. In addition to
CCS transactions, BNI also engages in Interest Rate Swap (IRS) transactions with a total asset values as of December 31, 2018
amounting to USD1,862.0 million. CCS and IRS transactions are conducted after taking into account market and the portfolio
conditions, in anticipation of currency and interest rates movements that could potentially harm the bank.
When conducting its business, BNI transacts in derivative financial instruments such as foreign currency forward contracts,
foreign currency swaps, interest rate swaps, and spot transactions to manage exposure to market risks, such as currency risk
and interest rate risk. Derivative financial instruments are recognized in the consolidated statements of financial position at fair
value. Any increase in the fair value of a derivative contract is recorded as an asset, when it has a fair value, and a liability when
it is negative fair value. Derivative receivables and liabilities are classified as financial assets and liabilities measured at fair
value through profit or loss. Gains or losses arising from changes in fair value are recognized in the consolidated statements of
income.
The fair value of derivative instruments is determined based on discounted cash flows and pricing models, or prices provided
by the brokers’ quoted price for other instruments with similar characteristics. Foreign currency forward contracts, cross
currency swaps, and cross currency swap and swap rates are conducted for financing and trading purposes.
In addition, in its business, BNI conducts derivative financial instruments transactions such as foreign currency forward
contracts, foreign currency swaps, interest rate swaps and spot transactions for financing, trading and hedging purposes.
Claims and Liability Derivatives By Type and Currency

2018
Notional amount Fair Value

Instrument
foreign currency Derivative Commitments Derivative Liabilities
(full amount) (Rp million) (Rp million)
Exchange Related
Forward contracts - buy
USD 239,031,000 2,565 (26,092)
Forward contracts – sell
USD 466,832,415 84,598 (2,594)
CYN 12,100,000 312 -
Foreign currency swaps - buy
EUR 59,068,329 2,699 (12,776)
JPY 600,492,755 5,752 -
USD 734,914,068 8,415 (220,572)
GBP 500,000 - (36)
Foreign currency swaps - sell
AUD 4,700,000 165 -
EUR 2,900,000 1,259 (44)
GBP 3,500,000 36 (336)
CYN 20,688,068 33 -
JPY 1,050,862,321 1,512 (29)
HKD 423,790,330 - (531)
USD 683,686,726 298,097 (15,686)
Spot foreign currency - buy
ANNUAL
REPORT 2018
2018
Notional amount Fair Value

Instrument
foreign currency Derivative Commitments Derivative Liabilities
(full amount) (Rp million) (Rp million)
USD 119,225,000 - (16,305)
EUR 2,300,000 - (40)
Spot foreign currency - sell
EUR 2,800,000 79 -
JPY 6,600,000 3 -
SGD 100,000 6 -
USD 108,691,079 14,956 -
Foreign currency options – buy
USD 8,550,000 5 (3,834)
Foreign currency options – sell
USD 23,550,000 3,605 (1,355)
Related to Interest Rates
Swap interest rates
USD 1,862,000,000 156,187 (1,303)
Related to Exchange Rate and Interest Rates
Foreign currency and interest rate swaps
USD 120,028,426 24,964 (20,495)
TOTAL 605,248 (322,028)
Claims and Liability Derivatives By Type and Currency

Tahun 2017
Fair Value
Notional amount
Instrument foreign currency Derivative Commitments Derivative Liabilities
(full amount) (Rp million) (full amount)
Exchange Related
Forward contracts - buy
USD 62,957,000 547 (1,339)
Forward contracts – sell
JPY 7,796,500 - (1)
USD 199,540,743 856 (1,731)
Foreign currency swaps - buy
EUR 22,786,049 3,468 (850)
USD 677,118,232 7,815 (45,827)
Foreign currency swaps - sell
AUD 4,400,000 - (570)
CNY 26,045,766 326 -
EUR 6,967,492 847 (743)
GBP 9,000,000 - (1,406)
USD 1,473,201,692 72,995 (9,860)
HKD 9,500,000 - (177)
Spot foreign currency - buy
Management
Discussion
And Analysis
Tahun 2017
Fair Value
Notional amount
Instrument foreign currency Derivative Commitments Derivative Liabilities
(full amount) (Rp million) (full amount)
EUR 220,000 11 -
USD 33,500,000 232 -
Spot foreign currency - sell
USD 5,000,000 - (105)
Foreign currency options – buy
USD 110,000,000 29,015
Foreign currency options – sell
USD 110,000,000 - (29,015)
Related to Exchange Rate and Interest Rates
Foreign currency and interest rate swaps
USD 110,403,244 23,092 (17,708)
Interest rates swaps
USD 1,775,000,000 77,680 (4,488)
Total 216,884 (113,820)
Receivables and Derivatives Liability by Relationships (in million Rupiah)

Keterangan 2018 2017
Tagihan derivatif
Related Party
foreign currency 56,341 27,361
Third Party
Total 605,248 216,884
Liabilitas derivatif
Related Party
Third Party
Total 322,028 113,820
Based on research and evaluation results by the Bank’s management, all derivatives receivable on December 31, 2018 and
2017 were classified as current.
ANNUAL
REPORT 2018
IMPACT OF INTEREST RATE CHANGES ON THE BANK PERFORMANCE
Beginning in Q1 2018, Bank Indonesia has raised the benchmark interest rate, or the 7-Day Reverse Repo Rate, by 25 basis points due
to the pressure on Indonesia’s economic stability from the increase in the Fed Fund Rate, and the increased global uncertainty due to
changes in American policy and a number of other geopolitical risks.
Bank Indonesia again raised its benchmark interest rate in Q2 and Q3 by a further 25 basis points as a pre-emptive step to strengthen
economic stability, especially exchange rate stability against the Fed Fund Rate forecast and increased risks in global financial
markets.
This impacted the national banking system condition, which was experiencing significant pressure due to the decline in net interest
margin (NIM). BNI itself took pre-emptive steps in response to the Bank Indonesia’s benchmark interest rate increase by not raising
lending rates, after considering that healthier growth was more important in maintaining the company’s financial assets stability,
while at the same time sustaining and encouraging national economic activities in the midst of increasingly competitive business.
This resulted in a decline in BNI’s NIM in 2018 to 5.3% compared to 5.5% in 2017
FEE BASED INCOME GROWTH ACCELERATION
BNI’s Fee based income in 2018 amounted to Rp9.6 trillion, an increase of 3.3% from Rp9.3 trillion in 2017. The increase was
dominated by 4 (four) banking activities including Account Maintenance, Card Business, ATM, and Trade Finance. The increase
in fee-based income from Account Maintenance services grew by 10.0% from Rp1.5 trillion in 2017 to Rp1.7 trillion in 2018.
Card Business services grew by 9.1% from Rp1.3 trillion in 2017 to Rp1.4 trillion in 2018. ATM services increased by 3.5% or
Rp41 billion compared to 2017. In line with the increases in these three services, Trade Finance services also grew by 18.5%
from Rp1.0 trillion in 2017 to Rp1.2 trillion in 2018.
Fee-based Income Growth
Growth Growth
2018 2017 2016
Description 2017-2018 2016-2017
(%) (%)
Recurring Fee 9,379 8,441 7,598 11.1 11.1

Non Recurring Fee 236 867 576 (72.8) 50.6
Total 9,615 9,308 8,174 3.3 13.9
CAPITAL STRUCTURE AND RISK MANAGEMENT PRACTICES
CAPITAL STRUCTURE
MANAGEMENT POLICY ON CAPITAL STRUCTURE
During 2018 there were corporate actions related to capital additions or changes in the regulatory or accounting treatment of
capital, namely the issuance of a Medium Term Note (MTN) of Rp100 billion in the framework of the Recovery Plan. BNI looks
to maintain a minimum capital composition or structure that does not violate the minimum limits set Otoritas Jasa Keuangan
(OJK) as the banking regulator.
CAPITAL STRUCTURE
To fulfill its capital requirements in accordance with Basel III, BNI recorded RWA, after loan risk, market risk, and operational risk of
Rp563.44 trillion in 2018, an increase of 9.5% compared to December 2017. The RWA increase was in line with BNI’s aggressive asset
growth of 14.0% in 2018. Given the importance of capital structure in supporting business expansion, BNI is committed to managing
a healthy capital structure to support maximum business growth.
Management
Discussion
And Analysis
Capital Adequacy Ratio (CAR) - Bank Only

2018 2017 2016
Description
Core Capital 98,014 89,765 79,645
Supplementary capital 6,240 5,542 4,634
Total Core Capital and Supplementary Capital 104,254 95,307 84,278
Risk Weighted Assets (RWA) for Credit Risk 491,758 450,706 378,716
Risk Weighted Assets (RWA) for Operational Risk 68,484 61,393 54,098
Risk Weighted Assets (RWA) for Market Risk 3,198 2,378 2,540
Core Capital Ratio 17.4% 17.5% 18.3%
Capital Adequacy Ratio for Credit Risk and Operational Risk 18.6% 18.6% 19.5%
Capital Adequacy Ratio for Credit Risk, Operational Risk and Market
18.5% 18.5% 19.4%
Risk
Capital Component - Bank Only

• Core Capital 19.4%
Core capital is the Bank’s capital comprising the main core 18.3% 18.5% 18.5%
capital and additional core capital in accordance with 17.4% 17.4%
Otoritas Jasa Keuangan Regulation (POJK) concerning
“Minimum Capital Requirements for Commercial Banks”. BNI’s
core capital grew 9.2% from Rp89.7 trillion to Rp98.0 trillion
in 2018. This increase was in line with the increase in current
year’s profit in 2018 to Rp14.5 trillion.
• Supplementary capital (maximum 100% of core capital)

Supplementary capital (referring to bank capital) consists of CAR
general reserves for productive assets. BNI’s supplementary Minimum
capital rose 12.6% from Rp5.5 trillion in December 2017 9,0%
to Rp6.2 trillion in December 2018, due to additional PPAs Tier 1
(Asset Allowances) formed on loans disbursed with current Minimum
status, and the issuance of Subordinated MTN recognized as 6,0%
supplementary capital in August 2018. 2016 2017 2018
TIER 1 CAR
RISK MANAGEMENT PRACTICES

The Bank Rating assessment is reported to the regulator (OJK) every 6 months in June and December. BNI ‘s bank health level
assessment result for December 31, 2018 reported a “Healthy” ranking meaning that:
a. The Bank’s condition is generally healthy, and it is considered capable of facing significant negative effects from changes
in business conditions and other external factors.
b. The rating assessment factors (Risk Profile, GCG, Profitability and Capital) are generally good. If there are any weaknesses,
they are insignificant.
BNI’s risk profile, as one of the health level assessment factors for December 31, 2018, was ranked 2 (low to moderate). As a
result and according to calculations using the Internal Capital Adequacy Assessment Process (ICAAP), the minimum CAR based
on risk profile was 9.9%. If added with buffer capital, namely Conservation Buffer 1.875%, Countercyclical Buffer 0% and Capital
Surcharge 1.125%, then the Minimum Capital Adequacy Ratio limit (KPMM) was 12.9%. In 2018, BNI’s KPMM of 18.5% exceeded
the specified minimum limit.
Details regarding the capital structure and risk management are presented separately in the Annual Report.
ANNUAL
REPORT 2018
ABILITY TO PAY DEBT AND LOAN COLLECTIBILITY
ABILITY TO PAY DEBT

Up to 2018, BNI’s liquidity and solvency levels were good, showing BNI’s ability to meet all maturing obligations in a timely
manner, whether for payment of principal debt or interest expense. Here are the banking financial ratios for measuring BNI’s
liquidity and solvency:
ABILITY TO PAY SHORT-TERM DEBT (BANK LIQUIDITY)

At the end of 2018, BNI’s liquidity level, measured by the Loan to Deposit Ratio, increased 3.2% to 88.8% compared to 85.6% in
2017, due to the rapid loan growth compared to third party funds growth. The liquidity level is still within OJK’s tolerance levels
of 85% to 92%. The LDR calculation did not take into account non-conventional funding such as the issuance of Negotiable
Certificate Deposits (NCDs) and long-term Bilateral Loans that are used by BNI to fund its loan expansion.
ABILITY TO PAY LONG-TERM DEBT (BANK SOLVENCY)

In terms of solvency, BNI’s capital adequacy ratio is relatively stable and did not experience significant change in 2018,
standing at 18.5%. This indicates that BNI’s capital structure is sufficient to offset loan risk, market risk, and operational risk, as
the ratio is higher than the minimum capital adequacy ratio set by BI.
LOAN COLLECTIBILITY
The non-performing loans (NPL) ratio in 2018 was 1.9%, down 0.4% from 2017. This was due to the growth in quality loans to
the State-Owned Enterprises (SOE) sector, and shows a fundamental improvement in the development of loan quality as a
whole.
LOANS DISBURSED RESTRUCTURING

Restructuring is carried out for borrowers who still have business prospects and is selectively carried out, based on the ability
of the borrowers. Total restructured loans at the end of 2018 amounted to Rp29.2 trillion, down 4.0% compared to the previous
year, with the following details:
1. Restructured Loans with extended maturity amounted to Rp3.5 trillion, down 36.9% from the previous year.
2. Restructured Loans with extended maturity and reduced interest rates amounted to Rp11.6 trillion, down 2.4% from the
previous year.
3. Restructured Loans with extended maturity, reduced interest rates, and other restructuring amounted to Rp14.1 trillion,
up 8.6% from the previous year.
As of December 31, 2018, restructured loans based on collectibility, and classified as current, stood at 40.4%, with special
mention at 42.9%, and non-performing loans (NPLs) at 16.7%.
By currency, 82.3% of the restructured loans were in Rupiah, while the remainder were in US$.
By designation, as of December 31, 2018, restructured loans for Working Capital Loans stood at 57.6%, Investment Loans at
36.8%, and Consumer Loans at 5.6%.
By segment, as of December 31, 2018, restructured loans for Corporate stood at 46.3%, Middle at 33.9%, Small at 14.2%, and
Consumer at 5.6%.
By sector, in 2018, restructured loans were dominated by Manufacturing that stood at 27.2%, restaurant and hotel business at
24.2%, service business at 13.3%, mining business at 8.0%, Agriculture at 7.0%, and the remainder evenly spread across other
business sectors.
Management
Discussion
And Analysis
Restructured Loans based on Category

Restructuring Category 2018 2017 2016
Extension of loan maturity dates 3,521 5,577 5,285
Extension of loan maturity dates and reduction of interest rates 11,583 11,872 11,400
Extension of loan maturity dates, reduction of interest rates and other
14,095 12,977 14,748
restructuring programs
Total 29,199 30,426 31,433
Allowance for impairment losses (5,253) (5,367) (4,084)
Net 23,945 25,060 27,349
Restructured Loans based on Collectibility

Quality 2018 2017 2016
Current 11,790 17,530 21,719
Special Mention 12,537 8,684 6,773
Substandard 1,472 876 858
Doubtful 2,236 489 117
Loss 1,164 2,847 1,965
Total 29,199 30,426 31,433
Restructured Loans based on Business Sector – Bank Only

Sektor Usaha 2018 2017 2016
Business Services 3,483 2,900 2,849
Social Services 252 265 325
Construction 1,309 1,065 2,097
Others 1,468 2,038 1,592
Electricity, gas and water 514 376 468
Transportation, Warehousing and Trading 1,753 1,752 3,667
Restaurant and Hotel 6,286 6,433 5,100
Manufacturing 1,829 2,726 6,175
Mining 7,097 6,171 2,719
Agriculture 2,096 4,319 4,437
Total 26,089 28,044 29,429
ANNUAL
REPORT 2018
Restructured Loans based on DesignationType – Bank Only

Peruntukan 2018 2017 2016
Working capital loan 15,016 14,058 14,143
Investment loan 9,604 11,948 13,698
Consumer loan 1,468 2,038 1,588
Total 26,089 28,044 29,429
Restructured Loans based on Segment – Bank Only

Segmen 2018 2017 2016
Consumer 1,468 2,038 1,588
Corporate 12,076 13,297 16,216
Small 3,699 3,775 3,528
Middle 8,845 8,934 8,097
Total 26,089 28,044 29,429
RELATED PARTY TRANSACTIONS
In the normal course of its business, BNI conducts transactions with related parties through ownership and/or management
relationships. All transactions with related parties are conducted in accordance with the agreed upon policies and terms.
BNI and its Subsidiaries conduct transactions with related parties as defined in PSAK 7 regarding “Related Party Disclosures”
and Bapepam-LK Regulation No. KEP-347/BL/2012 dated June 25, 2012 concerning “Guidelines for the Presentation and
Disclosure of Financial Statements of Issuers or Public Companies”, and are defined as:
1. Companies under the control of BNI and its Subsidiaries;
2. Associated companies;
3. Investors who have voting rights, which give them a significant influence;
4. Companies under the control of investors who have voting rights, which gives the investors a significant influence;
5. Key employees and family members; and
6. Entities that are controlled, jointly controlled or significantly influenced by the Government, namely the Ministry of Finance
or the Regional Governments who are shareholders of the entity.
Management
Discussion
And Analysis
TYPES OF RELATIONSHIP
Transactions with related parties are based on the relationship type as shown in the following table:
Type of Relationship
Relationships as major shareholders
The Government of the Republic of Indonesia through the Ministry of Finance
Control through the Government of the Republic of Indonesia

1. Adhi Karya and Subsidiaries 58. Kereta Api Indonesia and Subsidiaries
2. Amarta Karya 59. Kertas Kraft Aceh
3. Aneka Tambang and Subsidiaries 60. Kertas Leces
4. Angkasa Pura I and Subsidiaries 61. Kimia Farma and Subsidiaries
5. Angkasa Pura II and Subsidiaries 62. Kliring Berjangka Indonesia
6. ASABRI 63. Krakatau Steel and Subsidiaries
7. ASDP Ferry Indonesia 64. Lembaga Financing Export Indonesia (LPEI)
8. Asuransi Jasa Indonesia 65. LEN Industri and Subsidiaries
9. Asuransi Jasa Raharja and Subsidiaries 66. LKBN Antara
10. Asuransi Jiwasraya 67. Merpati Nusantara Airlines
11. Asuransi Kredit Indonesia and Subsidiaries 68. PAL Indonesia and Subsidiaries
12. Bahana Pembinaan Usaha Indonesia and Subsidiaries 69. PANN and Subsidiaries
13. Balai Pustaka 70. Pegadaian and Subsidiaries
14. Bank Mandiri and Subsidiaries 71. Pelabuhan Indonesia I and Subsidiaries
15. Bank Rakyat Indonesia 72. Pelabuhan Indonesia II and Subsidiaries
16. Bank Savings Negara 73. Pelabuhan Indonesia III and Subsidiaries
17. Barata Indonesia 74. Pelabuhan Indonesia IV and Subsidiaries
18. Berdikari and Subsidiaries 75. Pelayaran Nasional Indonesia and Subsidiaries
19. Bhanda Ghara Reksa and Subsidiaries 76. Pembangunan Perumahan and Subsidiaries
20. Bina Karya 77. Percetakan Negara Republik Indonesia
21. Biofarma 78. Percetakan Uang Republik Indonesia and Subsidiaries
22. Biro Klasifikasi Indonesia 79. Perhutani and Subsidiaries
23. Boma Bisma Indra 80. Perikanan Indonesia
24. BPJS Kesehatan 81. Perikanan Nusantara
25. BPJS Ketenagakerjaan 82. Perkebunan Nusantara III and Subsidiaries
26. Brantas Abipraya 83. Permodalan Nasional Madani and Subsidiaries
27. Bulog and Subsidiaries 84. Pertamina and Subsidiaries
28. Dahana 85. Pertani
29. Damri 86. Perumnas
30. Danareksa and Subsidiaries 87. Perusahaan Gas Negara and Subsidiaries
31. Dirgantara Indonesia and Subsidiaries 88. Perusahaan Listrik Negara and Subsidiaries
32. Djakarta Lloyd and Subsidiaries 89. Perusahaan Pengelola Assets and Subsidiaries
33. Dok and Perkapalan Kodja Bahari 90. Perusahaan Perdagangan Indonesia
34. Dok and Perkapalan Surabaya 91. Pindad and Subsidiaries
35. Garam 92. Pos Indonesia and Subsidiaries
36. Garuda Indonesia and Subsidiaries 93. Primissima
ANNUAL
REPORT 2018
Control through the Government of the Republic of Indonesia

37. Hotel Indonesia Natour 94. Pupuk Indonesia Holding Company and Subsidiaries
38. Hutama Karya and Subsidiaries 95. Rajawali Nusantara Indonesia and Subsidiaries
39. IGLAS 96. Reasuransi Indonesia Utama and Subsidiaries
40. Indah Karya 97. Sang Hyang Seri
41. Indofarma and Subsidiaries 98. Sarana Karya
42. Indonesia Asahan Aluminium 99. Sarana Multigriya Finansial
43. Indra Karya 100. Sarinah and Subsidiaries
44. Industri Kapal Indonesia 101. Semen Baturaja
45. Industri Kereta Api and Subsidiaries 102. Semen Indonesia and Subsidiaries
46. Industri Sandang Nusantara 103. Sucofindo and Subsidiaries
47. Industri Telekomunikasi Indonesia 104. Surveyor Indonesia
48. Istaka Karya 105. Tambang Batubara Bukit Asam and Subsidiaries
49. Jaminan Kredit Indonesia 106. Taspen and Subsidiaries
50. Jasa Marga and Subsidiaries 107. Telekomunikasi Indonesia and Subsidiaries
51. Jasa Tirta I 108. Timah and Subsidiaries
52. Jasa Tirta II 109. Varuna Tirta Prakasya
53. Kawasan Berikat Nusantara 110. Virama Karya
54. Kawasan Industri Makassar 111. Waskita Karya and Subsidiaries
55. Kawasan Industri Medan 112. Wijaya Karya and Subsidiaries
56. Kawasan Industri Wijayakusuma 113. Yodya Karya
57. Ministry of Finance
Corporate Control
Key Management
Based on ownership and/or management
BNI Pension Fund
Asuransi Tripakarta
Management
Discussion
And Analysis
TRANSACTIONS
Significant transactions with related parties are shown in the following table:
Transaction Type
Description 2018 2017
CURRENT ACCOUNTS WITH OTHER BANKS

Bank Mandiri 78,796 1,407,207
Bank Rakyat Indonesia 112 228
Total 78,908 1,407,434
PLACEMENTS WITH OTHER BANKS AND BANK INDONESIA
Bank Mandiri 1,103,975 261,052
Bank Tabungan Negara 538,387 292,534
Bank Rakyat Indonesia 35,222 138,016
LPEI - 607,025
Total 1,677,584 1,298,627
SECURITIES
Bank Rakyat Indonesia 1,316,320 485,542
Danareksa 930,484 948,009
Bahana Pembinaan Usaha Indonesia 906,213 1,279,920
Bank Tabungan Negara 852,752 163,629
LPEI 827,413 1,784,242
Bank Mandiri 740,081 247,592
Hutama Karya 690,400 -
Permodalan Nasional Madani 505,971 300,964
PLN 392,070 40,579
Pegadaian 302,999 1,000
Pelabuhan Indonesia II 285,548 269,225
Waskita Karya 280,484 141,672
Telekomunikasi Indonesia 171,412 1,892
Others 388,082 389,578
Total 8,590,229 6,053,844
GOVERNMENT BONDS
Government of Indonesia 86,791,402 79,849,452
Total 86,791,402 79,849,452
EXPORT BILLS AND OTHER RECEIVABLES
Waskita Karya 2,773,748 2,372,248
Adhi Karya 2,729,825 2,263,439
Brantas Abipraya 1,511,881 1,240,420
Wijaya Karya 1,118,976 1,033,111
Bank Mandiri 941,616 133,191
Hutama Karya 817,363 728,665
Garuda Indonesia 667,532 -
ANNUAL
REPORT 2018

Krakatau Steel 235,672 -
Others 508,494 597,035
Total 11,707,785 8,510,551
ACCEPTANCES RECEIVABLES
PLN 1,121,858 1,632,474
Garuda Indonesia 1,078,895 1,530,945
Adhi Karya 811,520 824,332
Pembangunan Perumahan 793,789 432,663
Hutama Karya 530,997 141,396
Pindad 249,080 302,617
Waskita Karya 199,077 -
Wijaya Karya 151,949 61,863
Dahana 145,812 73,498
Krakatau Steel 103,992 -
LPEI 64,858 15,984
Petrokimia Gresik 63,476 40,485
Nindya Karya 44,448 76,772
Perum Percetakan Negara Republik Indonesia 41,170 15,912
LEN Industri 40,854 42,645
Barata Indonesia 38,662 16,315
Dirganata Indonesia 33,989 40,401
Others 33,625 519,934
Total 5,548,051 5,768,236
DERIVATIVES RECEIVABLES
Pertamina 46,137 335
Krakatau Steel 8,122 440
Garuda Indonesia - 13,327
PLN - 11,660
Others 2,058 1,599
Total 56,317 27,361
LOANS
PLN 14,414,539 18,626,608
Perum Bulog 12,599,313 3,815,351
Pertamina 8,888,804 2,251,796
Jasa Marga 7,825,356 5,129,498
Waskita Karya 6,641,236 5,835,011
Telkom 6,191,700 6,228,509
Krakatau Steel 4,583,740 4,131,607
Pegadaian 4,563,915 5,095,844
Semen Gresik 4,300,618 84,912
Petrokimia Gresik 4,108,777 4,360,190
Kementerian Keuangan 3,257,073 2,665,106
Management
Discussion
And Analysis
Perkebunan Nusantara III 2,634,126 2,737,673

Perkebunan Nusantara VII 2,222,540 2,165,434
Bukit Asam 1,822,209 2,106,006
Kereta Api Indonesia 1,738,875 1,820,071
Hutama Karya 1,469,190 553,459
Pupuk Indonesia 1,056,335 459,153
Wijaya Karya 1,046,434 1,508,178
Pupuk Iskandar Muda 1,011,972 1,014,000
Rajawali Nusindo 1,108,824 1,094,772
Antam 977,840 -
Infrastruktur Telekomunikasi Indonesia 974,873 752,338
Pelabuhan Indonesia I 944,584 461,717
Perkebunan Nusantara XI 924,818 465,949
PAL Indonesia 915,692 888,561
Garuda Indonesia 904,015 1,249,914
Semen Baturaja 863,904 863,904
Angkasa Pura II 700,000 185,985
Permodalan Nasional Madani 679,972 503,328
Pindad 624,403 660,387
Dirgantara Indonesia 589,750 633,703
Pupuk Sriwijaya 561,008 1,066,948
Perum Peruri 541,512 227,765
Perkebunan Nusantara IV 471,189 471,189
Adhi Karya 430,000 249,950
Perkebunan Nusantara V 416,318 513,975
Pos Indonesia 331,861 364,000
Others 3,428,721 5,082,440
Total 107,404,932 86,415,499
SHARE INCOME
PT PANN Pembiayaan Maritim 724,338 724,338
Total 724,338 724,338
CUSTOMER DEPOSITS
Entities controlled by the Goverment of Indonesia 87,220,328 87,581,384
Key Management 243,546 174,696
Total 87,463,874 87,756,080
DEPOSITS FROM OTHER BANKS
Entities controlled by the Goverment of Indonesia 2,968,169 2,246,156
Key Management 2,968,169 2,246,156
BORROWINGS
Bank Mandiri 87,503 -
Total 87,503 -
ANNUAL
REPORT 2018
SECURITIES ISSUED
Taspen 419,866 -
Dana Pensiun BNI 229,927 229,909
Bank Mandiri 148,952 148,941
Others 12,996 229,909
Total 1,268,595 644,746
BORROWINGS
Bank Mandiri 117,110 271,350
LPEI 37,804 -
Total 254,914 407,025
SUBORDINATED SECURITIES
Asuransi Tripakarta 24,988
Total 24,988
DERIVATIVE LIABILITIES
Bank Mandiri 33,390 11,591
Bank Rakyat Indonesia 6,913 -
PLN - 17,474
Others 931 1,565
Total 41,234 30,630
ACCEPTANCES LIABILITIES
Hutama Karya 280,584 41,963
Pindad 241,525 296,189
Dahana 144,327 76,283
Garuda Indonesia 71,483 125,801
Perum Percetakan Negara Republik Indonesia 41,170 15,912
Krakatau Steel 12,234 60,433
Semen Indonesia 9,821 14,808
Cambrics Primissima 5,760 -
Boma Bisma Indra 5,620 -
Waskita Karya 5,424 12,290
Pertamina - 118,455
Others 8,402 71,410
Total 1,253,947 1,160,981
TEMPORARY SYIRKAH FUNDS – MUDHARABAH CURRENT ACCOUNTS
Entities controlled by the Goverment of Indonesia 209,056 319,334
Total 209,056 319,334
Management
Discussion
And Analysis
TEMPORARY SYIRKAH FUNDS – Deposits MUDHARABAH

Entities controlled by the Goverment of Indonesia 357,052 7,824,499
Key Management 13,475 18,904
Total 370,527 7,843,403
TEMPORARY SYIRKAH FUNDS – MUDHARABAH SAVINGS
Entities controlled by Key Management 16,545 9,499
Goverment of Indonesia 29 23
Total 16,574 9,522
MUDHARABAH SUKUK PUBLISHED
Bank Syariah Mandiri - 100,000
Dana Pensiun BNI - 45,000
Bank Rakyat Indonesia Syariah - 68,500
Danareksa - 25,000
Penjaminan Infrastruktur Indonesia - 20,000
Asuransi Tripakarta - 1,000
Total - 259,500
BANK GUARANTEES ISSUED
Hutama Karya 3,205,967 3,039,526
Wijaya Karya 2,742,572 2,243,749
Adhi Karya 2,403,442 1,276,520
Pembangunan Perumahan 1,932,559 1,882,482
Pertamina 1,606,975 1,352,499
Rekayasa Industri 1,599,659 1,570,803
Nindya Karya 1,598,651 1,726,262
PLN 1,457,433 806,742
Waskita Karya 1,448,595 1,989,558
Garuda Indonesia 1,372,821 80,295
Telkom 1,350,365 1,477,346
Brantas Abipraya 1,007,708 810,321
Bank Mandiri 891,354 937,064
Industri Kereta Api 613,723 -
LPEI 404,415 1,532,547
Kereta Api Indonesia 265,759 1,571
Perum Peruri 255,046 6,580
Perusahaan Gas Negara 246,313 231,016
PAL Indonesia 173,127 280,742
LEN Industri 141,693 195,886
Pindad 122,465 14,184
Infrastruktur Telekomunikasi Indonesia 102,274 195,928
Rajawali Nusindo 98,466 80,724
Semen Indonesia 91,834 90,865
Others 418,883 1,275,440
Total 26,924,576 23,743,394
ANNUAL
REPORT 2018
LETTERS OF CREDIT
PLN 1,328,363 975,941
Kereta Api Indonesia 1,038,299 678,194
Industri Kereta Api 766,065 -
Krakatau Steel 688,541 339,279
Hutama Karya 633,118 65,275
Pertamina 614,719 635,584
Pindad 544,579 315,440
Pelabuhan Indonesia I 287,648 532,690
LEN Industri 146,001 420,885
Semen Gresik 139,734 86,825
Dahana 127,152 148,850
Garuda Indonesia 120,095 26,073
Perkebunan Nusantara V 79,848 73,746
Pupuk Iskandar Muda 62,154 28,686
Semen Indonesia 49,340 -
Adhi Karya 46,480 -
Others 131,956 965,181
Others 8,169,836 6,659,731
SALARIES AND BENEFITS
Salaries, benefits and long-term benefits for the Board of Commissioners, Board of 372,017 366,540
Directors, Audit Committee, Executive Vice President and Senior Vice President
Total 372,017 366,540
Management
Discussion
And Analysis
In addition, transactions balances with related parties as of December 31, 2017 and 2018 were as follows:
Transactions with Related Parties
Assets
Current Accounts with other banks 78,908 1,407,434
Placements with other banks 1,677,584 1,298,627
Securities 8,590,229 6,053,845
Government Bonds 86,791,402 79,849,452
Export Bills and other Receivables 11,707,785 8,510,551
Acceptances Receivables 5,548,051 5,768,236
Derivatives Receivables 56,317 27,361
Loans 107,404,932 86,415,498
Investments in shares 724,338 724,338
Total assets with related parties 222,579,546 190,055,342
Total consolidated assets 808,572,011 709,330,084
Percentage of total assets with related parties to total consolidated assets 27.5% 26.8%
Liabilities
Customer Savings 87,463,874 87,756,080
Deposits from other bank 2,968,169 2,246,156
Securities issued 1,268,596 644,745
Subordinated Securities 24,988 -
Securities sold under agreement to repurchase 739,103 -
Borrowings 254,914 407,025
Derivatives liabillities 41,234 30,630
Acceptances Liabilities 1,253,947 1,160,981
Total liabilities with related parties 94,014,825 92,245,617
Total consolidated liabilities 671,237,546 584,086,818
Percentage of total liabilities with related parties to total consolidated assets 14.0% 15.8%
Temporary Syirkah Funds
Mudharabah savings 596,157 8,172,259
Mudharabah Sukuk - 259,500
Total temporary Syirkah funds with related parties 596,157 8,431,759
Total temporary Syirkah funds 26,960,676 24,339,962
Percentage of Temporary Syirkah Funds with related parties to total consolidated Temporary Syirkah
2.2% 34.6%
Funds
ANNUAL
REPORT 2018
MATERIAL TRANSACTIONS INFORMATION WITH CONFLICTS OF INTEREST AND/OR

TRANSACTIONS WITH AFFILIATED PARTIES
During 2018, BNI did not have any material transactions with a conflict of interest.
Names of Transacting Parties and the Nature of Affiliate Relationship

During 2018, BNI did not conduct material transactions that contained conflicts of interest.
Explanation of Fairness of Transactions

Reasons for the Transactions

Realization of Affiliated Transactions in the Last Fiscal Year Period

Company Policy Related to the Transaction Review Mechanism

Compliance with Regulations and Related Provisions

PROHIBITIONS, LIMITATIONS, AND / OR SIGNIFICANT BARRIERS TO TRANSFER

FUNDS BETWEEN THE BANK AND OTHER ENTITIES IN THE BUSINESS GROUP
In 2018 the total provision of funds to related parties amounted to Rp5.4 trillion. This was still in
accordance with the maximum lending threshold based on Bank Indonesia Regulation Number
8/13/PBI/2006 concerning the Legal Lending Limit for Commercial Banks, which set a maximum
of 10% of Bank Capital. In 2018, the three highest provision of funds to related parties were
to BNI Syariah for Rp2.5 trillion, in the form of bank participations and guarantees, BNI Asset
Management for Rp1.8 trillion, and BNI Multifinance for Rp491 billion for participations, loans,
and corporate cards.
Total Bank Funds Provided For Related Parties Up To December 2018

Description Billion Rp
Total exposure to related parties 5,379
Capital 104,254
BMPK (10% of Capital) 10,425
Over (Under) to BMPK (5,046)
Total Bank Funds Provided For Related Parties up to December 2018 by Type
Funds Provision
No Related Party Type of Funds Provision
(Billion Rp)
1 BNI Asset Management Securities 1,814
Management
Discussion
And Analysis
Funds Provision
No Related Party Type of Funds Provision
(Billion Rp)
2 BNI Syariah Participations, Bank Guarantees 2,520

3 BNI Multifinance Participations, Loans, Corporate Card 491
4 BNI Life Insurance Participations, Corporate Card, Bank Guarantees 399
5 BNI Sekuritas Participations, Loans, Corporate Card, Bank Guarantees 100
6 BNI Remittance Participations 10
7 Perseorangan Consumer Loans, Credit Card 45
TOTAL FUNDS PROVISION TO RELATED PARTIES 5,379
CAPITAL 104,254
BMPK (10% of Capital) 10,425
SPACE / Over (Under) (5,046)
PROPERTY FOR INVESTMENT

As of the end of 2018, BNI had no property assets for investment.
MATERIAL COMMITMENTS FOR CAPITAL GOODS INVESTMENTS
Party Name Tied to The Commitment

No Project Vendor Name
1 Penjompongan Building • PT Pembangunan Perumahan (PP)
• PT Artefak
2 BSD Building • PT Wika • PT Decorous Mitra Selaras
• PT Advanced Design Rekragraha • PT Datascrip
• Omega Moverindo Sukses • PT Vivere Multi Kreasi
• Inti Fajar Pratama • PT Indah Karya
• PT Sari Jati Adhitama • PT Protindo Cipta Kreasi Lestari
• PT Indovickers Furnitama • PT Perintis Dinamika Multiniaga
• PT Kencana Arind Murni • PT Swadharma Griyasatya
• PT Alpha Graha Computindo • PT Perintis Dinamika Sekatama
• PT Mitrasindo Jayatama • CV Minda Mandiri Perkasa
• PT Ananta Cipta Pratama • PT Anugrah Lestari Abadi
3 BNI KC Surabaya Building PT Inti Indah

4 BNI KC PS Mayestik Building • PT Architeam Design Center
• PT Tunas Pembagunan
5 BNI KC Kotabaru P. Laut Building • PT Indah Karya
• PT Tunas Pembagunan
COMMITMENT PURPOSE CURRENCY

BNI material commitments for capital expenditure are All transactions conducted for material capital expenditures
outlined in the Bank Business Plan (RBB). are denominated in rupiah.
SOURCE OF FUNDS CURRENCY RISK PROTECTION

Funds used for capital expenditure is derived from BNI capital Because all binding transactions and capital expenditures
that has been budgeted for in the current year. were denominated in Rupiah, BNI does not need to protect
against currency risk.
ANNUAL
REPORT 2018
VALUE OF COMMITMENTS
BNI has capital goods commitments related to the construction of office buildings and the
procurement of automation equipment amounting to Rp 2.1 trillion for capital expenditure. BNI
has made several material commitments, with material ties as follows:
1. Building Construction Projects
a. Continuing construction of the Penjompongan Building in 2017 amounting to Rp421
billion.
b. Continuing construction of the BSD Building in 2017 amounting to Rp70.6 billion.
c. Purchase of office space at Satrio Tower (Jakarta Senayan Area) amounting to Rp. 71.5
billion.
d. Purchase of land and buildings for KC Kelapa Gading amounting to Rp72.8 billion.
e. Purchase of land and building of KCP Dewi Sartika amounting to Rp47 billion.
2. 2. IT and e-Banking infrastructure Development
a. ATM Cash Recycle Machines (CRM) amounting to Rp 109 billion.
b. Electronic Data Capture Machines (EDC) amounting to Rp 81.2 billion.
c. Consolidation Server Surrounding amounting to Rp41.7 billion.
d. Consolidation Unix platform for the Data Center amounting to Rp14.7 billion.
e. E-branch implementation amounting to Rp7.5 billion.
f. Service Oriented Architecture (SOA) Enhancement amounting to Rp16.3 billion.
g. Core IT Icons Overseas Branches amounting to Rp25.2 billion.
SOURCE OF FUNDING
Sources of funding for capital expenditure is derived from the remaining investment budget
from last year, total amortization expenses last year, and share / percentage of net profit from the
preceding financial year.
CAPITAL GOODS INVESTMENTS
Capital Investment is an expenditure activity used to purchase fixed assets or to add fixed asset
value, which is expected to provide future benefit value.
TYPE OF INVESTMENT
Capital goods investments in 2018 amounted to Rp1.4 trillion, and consisted of automation
equipment of Rp742 billion, land purchases and building construction of Rp.478 billion, non-
automated equipment purchases of Rp163 billion and vehicle procurement of Rp42 billion.
CAPITAL GOODS INVESTMENT OBJECTIVE

The purpose of capital goods investments is to support operational activities, as well as smooth
company operations.
CAPITAL GOODS INVESTMENT VALUE

BNI’S capital expenditure in 2018 amounted to Rp1.4 trillion, similar to last year. Investment
in 2018 was dominated by capital goods such as automation equipment used for the IT
infrastructure development, network and technology expansion, digital banking development to
facilitate customer transactions, and the procurement of ATM, CRM and EDC machines to support
the business.
Management
Discussion
And Analysis
Details related to capital investments are outlined in the table below:
Capital Goods Investment Value

2018 2017 2016
Capital Goods Type
Buildings 408 802 713
Land 70 150 122
Automation 742 622 848
Non-Automation 163 219 195
Vehicles 42 25 8
Total 1,425 1,818 1,886
COMPARISON OF TARGET AND REALIZATION
2018 TARGET ACHIEVEMENT

The domestic political turmoil and global economic slowdown had an indirect impact on BNI’s growth as a whole, this was
predicted by BNI last year and preventive measures had been taken to survive in middle of the rapid flow of competition. By
December 2018, BNI’s profit had grown 9.6% to Rp15.0 trillion compared to Rp13.6 trillion in 2017.
BNI’s assets grew by 14.0% from Rp709.3 trillion in 2017 to Rp808.6 trillion in 2018, with asset growth bolstered by loan growth
of 16.2% to Rp512.8 trillion, followed by the third party funds growth of 12.1% to Rp578.8 trillion, with an LDR of 88.8%. As a
form of risk mitigation, BNI increased its coverage ratio from 148.0% in 2017 to 152.9% from 2018.
2018 Strategic Policy 2018 Target

Increase business to customers in Ministries, Institutions, SOEs, and Corporations through
comprehensive financial solutions - ROA : 2.6 - 2.8%
Increase medium business in industries based on regional priorities
- ROE : 16.0 -18.0%
Strengthen small business through optimization of Supply Chain Financing Corporate, Com-
munities/Business Center Customers, to support Government programs - Growth in loans : 15.0 – 17.0%
Increase CASA with a digital business model focus for closed loop transactions and to optimize - Coverage Ratio : 150.0 - 153.0%
customer transactions
Strengthen consumer business in cooperation with business partners and provide financial - NPL Gross : 2.3 -2.5%
transaction solutions with a focus on e-commerce and the millenial generation.
- LDR : 88.0 - 90.0%
Increase outlet performance by strengthening marketing penetration for TPF and lending - DPK Growth : 13.0 – 15.0%
Increase subsidiary market share with enhanced synergy, digital development, and inorganic - CIR : 42.0 - 44.0%
growth.
- Service Level : Top 3
Optimizing organizational capacity to support business achievement.
In general, as of December 2018, BNI returned a satisfactory performance, as seen in the following key performance
achievements:
1. Profitability as measured by ROA reaching its target with a realization of 2.5% - 2.8%.
2. Coverage Ratio reaching its target with a realization of 146-148%.
3. Third Party Fund Growth reaching its target with a realization of 18.0-22.0%.
4. Improved operational efficiency with CIR of 43.9%.
ANNUAL
REPORT 2018
2019 PROJECTIONS
In terms of business planning for 2019, the Company has prepared a Bank Business
Plan (RBB) for 2019 that takes into account current economic conditions, and economic
projections for 2019, in both macro and micro terms. The bank’s business plan is
described as follows:
Assumptions used in preparing projections were as follows:

No 2018 Strategic Policy Proyeksi 2019
1 Increase in corporate business by providing integrated financial solutions
in a business ecosystem.
2 Increase in productivity of medium businesses focused on corporate

customer supply chains, business process improvements, and loan quality
improvement. Return on Assets (ROA) : 2,5% - 2,8%
Return on Equity (ROE) : 16,0% - 17,0%
3 Increase in small business expansion through digitized business pro- Pertumbuhan Pinjaman : 14,0% - 16,0%
cesses, improved loan quality and support for national economic equity. Coverage Ratio (CR) : 161,0 % - 163,0%
Non Performing Loan (NPL) Gross : 1,8% - 2,0%
4 Acceleration of consumer business focused on customer preferences by Loan to Deposit Ratio (LDR) : 88,0% - 89,0%
using data analytics. Pertumbuhan Dana Pihak Ketiga (DPK) : 16,0% - 17,0%
Cost to Income Ratio (CIR) : 42,0% - 43,0%
5 Increase in CASA and FBI through increased digital transactions, strategic
partnerships and developing new business models.
6 Increase the BNI Group capabilities through increased synergy, agile

organization initiation, and big data and analytics.
NEGOTIABLE CERTIFICATE DEPOSIT (NCD)
TOTAL FUNDS ACQUISITION

BNI has issued scriptless Rupiah Negotiable Certificate of Deposits (NCD) in 2016 and
2017 in the following three stages:
1. In the first semester of 2016, BNI issued scriptless Rupiah NCDs for the first time
for Rp3.0 trillion, with an initial target of Rp trillion, in 6 tenor series (6 months to 3
years).
2. In the second semester of 2016, BNI issued scriptless Rupiah NCD for Rp.2.2 trillion,
with an initial target of Rp1 trillion (oversubscribed). This oversubscription shows
the high level of investor confidence and interest in BNI.
3. In the first semester of 2017, BNI issued scriptless Rupiah NCD for Rp2.7 trillion.
Issue Phase Date Currency Principal Amount Average Rate

1 June 16, 2016 IDR 3,023 2,598 8.2%
2 September 27, 2016 IDR 2,200 1,877 6.7%
3 March 10, 2017 IDR 2,700 2,483 7.0%
FUND BALANCE
As of December 31, 2018, the outstanding balance for the NCD funds amounted to
Rp939 billion.
Management
Discussion
And Analysis
USE OF PUBLIC OFFERING PROCEEDS REALIZATION
SUSTAINABLE PUBLIC OFFERING (PUB)

On June 22, 2017, BNI received an effective statement from OJK through letter No.
S-349/D.04/2017 to issue BNI Rupiah Phase I 2017 Sustainable Bonds (“Bonds”). The value of
the bonds issued was Rp3,000,000,000,000 (three trillion Rupiah), for a period of 5 years, with
a coupon of 8% per annum, to be paid quarterly. BNI’s bonds were issued on July 11, 2017 and
listed on the Indonesia Stock Exchange on July 12, 2017.
Information Regardingthe Bonds Offered
Bond Name Obligasi Berkelanjutan I BNI Phase I Year 2017

Bond Principal Amount Rp3,000,000,000,000 (three trillion Rupiah)
Bid Price 100.00% from Bond Principal Amount
Maturity 5 (five) years after date of issuance
Trading Unit Rp1 (one Rupiah) or multiples
Unit /Trading Rp5,000,000 (five million Rupiah) or multiples
Bond Interest Rate 8.00% (eight point zero zero percent) per year.
Type of Interest Rate Fixed
Interest Payment period Quarterly
Interest Date First October 11, 2017
Warranty These bonds are not secured by special collateral, but are secured by all of the Company assets,
both movable and immovable property, whether existing or future, that becomes collateral for
the Bondholder in accordance with the provisions of Articles 1131 and 1132 of the Civil Code.
The Bondholder right is paripassu without any preferential rights with the rights of the other
creditor of the Company either present or in the future, except for the rights of the creditor of the
Company which are specifically guaranteed with the Company’s assets either existing or future
Securities Rating idAAA (triple A) from Pefindo.

Bond Settlement Fund (Sinking The Company does not provide a sinking fund for the bond principal repayment with a view
Fund) to optimizing the use of the proceeds from the issue in accordance with the planned usage
purpose.
Repurchase (Buy Back) These bonds have a repurchase (buy-back) option under the terms and provisions of the
Trusteeship Agreement.
Trustee PT Bank Rakyat Indonesia (Persero) Tbk has been appointed as Trust Agent in the issuance of this
Bond in accordance with the provisions contained in the Trustee Agreement
USE OF FUNDS PLAN THE PUBLIC OFFERING

The proceeds from the Public Offering of Bonds, after deducting the total issuing costs, will be
used by the Company for loan expansion in the context of business development.
ANNUAL
REPORT 2018
REALIZATION AND INTEREST PAYMENT SCHEDULE
PUB Issuance Realization in trillion Rupiah
Public Offering Realization Result Funds Usage Plan Funds Usage Public Offering
Type of Effec-
Residual Funds
Public tive
Public
Offering Date
Public Offering
Public Of- Credit Credit Expenses
Offerin Net Result Total Total
fering Total Expansion Expansion
Expenses
I BNI Phase I June Rp 3 Rp 0,0074 Rp 2.992 Rp 2.992 Rp 2.992 Rp 2.992 Rp 2.992 -
2017 Bond 22,
2017
Interest Payment Table
Interest Bond Interest Payment Date Interest
1 October 11, 2017 8%

2 January 11, 2018 8%
3 April 11, 2018 8%
4 July 11, 2018 8%
5 October 11, 2018 8%
6 January 11, 2019 8%
7 April 11, 2019 8%
8 July 11, 2019 8%
9 October 11, 2019 8%
10 January 11, 2020 8%
11 April 11, 2020 8%
12 July 11, 2 8%
13 October 11, 2020 8%
14 January 11, 2021 8%
15 April 11, 2021 8%
16 July 11, 2021 8%
17 October 11, 2021 8%
18 January 11, 2022 8%
19 April 11, 2022 8%
20 July 11, 2022 8%
Management
Discussion
And Analysis
SUBORDINATED MTN
BNI issued Subordinated Medium Term Notes (MTN) with the aim of strengthening its supplementary
capital (tier 2) and working capital in the context of business development, especially for loan
disbursements, and increasing the composition structure of long-term funding, in accordance with OJK
Regulation No. 11/POJK.03/2016 concerning Minimum Capital Requirement for Commercial Banks as
amended by OJK Regulation No. 34/POJK.03/2016.
This Subordinated MTN is not guaranteed by any special collateral, including not guaranteed by the
company or subsidiaries, the Republic of Indonesia or other third parties, and is not included in the
bank guarantee program in the deposit insurance agency, in accordance with applicable laws and
regulations, and following the provisions in Article 19 Paragraph (1) point f in pojk no. 11/pojk.03/2016
and is a subordinated liability of the company, in accordance with the provisions of the Subordinate MTN
issuance agreement. The rights of Subordinated MTN holders are junior to the rights of other corporate
creditors.
DESCRIPTION OF SUBORDINATION MTN OFFERED

The Subordinated MTN was issued in the amount of Rp 100,000,000,000.00 (One Hundred Billion
rupiahs) with a coupon payment period of 8% p.a every 3 months (quarterly), based on the interest
calculation of 30/360 with a tenor of 5 years.
Name : Medium Term Notes Subordinasi I BNI Tahun 2018
Principal Amount : Rp100,000,000,000 (one hundred billion Rupiah)
Bid Price : 100.00% from MTN Subordinasi principal value
Maturity : 5 (five) years from date of issue
Bond Interest Rate : 8.00% (eight point zero zero percent) per annum.
Type of Interest Rate : Fixed.
Interest Payment Period : Quarterly.
First Interest Payment Date : November 10, 2018.
Warranty : This Subordinated MTN is not guaranteed by any special collateral, including not guar-
anteed by the company or subsidiaries, the Republic of Indonesia or other third parties,
and is not included in the bank guarantee program in the deposit insurance agency, in
accordance with applicable laws and regulations, and following the provisions in Article
19 Paragraph (1) point f in pojk no. 11/pojk.03/2016 and is a subordinated liability of the
company, in accordance with the provisions of the Subordinate MTN issuance agree-
ment. The rights of Subordinated MTN holders are junior to the rights of other corporate
creditors at the time of liquidation in accordance with the applicable laws and regula-
tions.
Securities Rating : id
AA (double A flat) ) from PT Pemeringkat Efek Indonesia (Pefindo).
ANNUAL
REPORT 2018
GENERAL BOND OFFER (GLOBAL BOND) USE OF PUBLIC OFFERING PROCEEDS REALIZATION
TOTAL ACQUISITION FUND On November 25, 2010, at the Extraordinary General Meeting
On April 27, 2012, through the BNI London Branch, BNI of Shareholders (EGMS), the Shareholders decided to approve
issued bonds with a nominal value of US$500 million that will an increase in BNI’s issued and fully paid capital through a
mature on April 27, 2017. The bonds may be repaid in whole, Limited Public Offering III (PUT III) with the issuance of Pre-
but not in part, for the principal with deferred interest and emptive Rights (HMETD) amounting to 3,374,715,948 new C
unpaid interest, if any, at the option of the bonds issuer at any Series shares with a nominal value of Rp375 (full amount) of
time in the event of certain changes that could affect taxes each share. The Preemptive Rights can be traded inside and
in Indonesia. The bonds were issued at a price of 98.89% outside the Indonesia Stock Exchange (IDX) from December
equivalent to US$494.4 million and were registered with the 10, 2010 to December 16, 2010, taking into account the
Singapore Exchange Securities Trading Limited (SGX-ST). applicable provisions in the capital market sector.
From the total amount received of US$494.4 million, a total of
US$400 thousand was used for the cost of issuing the bonds. TOTAL EXTENSION OF FUNDS
From the PUT III, BNI obtained additional paid-in capital of
FUNDS USE PLAN Rp1,265,519 million and additional net shares after deducting
The net proceeds from the bonds issuance will be used by the issuance costs of shares, amounting to Rp245,231 million.
the Bank as an additional source of funding for the Bank’s
overseas branches, and for the Bank’s general funding FUNDS USE PLAN
purposes. These bonds were a direct, unconditional Funds sourced from the Rights Issue III were used for:
obligation (subject to the terms and conditions below), 1. 80% for corporate, medium-sized businesses, small
without guarantee from the Bank, and were rated as pari businesses and consumer loans
passu (unless there were certain legal provisions requiring 2. 15% for infrastructure development in information
preference), and were equivalent to unsecured liabilities that technology, outlets, ATMs and others
from time to time remain unpaid. 3. 5% for the development of subsidiaries, namely BNI Life,
BNI Syariah, BNI Securities and BNI Multi Finance.
There is no negative covenant in the Company’s trustee
contract with HSBC for the issuance of the Global Bond FUNDS BALANCE
securities, which would limit the Company from conducting a As of December 31, 2018, the proceeds from the Rights Issue
Sustainable Public Offering of Rupiah Sustainable Bonds. The III amounted to zero or in other words 100% of the funds had
company always adheres to the debt terms and conditions, been disbursed.
where semi-annual coupon payments are always made by
the Company on time.
FUNDS BALANCE
This debt matured on April 27, 2017.
INTEREST PAYMENT SCHEDULE OF BONDS

The interest rate of 4.13% per annum was paid every six
months on April 27 and October 27 each year, starting on
October 27, 2012.
Management
Discussion
And Analysis
AGM AGREEMENT DATE FOR AMENDMENT TO THE USE OF FUNDS

There has been no change in the use of funds from BNI Rights Issue III.
Actual Use of Funds from Limited Public Offering III
Realization of Funds Usage from Limited Public Offering III
Net Value of Public Offering Result Realization (net of expenses) Rp10,216,388,163,029
Realization of founds usage

About 80% is used for Corporate, Medium Enterprise, Small Business and Consumption Per 31 Desember 2014
distribution per December 31, 2014 Rp 8,173,110,530,423
About 15% is used for infrastructure development in information technology, outlets, ATMs Per 31 Desember 2014
and others Rp1,532,458,224,454,-
About 5% is used for the development of subsidiaries, they are BNI Life, BNI Syariah, BNI Per 31 Desember 2014
Sekuritas and BNI Multi Finance Rp510,819,408,152,-
Residual Fund Usage Nihil
DIVIDEND POLICY
DIVIDEND DISTRIBUTION POLICY

The annual dividend policy is determined through the approval of the General Meeting of Shareholders.
TOTAL DIVIDENDS DISTRIBUTED

In 2018, BNI distributed dividends from the Company’s net profit of Rp4,765,766,513,174.80 or Rp255.555488 per share, or
35% of the Company’s net income in 2017.
PENGUMUMAN DAN PEMBAYARAN DIVIDEN
Announcement and Payment of Dividend

Total
Dividend Per
Fiscal Dividend Date of Dividend
Share Pay Out Ratio
Year (billion Announcement Payment Date
(Rupiah)
Rupiah)
2017 4,765,76 255.555488 35% of 2017 net income March 20, 2018 April 20, 2018
2016 3,968,56 212.806849 35% of 2016 net income March 20, 2017 April 20, 2017
2015 2,266,64 122.533827 25% of 2015 net income 5 March 14, 2016 April 13, 2016
ANNUAL
REPORT 2018
MANAGEMENT AND/OR EMPLOYEE SHARE OWNERSHIP PROGRAM (ESOP/ MSOP)
PROGRAM OBJECTIVES Allocation of the first phase for employee was completed in
The employee bonus program is a program where Bank 2016, and employees entitled to be participants in the Bonus
shares are granted to employees who meet certain Share Program, were permanent employees as at October
criteria and requirements as stipulated in the Program 30, 2016 (Disclosure date). Employees declared eligible for
Implementation Guidelines. vesting were notified by email, or other communication
The purpose of this employee share bonus program is: media, which contained confirmation of the bonus shares
1. To establish long-term employee retention. entitlement and the vesting date.
2. To motivate employees to provide their best The vesting conditions were determined as follows:
performance. 1. Not undergoing cases and / or being subject to sanctions
3. To increase employees’ sense of belonging to the Bank. according to the applicable  Bank Personnel Regulations;
2. Has not terminated their employment relationship on
TOTAL ESOP OR MSOP SHARES AND REALIZATION their own accord; or
Taking into account point 4, letter a, number 3, of 3. Has not ended their employment relationship due to low
Regulation No. XI.B.2 jo. Article 9 of the OJK Regulation No. performance.
2/POJK.04/2013, a share buyback may be diverted / used
for the an Employee Stock Option Plan or employee Stock As of December 2018, 35,349,718 shares have been vested to
Purchase Plan, and the Company conducted a Disclosure of 20,289 employees.
Information on May12,2016 stating that they will conduct the
transfer of Series C shares through a buyback Shareholding TIME PERIOD
Program, for the Company’s Management and Employees, in The share bonus allocation will be conducted over 3 (three)
the form of Bonus shares (hereinafter referred to as “Bonus years between 2016 - 2018, with periodic vesting of stock.
Shares Program “). 1. The terms for the share bonus allocation and vesting
requirements for employees covers other performance
Supervision of the Shares Bonus Program is carried out and administrative requirements based on internal
by the Company’s Board of Directors and reported at the company requirements.
Company’s General Meeting of Shareholders closest to the 2. Vesting will be conducted periodically based on position
implementation of the program. level at the end of January, April and July 2017 - 2019.
The bonus shares allocation to members of the Board of EMPLOYEE OR MANAGEMENT REQUIREMENTS
Directors, and the Board of Commissioners, is in accordance The Bonus Shares Program became part of the remuneration
with the Minister of State-Owned Enterprises Regulation No. pursuant to the Ministry of State Owned Enterprises
Per-04/MBU/2014 concerning Guidelines for Determination Decree No. Per-04/MBU/2014 concerning Guidelines for
of Board of Directors, Board of Commissioners and Board of Determination of Board of Directors, Board of Commissioners
Trustees of State Owned Enterprises, and was conducted and Board of Trustees of State Owned Enterprises, in the form
after the Company obtained approval from the General of long-term rewards where the shares repurchased were
Meeting of Shareholders / Ministry of SOEs. Based on the allocated to:
Minutes of AGMS No. 8 dated March 10, 2016, the allocation 1. Employees as a bonus for achievement of company
of bonus shares to members of the Board of Directors and performance, and
Board of Commissioners was carried out after obtaining the 2. Members of the Board of Directors, and the Board of
approval of the Minister of SOEs. Commissioners as part of the bonus for the fiscal year
concerned.
Ministry of SOE Letter No. S-574/MBU/D5-06/2018 dated June
5, 2018 fixed the determination Long Term Incentive (LTI) at
10% of the Board of Directors and Board of Commissioners
Tantiem for Fiscal Year 2017. LTI is given in the form of shares
deferred for three years or until the end of the term of office.
This provision is not given to Independent Commissioners,
where LTI is given in cash where the payment is deferred for
three years or until the end of the term of office.
Management
Discussion
And Analysis
EXERCISE PRICE
Referring to the Financial Services Authority Regulation (OJK) No. 02/POJK.04/2013 dated August 23,
2013 concerning Repurchase of Shares Issued by Issuers or Public Companies in Significantly Fluctuating
Market Conditions, and No. 5/SEOJK.04/2017 concerning Revocation of SEOJK No. 22/SEOJK.04/2015
concerning Conditions Other than Significantly Fluctuating Market Conditions in the Implementation of
Share Buy Back Issued by Issuers or Public Companies, BNI conducted repurchases of Company’s shares
that had been issued and listed on the Indonesian Stock Exchange (Buy Back) .BNI appointed PT BNI
Sekuritas as the institution conducting the repurchase of the Company’s shares to purchase shares over a
period of three months, starting from November 2, 2016 to December 28, 2016.
The number of shares bought back was equal to 0.8% of the issued and fully paid, or 150,537,500 shares.
The Company’s repurchased shares amounted to Rp749,979,275,500.00 (maximum of 750 billion rupiah)
and the average Buyback price amounted to Rp4,982.00 per share. After the Company shares repurchase,
the Company conducted a Disclosure of Information on October 30, 2016.
These repurchased shares were redistributed to employees who met the criteria, with an exercise price of
Rp4.982,00 per share.
LOANS BASIC LENDING RATE
Bank Indonesia requires all Commercial Banks conducting conventional business activities in Indonesia
report and publish their Basic Lending Rate (BLR) in Rupiah. This was in accordance with POJK No. 6/
POJK.03/2015 concerning Transparency and Publication of Bank Reports as amended by POJK No. 32/
POJK.03/2016 and Bank Indonesia Regulation Number 7/6/PBI/2005 concerning Transparency of Bank
Product Information and Use of Customer Personal Data (State Gazette of the Republic of Indonesia of
2005 Number 16, Supplement to the Republic of Indonesia State Gazette Number 4475).
The application of information transparency on prime lending rates (PLR) is one of the efforts to
provide clarity to customers and enable customers to weigh the benefits, costs and credit risk offered
by the Company. In addition, the PLR also seeks to improve good governance and encourage healthy
competition in the banking industry, including through the creation of better market discipline.
The PLR is also required as an indicator of the loan interest rate to be applied to customers applying for
loans from the Company. In such cases, BNI always republishes its PLR, in accordance with the reference
rate movement stipulated by Bank Indonesia. In general, the PLR is calculated based on 3 (three)
components, namely Cost of Funds for Loans arising from customer fund raising activities, operating
expenses incurred for fund raising activities, and lending and profit margin components set by the
Company in its lending activities. The PLR calculation does not take into account the risk premium
component of the borrower, which depends on an assessment of the risk of each borrower. Therefore the
loan interest rate charged to the borrower is not necessarily the same as the PLR.
BNI are required to report PLR calculations to Bank Indonesia on a monthly basis, and periodically
publish them in the wider media. The PLR calculation applies to corporate loans, retail loans, microcredit,
and consumer loans (mortgages and non-mortgages). Bank Indonesia submits the classifications for
corporate loans, retail loans and consumer loans (mortgages and non-mortgages) based on internal
criteria used by the bank.
ANNUAL
REPORT 2018
When determining the PLR, the Company always considers the changing regulatory policies. In 2016, OJK issued Letter No.S-
18/D.03/2016 concerning Maximum Interest Rates. In the letter, OJK also submitted a directive to lower lending rates gradually
until they reached single digits by the end of 2016. Related to this, the Company was committed to lowering its loan interest
rate incrementally, which can be seen in the PLR ratio in 2016 and the average PLR in 2015 as follows:
(% per year)
Prime Lending Rate
Based on Business Segment
Consumer Loans
Corporate
Retail Loans Micro Loans
Loans KPR Non KPR
Suku Bunga Dasar Kredit (Prime Lending Rate) 9,95 9,95 N/A 10,50 12,50
SIGNIFICANT CHANGES IN THE BANK AND BANK GROUP IN THE CURRENT YEAR
There were no significant changes that occurred in the Bank and the Bank Group up to December 2018 that affected BNI’s
financial position.
INVESTMENTS, EXPANSIONS, DIVESTMENTS, ACQUISITIONS, OR DEBT AND CAPITAL RESTRUCTURING

MATERIAL INFORMATION
INVESTMENTS
During 2018, BNI did not engage in investment activities.
EXPANSIONS
During 2018, BNI did not engage in expansion activities.
DIVESTMENTS
During 2018, BNI did not engage in divestment activities.
ACQUISITIONS
During 2018, BNI did not engage in acquisition activities.
DEBT AND CAPITAL RESTRUCTURING

During 2018, BNI did not engage in debt and capital restructuring activities.
Management
Discussion
And Analysis
TAX
CONTRIBUTION TO THE STATE
BNI’s contribution to the State includes fulfilling its obligations as a taxpayer, and as a tax
collector. As a taxpayer, the largest contribution is to fulfill its corporate tax obligations. As
a tax collector, BNI plays an active role in deducting taxes on all taxable items. BNI is always
on time in paying its tax obligations for Corporate Tax, Employee Income Tax, VAT, and Land
and Building Tax. BNI also submits annual and monthly tax returns, as well as obligatory
documents to regulatory agencies in a timely manner. Corporate income tax payments in
2018 amounted to Rp5.0 trillion an increase of 57.2% compared to Rp1.8 trillion in 2017.
ANNUAL
REPORT 2018
Contribution to the State, Excluding Dividends

2017 Growth Growth
2018 2016
2017-2018 2016-2017
No Type of Tax
(Billion Rp) (Billion Rp) (Billion Rp) (%) (%)
1 PPN 377 348 366 (55.1) (4.9)

2 PPh 3,634 3,254 2,316 (5.4) 40.5
3 PPh Badan 5,829 3,211 2,791 57.2 15
4 Other Tax 78 86 2 (17.6) 4.150
Total 7,918 6,898 5,475 (20.9) 4,200.6
TAX CHARGES
On February 5, 2018, BNI received an underpayment tax assessment letter (SKPKB) related to PPh 21 Income Tax, PPN and a Tax
Collection Letter (“STP”) for fiscal year 2015 amounting to Rp74.9 billion (including penalties). On March 2, 2018, BNI made a
full payment of the SKPKB and did not file any objection to the Directorate General of Taxes.
On June 15, 2017 BNI received a tax assessment letter related to underpayment (SKPKB) PPh Badan, PPN, PPh pasal 21, PPh
pasal 22, PPh pasal 23, PPh Pasal 26, PPh pasal 4 ayat (2) and a Tax Collection Letter ( “STP”) for fiscal year 2014 amounting to
Rp145.3 billion (including penalties). On July 14, 2017, BNI made full payment of the SKPKB and did not file any objection to
the Directorate General of Taxes.
TAX LEGAL ISSUES
On February 5, 2018, BNI has received a tax assessment letter related to underpayment (SKPKB) for PPh Badan for fiscal year
2015 amounting to Rp2.5 trillion (including penalties) and approved by BNI in the amount of Rp162.1 billion. On March 2, 2018,
BNI paid a portion of the SKPKB amounting to Rp1.8 trillion. On May 4, 2018, BNI submitted an objection letter related to the
SKPKB, to the Directorate General of Taxes. As of the date of these consolidated financial statements, the Directorate General
of Taxation has not issued a decision regarding the objection letter submitted by BNI. The Bank believes that the objection or
appeal submitted will be granted so the Bank has not made a reserve for the SKPKB.
On December 16, 2014, BNI received an SKPKB for PPh Badan for fiscal year 2013 amounting to Rp619.8 billion (including
penalties). On December 30, 2014, BNI paid the SKPKB in full. On March 12, 2015, BNI submitted an objection letter to the
Directorate General of Taxes regarding the SKPKB for PPh Badan. On March 7, 2016, BNI received a letter from the Directorate
General of Taxation refusing the objection to the PPh SKPKB. After the decision to reject the objection, on June 3, 2016, BNI
submitted an appeal against the objection to the Tax Court. In January 2018, BNI received a copy of the Tax Court’s decision
that rejected BNI’s appeal.
Based on information on the official Supreme Court website on October 25, 2018, the panel of judges rejected the request for
a review from BNI. The Bank has transferred the estimated income tax bill to the current tax expense for the current year.
On November 28, 2012, BNI received an Underpayment Tax Assessment Letter (“SKPKB”) for PPh Badan for fiscal year 2010
amounting to Rp1.6 trillion (including penalties). On December 26, 2012, BNI made a partial payment of the SKPKB for PPh
Badan of Rp9,798. On February 19, 2013, BNI submitted an objection letter to the Directorate General of Taxes regarding the
remaining SKPKB for PPh Badan. On February 26, 2013, BNI made a partial payment for the remaining SKPKB for PPh Badan
amounting to Rp816.9 billion. On February 21, 2014, BNI received a letter from the Directorate General of Taxation which
refused the objection to the Agency’s SKPKB for PPh Badan. On May 16, 2014, BNI submitted an appeal against the objection to
the Tax Court. On March 16, 2016, the Tax Court read out an appeal decision that granted BNI’s appeal.
Management
Discussion
And Analysis
On April 8, 2016, BNI received a copy of the appeal decision. The payment of Rp816.9 billion for the
SKPKB has been transferred to PPh Pasal 29 PPh Badan for the 2015 tax year, PPh Pasal 25 for April, May,
and June 2016.
The Directorate General of Taxes filed a Judicial Review on June 28, 2016 with the Supreme Court
through the Tax Court on the Tax Court Decision on March 16, 2016. In relation to the receipt of the
Recognition Memory, BNI provided a response in the form of Counter Memory Review back to the
Supreme Court by letter dated May 9, 2017 stating that the Tax Court’s decision was clearly in accordance
with the provisions of the applicable legislation. Based on the Supreme Court Decree dated August 30,
2017, the panel of judges has rejected the request for a review of the Directorate General of Taxes.
ASSUME TAX PAYMENTS
BNI has paid off all tax assessments as a result of audits due for payment as described earlier in the
discussion of Tax Law Issues. Although BNI is still in the process of filing legal remedies against the
provisions of the Director General of Taxes, BNI always pays more than is required in the tax provisions.
So that in terms of BNI the tax is not in arrears. For the 2015 corporate income tax assessment amounting
to Rp2.5 trillion, BNI has agreed to part of the audit tax assessment amounting to Rp162 billion, while
for the remaining underpayment amounting to Rp2.3 trillion, BNI has filed an legal objection and has
appealed. If the Objection is rejected, the tax provisions that are still in the legal process, in accordance
with the applicable tax laws, will become state receivables or BNI tax payable up to the provisions
approved by BNI in the amount of Rp162 billion, while the remaining tax of Rp.2.3 the bill will be
suspended up to 1 (one) month from the date of issuance of the Appeal Decision from the Tax Court.
Nonetheless, BNI has made payments totaling Rp1.8 trillion in approved provisions as well as most of the
unapproved tax assessments.
Based on Article 27 paragraph (5a) jo. Article 25 paragraph (7) Law No 6 of 1983 stdd. Law No. 16 of 2009
concerning General Provisions and Tax Procedures, it states that in the case of Taxpayers filing an appeal,
the tax repayment period for the amount of tax that has not been paid at the time of filing an objection
is up to 1 (one) month from the date of issuance of the Appeal Decision.
ANNUAL
REPORT 2018
TRANSFER PRICING
DOCUMENT
RANSFER PRICING DOCUMENT
Minister of Finance (PMK) Regulation No.213/PM.03/2016 sets the types of documents and / or
additional information required to be made and kept by Taxpayers transacting with related parties,
and the Management procedures.
This regulation aims to improve the quality of documents prepared by taxpayers and to increase
transparency. Taxpayers also need to be more proactive to ensure that the information needed to
prepare the master documents and local documents is available and complies with the applicable
regulations. PT Bank Negara Indonesia, Tbk (BNI) as an obedient taxpayer, who is compliant with all
existing tax regulations, complies with this regulation.
Management
Discussion
And Analysis
INTRODUCTION ACCESS TO FINANCIAL INFORMATION RELATED TO

The Ministry of Finance issued a new regulation that requires TAXATION
taxpayers to prepare transfer pricing documentation (TP
Doc). These new TP Doc regulations complement the PRELIMINARY
provisions related to the principle of fairness, and the The Automatic Exchange of Financial Account Information or
prevalence of business transactions involving parties with (AEOI) is a plan from the G20 countries, and initiated by the
special relationships. Organization for Economic Cooperation and Development
(OECD), regarding a system to support the exchange of
Based on the definition in Article 1 point 6 PMK-213/ information on taxpayer accounts between countries.
PM.03/2016 mentioned, the transfer pricing document With this system, taxpayers who have opened accounts in
is a document that is held by the taxpayer as the basis of other countries will be able to be tracked directly by the
applying the fairness principle and business practice in tax authorities of their home countries. AEOI new global
determining the transfer price made by the Taxpayer. standards will later be useful in reducing the chances of tax
payment avoidance.
This was issued in accordance with the provisions of the
transfer pricing document, and shall not supersede the AEOI’s system works as an exchange of financial data of
applicable rules to govern the principle of fairness and foreign nationals living in a country. Exchange of financial
business practices, that is The Director General of Taxes data is not conducted carelessly, but is carried out between
Regulation No. PER-43/PJ/2010 (amended by The Director the authorized tax authorities in each country. Every country
General of Taxes Regulation No. PER-32/PJ/2011) that has joined the AEOI system will send and receive pre-
agreed information annually without having to submit any
TYPE OF DOCUMENTS THAT HAVE TO BE RETAINED special request.
Based on these regulations, taxpayers are required to hold
and store 3 (three) levels of documents consisting of: In Indonesia by using AEOI, the Directorate General of
Taxation can supervise and explore any tax potential
1. Master Documents; through banking or other financial institutions transactions
2. Local Documents; and conducted by overseas taxpayers, as if it applies to domestic
3. Country Report. taxpayers. This is done to strengthen the database, which
has experienced limited access, so that the state revenue
Transfer pricing documents above must be submitted in potential from the tax sector can be maximized.
Bahasa Indonesia. However, a Taxpayer who has obtained a
license to maintain bookkeeping in a foreign language and a SCOPE
non-Indonesian currency may create a document in English In accordance with Law No. 9 of 2017 concerning
accompanied by a transfer pricing document in Bahasa Determination of Government Regulations Substituting
Indonesia Law Number 1 of 2017 concerning Access to Financial
Information for Taxation Interests, the scope of access to
SUBJECTS REQUIRED TO MAKE TP DOC financial information is divided into 2 (two), namely:
Parties that must prepare TP Docs fall into 2 (two) groups, 1. Exchange of information for the benefit of International
namely: Agreements or Foreign Customers
1. Those required to make master documents and local 2. For the purposes of Domestic Taxation or Domestic
documents; and Customers in the context of implementing the Taxation
2. Those required to make master documents, local Regulations.
documents and country reports.
IMPACT OF REGULATIONS ON THE COMPANY

In the case of applying the Transfer Pricing regulation, BNI
has disclosed the transactions with its subsidiaries and other
related parties in accordance with the prevailing regulations.
In terms of carrying out arms length transactions, or fairness
of BNI transactions with related parties, the company uses
the services of a Delloite public accountant to conduct an
assessment. Based on the assessment results conducted, all
BNI transactions conducted with related parties have met
the set reasonableness limit.
ANNUAL
REPORT 2018
REPORTING SUBJECTS AND FINANCIAL INFORMATION PROVIDERS

Based on Law No. 9 of 2017, Financial Institutions (LK) that are required to report include:
FINANCIAL INSTITUTIONS BY SECTOR

Banking Capital market Insurance Commodity Futures Cooperatives
Trading
1. Commercial Bank 1. Underwriting 1. .General and Sharia 1. Futures Broker Koperasi Simpan Pinjam
2. BPR 2. Securities Brokerage Insurance Companies 2. Futures Broker Clear-
3. Islamic Bank (PPE) 2. Sharia Life and Life ing Member
3. Investment Manager Insurance Company
(MI) 3. Sharia Reinsurance
4. Custodian Bank and Reinsurance
5. Administrative Company
Bureau
NATURE OF FINANCING INFORMATION

Based on Law No. 9 of 2017, the method of providing financial information is divided into 2 (two), namely:
1. 1. Automatic
Reporting of financial information that is managed for 1 (one) calendar year automatically (without being asked). Financial
institutions reporting financial account reporters, identify financial accounts that must be reported by applying the
identification process to submit financial information reports. Based on Law No. 9 of 2017, there are 5 (five) data elements
to be exchanged including:
a. a. Identity of financial account holders
b. b. Financial account number
c. c. Identity of the reporting financial institution
d. d. Balance or financial account value
e. e. Income related to financial accounts.
Financial Accounts that must be reported automatically by Financial Institutions:

a. Banking Sector (savings)
i. Domestic Customers
-- owned by an individual, with an aggregate balance of at least Rp1 billion (one billion Rupiah);;
-- owned by the entity, without a minimum balance limit;
ii. Foreign Customers
-- financial account worth US$250,000 (two hundred fifty thousand United States Dollars)
b. Insurance Sector (policy) insurance coverage of at least Rp1 billion (one billion Rupiah);
c. Cooperative Sector (deposits) with an aggregate balance of at least Rp1 billion (one billion Rupiah);
d. Capital Market Sector (securities) and Commodity Futures Trading (deposit margin) without a minimum balance limit
2. Request by the Directorate General of Taxes
Financial information reporting based on a Directorate General of Taxes request that has the authority to request
information and / or evidence or information, in addition to information from automatic reports, to financial institutions.
Financial institutions must provide information and / or evidence or information requested by the DGT for a maximum of
1 (one) month after the request is received that at least should contain:
a. Information or evidence or information requested
b. Format and form of request requested
c. Reason for the request
IMPLEMENTATION IN BNI
Following up on the regulation on financial data information access, BNI has participated as a form of compliance for
accessing financial information by sending customer data based on criteria that must be reported at the end of each year
starting in 2018 to the Directorate General of Taxes.
Management
Discussion
And Analysis
FOREIGN ACCOUNT TAX COMPLIANCE ACT

(FATCA)
FATCA is a regulation issued by the US Treasury Department and Internal Revenue Service (“IRS”) to prevent tax evasion by US
citizens or companies (US persons) for funds or businesses kept outside the United States.
ANNUAL
REPORT 2018
Related to FATCA, the steps that BNI has taken include:
Then through POJK No.25/POJK.03/2015 dated December 11, 2015 concerning Foreign Customer Information Submission
Related to Taxation with Partner Country or Partner Jurisdiction, BNI committed to complying with the FATCA regulation,
and was registered with the IRS as a financial institution that would implement the FATCA regulation. Currently compliance
with the FATCA regulation is part of BNI’s Customer Due Diligence process and has been implemented since July 1, 2017.The
Bank reporting related to the POJK was reported at the end of April 2018 for domestic taxes, while to purposes of the first
International agreement was reported in early August 2018.
Management
Discussion
And Analysis
OTHER MATERIAL
INFORMATION
OTHER MATERIAL INFORMATION

There was no significant material information and facts after the date of the auditor’s
report that influenced BNI’s financial position as of December 31, 2018.
OTHER SIGNIFICANT TRANSACTIONS OF A SIGNIFICANT AMOUNT

During 2018, there were no significant transactions of a significant amounts conducted
by BNI.
ISO 9001:2015
Repair is relentless and as one of BNI’s cultural work values, BNI encourages everyone to
always make improvements. One such cultural work value is the quality management
system ISO 9001: 2015, when preparing the Financial Report (FR). ISO 9001: 2015
ensures that the BNI CGC meets regulators, external parties, and BNI management
expectations and is accurate, timely, and in accordance with regulatory provisions.
Efforts have been taken by BNI to develop procedures, documentation, and employee
development for those involved in preparing the CGC, as well as systems and working
environment improvements, to meet ISO 9001: 2015 requirements. In September 2016,
the process for preparing the BNI CGC was officially recognized by ISO 9001: 2015.
Every 3 (three) months, surveillance audits are conducted related to the

implementation of ISO 9001: 2015, and during 2018 2 surveillance audits were
conducted with satisfactory results.
ANNUAL
REPORT 2018
SIGNIFICANT CHANGES IN LAWS AND REGULATIONS AFFECTING THE BANK
The changes to several laws and regulations in 2018 and their affect on Bank BNI are described in the following table:
Regulation Changes and Affect on BNI and Subsidiaries Performance

Affect on BNI and
No. Regulation Regulation Description
Subsidiaries
1. PBI No. 20/3/PBI/2018 1. Fulfillment of Rupiah MSR for BUK of 6.5% (six point five percent) for BUK Deposits in 1. Maintaining Rupiah MSR
Regarding Statutory rupiah during a certain reporting period: that must be fulfilled on
Reserves in Rupiah a. Daily basis of 4.5% (four point five percent); and a daily basis at 4.5% (four
and Foreign Exchange b. An average of 2% (two percent) point five percent) and
for Conventional effective July 16, 2018. on average at 2% (two
Commercial Banks, percent) during certain
Sharia Commercial 2. Fulfillment of Foreign Exchange MSR for BUK of 8% (eight percent) for BUK TPF in periods starting July 16,
Banks, and Sharia foreign currencies during a certain reporting period: 2018.
Business Units a. Daily basis of 6% (six percent); and 2. Maintaining Foreign
b. An average of 2% (two percent). Exchange MSR that must
effective October 1, 2018 be fulfilled on a daily basis
at 6% (six percent) and
PADG No. 20/10/ 3. Fulfillment of Statutory Reserves in points 1 and 2 above are calculated by comparing on average at 2% (two
PADG/2018 the position of the Demand Deposit account balance at BI at the end of the day in 2 percent) during certain
Regarding Statutory (two) reporting periods to the daily average number of TPF in the 2 (two) reporting periods starting October
Reserves in Rupiah periods at 4 (four) previous reporting periods. 1, 2018
and Foreign Exchange 3. Updating the PP Work
for Conventional 4. BI provide checking services every day for a certain portion of the fulfillment of Statu- Procedure of the Treasury
Commercial Banks, tory Reserves in BUK rupiah. The giro service is given at an interest rate of 0% (zero per- Division Procedure Fund-
Sharia Commercial cent) per year. Changes in the amount of demand deposit services will be determined ing And Gapping Group
Banks, and Sharia by PADG. Chapter, Provisions for Im-
Business Units plementation Sub-Section,
5. Adjustment of the sanction provisions for BUK, related to the application of the aver- for Funding and Gapping
age Statutory Reserves for MSR in BUK foreign currency to 2 (two) types of sanctions, Management Sub-Section.
namely sanctions for the fulfillment of daily Statutory Reserves and sanctions for meet-
ing the average Statutory Reserves.
2. PADG No. 20/11/ 1. Completion of the Loan to funding Ratio (LFR MSR) Statutory Reserves into the Macro-
PADG/2018 prudential Intermediation Ratio (RIM); 1. The first report on
Regarding 2. Criteria for corporate securities (SBK) held by the Bank in rupiah and foreign currencies Corporate Securities (SBK)
Macroprudential are used as the basis for calculating RIM or Sharia RIM owned and issued by
Intermediation Ratio 3. Criteria for securities (SB) issued by the Banks in rupiah and foreign currencies, are used the Bank for the monthly
and Macroprudential as the basis for calculation of RIM or Sharia RIM; position:
Liquidity Buffer 4. Completion of Secondary Minimum Requirement Current Account (Second- a. May 2018, by BUK
for Conventional ary MSR) to be a Macroprudential Liquidity Buffer (PLM) provided that: no later than 10 (ten)
Commercial Banks, a. PLM BUK must be a minimum of 4% (four percent) of TPF BUK in rupiah working days after
Sharia Commercial b. PLM Sharia must be a minimum of 4% (four percent) of TPF BUS in the end of the report-
Banks, and Sharia
rupiah. ing month.
Business Units
5. 5. The PLM and Sharia PLM compliance obligations are regulated as follows: b. August 2018, by BUS
PADG No. 20/11/ a. PLM is fulfilled in the form of: and UUS no later
PADG/2018 • SB in rupiah owned by BUK to be used in monetary operations; and than 10 working
Regarding • SBS in rupiah held by UUS to be used in sharia monetary operations, for BUK days after the end
Macroprudential that have UUS; and of the reporting
Intermediation Ratio b. Sharia PLM is fulfilled in the form of SBS in rupiah owned by BUS to be month.
and Macroprudential used in sharia monetary operations. 2. The obligation to fulfill the
Liquidity Buffer RIM Current Account came
for Conventional into force on July 16, 2018.
Commercial Banks, 3. The obligation to fulfill
Sharia Commercial the RIM Syariah Current
Banks, and Sharia Account took effect on
Business Units as October 1, 2018.
amended several times,
the latest by PADG
No.20/33/PADG/2018
Management
Discussion
And Analysis
Affect on BNI and

Subsidiaries
3. PBI No. 20/6/PBI/2018 1. Based on the scope of operation, Electronic Money (EM) can be divided into:
a. closed loop, which is EM that can only be used as an instrument of payment to the 1. Submitting a statement
Regarding Electronic Provider of Goods and / or Services that constitutes the EM Issuer; and and representation and
Money b. open loop, which is EM that can be used as an instrument of payment to a Provider warranties as referred to in
of Goods and / or Services that is not an EM Issuer. Article 14 no later than 6
2. 2. EM as referred to in paragraph (1) can be distinguished based on: (six) months after this PBI
a. EM Value storage media in the form of: comes into force.
• server based, namely EM with storage in the form of servers; and 2. Ensuring the suitability
• chip based, namely EM with chip storage media; and of Electronic Money im-
b. recording User identity data in the form of: plementation within the
• unregistered, i.e. EM whose User identity data is not registered and is not provisions as stipulated in
registered with the Issuer; and the PBI.
• registered, i.e. EM whose User identity data is registered and regis-
tered with the Issuer.
3. EM management permits and approvals, including, obligations and grouping of per-
mits, general feasibility requirements and aspects, permits and approvals submitting
and processing application procedure, capability and propriety appraisal; shareholder
control, permit evaluation; and licensing and approval policies; i.e. operators must
submit written statements and representations and guarantees to Bank Indonesia.
4. 4. statement and guarantee is submitted and signed by the board of directors author-
ized to represent the Bank or Institutions other than Bank and must be accompanied
by a statement from an independent and professional legal consultant based on legal
due diligence.
5. 5. The EM implementation includes the application of risk management, informa-
tion system security standards, EM transaction processing in the Indonesian territory,
interconnection and interoperability, the application of anti money laundering and
prevention of terrorism funding, the application of consumer protection principles, the
implementation of EM activities, and the implementation of Digital Financial Services
(DFS);
a. The limit on the amount of EM that can be deposited is determined as follows:
• for unregistered EM a maximum of Rp2,000,000.00 (two million rupiah); and
• for registered EM no more than Rp10,000,000.00 (ten million
rupiah).
b. The amount limit for EM transactions in 1 (one) month is no more than
Rp20,000,000.00 (twenty million rupiah).
ANNUAL
REPORT 2018
Affect on BNI and

Subsidiaries
4. PBI No. 20/8/PBI/2018 1. Ratio adjustment and LTV tiering for Property Loans (PL) and ratio and tiering for Prop- Adjustment of BNI's internal
erty Financing (PF) for the first facility, second facility, third facility and so on, for banks policies and procedures by
Regarding Loan to Value that meet or do not meet the following requirements: referring to the provisions of
Ratios for Property a. The ratio of net problem loans is less than 5% (five percent); and the PBI.
Loans, Financing b. The ratio of problematic PL or the PF ratio is grossly problematic at less than 5%
to Value Ratios for (five percent).
Property Financing, and 2. Provision of top up by BUK in addition to the previous PL using the previous PL LTV
Advances for Vehicle Ratio as long as the top up uses the same collateral and the previous PL has current
Loans or Financing quality, if it does not use the same collateral and / or the previous PL did not have cur-
rent quality, the additional loan (top up) uses the LTV ratio for PL as a new loan.
3. For PL and take over PF with additional loan (top up) or accompanied by new financing
using the LTV PL Ratio or the same FTV PF ratio as long as the PL or PF has current qual-
ity as referred to in item 2 above .
4. PLs or PFs for property ownership that are not yet fully available are set to a maximum
of 5 (five) facilities and are obliged to withdraw PL or PF in stages with the following
conditions:
Disbursement of
No Stages
PL or PP
a. ≤ 30% of the limit After signing the PL without the need for an assessment of
development progress
b. ≤ 50% of the limit After the first stage b until completion, based on
development progress assessment *)
c. ≤ 90% of the limit After first stage b. until completion of the limit based on the
development development assessment *)
d. 100% of the limit After the signing of the handover minutes, completed with a
sale and purchase deed and deed of assignment of mortgage
rights or a power of attorney imposing mortgage rights
*) must be based on development progress reports from:

a. developer with verification from the Bank's internal appraiser; or
b. independent appraiser
5. The procedure for valuing collateral is determined as follows:
a. for PL or PF given with a ceiling of up to Rp 5,000,000,000.00 (five billion rupiahs),
the collateral value is based on estimates made by the Bank's internal appraiser or
independent appraiser; and
b. for PL or PF given with a ceiling above Rp 5,000,000,000.00 (five billion rupiah), the
collateral value is based on estimates made by an independent appraiser.
6. Banks that provide KKB or PKB must fulfill the following conditions for Advances:
Type of vehicle Down payment

2 wheel ≤ 20%
3 wheel / not intended for productive activities ≤ 25%
7. The provisions in point 6 above apply to banks that meet the following requirements:
a. The ratio of gross problem loans is less than 5% (five percent); and
b. The ratio of KKB is problematic or the PKB ratio is grossly problematic at less than
5% (five percent).
8. In the event that a Bank does not meet the requirements as referred to in point 7, the
Bank must fulfill the following conditions for Advances:
Type of vehicle Down payment

2 wheel ≤ 20%
3 wheel / not intended for productive activities ≤ 30%
9. In the event that a Bank provides a KKB or PKB for the purchase of three-wheeled or
more motorized vehicles intended for productive activities, the Bank must meet the
following conditions:
a. provide KKB or PKB with a down payment of at least 20% (twenty percent); and
b. meet the following requirements:
• is a vehicle that has permission to transport people or goods issued by the
authorities; or
• submitted by individuals or legal entities that have business licenses issued
by the authorities that support the operational activities of their businesses.
Management
Discussion
And Analysis
Affect on BNI and

Subsidiaries
5. POJK No. 2/ 1. OJK has established a Systemic Banks and Capital Surcharge to coordinate BNI is required to monitor the
POJK.03/2018 with BI, for every semester in: Systemic Bank bucket category
a. March by using the position data for December of the previous year; and that will be notified in writing
Regarding Systemic b. September using the position data for June of the current year. by the OJK and provide Capital
Bank Determination and 2. The OJK sends a written notification to the Bank as a Systemic Bank and the Surcharge in accordance with
Capital Surcharge the bucket determined by OJK.
Capital Surcharge amount required by the Systemic Bank.
3. The methodology for determining the systemic bank uses an indicator of
bank size, complexity of business activities, and its interconnectedness with
the financial system.
4. 4. Capital Surcharge must be fulfilled by using the main core capital (Com-
mon Equity Tier 1), the amount of which is set in 5 (five) buckets as follows:
a. 1.0% (one point zero percent) of Risk Weighted Assets (RWA) for Sys-
temic Banks classified in bucket 1 (one);
b. 1.5% (one point five percent) of RWA for Systemic Banks classified in
bucket 2 (two);
c. 2.0% (two point zero percent) of RWA for Systemic Banks classified in
bucket 3 (three);
d. 2.5% (two point five percent) of RWA for Systemic Banks classified in
bucket 4 (four); and
e. 3.5% (three point five percent) of RWA for Systemic Banks classified in
bucket 5 (five).
5. 5. Establishment of Capital Surcharge is carried out with the following
stages:
a. a. for Systemic Banks classified in bucket 1 (one), amounting to:
• 0.75% (zero point seven five percent) of RWA after this OJK Regula-
tion came into force; and
• 1.0% (one point zero percent) from RWA after January 1, 2019;
b. b. for Systemic Banks classified in bucket 2 (two), amounting to:
• 1.125% (one point one two five percent) from ATMR after this OJK
Regulation came into force; and
• 1.5% (one point five percent) from RWA after January 1, 2019;
c. c. for Systemic Banks which are classified in bucket 3 (three), amounting
to:
• 1.5% (one point five percent) of RWA since this OJK Regulation
came into force; and
• 2.0% (two point zero percent) from RWA after January 1, 2019;
d. d. for Systemic Banks classified in bucket 4 (four), amounting to:
• 1.875% (one point eight seven five percent) of RWA since this OJK
Regulation came into force; and
• 2.5% (two point five percent) from RWA after January 1, 2019;
e. for Systemic Banks classified in bucket 5 (five), amounting to 3.5% (three
point five percent) after January 1, 2019.
ANNUAL
REPORT 2018
Affect on BNI and

Subsidiaries
6. POJK No. 12/ 1. Electronic Banking Services (EBS) is a service for Bank customers to obtain 1. When conducting DBS,
POJK.03/2018 information, communicate, and conduct banking transactions through BNI must form a unit or
electronic media. function in charge of host-
Regarding 2. Digital Banking Services (DBS) are EBS that are developed by optimizing the ing the DBS.
Implementation of use of customer data in order to serve customers more quickly, easily, and 2. BNI is required to guided
Digital Banking Services by the the POJK if it will
according to needs (customer experience), and can be carried out indepen-
by Commercial Banks has an EBS or DBS.
dently by customers, taking into account security aspects.
3. Banks may hold EBS or DBS and must apply risk management, prudential
principles, and fulfill the provisions in POJK.
4. The Bank is required to include the EBS product issuance plan or plan for the
implementation of the DBS by the Bank and / or by the Bank Partner in the
Bank's business plan.
5. Banks that issue transactional EBS products or have plans to implement DBS
must obtain approval from OJK.
6. Requests for EBS or DBS approval must be submitted to OJK no later than 2
(two) months prior to implementation.
7. The bank holding the DBS is obliged to establish a unit or function in charge
of managing the DBS.
8. In conducting business relationships with customers or prospective custom-
ers through the DBS, Banks are required to identify and verify information
and supporting documents for customers or prospective customers.
9. Verification of information and supporting documents for customers or
prospective customers is carried:
a. Face to face:
• Directly (face to face); or
• Using Bank-owned software with Bank-owned hardware or hard-
ware belonging to customers or prospective customers; and / or
b. Without going through face-to-face but using the Bank's software with
Bank's hardware or hardware belonging to customers or prospective
customers.
10. In conducting verification with hardware and / or software, the Bank must
pay attention and apply at least 2 (two) authenticity factors (two factor
authentication).
11. In the event that the Bank verifies without face to face, Banks must apply
characteristic factors (what you are) as one of 2 (two) authenticity factors
(two factor authentication).
7. POJK No. 18/ 1. The Complaint Services consists of:
POJK.07/2018 a. Complaint Receipt; 1. Adjusting internal policies
b. Complaint Handling; and and procedures by refer-
Regarding Consumer c. Complaint settlement ring to the POJK.
Complaint Services in 2. PUJK are prohibited from charging Complaint Services to Consumers. 2. Publishing brief pro-
the Financial Services cedures for Complaint
3. PUJK must have written procedures regarding Complaint Services and must
Sector Service to Consumers and
include brief procedures for Complaint Services in agreements and / or
/ or the community as
SEOJK No. 18/ financial Transaction documents.
well as handling the latest
SEOJK.07/2018 4. PUJK is obliged to follow up and settle verbal complaints at the latest 5 (five) Complaints, in annual
working days after the Complaint is received by PUJK. reports, websites and /
Guidelines for 5. PUJK must conduct follow-up and perform Complaint settlement in writing or other media that is
Implementing no later than 20 (twenty) working days after the documents directly related officially managed.
Consumer Complaint to the Complaint are received in full. 3. The Board of Commission-
Services in the Financial 6. The PUJK Board of Commissioners must ensure that the PUJK Directors have ers must ensure that the
Services Sector and carry out Complaint Service procedures. Board of Directors has and
7. PUJK must prepare and submit Complaint Service reports quarterly to OJK implements Complaint
to be submitted no later than the 10 (ten) of the following month after the Service procedures.
quarterly period has ended.
Management
Discussion
And Analysis
Affect on BNI and

Subsidiaries
8. POJK No.15/ 1. 1. Exemptions from the LLL or BMPD calculation include: Adjustments to BNI's internal
POJK.03/2018 a. Provision of Export-oriented funds to financial institutions that meet policies and procedures based
certain requirements on the POJK provisions.
Regarding Legal b. Part Provision of Funds that are guaranteed by financial institutions that
Lending Limit or the meet certain requirements
Bank's Maximum Fund
2. Certain requirements as referred to in point 1, namely:
Distribution Limit
a. owned by the central government;
to Encourage the
Tourism Sector Growth b. business activities providing national export financing; and
and Increase Foreign c. stipulated by Law with sovereign status
Exchange 3. The guarantee as referred to in point 1.b must meet certain requirements,
namely:
a. unconditional and irrevocable;
b. can be disbursed no later than 7 (seven) working days from the submis-
sion of claims, including partial disbursement to pay arrears in principal
installments or interest / margin / profit sharing / ujrah;
c. has the shortest period of time equal to the period of Provision of Funds;
and
d. is not a counter guarantee.
4. The Bank must file a claim against the guarantee received no later than 7
(seven) working days after the Borrower defaults.
5. The borrower is declared default if:
a. There has been arrears of principal and / or interest / margin / revenue
sharing / and / or other charges for 90 (ninety) days despite the provi-
sion of Funds not yet due;
b. There has been repayment of principal and / or interest / margin / profit
sharing / final and / or other charges when the Fund Provision is due; or
c. There has been no fulfillment of any other requirements other than prin-
cipal payment and / or interest / margin / revenue share / ujrah which
may result in default.
6. Provision of Bank Funds to State-Owned Enterprises (SOEs) for the purpose
of development is set at a maximum of 30% (thirty percent) of the Bank's
Capital.
Provision of Funds to State-Owned Enterprises (BUMN) for development
purposes includes Provision of Funds for:
a. Food procurement;
b. Very simple home procurement;
c. Procurement / supply / management of oil and gas as well as other
similar alternative energy sources;
d. Water supply / supply / management;
e. Procurement / supply / management of electricity;
f. Procurement / processing of export-oriented commodities;
g. Procurement of land, sea and air transportation supporting infra-
structure in the form of roads, bridges, railroads, seaports and airports
construction; and / or
h. National Tourism Strategic Area (KSPN) development as set and pri-
oritized by the central government and referred to in the Presidential
Regulation concerning the acceleration of national strategic projects.
ANNUAL
REPORT 2018
CHANGES IN ACCOUNTING POLICIES
The changes in accounting policies in 2018 and their impact on Bank BNI are outlined in the table as follows:
Changes in Accounting Policies
Impact of Accounting Policy

No. Accounting Policy Change Policy Change Reason Changes on BNI
and Subsidiaries
Amendment to PSAK 24: Employee Benefits The amendment to PSAK 24 provides clearer This PSAK has an influence on
regarding Amendment, Curtailment, or guidance for entities in recognizing past service BNI related to BNI employee
Settlement Program costs, settlement gains and losses, current benefits but currently BNI has
service costs and net interest after amendments, never made amendments,
curtailments, or program settlement as they use curtailments or settlements in
the latest actuarial assumptions (previously used the Program.
acturial assumptions at the beginning of the
annual reporting period).
This standard is effective as of January 1, 2019

with early application permitted.
PSAK 74: Insurance Contract Insurance contracts require the entity to identify This PSAK has an influence on
the insurance contract portfolio. The portfolio BNI subsidiaries, namely BNI Life.
consists of contracts that have similar risks
and are jointly managed. The entity divides
the insurance contracts issued at least into an
onerous contract group at initial recognition,
contract groups at the initial recognition having
no significant possibility of subsequently
becoming a losing contract, and contract groups
remaining in the portfolio.
This standard is effective January 1, 2022.
Management
Discussion
And Analysis
Material changes in accounting policies that will apply
THE STATEMENT OF FINANCIAL ACCOUNTING STANDARDS (PSAK) 71 - FINANCIAL INSTRUMENTS

In 2014, IASB (International Accounting Standard Board) issued IFRS 9 - Financial Instrument. This
International Standard is effective in countries that perform Full Adoption IFRS as per January 1, 2018 to
replace IAS (International Accounting Standard) 39 - Financial Instrument: Recognition and Measurement
(adopted in Indonesia into PSAK 55 - Financial Instruments: Recognition and Measurement
In September 2017, DSAK IAI (Financial Accounting Standards Board - Indonesian Institute of
Accountants) issued Financial Accounting Standards (PSAK) 71 - Financial Instruments. This PSAK adopts
IFRS 9 and will become effective as of January 1st 2020, supersedes PSAK 55:
Regulation IFRS 9/PSAK 71 PSAK 55

Determination of Classification of Financial Based on Business Model with SPPI (Solely Based on intention
Assets & Liabilities Principal, Payment & Interest) test
Classification of Financial Assets Fair Value through Profit/Loss (FVPL) • Held to Maturity (HTM)
• Fair Value through Other • Fair Value through Profit/Loss (FVTPL)
Comprehensive Income (FVOCI) • Loan and Receivables (LAR)
• Amortised Cost (AC) • Available for Sales (AFS)
Reclassification of Financial Assets If there are any changes to the Company’s Permitted, for certain conditions (there are
Business Model certain conditions affected by tainting rules)
Tainting Rules Deleted Applies to HTM category reclassification to
AFS over material limit
Hedge Accounting • Requirements and documentation are • More detailed requirements and
simpler documentation
• Dealing directly with the Bank’s risk • There is no direct relationship with the
management strategy Bank’s risk management strategy
• Assessment of effectiveness in • Assessment of effectiveness 80% to
accordance with risk management 125%
objectives
Stages of the process impairment Stage 1 – Performing Performing and No Significant value
• Financial instruments that do not • CKPN is calculated collectively
experience significant increases in credit • Using Probability of Default (PD) and
risk (investment grade, and there are no Loss Given Default (LDG) based on
arrears) historical data
• Expected Credit Loss 12 Months after
the reporting date Non Performing and / or Individually
Significant
Stage 2 - Under Performing • CKPN is calculated individually
• Financial instruments experiencing a • Using CKPN Discounted Cashflow
significant increase in credit risk but
there is no evidence of impairment
objectives (there are arrears but have
not passed the impairment criteria of 90
days in arrears)
• Expected Credit Loss: Lifetime (over the
life of financial instruments
Stage 3 - Non Performing

• Financial instruments that meet the
criteria of impairment (arrears ≥ 90 days)
• Expected Credit Loss: Lifetime (over the
life of financial instruments
Statistical approach Point in Time (PiT), taking into account Migration analysis and roll rate, without
macroeconomic factors taking into account macroeconomic factors
CKPN for Loan Commitments CKPN calculation performed on Loan CKPN not calculated for Loan Commitment
Commitment
ANNUAL
REPORT 2018
As BNI has overseas branch offices, 3 (three) BNI overseas branches (Singapore, Seoul, London) were
required to apply IFRS 9 as of January 1, 2018. For the Hong Kong branch, IFRS 9 implementation
will take place at the beginning of 2020 following the Head Office, while the 2 (two) other branches
(Tokyo and New York) are not required to apply IFRS 9 based on their respective regulators.
REVIEW OF FIXED ASSETS
Based on the Capital Market and Financial Institution Supervisory Agency Chairperson decision
KEP-347/ BL/2012 dated June 25, 2012 concerning the Presentation and Disclosure of Financial
Statements of Issuers or Public Companies, taking into account the book value of fixed assets (land
and buildings) that was revalued in 2015 , then in September 2018, BNI revalued its fixed assets for
groups of land and building assets both in the country and abroad. Land and buildings assessments
were carried out by external independent assessors as follows:
1. KJPP Toha Okky Heru and Partners
2. KJPP Rengganis Hamid and Partners
3. KJPP Benedictus Darmapuspita and Partners
4. KJPP Abdullah Fitriantoro and Partners
Assessments were carried out based on Indonesian Appraisal Standards, determined based on
current market transactions and carried out with the usual conditions. The valuation method used
included the market data method, cost method and income method. The elements used for data
comparison to determine the fair value of assets included:
1. Types and rights attached to property
2. Market conditions
3. Location
4. Physical characteristics
5. Income generating characteristics
6. Land characteristics
The following summarizes the fixed assets revaluation results in 2018:

1. Land
The land reassessment resulted in an increase in carrying cost of Rp1.4 trillion, and consisted of
an increase in land value being recorded as Other Comprehensive Income of Rp1.4 trillion, and a
decrease in land value, which was recognized as an expense for the current year of Rp4.4 billion.
2. Buildings
The increase in carrying cost arising from the buildings’ revaluation was Rp1.4 trillion. This
increase was recorded as Other Comprehensive Income of Rp1.4 trillion, and the decrease in the
value of buildings was recognized as current expenses of Rp32.0 billion.
Management
Discussion
And Analysis
PREPARATION FOR IMPLEMENTATION OF PSAK 71 - FINANCIAL INSTRUMENTS

Following the issuance of IFRS 9: Financial Instruments by the International Accounting Standard Board (IASB) in 2014, BNI
responded by preparing a literature study and preliminary gap analysis. In preparation for implementation, BNI actively
participated in discussions with the Indonesian Institute of Accountants (IAI), as an authorized institution in the preparation of
financial accounting standards in Indonesia, banking industry associations, and Otoritas Jasa Keuangan (OJK).
IFRS 9 was adopted in Indonesia in April 2017 and became PSAK 71: Financial Instruments, and will be effective in Indonesia as
of January 1, 2020. As a follow up, BNI conducted a gap analysis of PSAK 71 requirements, with the implementation of PSAK 55
currently in force, using KPMG as a consultant.
In 2018, BNI reappointed KPMG as an implementation consulting assistant for the preparation of PSAK 71 policies and
procedures. In addition, after going through the procurement process, BNI appointed PT. Nexia Indonesia Advisory Service as a
system development vendor in carrying out the process of developing a support system for implementing PSAK 71 in BNI..
Roadmap implementasi PSAK 71 in BNI
2014 - 2017 2018 2019 2020
Preparation & Literature

Gap Analysis Development Phase Monitoring Implementation
Study
• Study of IFS9 Literature

Provision of resources
and PSAK 71 Comparison of PSAK 55 • Finalize development
(Humans, funds,
General • Comparison of implementation and PSAK
infrastructure &
• Analyze the impact
implementation with an 71 Requirements during the parallel run
procedures)
early adation bank
Identification of PSAK • Adjustment to policies and

Classification & 71 requirements for procedures
• Adjustment to chart of accounts
Measurement classification with BNI and mapping of reports
policies • Adjustment to systems
• Adjustment to policies
Identify differences in
and procedures
Impairment calculation of PSAK 71 and
• Modeling development
BNI CKPN
and CKPN
Identify differences in the • •Adjustment to policies

Environmental
PSAK 71 implementation and procedures
Value Accounting and BNI hedge accounting • •Adjustment to system
ANNUAL
REPORT 2018
BUSINESS CONTINUITY
MATTERS POTENTIALLY HAVING A SIGNIFICANT INFLUENCE AS A GOING CONCERN

For operational risk management implementation, BNI refers to Bank Indonesia / Otoritas Jasa
Keuangan provisions, and International Best Practices. Operational risk management includes the
process of identifying, measuring, monitoring and controlling operational risk.
MANAGEMENT ASSESSMENT ON MATTERS HAVING A SIGNIFICANT INFLUENCE AS A

GOING CONCERN
One of the tools used to perform risk management at BNI is PERISKOP (Perangkat Risiko
Operasional). Periskop consists of 3 (three) main modules:
1. Self Assessment Module, is a methodology to detect the possibility that an operational
risk has occurred. This method is a self- assessment process conducted by every risk owner
independently in identifying, assessing, controlling and monitoring operational risk in each unit.
Self Assessment module should be filed by all units, once every 3 (three) month; by conducting
an assessment of the existing risk issue frequency and impacts; and finding solutions to mitigate
emerging operational risks.
2. The Loss Event Database is a system to identify and record every operational risk that causes
direct financial impact. Each time the risk owner unit experienced financial loss from operational
risk, the unit should record it in the Lost Event Database module. The module will generate
information such as type of risk, cause of risk, location where the risk emerge and the amount
of risk or legal obligation and the recovery (if any). This system is very important to monitor
operational risk exposure and profile in an orderly manner. The data gathered from the Loss
Event Database will become the main input when the Bank applies advance approaches to
measure its minimum operational risk capital adequacy ratio.
3. Key Risk Indicators, is a series of parameters established to identify main potential loss from
operational risk that potentially interfere the achievement of Key Performance Indicator
(KPI) before it happens. The module will give a warning/alert when the exposure exceeds
a predetermined range/threshold that has been set and requires follow up from Unit’s
management to overcome the problems.
Besides PERISKOP, BNI has Operational Risk Expense (Beban Risiko Operasional (BRO)) and BRO
Recovery accounts, which will be used to record losses or recoveries caused by operational risks. The
recording in BRO accounts would also affect the performance assessment and also described in the
Performance Measurement System (PMS) of the units concerned. To mitigate the operational risk,
BRO account and recovery will be monitored monthly.
Management
Discussion
And Analysis
Regarding the business resilience when disaster occurs, BNI has a Business Continuity Management
(BCM) policy, which is a formal mechanism that combined strategies, policies, procedures and
organizations developed to ensure operational continuity of critical functions under certain levels of
services when a disturbance or disaster is encountered. This policy is applied for all business units in
BNI for both domestic and overseas.
BNI has the infrastructure needed to implement BCM such as Disaster Recovery Center (DRC), Dual
Data Center (DDC), BCM alternative building and Command Center. Regularly BNI perform a system
and application testing on critical Division/Unit every 3 (three) months, do a site visit and simulation
to the branch and region to ensure the disaster readiness.
ASSUMPTIONS USED BY MANAGEMENT IN CONDUCTING ASSESSMENTS TO MANAGE

MATTERS HAVING A SIGNIFICANT INFLUENCE AS A GOING CONCERN
To manage any potentially significant impact on business continuity, especially financial, BNI has already
established a Recovery Plan. In preparing the scenarios for the Recovery Plan, BNI used assumptions for
liquidity crisis, based on Bank Indonesia’s granular stress test scenario, and the Liquidity Coverage Ratio
(LCR) calculation scenario adjusted to BNI’s internal conditions. For the solvency crisis, it is based on the
OJK assumption scenario for the Financial Stability Assessment Program (FSAP), adjusted to BNI’s internal
conditions, as these scenarios are considered to represent near default conditions.
ANNUAL
REPORT 2018
BUSINESS
SUPPORT UNIT
318 CREDIT RISK MANAGEMENT
323 NETWORK AND SERVICES
326 BNI CONTACT CENTER
329 UNIT SERVICES UNIT
330 INFORMATION TECHNOLOGY
333 INFORMATION TECHNOLOGY UTILIZATION
337 INFORMATION TECHNOLOGY GOVERNANCE
338 INFORMATION TECHNOLOGY FUTURE
DEVELOPMENT PLAN
341 DIGITAL BANKING
342 ELECTRONIC BANKING
349 Human Capital
350 HUMAN CAPITAL ARCHITECTURE
351 TALENT MANAGEMENT POLICY TO ACCELERATE
LEADERSHIP DEVELOPMENT
ANNUAL
REPORT 2018
CREDIT RISK
MANAGEMENT
BNI’s expansive credit growth was the result of credit risk management
improvement efforts in 2018. Amid the not yet fully recovered economic
conditions in Indonesia, credit risk management has become an important
factor in supporting the business growth strategies for maintaining BNI’s
credit quality in line with the established risk appetite. The synergies between
units for business acceleration have helped maintain BNI’s credit quality, with
the non-performing loan (NPL) ratio standing at 1.9%.
Business
Support Unit
2018 PERFORMANCE
SELECTIVE PRODUCTIVE ASSETS GROWTH LOANS DISBURSED PROCESS FLOW
During 2018 the Chinese economy has still not stretched BNI has made improvements in the Business Banking loan
or boosted the global economy as it did in 2008. Therefore, process in the Corporate, Commercial and Small Business
China’s economic growth in 2018 is not expected to be segments.
better than the previous year. This was due to exports and
foreign investments, usually the driving force of the Chinese Improvements made in the Corporate and Commercial
economy, slowing down. These conditions also affected Segments included:
the Indonesian economy, as one of its trading partners. BNI 1. Refining the Business Unit Functions
therefore has established a policy to strengthen its business The business units planned the list of prospects,
expansion in selected corporate and middle segment market marketing, conducts overall credit feasibility assessments
sectors to maintain quality. (including first way out and second way out analysis) and
borrower monitoring;
To achieve quality loan growth, setting strategic sectors and 2. Refining the Risk Unit Functions
optimizing the supply chain and cross selling are important The Risk Units provided recommendations to the
elements in the deep assessment process of the parent business units after conducting loan risk and mitigation/
account (Anchor Company). risk control analysis that focuses on likely risks and high
impact.
The productive assets growth in the consumer segment in
2018 was more focused on selective borrowers with low risk The Credit Risk Unit implemented Credit Risk Management as
profiles and included: a key strategy to safeguarding the aggressive growth policies
• BNI Griya expansion focusing on selected developers, in 2018. Credit Risk Management includes:
selected institutions, emerald customers, cross-sell 1. Credit Risk Analysis:
existing to borrowers who have not used BNI Griya, and Increasing the Credit Risk Manager’s role in the credit
take over borrowers with a good track record from other committee in terms of:
banks, and existing Top Up program borrowers; a. Balancing the business units (SRM and RM) roles in
• BNI Fleksi’s expansion focusing on government agencies, the committee;
BUMN, BUMD and BHMN that have low employee b. Maximizing the risk unit role when applying the four
turnover and also Upper-Middle employees; and eyes principles.
• Credit Card expansion focusing on increasing credit card 2. Credit Risk Review:
outstandings through loan on phone programs and by a. Conducting periodic reviews initiated by the risk unit
increasing credit limits, as well as acquisition policies that heads at the Branch, Regional and Head Office levels;
focus on the BUMN and government agencies segments. b. Collaborating with independent parties on specific
matters.
3. Credit Administration:
a. Ensuring fixed assets collateral taken correctly
safeguards BNI’s interests;
b. Ensuring credit documentation complies with the
provisions;
c. Evaluating partner performance.
ANNUAL
REPORT 2018
To improve the Corporate segment loan quality efforts made Supporting tools in the lending process continue to be
during 2018, included: developed and refined, especially for the Small Business
1. Gradually implementing industry specialists in the Risk segment, especially, in terms of KUR distribution, supported
Units to sharpen risk analysis according to industry by an electronic Loan Origination (eLO) system to speed
characteristics and mitigation; up the loan analysis process. While all banking business
2. Updating key risk parameters for leading sectors segments use the Credit Analysis Assistance System (SABAK)
including Palm Oil Plantations, Toll Road Infrastructure, to improve credit process efficiencies, and to reduce human
Electrical Infrastructure, and Mining. error in the credit analysis process.
3. Special monitoring of borrowers with a Collectibility 1
(one) Restruct, Pre NPL, and watchlist status through the In addition, the four eyes principle was strengthened at all
Credit Risk Review mechanism (forum of risk units and stages, in the credit processing units up to credit decision
business units); making in the credit committees, covering credit breaker
4. Pro actively and comprehensively restructuring through officials, in accordance with their authority, aimed at
joint efforts between business units, risk units, and maintaining the quality of loans disbursed.
remedial and recovery units.
To support the selective business growth in the consumer
To improve the Commercial segment loan quality efforts sector, comprehensive process flow improvements were
made during 2018, included: carried out, ensuring adherence to the prudential principle,
1. Creating a risk register from the audit findings as a lesson including:
learned for the remote units. 1. Know Your Customer (KYC) principle policy for
2. Special monitoring of borrowers with a Loan at Risk prospective borrowers through a document verification
(Collectibility 1 restructuring, Pre NPL, and NPL) status process to minimize application fraud;
through the Credit Risk Review mechanism (forum of risk 2. Corrective action in the consumer loan processing units
units and business units); with an NPL ratio above the specified limit, with decision
3. Establishing ad-hoc teams in all remote units in an effort authorities being raised to a higher level;
to reduce loans at risk (LaR) 3. Special instant approval processes for selected partners
4. Pro actively and comprehensively restructuring through (purchasing primary homes with selected developers);
joint efforts between business units, risk units, and 4. Regular and special instant approval processes for the
remedial and recovery units. purchase of BNI Griya collateral classified as NPL or
written off;
While Small Business Segment improvements included: 5. BNI Fleksi pre approval and instant approval process for
1. The RM (Business Unit) preparing a list of prospects, selected partners;
marketing, conducting overall loan feasibility analysis 6. BNI Griya pre approval process for Emerald customers
(including first way out and second way out analysis) and (Priority); and
borrower monitoring; 7. BNI Fleksi and BNI Griya pre-approval process for
2. RM direct supervisors besides having inherent Directors and Commissioners of all BUMNs.
supervision functions, also having a deeper loan risk
assessment function.
Business
Support Unit
LOAN MONITORING loan settlement. The restructuring strategy includes:

1. Restructuring (Reconditioning, Rescheduling) borrowers
One method of creating quality asset growth is through who have difficulties in fulfilling their obligations but still
intensive monitoring and loan collection. This monitoring have prospects and are considered cooperative;
can be realized through visits to borrowers to see the 2. Deposits/Settlements through strategic investors;
condition of their business, review the feasibility of their 3. Sales of guarantees voluntarily or through execution of
loans, and monitor the payment of their liabilities. Underwriting Rights; and
4. Foreclosing Collateral (AYDA) and Temporary
The business banking segment monitoring process is Participation by the Bank (PSB).
supported by monitoring tools, including a watchlist system
and credit risk review that are used to monitor the borrowers’ While the settlement strategy is applied to borrowers
loan performance, and to determine any follow-up to ensure without any prospect of settlement. Written off loans will be
the loan quality does not deteriorate. pursued to the maximum to minimize bank losses through:
1. Loan settlement through strategic investors;
Consumer segment loan monitoring includes: 2. Sales of guarantees voluntarily or through execution of
1. Intensive monitoring of current borrowers with the Underwriting Rights;
potential to go into arrears; 3. Marketing loan collateral from the consumer and
2. Debiting credit card holders’ savings account in the business banking segments by using collateral auction
Captive Market segment; websites that can be accessed by the general public for;
3. Following different billing strategies for credit card 4. Subrogation;
holders based on the credit card behavior scorecard so 5. Legal action by billing personal guarantors (PG) and
that billing is more effective and efficient; company guarantors (CG), execution of mortgage/
4. Applying Automated Account Allocation for borrowers fiduciary rights, litigation, bankruptcy and claims.
who have the potential to default to avoid a decline in
asset quality; In addition, consumer credit non-performing loans are
5. Applying the Field Collector Tracking application to pursued through two strategies, loan restructuring and
increase productivity; settlement, that include:
6. Establishing special collection units for BNI Fleksi 1. Accelerating the Restructuring (Reconditioning,
borrowers for unsecured products; Rescheduling) for borrowers who have difficulties in
7. Monitoring periodically BNI Griya borrowers with loans fulfilling their obligations but still have prospects and
of more than Rp1 billion (one billion Rupiah); and are considered cooperative through the Asset Quality
8. Applying monitoring digitalization. Improvement and Acceleration Recovery (PPKA)
Program;
LOAN RESTRUCTURING AND SETTLEMENT 2. Pursuing Legal action (simple lawsuit, State Attorney/
JPN);
In 2018, during the slowdown in Indonesia’s economic 3. Auction registration for borrowers in the NPL group to
growth and the not yet fully recovered global economy, act as a deterrent so borrowers are more committed to
BNI continued to more comprehensively improve its loan completing their obligations;
monitoring restructuring, and improve the NPL settlement 4. Optimizing collateral auction websites for marketing
by referring to the applicable provisions in accordance with consumer segment loan collateral;
the good corporate governance principles. 5. Loan settlement through the transfer of NPL and Delete
Book receivables (cessie-transfer or sale of bank-owned
The loan restructuring and settlement strategy is continuing loans to other parties or investors based on criteria set
to strengthen BNI’s financial fundamentals and maintain by the Bank); and
loan quality, and includes increasing the coverage ratio and 6. Optimizing buy back guarantees from partner
optimally handling non-performing loans. Non-performing developers and insurance claims.
loan handling follows two strategies, loan restructuring and
ANNUAL
REPORT 2018
2019 PLAN AND STRATEGY
Responding to the economic challenges in 2018, BNI has set 2. Credit Risk Review, including:
an aggressive growth policy while still maintaining quality. a. Reviewing the existing industrial sector key risk
Following internal and external studies, loan expansion will parameters, adjusted to the macro and micro
focus on prospective and priority industries. In line with conditions of the industry;
this strategy, improvements in loan quality will also became b. Creating key risk parameters for other industrial
a main focus in 2018 with loan process improvements, sectors (excluding those already set in 2018);
including restructuring troubled borrowers, improving risk c. Mapping and discussing loan problems that have
control in the lending process by implementing the four occurred and making recommendations (risk
eyes principle, and with more effective supervision. Loan mitigation and lessons learned);
monitoring will also continue to optimize identification of d. Refining the identification and monitoring of
problems earlier and to apply the appropriate corrective borrower problems so that more accurate action
action on borrowers. plans can be determined; and
e. Refining the identification of borrower problems at
The Credit Risk Unit plan to strengthen Credit Risk an early age through the Early Warning Signal (EWS)
Management is through key strategies to safeguard the system.
aggressive growth in 2019, including:
1. Credit Risk Analysis, including: The consumer credit plan and strategy for 2019 includes:
a. Increasing the Credit Risk Analysts roles and • Maximizing the strategies that were implemented in
competencies, as follows: 2018
i. Corporate Segment • Focusing expansion on selected partners including
-- Optimizing industry specialists especially for PKS developers (Cooperation Agreements), selected
leading sectors; institutions (BUMN, BUMD, selected national and private
-- Optimizing handling of loans at risk institutions, existing borrowers, selected professionals
(excluding NPL); (doctors and notaries), Emerald customers, and
-- Training and seminars in accordance with consumer relationship banking customers who have had
industry specifications; a BNI account for at least 6 months);
-- Sharing sessions with industry players, • Digitizing the loan process through an integrated
regulators and other stakeholders; application data collection system, automatically
ii. Commercial and Small Business Segments checking for duplications and Bad Applications, and
-- Developing the loan process through eLO verification by using internal and external data (Big
end to end; Data) to shorten the time needed to complete the loan
-- Strengthening the tracking process process; and
function; • Loan settlement through transfer of NPL receivables and
-- Increasing risk unit risk assessments through write offs (via cessie and bulk).
knowledge sharing in certain sectors with
corporate segment industry specialists;
-- Sharing sessions with industry players,
regulators and other stakeholders;
b. Maximizing the risk unit role as a counterweight to
the business units, as well as following the four eyes
principles.
Business
Support Unit
NETWORK
AND SERVICES
BNI’s network and service development during 2018 was carried out by increasing the office networks (outlets), electronic
networks (ATM), Agen46 , and through various network and service innovations supported by the Contact Center Unit and
Service Quality Unit. These efforts supported the company’s achievement of its projected business performance.
OFFICE NETWORK (OUTLETS)
2018 PERFORMANCE
To expand its networks, and to improve its services, and to

extend the reach of financial inclusion for the community, in The number of BNI Network Outlet
2018 BNI added 13 (thirteen) Sub-Branch Offices, 23 (twenty
2,256
three) Cash Offices, 9 (nine) Payment Points, 74 (seventy four)
O-Branches (Mobile Cash Services), 1 (one) Small Loan Center,
and 1 (one) Money Changer to its office network.
2,150
In addition, to improve business performance, effectiveness

and to optimize outlet management and operational risk
control, BNI also ungraded the status of existing outlets with
1,990
1 (one) Sub-Branch Office becoming a Branch Office and 12
Cash Offices becoming Sub-Branch Offices.
The BNI office network at the end of 2018 was spread

across 34 (thirty four) provinces reaching 476 (four hundred
seventy six) cities/regencies (91%) throughout Indonesia,
and consisted of 17 (seventeen) Regional Offices, 201 2016 2017 2018
(twenty hundred one) Branch Offices, 1,109 (a thousand one
hundred ninety) Sub-Branch Offices, 605 (six hundre five)
Cash Offices including 14 (fourteen) Digital Branch services,
128 (one hundred twenty eight) Payment Points and 196
(one hundred ninety six) O-Branches (Mobile Cash Services).
To serve customers’ needs at weekends, BNI operates 78
(seventy eight) outlets serving customers on Saturdays
and Sundays (Weekend Banking Services). To provide the
best service to the Wealth customer segment (both priority
and private customers), BNI also has 28 (twenty eight) BNI
Emerald service outlets. Currently, 56% of all BNI outlets are in
Java and 44% outside Java. Off the total BNI outlets, 1,388 (a
thousand thirty hundred eighty eight) or 72% are located in
strategic commercial business centers (shops and malls), and
527 (five hundred twenty seven) or 28% are located in office
centers and strategic residential areas.
Over the last 3 (three) years (2016 - 2018), BNI’s outlet

network has grown rapidly with 266 (two hundred sixty six)
additional outlets, an average of 6.47% per year, as illustrated
in the chart below.
ANNUAL
REPORT 2018
ATM NETWORK
To continue its commitment to providing convenience

to BNI customers and other banking customers for their
transactions, in 2018 BNI added 345 (three hundred
fourty five) ATM machines for cash deposit transactions
(Cash Recycle Machine/CRM) so the total BNI ATMs
throughout Indonesia at the end of 2018 amounted to
18,311 (eighteen thousand three hundred eleven) units
consisting of 15,834 (Fiveteen thousand eight hundred
thirty four) Cash ATM units (incl. Drive Thru and Ride Thru
ATMs), 1,477 (a thousand four hundred seventy seven)
Cash Deposit and Withdrawal ATMs, and 1,000 Non Cash D-Branch Ngurah Rai, Bali
ATMs. Of the total 18,311 (eighteen thousand three
hundred eleven) BNI ATMs across Indonesia, 10,827 (ten
thousand eight hundred twenty seven) or 59% are in
Java, while 7,484 (seven thousand four hundred eighty
four) or 41% are outside Java.
Of the total 18,311 (eighteen thousand three hundred

eleven) BNI ATMs, 10,461 (ten thousand four hundred
sixty one) or 57% are in strategic commercial business
centers (shops and malls) and 7,850 (seven thousand
eight hundred fifty) or 43% are located in office centers
and strategic residential areas. Interactive Wall
As part of the SOE synergy and to continue to provide

easy transactions, especially for bank customers who are
members of the State Bank Association (Himbara), BNI
has also converted 9,900 (nine thousand nine hundred)
BNI ATMs to Red and White (Link) ATMs.
With the increasing number of BNI ATMs throughout

Indonesia, banking transaction services will be further
improved for both BNI customers and other customers
who are members of the joint ATM networks, ATM Link,
Global Master Card International ATM and Prima ATM Big Screen dan CRM
network, and will increase fee-based income (FBI) from
transactions through BNI ATMs.
Total and Growth BNI ATM

18,311
17,966
Banking Cafe, Manado

17,056
2016 2017 2018
Business
Support Unit
2019 WORK PLAN

OFFICE NETWORK INNOVATIONS
In the increasingly competitive and
To keep up with the increasingly rapid technological and digital fast moving banking industry in
developments, in 2018 BNI added 6 (six) D-Branch services prioritizing today’s digital era, BNI is committed
banking services through additional digital devices. The total number to transforming its banking services
of BNI D-Branch currently stands at 14 (fourteen), located in major cities to meet the increasingly complex
including Jakarta, Bandung, Surabaya, Medan, Bali, Yogyakarta, Makassar customer demands. To achieve this
and Manado. and to increase BNI’s customer base
growth, In 2019 BNI will focus on
To provide a complete digital transaction experience, digital devices are optimizing its office outlets and
available at BNI D-Branch that help customers in conducting banking services network by increasing the
transactions, including; ATM/CRM (cash deposits, cash withdrawals, status of 2 (two) Cash Offices to Sub-
transfers and more), Smart Kiosks (opening account machines), Branch Offices, and by relocating
Interactive Wall (BNI touchscreen product education devices), Interactive 50 outlets to potential areas. The
Table (touchscreen Information devices) and Big Screen (promos and additions to the office network will
information devices). only be in potential areas and blank
spots, and will consist of 1 (one) Sub-
To tap the business potential of millennials using a more modern, Branch Office, 4 (four) Cash Offices,
comfortable and contemporary transaction experience, BNI provides 4 (four) Payment Points, 3 (three)
Banking Cafe services at several D-Branch outlets. Functional Offices, and 2 (two) O
Branches.
In 2018, BNI made improvements and innovations to its banking
transaction services, especially through frontliners by piloting the use of In addition, BNI will add 280 (two
the Teller Cash Recycle (TCR) machine that facilitate and accelerate cash hundred and eighty) ATM/CRM to its
deposits and book-entry services at counter tellers. electronic network to support the
business and service outlets.
In 2019, BNI will develop a Smart

Digital System (SDS) as a strategic
tool for services across outlets aimed
at providing increasingly modern
banking services based on customer
expectations through improved
business processes and simpler
branch services, with more digital
and sophisticated service devices
such as CRM, Smart Kiosk (Opening
Interactive Table
Account Machines), Passbook Printer
Self Service, Teller Cash Recycle
(TCR), Internet Points, Digital Banner
Systems (DBS).
Perangkat TCR
ANNUAL
REPORT 2018
BNI
CONTACT CENTER
The BNI Contact Center will continue to provide the best BNI Contact Center’s commitment through its Quality policy
service for BNI customers. Through BNI Call 1500046 services, of “Commitment, Capability and Care” to continuously
customers can obtain information, conduct transactions improve the service quality for customers through quality
and find solutions to their every problem including banking standardization in all services, obtained ISO 9001: 2015
services, credit cards, merchants, remittances and trade Certification, and this commitment was maintained in 2018.
transactions.
The BNI Contact Center achievements in 2018, including
In 2018 the BNI Contact Center supported BNI’s Smart Kios being ranked first in the Phone Banking and Call Center
with a Video Contact Center service for opening accounts category based on the Bank Service Excellent Monitor (BSEM)
through D-Branch, and managed various information survey results from Marketing Research Indonesia (MRI),
requests and complaints through BNI Social Media, enabling receiving an Excellent rating in the Regular Banking and
it to serve all customers through non-branch channels. Platinum Credit Card category based on the 2018 Contact
Center Service Excellent Award survey results from Service
Together with the spirit of BNItuDigital, and to always provide Excellence Magazine in collaboration with Carre - Center for
the best customer service, the BNI Contact Center launched Customer Satisfaction and Loyalty (Carre-CCSL).
BNI Call Application, the first Contact Center banking
application in Indonesia based on Artificial Intelligence, using The BNI Contact Center actively acts as a point of contact for
voice commands and Natural Language. Processing (NLP). BNI customers through the voice of customer application,
The BNI Call application makes it easier for customers and and provides the business units with insights into enhancing
non-customers, using Android and iOS, to gather information products, features and services for customers, and provides
on BNI products and services as well as the latest general feedback to business/product owners regarding customer
information. By using the BNI Call Application, customers and complaints; monitors complaint resolution based on
non-customers will be able to communicate with BNI Call the Service Level Agreement (SLA); adapts the internal
officers via chat. regulations if there are changes in legislation, and makes
improvements to the customer complaint handling Online
The BNI Call application, through BNI Call 1500046 services Request Management application.
delivers a new experience and adds channel alternatives so
that customers now have a variety of easy and convenient The BNI Call application, through BNI Call 1500046
access choices, which will increase customer satisfaction. contributes as a data source providing integrated sales and
service solutions for strengthening the Consumer and Retail
The BNI Contact Center supports BNI’s commitment to Segments revenue enhancement opportunities through the
providing excellent services for people with disabilities, and referral and cross selling program so that BNI Call 1500046.
follows strategic and inclusive financial program policies that
are disability-friendly. The BNI Contact Center took part in To further enhance customer experience and customer
the 2018 International Disability Day celebration held by the satisfaction, the BNI Contact Center will continue to develop
Republic of Indonesia Ministry of Social Affairs on December features for the BNI Call Application to improve service
2 and 3, 2018 introducing its disability-friendly BNI Call quality.
Applications.
Also, the BNI Contact Center supported the Financial

Inclusion for All program at the Fin Expo 2018 event
organized by the Financial Services Authority (OJK) on
October 27, 2018, as well as the Digital Expo event held by
Pertamina Geothermal Energy on December 12 and 13, 2018
to share its experiences regarding digitization.
Business
Support Unit
BNI COMPLAINT SETTLEMENT PROCEDURES AND CUSTOMER SERVICE
BNI Contact Center as one of BNI’s frontline services to BNI customers, continually endeavors to provide the best service,
including settlement of every customer’s banking and credit card services complaint. BNI customers are provided with easy
access to the complaints services through a number of media choices, both oral and written.
The BNI Contact Center is supported by an integrated Online Request Management complaint handling application, so that
the customer complaints receipt and settlement process can be handled through the application, simplifying the monitoring
and settlement status of customer complaints.
Customer verbal complaint settlement solutions are made within a maximum of 5 (five) working days *), and written
complaints within a maximum of 20 (twenty) working days. If supporting documents are needed for the verbal customer
complaints, BNI will ask the customer to submit the complaint in writing. Under certain conditions, the document requirement
and complaint settlement can be extended for a further 20 (twenty) working days based on POJK Number 1/POJK.07/2013, as
updated by POJK Number 18/POJK.07/2018 *) concerning Consumer Complaint Services in the Financial Services Sector. An
extension of the complaint settlement period is notified in writing to the customer.
*) Effective as of March 2019
ANNUAL
REPORT 2018
SUBMISSION AND
SETTLEMENT COMPLETION
Based on OJK Circular Letter (SE OJK) No. 2/SEOJK.07/2014, as updated by OJK Circular Letter (SE OJK) No. 17/SEOJK.07/2018,
BNI will provide information on customer complaint settlement via the telephone, e-mail, mail or short messages service
(SMS). If the customer feels that the settlement solution provided by BNI does not meet their expectations, then they can
continue the complaint settlement process through any Institution on the Financial Services Authority’s List of Alternative
Dispute Settlement Institutions.
Business
Support Unit
UNIT
SERVICES UNIT
2018 PERFORMANCE
BNI is continually innovating and updating with the aim of improving the quality of its services. BNI consistently adjusts
its service standards to keep up with the rapidly developing banking digitalization through its service standard renewal
programs, enhancing frontliner competencies and simplifying service processes together with the appropriate risk mitigation
making BNI services faster, easier and more accurate. Several initiations were carried out to support this, including; Overseas
Branches services standardization, “D-Branch” Outlet services standardization, and with the Affiliate Wealth Manager
Certification, Super Frontliner, and BNI Teller Service Quality Development programs.
In an effort to accelerate business growth, BNI launched the “2nd Engine of Sales” service that is not only oriented towards
satisfaction and solution for customers but also creates sustainable business opportunities for the Company to achieve
a profit. A number of programs were initiated to prepare Branch Office frontliners as the spearhead of BNI’s business and
services, including: Bancassurance Program, Emerald Segment Upgrade Program, Property Investment through Griya Program,
Education on Capital Market Investment Program and Flexi Credit Card Program.
The kick off for the BNI Professional Image program took place, a program designed to shape the image of every employee
as someone with professional characteristics and ethics, reflecting their identity as a BNI person as well as the identity of the
company. This program is a strategic step to improving the corporate identity through professional style employees, with
good communication skills and business etiquette when interacting with customers and stakeholders, and who are digital
intellectuals with a good understanding of technology and the use of social media.
The efforts to improve service quality have had a positive impact, as reflected in the customer satisfaction surveys results
conducted by independent institutions throughout 2018. BNI has received several awards including:
1. The Best Government Bank in Service Excellence in the Bank Service Excellence Monitor 2018 Survey by Marketing
Research Indonesia (MRI);
2. The Best Government Bank for Satisfaction, Loyalty and Engagement (SLE) 2018 Survey by Marketing Research Indonesia
(MRI); and
3. 2nd Overall for the Satisfaction, Loyalty and Engagement (SLE) 2018 Survey by Marketing Research Indonesia (MRI).
2019 WORK PLANS
In 2019 the Service Quality Unit followed 3 (three) strategies to achieve superior and competitive service quality, including:
1. “Business Accelerator”, a service with a competitive advantage for accelerating BNI’s business achievements in both the
consumer banking and business banking sectors.
2. Digital Services, a digital-based service including:
a. Digital Mindset, to instill a digital mindset in officers who are in contact with customers.
b. Analytical Data Optimization, to optimize “Big Data” with the aim of achieving business and service targets.
c. Process Improvement, to improve business processes and service automation.
3. Beyond Services to provide added value for customers including:
a. Services provided that exceed customer expectations.
b. Services provided that exceed the industry average.
c. Services provided that provide new experiences for customers.
These service strategies are expected to produce customer-centric quality and service standards as a foundation to
accelerating business achievements at all BNI customer touch points.
ANNUAL
REPORT 2018
INFORMATION
TECHNOLOGY
To support digital transformation and

competitive analytics, BNI has developed Big Data
Analytics to utilize the advantages of machine
learning and other analytical tools, supported
by reliable data scientists.
INFORMATION TECHNOLOGY STRATEGIC POLICIES AND INITIATIVES
The Information Technology development in the industry 4.0 era has had an impact on the banking world. In an effort to
support bank business innovation in the digital era, BNI developed strategic policies and initiatives during 2018.
Information Technology Mission
BNI 2018 Strategic Policies and Initiatives
Agile and Dynamic IT Support
Providing IT-based solutions to Providing efficient, superior,

support businesses, through innovative and safe IT operations
innovations and the application to ensure the availability of
of IT governance, with controlled reliable and trusted IT services
People, Process, Technology
information security for business users
Providing the IT
Providing
Providing needed to support Ensuring
Decisions Support
availability & the Strategic compliance
& Management
reliability based IT Plan to become with Banking IT
Information System
services competitive in governance
services
financial services
IT 2018 Initiatives
ANNUAL
REPORT 2018
INFORMATION TECHNOLOGY DIVISION MANAGEMENTS STRUCTURE
The Bank’s Information Technology (IT) Management is run by IT Work Units, namely the IT Solutions and Security Division and
the IT Operations Division, who are supervised by the Managing Director IT and Operations, with the following tasks:
NO Work unit Job Description
1 IT Solutions and Security Providing IT-based solutions to support business, through innovations and implementation of
Division IT governance, with controlled information security.
2 IT Operations Division Providing superior, innovative and safe IT operations to maintain the availability, reliability and
maintainability of IT services for business users.
Based on the Board of Directors’ Decree No. KP/384/DIR/R dated November 9, 2018, the IT Director also oversees the
Operational Division (OPR) and E-Channel Unit (ECN) with the following organizational structures:
Vice President Director
Senior Executive Vice President

of Information Technology
Senior Executive Vice President

IT Operations DivisionS Operations Division E-Channel Unit
of InformationTechnology
Business Relations Management IT infrastructure
IT Strategy & Architecture Service Operations
Information Security
& Governance
Solution Development
BNI INFORMATION TECHNOLOGY ADVANTAGE
Bank BNI’s advantages in the Information Technology field to support its business include:
1. BNI IT Work Unit has implemented IT bi-capital, whereby IT’s compliance and development flows runs in a more agile way
to meet the faster time to market needs.
2. BNI’s data center is supported by a disaster recovery center that ensures maximum service availability. It has obtained an
extension of its Tier III Certification to become an Unexpired Tier III Design (TCDD) in terms of design, and a Tier III Facility
(TCCF) certification in terms of facilities from the Uptime Institute. By achieving this, BNI has become the first bank in
Indonesia to have a data center with Tier III facility certification.
3. As a development of its data warehouse, BNI has developed big data to enable its businesses to gain better customer and
business insight.
4. BNI also continues to innovate and develop information technology that is customer centric by focusing on comfort and
security in digital transactions.
5. BNI IT Work Unit applies IT bi-capital, with an agile IT compliance and development flow enabling it to deliver a faster time
to market.
Business
Support Unit
INFORMATION
TECHNOLOGY UTILIZATION
Information Technology ARCHITECTURE
In an effort to harmonize information technology development, during 2018 BNI continued to refine the Application
Architecture Landscape scheme as follows:
Customer Management
Products Processing
Payments
Delivery
Channel
Middleware
DWH & Analytics
Administration
Bank Management Risk
The Application Architecture Landscape Information Technology can be grouped as follows:

1. Delivery Channel, a channel for customer access to banking products such as outlets, ATMs, Internet Banking, Mobile
Banking, API, etc.
2. Customer Management, an internal and external customer management system consisting of Contact Centers, Sales
Performance Monitoring, and Loyalty.
3. Product Processing, a system for handling Customers, Funding, Lending, Credit Card Products, etc.
4. Middleware, a system that functions as a layer integrator between BNI and third party systems.
5. Data Warehouse and Analytics, consists of a Data Warehouse, ETL, Analytics API and Big Data.
6. Bank Management, a system that includes accounting and reporting applications.
7. Risk, a collection of risk management applications.
8. Payment, a payment transactions, money transfers, and transaction settlement module.
9. Administration, a collection of Administrative Applications and supporters.
ANNUAL
REPORT 2018
DATA MANAGEMENT
Data is the most valuable and treasured asset that is processed into guidance and support for businesses. Data has three
enablers, namely People, Procedures (Data Governance & Strategy and System Operating Procedure), and Technology (Data
Warehouse, Big Data, and Network). Data management output is in the form of data, information, and insights to support
strategies & business decisions regarding products and services in accordance with customer needs. The Data Management
mission is to realize a reliable Single Source of Truth for the bank’s business interests and act as a center of excellence in
analytics at BNI.
Information Architecture Principles
Strategic Analytics Program Management

Integrated Data Management (Data Governance, Data Quality & Data Profilling
Metadata Management
Source Systems
DPK
Information Delivery
Loan Data Warehouse
Others
Analytics Services
Master Data Big Data
Data Archive
Manual and External
Data Security
Data Lifecycle Management
The data information flow in Data Management adheres to the Information Architecture Principle where data from various
source systems is entered into the Data Warehouse (EDWH) and Big Data through an Extract Transfer Load (ETL) process, where
it is then used as a database for report and analytic development. Data Governance is required to integrate the data from
various source systems so that it can produce quality data and ensure an efficient information system.

Big Data Analytics Implementation Strateg
Business
Support Unit
To support digital transformation and competitive analytics, BNI has developed Big Data Analytics to utilize the advantages
of machine learning and other analytical tools, supported by reliable data scientists. Complementing its existing enterprise
data warehouse, the Big Data technology adoption went as expected. The Big Data platform with the latest technology was
successfully implemented with several applied business cases. BNI’s ability to collect, process and retrieve value from a data
set has increased, and is now not only limited to structured data, but can now access semi-structured and unstructured data in
large volumes with a high data growth speed.
Like other data management systems, Big Data has the ability to load data, retrieve data, or synchronize data between systems.
Therefore, the integration between the Big Data system and other existing systems went well. In addition, it now has the ability
to retrieve data from external sources using web crawling, where data from the internet becomes one of the data sources.
Big Data also has advanced analytical tools, including tools for data mining activities, statistical modeling, machine learning,
and artificial intelligence. With these devices, several outputs can be produced including data matching, predictive analysis,
statistical models, listing customer prospects with specific offers, and dashboards. Big Data Analytics results will help BNI get to
know its customers, identify new opportunities and realize data driven business leading to business value creation.
To improve service quality and customer satisfaction, BNI continually adjusts its information technology capabilities based on
technology developments and customer needs. The increased capabilities need to be accompanied by adjustments to the
mindset to accommodate the trend in technological developments and the dynamic customer demands.
Information Technology to support business needs is in line with BNI’s positioning as a Digital Bank, and references the 4 (four)
IT strategic directions, namely New Digital Proposition, Governance Toward Performance, Strive for Operational Excellence, and
the Innovative and Agile Organization.
ANNUAL
REPORT 2018
CYBERSECURITY
INFORMATION TECHNOLOGY INFRASTRUCTURE
Strong cybersecurity is an important factor to
BNI has implemented a high availability infrastructure to minimize gain customer trust, so BNI always pays serious
potential Information Technology operational risks, while at the attention to continuous cyber risk development for
same time maintaining customer satisfaction. High availability its business activities. The safeguards taken refer to
infrastructure is applied starting from the server, network, to the international standards to protect BNI in general, as
data center, with an active configuration and passive configuration well as customers in particular.
as back up. It is supervised by a layered security architecture
configuration, and supported by nonstop monitoring by the In line with the increased business growth and the
network command center and incident response teams who are growing threat from cyber-crime, the safeguards
experts in their fields. carried out included:
1. Increased cybersecurity capacity through
With its high availability infrastructure, service disruptions due hardware and software investments such as
to system failure can be minimized, as evidenced by the service anti-virus, Firewall and an Intrusion Prevention
stability during high volume transaction times, such as during System (IPS),
religious and other holidays. 2. Application of safeguards to prevent the spread
of malware on ATMs,
3. Employee education to increase cyber security
awareness,
4. Proactive 24x7 monitoring for potential
cybercrime
5. Collaboration with stakeholders, including
official government bodies and other
cybersecurity activators.
In response to the current widening trend of cyber

attacks on customers, several safeguards on the
customer side have been applied, including:
1. Application of customer protection
mechanisms against fraud transactions caused
by banking malware or social engineering,
2. Application of fake website detection on behalf
of BNI,
3. Customer transaction notification mechanisms,
4. Continuous customer education regarding self-
protection through secure passwords, secure
internet banking, secure mobile banking,
secure transactions at ATMs and others.
In line with the direction of digital banking

development, cybersecurity will continue to be
developed to guard the banking service innovations
so that customer trust and comfort can always be
maintained.
Business
Support Unit
INFORMATION TECHNOLOGY
GOVERNANCE
IT Governance includes leadership management, ISO 27000
organizational structure and sustainable processes, to ISO 27000 is part of the Information Security Management
ensure the IT organization is aligned with the organization’s Systems (ISMS) working standard that is used to manage
business strategy and objectives. Framework selection. Good information security risks in an organization. The ISO 27000
IT governance requires a balance between People, Process standard is used as a reference by BNI when establishing
and Technology aspects, and based on these considerations, enterprise security solutions, both in terms of IT architecture,
BNI’s IT governance adopts various frameworks that are policies, development solutions, and IT operations. These
compatible with BNI’s IT service areas. standards are implemented in an end-to-end manner,
starting from the core, surrounding systems, communication
CONTROL OBJECTIVES FOR INFORMATION AND RELATED networks, applications, and access devices such as ATMs and
TECHNOLOGIES (COBIT) EDCs.
Control Objectives for Information and Related Technologies
(COBIT) is widely recognized as an IT management ISO 9001
framework and IT governance. COBIT helps organize ISO 9001 is a quality management system standard designed
IT to meet the needs of BNI’s stakeholders through to ensure that companies meet the demands of stakeholders
management of its process groups and enablers, where and adheres to regulatory requirements regarding their
business objectives are mapped to IT objectives, and also products and activities. BNI’s IT has implemented ISO 9001:
by measuring their achievements and maturity. BNI’s IT uses 2008 (international standard for quality management
the COBIT framework as a governance guidance because of system) within the scope of IT Operations and IT Security
the synergy between business objectives and IT objectives, Management, and completed the ISO 9001: 2015
focusing on data and information, which can be flexible certification upgrade on July 30-31, 2018. Based on the
when following the company’s work direction, and can be external audit summary report regarding the IT unit
used in conjunction with other framework standards. achieving the quality objectives, it was concluded that the
management system in the IT Unit met the requirements
INFORMATION TECHNOLOGY INFORMATION LIBRARY (ITIL) to upgrade the ISO 9001: 2015 certification on September
The Information Technology Information Library (ITIL) is 26, 2019. ISO 9001: 2015 certification in IT units will provide
the standard framework for IT Service Management (ITSM), benefits to all IT units and management employees, by
used to align IT support services to BNI’s businesses. ITIL establishing mechanisms and quality standards focused on
focuses on IT processes, procedures, tasks and service company performance, with a risk-based thinking approach,
levels to support the corporate strategy, add value, and enabling the IT units to be more proactive in preventing and
maintain IT competency levels. With ITIL, BNI’s IT operations reducing undesirable events, and to continually improve the
establishes a baseline, as a service benchmark, as guidelines systems.
for the planning, implementation and measurement of its
achievements.
ANNUAL
REPORT 2018
INFORMATION TECHNOLOGY
FUTURE DEVELOPMENT PLAN
INFORMATION TECHNOLOGY FUTURE DEVELOPMENT PLAN
As part of its sustainable project planning system to meet the

business needs for IT support, BNI conducted an IT Planning
Session forum bringing together IT units with all BNI units. In
the forum, these units discussed with IT their business needs
together with their future target achievement and expectations,
both in terms of solutions, security, operations, and data
processing development plans, and reporting.
The IT Planning Session Forum generated 122 (one hundred

twenty two) application/architecture development plans to be
initiated in 2019, including strategic requirements that will have
a direct impact on the business targets achievement, as well
as the usual business, to support for daily business operations.
The IT development plan was submitted to OJK, in line with
POJK No. 38/POJK.03/2016 dated December 1, 2016 concerning
Application of Risk Management in the Use of Information
Technology by Commercial Banks.
To ensure the application development plan implementation

and to support the 2019-2023 corporate plan, BNI has
established 4 (four) strategic IT directives, namely New Digital
Proposition, Governance Toward Performance, Strive for
Operational Excellence, and Innovative and Agile Organization.
New Digital Proposition for how IT provides digitalization answers to bring something new to its users. The strategy direction
encourages the creation of regular digital business value, by providing recommendations in the form of adjusting and
developing new business models based on emerging IT trends or through digital innovations.
Governance towards Performance for fulfilling good governance to encourage optimal performance, including effective
prioritization, reliable portfolio management, demand management and IT planning in line with business needs, and good
synergy between all units and subsidiaries.
Strive for Operational Excellence for optimizing operational excellence through digitized and automated business processes
while enhancing cybersecurity security and developing a consistently sustainable operating model.
Innovative and Agile Organization for creating organizations that are adaptive to change with a fast deliverable capability,
with a customer-centric innovation culture to appropriately and efficiently meet customer needs, and by transforming a
visionary mindset in IT strategy and planning, and by implementing an Agile methodology.
Business
Support Unit
DIGITAL TRANSFORMATION
Digital technology developments have significantly influenced the financial and banking services industry. This has driven BNI
to remain adaptive in utilizing innovations that provide convenience, comfort and security for customers. In support of this,
BNI has established an IT Architecture in line with the direction of digital transformation.
Digital Banking IT Architecture
BI-MODAL IT BUSINESS & IT TRANSFORMATION CUSTOMER EXPERIENCE
CREATE ASSURE RELEASE
PROCESS PRODUCT PROCESSOR

CONSUMER
ACCESS SECURITY
INFORMATION INTEGRATION UNIVERSAL MESSAGING
3rd PARTIES
DATA STORAGE
BNI follows the BI-CAPITAL practice in its IT development that includes two separate but coherent work
methods. The first method optimizes for the more predictable and well understood areas, while the second
method is more explorative in solving new problems. Implementation is the application of both conventional
and agile development methods, with the aim of providing an optimal, faster time to market, and customer
centric service.
The architecture components include,

1. Process, the capability for agile, prudent product development methods to meet time-to-market expectations.
2. Information, the capability for insightful and comprehensive information.
3. Integration, the capability for integrating inter-system processes and automation of workflow processes.
4. Storage, the capability for managing structured and unstructured data and information.
5. Product Processor, the core system and surrounding system capabilities that are responsive to developments and needs.
6. Access, the capability for providing modern and reliable access to services and products.
7. Universal Messaging, the capability for various types of messaging systems service.
8. Security, the capability for security to protect assets (data and information).
9. Consumers, the diversity of touchpoints between banks and consumers.
10. 3rd Parties including corporate, startup/fintech, commercial Off-The-Shelf (COTS) for both Premises and the Cloud.
ANNUAL
REPORT 2018
The development of information and digital technology 2. Research and Development (R & D) Intelligent Video
such as the Internet, Cloud, Big Data, Internet of Things (IoT), Analytics
and Artificial Intelligence (AI) has triggered changes in the Intelligent video analytics technology can be used
industry, better known as the 4.0 industrial revolution. This to identify stationary and moving objects, facial
has been seen in the increasing use of communication and recognition, space density analysis, building /space
internet networks for many different purposes, the integrated surveillance, identity verification, and other things. Using
automation process with the use of AI, decision making this technology, face recognition features have been
using insights obtained from the use of Big Data analysis, tested for several use-cases such as for account opening
optimizing the use of the Cloud for business and personal through mobile phones and monitoring employee
needs, and connecting everyday devices with the Internet. activities through CCTV.
These developments have resulted in changes in consumer
behavior and encouraged the creation of new more suitable 3. Collaboration with various fintech and business
business models. To anticipate these changes, digital startups
transformation have be carried out to include the integration BNI has established partnerships with the global Startup
of digital technology into the business processes. Accelerator Companies who have technology-based
startup incubation & acceleration programs and have
Digital transformation is not just changing analog technology a reputation for connecting startups with various
to digital, but more, it will also be necessary to adjust corporations. Through this collaboration, BNI will have
various business processes that are driven by technological the opportunity to take advantage of innovations/
innovations so the processes can be faster, flexible and solutions from various startups and fintech to support
efficient, at a lower cost, with the potential to open up new its business, improve the capability of the Bank’s internal
business opportunities. The IT work units have explored processes, as well as other forms of cooperation.
innovations, both in terms of technology and business
process optimization, and several technological initiatives To optimize innovation both in terms of technology
have been introduced, including: and business process optimization, BNI also has used
the services of Independent International Research
1. Research and Development (R & D) Blockchain Institutions on an ongoing basis since 2007 to gain
Blockchain is a distributed ledger technology that has technology references, descriptions, trends, and insights,
the ability to become a disruptor in the business world and insights into the development of global industry in
as it can eliminate the intermediary function. This general and banking in particular.
technology can be used to create new business models
or replace existing business processes to become faster,
safer, and cheaper. The use case that has been tested is
for cross border payments together with Fintech and an
international corporation.
Business
Support Unit
DIGITAL
BANKING
DIGITALIZATION DEVELOPMENT ACCELERATION
In line with BNI’s vision to become a financial institution that excels in service and performance,
BNI continues to make innovative improvements to answer the challenges and changes from the
latest developments. These innovations were developed through 5 (five) digital banking capabilities,
namely:
1. Digital Branding and Proposition
Developing customer-persona based services that provides information and products according
to the customer needs. This process includes design thinking to validate these needs more
deeply;
2. New Digital Channel
a. Developing the Digital Branch as a physical channel by utilizing smart kiosks;
b. Developing BNI’s Digital Banking-based Mobile Platform Application, such as: YAP (QR-
based global network payment feature);
c. Developing Chat Bot (Artificial Intelligent (AI) to serve messaging-based banking
information);
3. Digital Business and Ecosystem
a. Improving the digital business solutions penetration program in several priority ecosystems;
b. Developing an automation process in the BNI operational process chain;
4. Agile IT
a. Developing Two Speed IT Development (Development of acceleration and agility
capabilities in the solution development process),
b. Developing API Management with the capability of connecting potential digital
ecosystems, such as the marketplace ecosystem, smart city, and etc.).
c. Providing Big Data with its behavioral analytic capabilities to deliver contextual solutions to
customers.
5. Digital Culture & Innovation
a. Building a BNI Innovation Center with the capability to incubate potential digital business
ideas,
b. Organizing the BNI Business Innovation Awards (Binnova) as an idea and business
innovation competition for BNI employees to spark an innovation spirit,
c. Creating BNI Digital Ninja as a change agent program for supporting the internalization of
the digital culture in BNI.
2019 Strategy
In line with the BEYOND program contained in BNI’s corporate plan, BNI’s digital banking strategy
is “Develop B2B2C business ecosystems and digital attackers (small and consumer segments)
by optimizing the customer journey, analytical data and maintaining venture capital to capture
opportunities for Beyond Banking” .
ANNUAL
REPORT 2018
ELECTRONIC
BANKING
KALEIDOSKOP E-BANKING 2018
January Launched yap! as a payment application using the QR method

urbanathletes.co.id
malljepara.com
February
guteninc.com
kalbestore.com
March Launched CINTA as an interactive banking information media for customers that can be accessed through chat platforms
unionspace.id
April Ranked 3td for Digital E-Money Bank Brand at the 7th Digital Brand Awards by Infobank & Isentia.
Implementation of the National Payment Gate (GPN) through the Joint Debit ATM Network
May Collaborated with Angkasa Pura Cargo for the implementation of cashless transactions using TapCash.
grandclarionmakassar.com
mokapos.com
balilife.org
June dewaweb.com
July Cooperation between yap! in the Asian Games 2018 tickets sale kiosks
mesinlaundry.com
luxatme.com
August 2nd Best Collecting Agent at 2018 Transaction Banking Awards by Infobank & PT Rintis Sejahtera.
1st Best Transaction Growth as Acquirer Bank at 2018 Transaction Banking Awards by Infobank & PT Rintis Sejahtera.
Implementation of Agency cooperation between BNI & PT Kimia Farma (Persero) Tbk
Implementation of Agency cooperation between BNI & PT Dompet Anak Bangsa (GOPAY)
September The Best Bank in Digital Services pada Indonesia Banking Awards 2018 oleh Tempo Media Group & Indonesia Banking School.
Best ICT Implementation in Sales & Marketing for Banking Category pada Indonesia Best eMark Award oleh Universitas Telkom & Majalah SWA – Business Digest
Best e-Commerce Issuing & Acquiring pada Visa Award Night 2018
Akuisisi Ranch Market sebagai Merchant yap!

October
Trial of international e-wallet integration (LiquidPay & WechatPay) as the source of yap! funds at the IMF Annual Meeting in Bali.
Implementation of Agency cooperation between BNI & PT Axiata Digital Services Indonesia
November Best Beneficiary Bank at the 2018 ATM Bersama Awards by PT. Artajasa Payment Electronics
zomato.com/id
alodokter.com
December wecare.id
parentstory.com
Implementation of Agency cooperation between BNI & PT Bukalapak.com
Implementation of Agency cooperation between BNI & PT Permodalan Nasional Madani
Business
Support Unit
E-BANKING PRODUCT DEFINITIONS
BNI offers a variety of E-Banking facilities including ATM, SMS TAPCASH

Banking, Mobile Banking, Internet Banking, Phone Banking, TapCash is an electronic money cash card that can be used for
Agen46, Tap Cash, Uniqku, and Electronic Data Capture (EDC). making purchase payments at BNI-registered merchants, for
An explanation of each product is as follows. various modes of transportation, and for toll roads. TapCash
users can use the TapCash Go application to facilitate balance
ATM checks and balance top ups.
Banking service channel that allows customers to make cash
deposits, balance checks, transfers, payments and purchases. UNIKQU
BNI currently has 18,202 (eighteen thousand two hundred UnikQu is a BNI server-based e-money development that can
two) ATM machines throughout Indonesia connected to ATM be accessed and used by BNI customers and non-customers
Link, ATM Bersama, ATM Prima, International Mastercard, Visa, through iOS and Android-based smartphones. With its
JCB, APN, Union Pay and Cirrus Networks. flexibility, UnikQu payments can be made with merchants
with an IT infrastructure, and with merchants who do not
SMS BANKING have any IT infrastructure such as street vendors or market
BNI’s SMS Banking channel can be used by customers for traders. UnikQu balance top-ups can be done through BNI
transfers, payments and purchases transactions and can SMS Banking, BNI Mobile Banking, BNI Internet Banking, and
be accessed through SMS Banking, Syntax SMS and USSD Agen46. Also, UnikQu can be used to purchase telephone
application menus. credit and to make postpaid telephone payments.
MOBILE BANKING YAP!

Customers can use BNI’s Mobile Banking transactional Yap! is a QR payment application that uses the QRIS national
channel for transfers, payments and purchases through standards. Yap! has 3 (three) sources of funds for completing
Android and iOS based smartphone banking applications. each transaction, namely Debit Cards, Credit Cards and
BNI Mobile Banking can also be activated and used for UnikQu providing flexibility to users when making payments.
transactions from overseas. Payments made using QR can be through an EDC machine,
yap! QR (tent card), and by push notification. Currently, Yap!
INTERNET BANKING has been implemented in a number of merchant segments
BNI’s Internet Banking is one of BNI’s e-Banking transactional including micro businesses, chain stores, Business to Business
channels that can be accessed by customers via computers (B2B) and e-Commerce.
or mobile phones through BNI’s Internet Banking URL. BNI
Internet Banking has reliable Personal Financial Management CINTA
features and comes with security standards that use 2 types CINTA is a chatbot development that uses artificial
of financial transaction authorization tools, namely BNI intelligence and machine learning technology to makes
e-Secure and BNI m-Secure. it easier for users to access banking information through
social media platforms. CINTA has the capability to create a
AGEN 46 BANKING personalized program, survey and educate customers, with
Agen46 are BNI partners who provide banking services to the transactional features integrated into the Yap! payment
public in the context of inclusive finance. Besides being BNI’s method.
partners providing a wide range of banking services, Agen46
also handle a wide range of government programs, such as
relief aid or subsidies distribution, either in cash or non-cash.
Through Agen46, banking transactions are easier, faster
and easily accessible in the surrounding communities. (In
accordance with Agen46 tagline: Easier, Faster, Closer).
ANNUAL
REPORT 2018
ELECTRONIC DATA CAPTURE (EDC)/ MERCHANT NETWORK

The merchant network is a network service for receiving credit, debit and prepaid card transactions, a collaboration between
banks (acquirers) with the global principals such as VISA, MasterCard, Japan Credit Bureau (JCB), UPI, and local principals such
as Artajasa, Prima, and ALTO. As a principal member, the merchant network cooperates with shops, hotels, restaurants and
various other business entities that accept payment for goods or services using credit, debit and prepaid cards, and receives a
fee through the merchant discount rate ( MDR) for each transaction.
E-BANKING USER COMPOSITION
12%
20%
15% 1.369
2.893
1.781
13%
1.894 2018 9.820 2017 8.497
67% 73%
SMS Banking Internet Banking Mobile Banking
Growth (Monthly)
Channels 2018 2017 2016
User %
Internet Banking 1,893,721 1,781,297 1,538,020 10,251 0.54%

Mobile Banking 2,892,518 1,368,771 506,564 132,637 4.81%
SMS Banking 9,819,514 8,497,014 6,873,626 108,000 1.11%
E-BANKING PERFORMANCE IN 2018
The E-Banking product performance can be seen in the growth in the number of users, number of transactions, and
transaction volumes reached in 2018 and are as follows.
ATM
Uraian 2018 2017 Growth
Total Transactions 1,288.9 million 962.3 million 33.9%

Transaction Volume (Rp) 668.0 trillion 600.1 trillion 11.3%
During 2018, the ATM channel service number of transactions increased by 326.6 million, or 33.9% to 1,288.9 million
transactions compared to 962.3 million transactions in 2017. The nominal value of transactions increased by Rp67.9 trillion, or
11.3% to Rp668.0 trillion from Rp600.1 trillion in 2017.
Business
Support Unit
SMS BANKING
User 9.7 million 8.5 million 15.6%

Total Transactions 504.0 million 389.2 million 29.5%
During 2018, the number of SMS Banking users reached 9.7 million, a 15.6% increase from last year’s 8.5 million users. SMS
Banking handled 504.0 million transactions in 2018, an increase of 29.5% compared to 389.2 million transactions the previous
year. As a result of these increases, the SMS Banking transaction value in 2018 amounted to Rp51.2 trillion, an increase of 28.3%
compared to Rp39.9 trillion the previous year.
MOBILE BANKING

During 2018, the number of Mobile Banking users reached 2.9 million users, an increase of 111.3% from last year’s 1.4 million
users. Mobile Banking handled 96.9 million transactions in 2018, an increase of 199.4% compared to 32.3 million transactions
the previous year. As a result of these increases, the Mobile Banking transaction value in 2018 amounted to Rp133.4 trillion, an
increase of 167.7% compared to Rp49.8 trillion the previous year.
INTERNET BANKING

Transaction Volume (Rp) 91.3 trillion 94.0 trillion -3.0%
During 2018, the number of Internet Banking users reached 1.9 million users, an increase of 6.3% from last year’s 1.8 million
users. Internet Banking handled 27.5 million transactions in 2018, an increase of 8.3% compared to 25.4 million transactions
the previous year As a result of these increases, the Internet Banking transaction value in 2018 amounted to Rp91.3 trillion,
down 3%, compared to Rp94.0 trillion the previous year.
AGEN46
Total Agents 111,836 agen 69,589 agen 60.7%

Pandai Accounts 9.2 million 4.8 million 91.7%
BNI Pandai TPF 636.3 billion 561.9 billion 13.2%
Agen46 TPF 658.4 billion 592.8 billion 11.1%
During 2018, the number of BNI Agen46 reached 111,836 agents, an increase of 60.7% compared to 69,589 agents in 2017. In
2018 there was a significant increase in the number of transactions handled that reached 79.3 million transactions, an increase
of 130.4%, compared to 34.4 million transactions in 2017. Sales volume increased 715.6% reaching Rp94.5 trillion in 2018,
compared to Rp11.6 trillion in 2017.
The number of Pandai accounts in 2018 increased by 91.7%, reaching 9.2 million accounts compared to 4.8 million accounts at
the end of 2017. The TPF generated by these BNI Pandai accounts reached Rp636.3 billion, an increase of 13.2% compared to
Rp561.9 billion in 2017. Total Agen46 TPF increased by 11.1% in 2018, and amounted to Rp658.4 billion compared to Rp592.8
billion in 2017.
ANNUAL
REPORT 2018
TAPCASH
Total Cards 4.5 thousand 2.9 thousand 56.8%

Total Transactions 50.8 thousand 23.2 thousand 119.1%
Transaction Volume (Rp) 807.1 billion 362.5 billion 122.7%
During 2018, the number of TapCash cards reached 4.5 million, an increase of 56.8% compared to2.9 million cards the previous
year. The number of Tapcash transactions reached 50.8 million transactions in 2018, an increase of 119.1% compared to 23.2
million transactions the previous year. As a result of these increases, the Tapcash transaction value in 2018 amounted to
Rp807.1 billion, an increase of 122.7%, compared to Rp362.5 Billion the previous year.
UNIKQU
User 109.2 thousand 68.2 thousand 60.0%

Total Transactions 254.3 thousand 45.2 thousand 462.7%
Transaction Volume (Rp) 7.1 billion 1.9 billion 122.7%
During 2018, the number of Unikqu users reached 109.2 thousand. The number of Unikqu transactions reached 254.3
thousand, an increase of 462.7% compared to 2017, with a transaction value amounting to Rp7.1 billion.
ELECTRONIC DATA CAPTURE (EDC)

Total Transactions 40,9 million 34,0 million 20,3%

Transaction Volume (Rp) 55,1 trillion 46,7 trillion 18,0%
During 2018, the Electronic Data Capture (EDC) services purchase transactions increased by 20.3%, reaching 40.9 million
transactions compared to 34.0 million transactions in 2017. Transaction value increased by 18% to Rp55.1 trillion in 2018
compared to Rp46.7 trillion the previous year.
CINTA
Followers 349.0 thousand -
During 2018 CINTA had 349.0 thousand followers using the Line application platform, and actively provided various promos,
surveys/couponing information and customer education through the chat platform.
Business
Support Unit
YAP!
Total User 419,2 thousand -
Total Merchant 515,4 thousand -
Total Transaction (Rp) 6,7 million -
Transaction Volume (Rp) 687,8 billion -
During 2018, Yap! acquired 419.2 thousand users and 515.4 thousand merchants. In its first year, it recorded 6.7 million
transactions with a value of Rp 687.8 billion through purchase transactions (regular, chainstore, e-commerce) and B2B
(fiduciary payments from the AHU Directorate General).
BNI E-CHANNEL TRANSACTION CONTRIBUTION
During 2018 the e-channel transactions contribution to all banking transactions was above 90% with an average contribution
of 95.06%. The highest transaction contribution occurred in June with 96.58%. The growth in e-channel transactions
contribution can be seen in the following graph.
BNI E-Channel Transactions Against BNI Overall Transactions
96.58%
95.09% 95.20% 95.70%
95.05% 94.98% 94.78% 94.74% 94.96%
94.63% 94.56% 94.40%
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
ANNUAL
REPORT 2018
BNI AS A PIONEER IN BANKING TECHNOLOGY
CINTA EDC OFFLINE

CINTA is a chatbot development that uses artificial EDC Offline is a system developed by BNI to deliver
intelligence and machine learning technology. CINTA uses transaction services in remote areas that have no access to
chat platforms to provide services to CINTA followers, a network infrastructure. This system was built without the
especially BNI customers in the millenial segment. The value need to use a network infrastructure to conduct transactions
proposition offered is its simple, personalized, familiar feel. with verifications using Biometric technology. Currently this
CINTA has the capability to create a personalized program, service assists Government programs in distributing social
and has an ATM-Locator, customer education facilities, assistance in remote areas.
surveys and couponing.
MARKETPLACE
YAP! e-commerce UMKMBNI, as one of the government’s
Yap! is a QR payment application providing flexibility and development agencies, responsible for developing the
ease of transaction as its users can choose from 3 (three) market for creative industries, in this case MSE. With the
sources of funds that include credit cards, debit cards and UMK e-commerce system, MSE markets in areas with good
UnikQu. Yap! is easy to install and reaches the micro market potential can enjoy a more open market, both domestic
segment, helping BNI become an agent of development by and international. This system is already integrated with the
creating a cashless society ecosystem. Merchant payments payment system and distribution/delivery system.
using Yap! can be through an EDC machine, Tent Card, or by
push notification. E-RETRIBUTION MARKET
e-Retribution Pasar is a system that integrates the
E-WALLET TECHNOLOGY management of rental places and tax payments. Through
e-wallet Technology is a system developed for the purpose this system, local governments can easily monitor tax levies
of distributing Government program services. Through on local markets so as to increase local tax revenue. Through
this system, every transaction can be divided based on this system, the use of kiosks in the market can become very
their respective functions so as to present auditable and effective and optimal as they can be monitored better.
accountable information. The e-wallet system is currently
used for the distribution of the Bansos program (Family Hope
Program, Non-Cash Food Assistance, and PIP) and subsidies
(fertilizer and LPG). For Bansos activities all Bank Himbara
managed by BNI as its owner uses the e-wallet technology
system.
AGEN46
Agen46 is a Digital Financial Services (DFS) system, Laku
Pandai (Officeless Financial Services for Inclusive Finance),
and e-Payment service where BNI offers its banking services
for all Indonesian people living in remote areas of Indonesia.
Currently there are more than 111 (a hundred eleven)
thousand agents throughout Indonesia. The system runs on
the web and mobile platforms, and Agen46 are equipped
with Android EDC to facilitate transactions.
Business
Support Unit
Human
Capital
CENTRAL ROLE FOR BNI HUMAN CAPITAL
Business growth and technological developments in 2018 became increasingly faster and more competitive. In this
increasingly competitive environment, human capital become an important factor in supporting BNI’s success in realizing its
vision as a financial institution that excels in service and performance. Reliable human capital (HC) management, and being
able to adapt to business demands, are the main supporting factors to ensuring the sustainable success of Banks strategy.
2018 was declared as the year of strengthening the digital human capital management policies. In 2018, the foundation for
the digital human capital management applications began to be built. The changes will happen in stages, both in terms of
infrastructure and digital mindset.
Realizing the vision of being a financial institution that excels in service and performance requires employees with high
engagement and productivity. The aspects that affect BNI employee engagement include leadership, career paths, rewards
and remuneration, organizational policies, learning and development, performance management, work environment, work
life balance, and a quality infrastructure. Factors affecting employee productivity include business processes, organization,
technology, and an execution culture. Therefore, to develop employees with high engagement and productivity requires that
BNI appropriately intervene on aspects that are considered not optimal.
Bank Negara Indonesia Thinking System Table
ANNUAL
REPORT 2018
HUMAN CAPITAL ARCHITECTURE
BNI’s human capital management strategy is expected to build the foundation for supporting BNI’s dynamic strategy, in
line with the demands of the banking industry today. The Human Capital Architecture (HC Architecture) is a guideline for
managing BNI’s human capital. All HC Architecture components result in an Employee Value Proposition (EVP), which becomes
BNI commitment that is trusted and agreed upon between Banks and employees. BNI’s EVP is “Together to make BNI the best
place to contribute, learn and grow to become the pride of the country”. The use of the word “Together” emphasizes that the
employees and the company are two sides of a coin that are inseparable when realizing BNI goals.
BNI as an organization has certain goals to achieve with strategies to achieve these goals and an organizational culture that
guides behavior. In line with these three factors, the employees (people) are expected to perform in a way that supports
the organizational goals, with competencies that are aligned with the Banks strategy, and a behavior that is in line with the
organizational culture.
So that the employee value proposition can be realized, a talent management system is needed to support the realization
of all organization and employees aspects. The human capital management system, in broad terms, consists of talent and
succession, learning and development, and reward and recognition. When implementing this policy, technology plays an
important role, as the main supporting infrastructure, for implementing the more effective and efficient policies. All policy
implementations run optimally when supported by Information Communication and Technology, as the main infrastructure,
and with the active role of leaders.
Business
Support Unit
TALENT MANAGEMENT POLICY TO

ACCELERATE LEADERSHIP
DEVELOPMENT
In line with the purpose of carrying out the sustainable BNI also actively uses social media as effective sourcing
human capital management process, the talent management channels for recruiting potential candidates.
process implemented at BNI focuses on preparing,
developing and maintaining employees in line with BNI’s BNI employees management does not only focus on numbers
Employee Value Proposition (EVP). BNI understands that but also on employee capabilities, meaning that the learning
talent management is a process that must be carried out process given to prospective employees also becomes
consistently and takes place over the long term. The three increasingly focused and directed to ensure that employees
main components in the Talent Management System (Talent have the suitable capabilities. The number of employees in
& Succession, Learning & Development, and Reward & 2018 reached 27,224 people, and this number is considered
Recognition), as part of the HC Architecture, include five enough to support Banks business targets based on Earning
aspects consisting of Talent Acquisition, Talent Classification, per Employee (EPE) indicators. Employee productivity in 2018
Talent Development, Talent Mobility and Talent Retention. was Rp529 million/employee, an increase of 12% compared
Each talent management aspect involves the Talent to the previous year. The turnover rate in 2018 was 4.76%,
Committee that comprises BNI empowerment leaders. which is considered a healthy turnover, and is below the
national banking industry turnover average.
TALENT ACQUISITION
TALENT DEVELOPMENT
To obtain reliable HC, an effective recruitment path and
sourcing channels are required, and in 2018, BNI opened up a In line with BNI’s goal of becoming a Leader’s Factory for both
number of recruitment programs for various positions. the BNI Group and for Indonesia, leadership development
acceleration is absolutely necessary. Talent Development
A Management Trainee program, known as Rookie 46, is is a synergy between Banks and the employees, from the
BNI’s flagship program for recruiting the best candidates planning process through to its execution.
with strong leadership and qualified capabilities. The
program selection stages are conducted in an innovative GROWING A LEARNING CULTURE
and challenging way to obtain the future leader candidates. The Talent management system at BNI is competency-based
Participants passing the initial selection, will undergo the and aims to ensure that employees have the appropriate
advanced learning and selection stages over 2 (two) years competencies for the intended position (right man in the
with various learning methods, including in class learning, right place). To support this competency-based Talent
social learning and experiential learning. The main emphasis Management System, BNI has a competency dictionary,
for Rookie 46 participants is on the experiential learning and for each position in BNI has a specific competency
method with its overall exposure to the banking business. profile. The competency dictionary lists all soft and hard
At the end, participants who graduate will be placed in a competencies in BNI, and the specific competency profile lists
number of strategic positions at the manager level. the competencies needed for each position to carry out the
work optimally.
The Officer Development Program (ODP) is aimed at
recruiting new university graduates for careers in accordance BNI employee competency development starts by shifting
with their regional areas. Participants in this program will the learning paradigm from the learning center to the learner
receive comprehensive training for 6 months. In 2018, as the center of learning, which means learning centers are
there were 674 employees recruited through this channel learners. By doing this employees are not only referred to as
ensuring that the regeneration process in BNI was conducted learners but also as adult learners, namely individuals who
optimally. freely and actively choose for themselves why, how and
when to conduct learning and sharing based on their needs
In 2018, BNI also improved the recruitment process in a and preferences. It is also based on the fact that employees
number of areas, including through the use of technology with the same job position do not necessarily need the same
and social media to make it easier for candidates to get learning as others, but are strengthened as each of them is
information regarding employee recruitment, and to follow responsible for their own development.
the selection process. As well as opening recruitment sites,
ANNUAL
REPORT 2018
The change in the learning paradigm from the learning In 2018, BNI refined its method of measuring employee
center to being learner as the center of learning is a gradual engagement with a simplified and digitized method so as
process that begins with a change in mindset, coupled with a to facilitate respondents in filling out the questionnaires.
complete learning infrastructure. In this way the employee engagement measurement can
be carried out continuously (on going), with the company
LEADERSHIP DEVELOPMENT ACCELERATION gaining feedback from employees at any time. As a result,
In 2018, BNI focused on developing leadership capabilities BNI can immediately roll out intervention programs for each
at every staff level with the aim of preparing short and long engagement driver considered to be less than optimal. The
term Leader’s Successor. Leaders Create New Leaders was engagement level results in 2018 reached 88%, an increase of
one of the themes in 2018. In line with the concept of leader 5.17% compared to 82.83% in 2017.
empowerment, a leader is not only required to be able to
lead but also to create cadres as future leaders. The Leaders REWARD AND RECOGNITION
Create New Leaders theme is further described as: BNI’s remuneration strategy is aimed at attracting, motivating
and retaining talent with superior performance and
1. Building Immediate Successor competencies, to support the achievement of Banks vision.
Is a program to prepare successors to occupy leader To implement a remuneration strategy that stays competitive
positions in the near future. Employees who enter the in the market, the 2018 initiative for adjusting remunerations
program are divided into two categories, those that was a continuation of the 2017 remuneration strategy. In
are ready to occupy the leader position (Ready Now), 2017 the remuneration program focused more on fixed pay
and those that require some short term development and variable pay. Whereas in 2018 it focused on benefits and
(Ready with Development). Both leaders and successors allowances. Benefit enhancements included health benefits,
in this program are expected to be able to maintain pension benefits, and location benefits.
their consistently, both in terms of performance and
capability, and be ready to be assigned to fill certain WORKING ENVIRONMENT
positions at any time. Collaboration is an important factor in achieving the Bank’s
vision and BNI realizes that to face the challenges of an
2. Preparing Future Leader increasingly competitive business, strong synergy between
Is a program to prepare future leaders for the manager all components in BNI is required.
level and below. To ensure that candidates have the
relevant competencies, the capability development Currently, the work environment shape is increasingly being
needs to be carried out from the start and monitored pushed towards open space that is considered appropriate to
periodically. The method of developing successor the concept of agile work that promotes collaboration. With
candidates uses the 70:20:10 concept, comprising this in mind, BNI has increasingly encouraged open work
experiential learning, social learning, and in class spaces. In 2018, BNI established 46 Hub as a Coworking Space
learning. One of the experiential learning models for that employees could use for work as well as a space where
future leaders is organizing the Glowing Night Run BNI communities could gather.
event. This activity involves improving a number of
competencies for future leaders. In BNI there are a number of communities that employees
can participate in to channel their interests and talents, both
TALENT RETENTION in the arts, sports or hobbies, and BNI helps employees find
the community that suits their interests. This channeling of
EMPLOYEE ENGAGEMENT interests and talents is not only to internal communities, but
BNI regularly conducts Employee Engagement Surveys (EES) also to external activities, one being the 2018 SOE Sports and
aimed at consistently understanding the level of employee Art (Porseni) Week. In the Porseni activities, BNI came out
engagement with the company so that the company is as General Champion with 4 (four) Gold medals (Marawis,
able to establish policies that are in accordance with Banks Ragam Talenta, MTQ Putri, Solo Vocal), 5 (five) Silver (Tennis,
aspirations. Band Group, Regional Dance, MTAQ, Duta BUMN Putra) and
2 (two) Bronze (Stand Up Comedy, Vocal Group). In addition,
BNI supporters were also recognized as the best Supporters
of the 2018 SOE PORSENI
Business
Support Unit
STRENGTHENING DIGITAL TRANSFORMATION IN 4. BNI Learning Wallet (BLW)

HUMAN CAPITAL MANAGEMENT A personal learning budget, managed by the employees
themselves, with the aim of helping them fill their
BUILDING A DIGITAL FOUNDATION IN HUMAN CAPITAL competency gap, or improve their work to be smarter,
MANAGEMENT faster and more efficient. The BLW budget can be
adjusted based on their talent classification results,
Digitalization in human capital management is realized total cash (salary), learning and sharing realization,
gradually, in line with the overall policy implementation and the learning budget available and managed by
process. BNI realizes the importance of technology in BNI Corporate University. The online BLW starts with
managing its human capital, and so a number of digital- the learning plan through to the reimbursement of the
based applications are gradually being developed to learning costs.
conform to the latest human capital management policies.
These applications will be built in an integrated manner in 5. Learner’s Virtual Assistant (LeVA)
accordance with the information system architecture and An application based on Artificial Intelligence (AI) that
human capital management technology, ensuring that all can be downloaded via a smartphone, where employees
human capital information can be easily accessed, and forms can interact with bots related to BNI Corporate
the basis for data-based HC management. University’s learning modules and programs, or those
related to Human Capital, using text or voice commands.
PROVIDING A DIGITAL LEARNING INFRASTRUCTURE TO By studying with LeVA, employees do not have to read a
SUPPORT EMPLOYEES AS A CENTER OF LEARNERS complete module to find the knowledge required.
For employee capability development, in 2017 BNI SMARTER 6. DEEP46

(BNI Integrated Learning Monitoring System) was developed, A learning program in the form of daily questions, to be
as a learning concept that follows the 70:20:10 Learning and done online between 00.00 - 12.00 WIB with the aim of
Development Theory. This learning concept has a greater helping employees master the competency needed in
impact if it combines experiential learning, learning from their job position.
others and formal learning (in both real and online classes).
This can be followed through the internet-based learning 7. Daily Check In
infrastructure on the bnicorpu.co.id website, and in 2018 An application to oversee the on the job training
included the following: (OJT), In Service Training and Evaluation (ISTE) and
1. BNI MoRe UnLeaSh (BNI Monitoring Learning and Field Evaluation (Evalap). This is to ensure learning
Sharing Upload) participants, mentors and Unit Leaders can do their job
An application to foster a learning and sharing culture after following the learning.
among employees, by stimulating employees to learn
and share every day and register online through the 8. Digital Leadership for All Level
application. BNI employees are required to conduct 46 A learning program for all office levels, from basic
hours of learning and 46 hours of sharing annually. employees to directors, aimed at increase the capacity
and leadership capabilities of BNI employees. Employees
2. BNI Expert Locator (BEL) are free to follow leadership learning based on the
BNI Bank has mapped more than 600 BNI employees at assessment and mobility plan results, where learning can
a minimum Assistant Vice President (AVP) position, who be started at any time (multy entry) and completed at
are experts in their fields. Through the BNI Expert Locator any time (multiple exit).
application, employees can search for the experts they
need, and can contact them directly. This activity is 9. Info Public Training
immediately registered as a learning realization. A menu to help employees use their BLW budget,
supported by the best training provider information
3. BNI Digital Learning along with a learning event schedule
Learning modules that can be accessed by employees
anywhere and anytime, in the form of pdf, gamification,
bite size videos etc. They also contain pre and post tests,
smartbooks and learning program modules, held as
blended learning and 100% online learning.
ANNUAL
REPORT 2018
OTHER PROGRAMS
BINA BNI from their previous work and activities to retirement must be
prepared for well, as the change is not felt financially but also
The BINA BNI Apprenticeship Program is a manifestation in their daily activities. Therefore, to prepare employees to
of BNI’s care and social responsibility, and was continued continue to be active after retirement, and to maintain their
in 2018. There are 3,838 participants in the BNI BINA health, post-service training is provided including how to
apprenticeship program that is aimed at providing new start a business and how to manage finances in retirement.
graduates with knowledge, skills and abilities (fresh During 2018 there were 14 batches involving 207 employees
graduates) to compete in the workspace. who followed pre-retirement training. The training will
also teach the employees on how to prepare mentally,
BNI INNOVATION AWARDS (BINNOVA) 2017 – 2018 psychologically and financially during retirement age. To
ensure employees maintain their health, funds gathered
A series of programs to develop an employee innovation during their active service with BNI will be utilized after
culture, the BNI Innovation Awards (Binnova) are held retirement.
annually. For 2017 - 2018, there were several process
improvements, in the form of Design Thinking and INDUSTRIAL RELATIONS
Prototyping training for finalists, innovation incubation for 10
(ten) best teams, and comparative study opportunities for the The quality of industrial relations between management and
3 (three) best teams in Shanghai and Hangzhou, China where the trade unions is consistently being improved, and the
they had the opportunity to visit a number of global financial trade unions are involved in the human capital policy making
technology companies, one of which was Alipay. through a co-creation process. In addition to the policy
making process, the partnership forum activities functions as
The improvements are aimed at continuously providing a means of delivering aspirations Banks, and this happened
a better innovation experience for the participants, and 33 (thirty three) times in 2018. Also, in 2018, arrangements
transmitting the spirit of innovation culture throughout the were made for the Collective Labor Agreement (PKB) to be
organization, which in turn will have implications for the socialized to all employees.
development of BNI’s business over the long-term.
BNI’s Human Capital Division (HCT) has an HCT Info service
BNI PROFESSIONALISM AWARD (PERFORMA) 2018 that is accessible at any time by employees through digital
media such as websites, e-mail and telephone networks
The BNI Professionalism Awards (BNI Performa) 2018, is a to facilitate settlement and follow-up of staffing obstacles
competition to support BNI’s Employee Value Proposition experienced by employees.
(EVP), “Together to create the best place to contribute,
learn and grow, to become the pride of the country”, and to APPRECIATION AND AWARDS
promote BNI’s work culture that focuses on Professionalism, As a means to evaluate and compare the existing human
to help accelerate BNI’s sustainable business growth. BNI capital management system, the Bank involves external
Performa is expected to produce employees with leadership parties in comparing and assessing a number of human
abilities in accordance with PRINCIPLE 46, and ready to be resource management aspects. The results form input into
representatives in the 2019 DUTA BUMN. improving the human resource management processes and
systems in line with the spirit of “Continuous Improvement”
PREPARING EMPLOYEES FOR RETIREMENT as one of BNI’s cultural values. In 2018, there were a number
of awards and appreciations received by Bank BNI related to
BNI pays attention to employee welfare, both during their its human capital management, including:
active service and after retirement. The transition period
Business
Support Unit
Bank BNI Awards Related to Human Resources during 2018

No Event Award
1 HR Excellence Award in HR Transformation SWA and Universitas Indonesia Faculty of Economics and Business
Management Institute
2 HR Excellence Award in Learning & Development SWA and Universitas Indonesia Faculty of Economics and Business
Strategy Management Institute
3 HR Excellence Award in Compensation & Benefit SWA and Universitas Indonesia Faculty of Economics and Business
Strategy Management Institute
4 Corporate Transformation category Competent People PPM Management
FUTURE PLAN
HUMAN CAPITAL MANAGEMENT STRUCTURE
In line with the Human Capital’s role to support achieving
Banks strategy, the main theme in 2019 will be Optimizing BNI’s organizational development design is always being
Productivity and Accelerating Development. The strategic adjusted to the direction of the Bank’s development. In this
initiatives to be followed will include optimizing productivity regard, BNI’s Human Capital management, under the Human
through robust workforce planning, and accelerating Capital Management Division, plays a role in the formulation,
employee development with an integrated development implementation and management of staffing operations
plan mechanism. BNI realizes that accelerating the employee policies, and BNI Corporate University is responsible for
capability development is absolutely necessary to support developing employee capabilities.
achieving Banks strategic plan.
Managing Director Compliance
Human Capital
BNI Corporate University
Management Division
Leadership Academy Learning & Operational

Work Culture Business Academy
and Corporate Core Experiencel
Human Capital Human Capital Assessment Learning Strategy &

Business Partner
Strategy Services Center Consultant Operations
Human Capital Recruitment and

System Outsourcing Learning Teaching staff Learning Services
Consultant
Operational
Human Capital
Teaching staff System &
Infrastructure
Industrial relations Knowledge
Management
ANNUAL
REPORT 2018
The Human Capital Management Division and BNI Corporate University report to the Compliance
Director, Endang Hidayatullah, whose profile can be found in the Board of Directors’ Profiles in this
Annual Report.
HUMAN CAPITAL SHORT PROFILES
The human capital management short profile are as follows:

1. Human Capital Management Division Head
The Human Capital Management Division is headed by Efita Praharani, who previously served as
Consumer Product Management Deputy Division Head and Regional Banking Consumer Head
at the Jakarta Kemayoran Regional Office, and has more than 20 years experience in managing
human resources at BNI. Has a Master of Science degree in Administrative Sciences from Universitas
Indonesia and a Bachelor of Psychology degree from Universitas Gadjah Mada
2. BNI Corporate University Head

The BNI Corporate University Division is headed Wicaksono Sarwo Edi, who has officially held
the position of Dean of BNI Corporate University since April 10, 2017. Before taking office, served
in a number of strategic positions both in the region and at the Head Office, including Policy
Management Division Head, Strategic Planning Division Head and Jakarta Kemayoran Regional
Office Head. Has a Bachelor’s degree in Civil Engineering and Master’s degree in Finance and
Banking Management from Universitas Gadjah Mada.
EMPLOYEE PROFILE
Information about employee profiles can be found in the BNI Profile section in this Annual Report.
Business
Support Unit
ANNUAL
REPORT 2018
Good Corporate
Governance
360 GOOD CORPORATE GOVERNANCE 381 COMPANY ORGANS AND IMPLEMENTATION
363 RELATIONSHIP BETWEEN GOOD CORPORATE PROCESS OF GOOD CORPORATE GOVERNANCE
GOVERNANCE AND 571 RISK MANAGEMENT
COMPANY PERFORMANCE 602 ANTI MONEY LAUNDERING AND COUNTER-
364 LEGAL FOUNDATION OF THE IMPLEMENTATION TERRORIST FINANCING (APU-PPT)
OF GOOD CORPORATE GOVERNANCE 604 SIGNIFICANT CASES
365 IMPLEMENTATION OF GOOD CORPORATE 618 ACCESS TO COMPANY’S
GOVERNANCE INFORMATION AND DATA
369 EFFORTS TO IMPROVE THE QUALITY OF 639 CODE OF CONDUCT
GOOD CORPORATE GOVERNANCE 644 WHISTLEBLOWING SYSTEM
IMPLEMENTATION 656 INFORMATION ON MAIN AND
372 MONITORING OF IMPLEMENTASI GCG CONTROLLING SHAREHOLDER
373 GOOD CORPORATE GOVERNANCE ASSESSMENT 668 INFORMATION ON MAIN AND
CONTROLLING SHAREHOLDER
ANNUAL
REPORT 2018
GOOD CORPORATE
GOVERNANCE
The implementation of corporate governance has

proven to have a positive impact on BNI’s performance.
This is indicated by BNI’s various achievements
throughout 2018 which produced satisfactory results in
terms of financial, operational performance, and awards
achieved. Improved GCG implementation is directly
proportional to the increase of BNI’s overall performance.
Good Corporate
Governance
BNI understands that the implementation of Governance Process is the effectiveness of

Good Corporate Governance is no longer a the process of implementing good Corporate
necessity, but is a basic need and foundation Governance principles that are supported by
in carrying out the Bank’s business activities. sufficient Corporate Governance structures and
Along with the understanding that improving infrastructure in order to produce outcomes
the quality of effective implementation of in line with the expectations of the Bank’s
corporate governance in a sustainable manner Stakeholders. Governance Outcome is the
is very important, BNI as a trust institution is quality of outcomes that meet the expectations
committed to applying prudential banking and of the Bank’s Stakeholders which are the
consistently by prioritizing ethics and integrity results of the process of implementing good
in the management of the Bank aiming at Governance principles which are supported
encouraging the Bank’s increased performance, by sufficient structure and infrastructure of
guaranteeing the fulfillment of stakeholders Corporate Governance. Thus, Governance
rights, as well as increasing compliance with Outcome is the result of implementing
laws and regulations that generally apply to the Governance Process and adequate support
banking industry. from Governance Structure. The existence
of problems in Governance Structure raises
The effectiveness of Good Corporate weaknesses in Governance Process. On the
Governance implementation can be seen other hand, the existence of weaknesses
from the alignment of the 3 (three) aspects in Governance Process has an impact on
of governance system, which are governance Governance Outcome.
structure, governance process, and governance
outcome. Governance structure relates to In order to improve the Bank’s performance,
the adequacy of structure and infrastructure to protect stakeholders, and to improve
of Corporate Governance so that the compliance with provisions of laws and
process of implementing good Governance regulations according to the Bank’s Articles
principles produces outcomes in line with of Association, BNI’s Board of Commissioners
the expectations of the Bank’s Stakeholders. has a supervisory function to ensure that the
Included in the Bank’s Governance structure management of the Bank is carried out by
are the Board of Commissioners, Board of the Board of Directors in accordance with the
Directors, Committees, and work units of applicable laws and regulations. While BNI’s
the Bank. Those included in Governance Board of Directors carries out management and
infrastructures, among others, are policies and administration functions professionally and
procedures, management information systems, avoids potential conflicts of interest.
and the main duties and functions of each
organizational structure.
ANNUAL
REPORT 2018
The implementation and development of Good Corporate Governance within BNI’s

environment and subsidiaries are not only as a form of compliance with the provisions of
laws and regulations set by the regulator, but has become an irreplaceable need for each
company in managing its company. With the implementation and development of GCG, the
Bank already has a solid foundation and sufficient provision to become a strong and growing
company.
BNI is committed to continuously improving the implementation quality of good corporate

governance principles in all aspects of its business activities including subsidiaries in an
integrated manner. Along with the development of best practices of corporate governance
implementation, both in banking and financial services industry, as a state-owned bank
registered in the capital market, BNI understands that the implementation and development
of GCG has enormous benefits for BNI. With the implementation and development of GCG,
BNI has guidelines in carrying out its business activities so that they are always in line with
the goals and needs of each stakeholder. Alignment between stakeholders and BNI will
foster mutual trust and conducive attitude in the Bank’s environment which results in the
emergence and increase in the superior nature of work and professionalism in all BNI people.
The implementation of good corporate governance is built on solid integrity, therefore,

good governance principles can be implemented at every level of the organization, and
carried out in each BNI’s activity so that all banking operations can run consistently and
continuously. The governance implementation in BNI is based on the basic principles of
GCG, which are Transparency, Accountability, Accountability, Independence, Equality and
also Fairness. The implementation of these principles within BNI’s environment has been
agreed by the Board of Commissioners, Board of Directors, management ranks, and all BNI
personnel in order to create a Company that is constantly growing and competitive globally,
as well as strong and persevering in running the business wheel.
BNI also realizes that corporate governance will further enhance investors’ trust and
security in the current global era. On an ongoing basis, in addition to implementing
the basic principles of GCG, BNI continues to adopt various best governance standards
applicable at regional and international levels, including the ASEAN Corporate Governance
Scorecard, Minister of State-Owned Enterprises Regulation No. PER-01/MBU/2011 on the
Good Corporate Governance and its amendment, which is SOE State Minister Regulation
No. PER-09/MBU/2012, FSA Regulation No. 21/POJK.04/2015 on Implementation of
Governance Guidelines of Public Company and FSA Regulation No. 55/POJK.03/2016 on the
Implementation of Governance for Commercial Banks, Principles for Enhancing Corporate
Governance issued by the Basel Committee on Banking Supervision, FSA Circular Letter No.
32/SEOJK.04/2015 on Governance Guidelines of Public Company, and FSA Circular Letter No.
13/SEOJK.03/2017 on Governance Implementation for Commercial Bank.
Good Corporate
Governance
RELATIONSHIP BETWEEN GOOD

CORPORATE GOVERNANCE AND
COMPANY PERFORMANCE
The implementation of corporate governance has proven to have a positive impact on
BNI’s performance. This is indicated by BNI’s various achievements throughout 2018 which
produced satisfactory results in terms of financial, operational performance, and awards
achieved. Improved GCG implementation is directly proportional to the increase of BNI’s
overall performance. Recognition of external parties in the forms of various awards, either
related to BNI’s performance, information disclosure, or GCG implementation, has been
obtained, including:
1. 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award.
2. The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good
Corporate Governance Award organized by the Indonesia Institute for Corporate
Directorship (IICD).
3. The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2018
Good Corporate Governance Award.
In addition, the achievement of good financial performance in 2018 is as follows.
1. Interest income and Sharia increased by 11.0% to Rp35,446 Billion.
2. Loans disbursed increased by 16.2% to Rp512,778 Billion.
3. Customer deposits increased by 12.1% to Rp578,775 Billion.
4. The amount of credit disbursed increased by 12.2% to Rp513,022 Billion.
5. Total Assets increased 14.1% to Rp808,572 Billion.
6. Equity increased by 9.4% to Rp110,374 Billion.
7. Profit increased 9.6% to Rp15,092 Billion.
8. Gross NPL decreased from 2.3% in 2017 to 1.9% in 2018.
ANNUAL
REPORT 2018
LEGAL FOUNDATION OF
THE IMPLEMENTATION OF
The legal foundation of Corporate Governance implementation in BNI
refers to the provisions of:
1. Law of the Republic of Indonesia No. 10 of 1998 on Amendment to
Law No. 7 of 1992 on Banking.
2. Law of the Republic of Indonesia No. 40 of 2007 on Limited Liability
Company.
3. Financial Services Authority Regulation No. 55/POJK.03/2016 on
Governance Implementation for Commercial Bank.
4. Circular Letter of Financial Services Authority No. 32/SEOJK.04/2015
on Governance for Public Company.
Implementation of Integrated Risk Management for Financial
Conglomeration.
6. Financial Services Authority Regulation No. 18/POJK.03/2014
on Implementation of Integrated Governance for Financial
Conglomeration.
Website of Issuers or Public Companies.
Disclosure of Information or Material Fact by Issuers or Public
Companies.
9. Circular Letter of Financial Services Authority No. 13/SEOJK.03/2017
on Governance Implementation for Commercial Bank.
10. Various guidelines of GCG implementation among others are
Corporate Governance principles, which were developed by
the Organization for Economic Cooperation and Development
(OECD), ASEAN Corporate Governance Scorecard, and Principles for
Enhancing Corporate Governance issued by Basel Committee on
Banking Supervision.
Good Corporate
Governance
IMPLEMENTATION OF
The implementation of Good Corporate Governance (GCG) in BNI aims to:

1. Increase BNI’s corporate value by applying GCG principles which consist of Transparency, Accountability, Responsibility,
Independency, and Fairness and Equality in carrying out its business so that BNI has strong competitiveness, both at
national and regional levels.
2. Encourage each BNI’s organ to always emphasize the GCG culture in every decision making based on the applicable
values and norms as well as high level of compliance with the applicable laws and regulations.
3. Enhance BNI’s performance through company efficiency programs created by the implementation of GCG culture in each
BNI’s organ.
4. Increase investor confidence and place BNI as the main choice of places to invest.
The implementation of BNI’s GCG principles can be described as follows::
GCG Principles Description

Transparency 1. The Bank discloses information in a timely, adequate, clear, accurate, and comparable manner, and
it can be accessed by interested parties (stakeholders) in accordance with their rights.
2. The Bank discloses information that includes but is not limited to vision, mission, business
objectives, bank strategy, financial conditions, composition and compensation of the
management, controlling shareholders, executive officers, risk management, internal monitoring
and control system, compliance status, systems and implementation of good corporate
governance, as well as information and material facts that can influence investors’ decisions.
3. The principle of openness is still with due observance to bank secrecy, confidentiality of positions,
and personal rights in accordance with the applicable regulations.
4. Bank policies shall be written and communicated to stakeholders and those entitled to obtain
information about the policy.
Accountability 1. The Bank sets the business objectives and strategies to be accountable to the stakeholders.
2. The Bank sets a check and balance system in the management of the Bank.
3. The Bank has a performance measure from all organizational organs based on the agreed
dimensions and in line with company values (Corporate Culture Values), business goals, and Bank
strategies as well as has a reward and punishment system.
4. The Bank shall believe that all organizational organs of the Bank have competencies in accordance
with their responsibilities and understand their roles in the implementation of good corporate
governance.
Responsibility 1. The Bank adheres to the prudential bank practices and guarantees compliance with the
applicable regulations.
2. The Bank as a good corporate citizen cares about the environment and carries out social
responsibility in a reasonable manner.
Independency 1. The Bank avoids unnatural domination by any stakeholders, is not affected by unilateral interests,
and is free from conflict of interest.
2. The Bank makes decisions objectively and is free from any pressures from any parties.
Fairness and Equality 1. The Bank shall pay attention to the interests of all stakeholders based on the principle of fairness
and equal treatment.
2. The Bank also provides opportunities to all stakeholders to give inputs and express opinion for
the Bank’s interests, as well as to open access to information in accordance with the principle of
transparency.
ANNUAL
REPORT 2018
IMPLEMENTATION OF GCG ROADMAP
BNI always strives to conduct business in accordance with the principles of Good Corporate Governance (GCG) as desired by all
stakeholders. BNI’s GCG implementation is carried out in a structured and systematic manner with the following stages:
Year Activities
2001 BNI is committed to implement Good Corporate Governance. The commitment was pioneered by the Commissioners
and Directors of BNI with the signing of the Joint Decree of the Commissioners and Directors No. KEP/001/DK and
KP/001/DIR dated January 3, 2001, on the Implementation of Good Corporate Governance Principles as stated in the
Corporate Governance Handbook of PT Bank Negara Indonesia (Persero) Tbk. which was then used as a guideline for
Directors and Commissioners to manage BNI.
2002 As part of its commitment to continuously improve the corporate governance implementation, BNI carried out the
following activities.
• Establish Compliance Unit and Anti Money Laundering Unit under the responsibility of the Legal and Compliance
Division.
• Establish Remuneration and Nomination Committee that has roles and responsibilities in preparing performance
evaluation criteria for each member of the Board of Commissioners and Board of Directors as well as evaluate
the structure, system, and implementation of compensation for the Board of Directors and advise changes to the
Board of Commissioners if requested.
• Establish an assessment center to improve the selection process/system of top-level leadership positions.
• Improve banking information system.
• The Commissioner established the Audit Committee Charter as a guide for Audit Committee members in carrying
out their duties.
2003 BNI continued to improve its corporate governance, both in terms of commitment and compliance with its
Quasi implementation. Each employee was required to sign a statement of compliance with the Behavioral Code of Conduct.
Reorganization,
Reverse Stock One of the efforts to improve governance was carried out in 2003, BNI established an Executive Committee, with
Split, increase in duties to assist the Board of Directors in certain sector, which are:
authorized capital • Asset & Liability Committee (ALCO)
• Risk Management Committee
• Credit Policy Committee
• Human Resources Committee
• Technology Management Committee
2004 Important achievements in implementing corporate governance throughout 2004 were as follows:
Launch of a new • BNI’s management approved the establishment of Good Corporate Governance Committee with duties to
corporate identity assist the Board of Directors in evaluating and optimizing policy effectiveness and implementation of corporate
governance in BNI’s work environment.
• BNI was considered as one of five public companies with good corporate governance practices as per surveys
conducted by Standard & Poor’s Governance Services as well as Corporate Governance and Financial Reporting
Centers (CGRfC), which is headquartered in Singapore.
• Management implemented the Zero Fraud program to foster sound and responsible banking practices, risk
awareness, and inherent supervision of deviant behavior. Through this program, BNI rewarded work units that
have succeeded in achieving Zero Fraud in their operations and on the other hand, sanctioned work units that fail
to prevent Fraud.
• BNI established a Work Ethics Team that works under the Human Resources Committee. Periodically, this team
evaluates the progress of work ethics in BNI’s work environment.
BNI increased stakeholders’ access to all information that has a material impact on BNI, including quarterly financial
statements, annual reports, information on the use of corporate action proceeds, information that can influence
investors’ investment decisions, resolutions of the General Meeting of Shareholders, and Other important events
concerning BNI, both through BNI website, reports to Bapepam, Stock Exchange, mass media, public exposure, or
analyst meeting.
2005 BNI's commitment to improve governance was proven by the establishment of a GCG Monitoring organizational unit
through Decision Letter of Board of Directors No. KP/174/DIR/R, dated April 26, 2005
2006 The signing of “Commitment Statement to Implement Good Corporate Governance” by all Board of Directors, Board of
Commissioners, and Division Heads at the Company’s Work Meeting, which was then followed by all employees at all
levels of the organization and updated annually.
2007 As a follow-up to the signing of the ‘Commitment Statement to Implement Good Corporate Governance’ in the
previous year, BNI developed GCG programs, including:
• GCG e-learning
• BNI’s Board of Commissioners and Board of Directors’ Guidelines and Work Conduct
• The Book of Behavior Demands for BNI Personnel, which consists of BNI’s Work Cultural Values and Main Behavior
called PRINCIPLE 46.
• BNI received the title of a Trusted company in the ranking of the Corporate Governance Perception Index held by
the Indonesian Institute for Corporate Governance (IICG) and SWA magazine.
Good Corporate
Governance
Year Activities
2008 Regarding the implementation of Know Your Customer Principles (PMN) and the implementation of Anti-Money
Laundering Law (TPPU Law), the Compliance Division in collaboration with the Information Technology Division
developed and continued to refine the system that is integrated with iCONS system to identify suspicious financial
transactions.
2009 BNI managed to improve performance which resulted in a profit increase of up to 103% compared to that of the
previous year. This was inseparable from the consistent implementation of GCG by all BNI people.
2010 Launched the Whistleblowing System (WBS) in an integrated manner so that transparency is maintained and its
implementation is understood by all BNI employees. Improvement of code of conduct of BNI’s employee aimed at
improving BNI’s employee quality. BNI’s participation in rating/ranking of GCG implementation, which was carried out
by independent rating agencies, which are Center for Good Corporate Governance of Universitas Gadjah Mada (CGCG
UGM), The Indonesian Institute for Corporate Directorship (IICD).
2011 BNI won various awards from various national and international institutions. Some major awards among others were:
• 2011 SOE’s Best of the Best Company
• The Most Admired ASEAN Entrepreneur Economics Challenges Award 2011
• The Most Trusted Company of the Indonesian Institute for Corporate Governance (IICG)
• Regarding GCG implementation, BNI won several awards, including:
• BNI won the Corporate Governance Award 2011 from The Indonesian Institute for Corporate Governance.
• BNI’s information technology governance was recognized for its reliability by receiving IT Governance Award from
the SOE Ministry.
2012 • The self assessment results in accordance with Bank Indonesia regulations in 2011 and 2012 showed a stable trend
with Excellent composite predicate.
• Establishment of Anti-Fraud Committees, which was established based on Decision Letter of Board of Directors
Number KP/508/DIR/R dated November 9, 2012, on the Establishment of Anti-Fraud Committee (KAF). In carrying
out its duties and responsibilities, KAF was assisted by the Ethics Management unit under the Compliance
Division, in which one of its functions was as data liaison and to report to other Divisions/Units and external
parties related to Anti-Fraud Strategies and to manage Fraud related databases existing in BNI.
2013 BNI won the following awards:
• − The Most Trusted Company Based on Investors and Analyst’s Assessment Survey in the 2013 Good
Corporate Governance Award.
• − The Most Trusted Company Based on Corporate Governance Index (CGPI) in the 2013 Good Corporate
Governance Award.
• − Awarded as The Best Bank in Indonesia in Developing Good Corporate Governance (GCG) from Asiamoney
Magazine.
2014 • − BNI continued to make improvements and updates to improve corporate governance.
• − BNI also continued to support economic and environmental growth by organizing Kampoeng BNI program,
PKBL, CSR activities organized by BNI Syariah, and commitment to One Billion Indonesian Trees (OBIT) program,
which had planted more than 7 million trees in the past 7 years.
2015 BNI won the award as:
The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance Award event
held by The Indonesian Institute for Corporate Directorship (IICD).
• − The Best State-Owned Enterprise and Top 50 Public Listed Companies in the Good Corporate Governance
Award organized by the Indonesia Institute for Corporate Directorship (IICD).
Governance Award.
• − 1st Winner in the Category of Listed Financial SOE at the 2016 Annual Report Award.
Governance Award.
Governance Award.
ANNUAL
REPORT 2018
Throughout 2018, BNI implemented GCG as follows:
January June
Submission of GCG Self Assessment, position of December 2017 Refinement of the Guidelines and Work Conduct of the Board
to FSA. of Directors as stated in the Decision Letter of the Board of
Directors Number: KP/228/DIR/R dated June 29, 2018.
February
1. The signing of GCG Commitment by all BNI Personnel. July
2. Dissemination of Anti-Fraud to all BNI employees. Submission of GCG Self Assessment, position of June 2018 to
3. Submission of TKT Self Assessment, position of FSA.
December 2017 to FSA.
4. Submission of Annual Report of the 2017 Fiscal Year to August
the Financial Services Authority and the Indonesia Stock 1. The signing of the Board of Directors’ Integrity Pact
Exchange. as a Commitment to Good Corporate Governance
5. Notification of the Annual GMS for 2017 Fiscal Year Implementation as stipulated in Decision Letter of Board
was carried out 21 (twenty-one) calendar days prior of Directors No. DIR/564 dated July 19, 2017.
to the GMS date in accordance with the Roadmap 2. Submission of TKT Self Assessment, position of June 2018
Recommendation of Indonesian Corporate Governance to FSA.
and POJK No. 32/POJK.04/2014. 3. GCG Dissemination in Singkawang and Pontianak Branch
6. The GMS Notification included details of each agenda Offices.
item of the GMS which are in accordance with the 4. Implementation of Compliance Forum of Anti-Money
Roadmap Recommendation of Indonesian Corporate Laundering and Prevention of Terrorism Financing in the
Governance and POJK No. 32/POJK.04/2014. Financial Services Sector on August 30, 2018.
March December
1. The Annual GMS of 2017 Fiscal Year was held on March 1. The implementation of the IICD Award, BNI received
20, 2018. 2 (two) awards, which are: The Best State-Owned
2. Publication of the Summary of Minutes of the Annual Enterprise and Top 50 Public Listed Companies.
GMS for 2017 Fiscal Year including the Announcement of 2. Anti-Gratification Publication in Kompas and Bisnis
Schedule and Procedure for Cash Dividend Distribution Indonesia daily newspapers on May 30, 2018.
for 2017 Fiscal Year was made on March 22, 2018, in 2 3. Participation in the Research of the ASEAN Corporate
(two) newspapers, which are The Investor Daily and The Governance Scorecard for BNI, and BNI got a score of 88.60.
Jakarta Post in order to fulfill POJK No. 32/POJK.04/2014 4. The implementation of the Corporate Governance
as lastly amended by POJK No. 10/POJK.04/2017. Perception Index (CGPI) held by the Indonesian Institute
for Corporate Governance (IICG) in which BNI received
April awards, which are: Most Trusted Company Based on
1. Payment of Cash Dividend for 2017 Fiscal Year was Corporate Governance Index with a score of 88.38.
exactly 1 (one) month from the GMS date or after the 5. BNI always strives to improve GCG implementation
announcement of the summary of minutes of the GMS within BNI’s working environment. This is carried
on April 20, 2018, in accordance with the Roadmap out through the KMP Division by organizing internal
Recommendation of the Indonesian Corporate activities such as GCG Vlog Competition with the
Governance and POJK No. 32/POJK.04/2014 as lastly theme: Integrity As a Lifestyle of BNI Employees
amended by POJK No. 10/POJK.04/2017. #IniIntegritasGue (This is My Integrity). The purpose
2. GCG Dissemination in Malang Regional Offices. and objective in organizing this competition is to
grow awareness of the entire BNI’s personnel to make
May this integrity attitude as a lifestyle and to improve the
1. Report Submission of the Corporate Secretary participation of the entire BNI’s personnel to participate
Implementation function to the Board of Directors actively and creatively in the integrity campaign as a
which was copied to the Board of Commissioners in lifestyle of BNI’s personnel.
accordance with the provisions stipulated in POJK No.
35/POJK.04/2014.
2. Anti-Gratification Publication in Kompas and Bisnis
Indonesia daily newspapers on May 30, 2018.
Good Corporate
Governance
EFFORTS TO IMPROVE THE QUALITY OF

IMPLEMENTATION
In principle, GCG implementation in BNI runs well and is carried In order to improve GCG implementation quality in BNI, BNI
out by the Board of Commissioners, Board of Directors, and continues to strive to create, develop, and improve itself
all employees at every activity with the purpose to protect in accordance with GCG principles. Roadmap preparation
the interests of the Bank, shareholders, and stakeholders. BNI is needed to map GCG aspects and create GCG related
always evaluates GCG implementation continuously so that GCG programs at BNI in order to support GCG implementation
implementation will always improve. GCG Evaluation in BNI is practices.
carried out among others by:
1. Reviewing guidelines/policies related to pre-existing GCG to AWARENESS
be adjusted to the latest regulatory provisions.
2. Preparing new guidelines/policies related to GCG that do GCG-RELATED DISSEMINATION
not yet exist, including updating new provisions to the
Board of Directors and Board of Commissioners. Sosialisasi terkait GCG selama tahun 2018 telah dilakukan
3. Increase the Compliance Principle through the Compliance baik di Kantor Pusat dan Kantor Wilayah, diantaranya pada
Index. Divisi Komunikasi Perusahaan & Kesekretariatan, Wilayah
4. Preparing GCG-related reports, including Governance Malang dan Makassar serta Kantor Cabang Singkawang dan
Report, Corporate Secretary Report, and other related Pontianak. Dalam sosialisasi dimaksud dipaparkan antara lain
reports. mengenai prinsip-prinsip GCG, contoh implementasi, sampai
5. GCG-related External Complaint Facilities to encourage dengan ketentuan terbaru terkait GCG. Dengan sosialisasi ini
awareness of BNI Personnel to always behave in accordance diharapkan para Insan BNI memiliki tekad serta komitmen
with GCG principles as a culture, BNI also involves the bersama untuk mewujudkan implementasi GCG di BNI.
participation of society/public as supervisors of GCG
implementation in BNI, among others, by providing facilities NEW EMPLOYEE INDUCTION PROGRAM
for the general public to submit complaints and complaints
of GCG violations committed by BNI employees through New employees are the embryos of BNI personnel who will
PO Box GCG BNI JKP 10000 and gcg@bni.co.id. People who learn, grow, and develop in BNI. As a shoot or embryo, a
feel to have been harmed by the actions of BNI Personnel or briefing on corporate values is very important. In the briefing,
are aware of the actions of BNI employees that deviate from GCG values and Code of Ethics will be embed, in which later
GCG principles can inform through these two facilities by it is expected that these will be useful in their BNI career
clearly stating the identity of BNI employee/personnel who journey. The briefing is carried out by the GCG Team, in
commits violation and the unit where such BNI employee/ collaboration with BNI Corporate University, which provides
personnel carry out the duties. specific times related to GCG and Code of Ethics for new
employees.
Complaints received through PO Box GCG BNI JKP 10000 and
gcg@bni.co.id are intended to assist the process of solving
problems faced by parties who submit complaints/information
and are expected to be a material for review/input and
evaluation for BNI to make improvements continuously and
improve the GCG implementation quality in BNI so that it can
reduce the occurrence of irregularities or violations of GCG
principles by BNI employees. Number of complaints/requests
for information entered in 2018 was as many as 16 (sixteen)
complaints. Complaints/requests for information that are not
related to GCG have been forwarded to the relevant units for
settlement.
ANNUAL
REPORT 2018
GOVERNANCE COMMITMENT
As a form of shared commitment in order to support GCG enforcement and implementation in BNI, once a year the Governance
Commitment is signed, and for 2018, this was carried out in February. All employees from all levels of the Company jointly
sign the Governance Commitment, preceded by the reading of the commitment and dissemination of Anti Fraud Awareness.
This program is conducted to emphasize the importance and meaning of such commitment values to BNI personnel. The
Governance Commitment is intended to state that, among others, BNI personnel are committed to:
1. Carry out duties and jobs properly and correctly in full responsibilities in accordance with the corporate culture and the
applicable laws and regulations.
2. Not give, promise, and/or receive compensation in any forms.
3. Refrain from any possible conflict of interest.
4. Act fairly and equally in fulfilling stakeholders’ rights.
5. Make maximum efforts to prevent the possibility of fraud.
6. Be willing to report any cases of suspected fraud through BNI’s available reporting media;
7. Be willing to be sanctioned in the event that as BNI personnel, it is proven that the commitments mentioned above are not
implemented when executing the duties and responsibilities.
Good Corporate
Governance
INTERNALIZATION 1. GMS
GMS is a communication means of the stakeholders
Internalization is not limited to knowledge. Internalization to the company and a form of implementation of
has reached understanding stage. GCG internalization in BNI GCG principles because at the GMS, the form of
is carried out through various tools, facilitating the process of responsibilities the Company’s Management are
adopting values that can later be applied in carrying out daily described from various aspects. A more detailed
work. The tools used, among others, are in the forms of: explanation of GMS can be found in GMS Section of
1. Reading BNI’s 46 Principles and Code of Conduct on each Corporate Governance chapter in this Annual Report.
quality day, conducted once a month in each unit as well 2. Shareholders Rights and Ownership Functions
as in the morning briefing. Shareholder’ rights are always protected and facilitated,
2. Self-education method through GCG and Corporate in BNI, shareholders’ rights are demonstrated through
Culture e-learning facilitates BNI personnel to learn GCG. dividends, the right to ask questions at the GMS, the
3. Distribution of posters and e-leaflets of anti-gratification right to obtain information, and the right to approve/not
and GCG enforcement in each unit and BNI Forum so that approve GMS resolutions via voting at GMS.
employees are aware at all times. 3. Disclosure and Transparency
4. Distribution of Code of Conduct pocket books. As a form of transparency pillar of GCG principles, BNI
5. Ease of access to the Code of Conduct and Corporate continues to strive to provide disclosure of information
Culture through BNI website that can be accessed to stakeholders and the general public through various
anytime and anywhere. means including through the Annual Report, BNI
6. As one way to improve the implementation of GCG website, mass media, IDX website, as well as notification
principles in BNI’s work environment, an internal activity to the regulator by hardcopy and electronic reporting
is held in the form of GCG Vlog competition with the facility. Considering BNI’s status as an issuer, information
theme “Integrity as the Lifestyle of BNI’s Personnel disclosure is considered crucial as a public company’s
#IniIntegritasGue (#ThisIsMyIntegrity)”. The purpose communication media; information disclosure is
and objective in organizing this competition is to carried out by referring to the applicable capital market
grow awareness of the entire BNI’s personnel to make regulations.
this integrity attitude as a lifestyle and to improve the 4. Equal Treatment
participation of the entire BNI’s personnel to participate All BNI shareholders, including minority shareholders and
actively and creatively in the integrity campaign as a foreign shareholders, are treated equally. All shareholders
lifestyle of BNI’s personnel. are given equal opportunities to obtain information. BNI
applies this treatment to provide information related
BNI understands that Corporate Culture provides to Corporate Actions and the information disclosure as
concentration in the form of attitude. These attitudes will regulated by the capital market regulations. Everyone
shape the personality of each individual in a company, is given equal opportunities to obtain information
therefore, a collection of attitudes will form an interaction and express criticism/advice to the Bank. Information,
between individuals and their integrity, that will further bring criticism, and/or suggestions can be accessed through
out the characters that will exist in a company. BNI website and BNI Call 1500046.
5. Creating a Positive Bank Image
EXTERNALIZATION It is undeniable that the Bank is a financial institution
that relies on trust. A sound GCG practices by all of the
Externalization itself is defined as an adjustment to the company’s internal parties and stakeholders can improve
outside world that is a ‘world’ without oneself. As we know, the company’s image to wider public in the long term,
the parties or the ‘world’ outside the public company so that the trust to the bank will always be maintained.
comprises stakeholders (shareholders, Depositors, borrowers In this digital age, BNI seeks to utilize a variety of tools
(debtors), associates/vendors/partners, governments, to enhance the positive image of the bank through
employees, customers) and the wide community. GCG various media such as through print media (newspapers,
externalization is closely related to the principles of tabloids, magazines), electronic media (radio and
transparency and fairness, where the principle of openness television) and cyber media (website, twitter, instagram,
always observes the provisions of Bank secrecy and email, news portals, facebook, blogs, and other social
professional secrecy as well as treats stakeholders and the media). Utilizing the media to support GCG practices
community with fair treatment and equal opportunity is carried out to disseminate anti gratification, GCG
according to its proportions. BNI implements GCG awareness, service excellent, WBS, and so forth.
externalization to stakeholders and wide communities
through various means as follows:
ANNUAL
REPORT 2018
MONITORING OF
IMPLEMENTASI GCG
GCG monitoring in BNI is carried out,

among others, by:
Optimizing the monitoring function of duties and responsibilities of each

employee is carried out in each unit by direct supervisors, Unit Leaders, and
the Internal Audit Unit.
Preparation and monitoring of Key Performance Indicators (KPI). Unit leaders

have active roles in KPI monitoring process.
Branch Performance Rewards, which are rewards for branches with

assessment criteria of operations, business, and improvement efforts.
Know Your Employee (KYE) as one of the inherent monitoring efforts to the
employees. Direct supervisors must monitor employees under their supervision
to ensure that there is no fraud by observing whether there are indications that
need further attention (irregularities).
Good Corporate
Governance

ASSESSMENT
GCG Assessment is an effort to measure or map the current Governance Structure aspect is an assessment on the
company’s condition in GCG implementation. This measure is fulfillment of corporate structure and infrastructure in
taken to determine GCG implementation level and to identify applying GCG as measured through the governance
appropriate measures in order to prepare infrastructure structures which includes:
and corporate structure that is conducive to effectively
implement GCG. In other words, GCG assessment is needed a. Shareholder Composition and Company Organs; the
to identify the aspects that need to be prioritized, and the structure and function of the persons responsible
steps to make it happen. for GCG implementation; the structure of the person
in charge of ethics enforcement; the structure of
In order to evaluate GCG implementation, BNI conducts GCG the person in charge of information disclosure; the
Assessment that is conducted periodically and consistently structure of the person in charge of supervisory and
every year consisting of Self Assessment according to BI/FSA audit; the structure of the person in charge of human
regulations and Third-Party Assessment, as follows. resources management; the structure of the person
in charge of operations/productions; the structure of
SELF ASSESSMENT the person in charge of marketing; the structure of
the person in charge of finance; the structure of the
Based on FSA Circular Letter No. 13/SEOJK.03/2017 on person in charge of risk management; the structure
Governance Implementation for Commercial Bank, FSA Circular of the person in charge of information technology
Letter No. 55/POJK.03/2016 on Governance Implementation for management; the structure of the person in charge
Commercial Bank, Financial Services Authority Circular Letter No. of stakeholder relationship; the structure of the
21/POJK.04/2015 on Implementation of Governance Guidelines person in charge of procurement of goods and
of Public Company, FSA Circular Letter No. 32/SEOJK.04/2015 services; as well as the structure of the person in
on Guidelines of Corporate Governance for Public Company charge of change management.
as well as FSA 4/POJK.03/2016 on assessment of Bank Sound b. Fulfillment to the company policies is mainly related
Level on Bank Indonesia Regulation on assessment of Bank to the enforcement of GCG functions in conducting
Sound Level, one of the assessment points of Bank Sound Level the company’s operations, which include guidelines
is self-assessment of the implementation of Good Corporate and policies related to GCG, ethics enforcement,
Governance (GCG) Principles at a bank. Self Assessment information disclosure, monitoring and audit as
implementation is conducted periodically every semester in well as compliance, human resource management,
June and December in the current year. operations/production, marketing, finance and
accounting, risk management, information
This self-assessment is intended to map the strengths and technology governance, relationships with
weaknesses of GCG implementation in BNI in regard of 3 (three) stakeholders.
aspects:
1. Governance Structure 2. Governance Process
Governance structure assessment aims to assess the The governance process assessment aims to assess the
adequacy of BNI’s governance structure and infrastructure effectiveness of the implementation process of GCG
so that the implementation process of GCG principles will principles supported by the adequacy of the Bank’s
produce an outcome in line with the expectations of the governance structure and infrastructure in order to
Bank’s stakeholders. Included in the Bank’s governance produce outcomes that meet stakeholders’ expectations.
structure are the Commissioners, Directors, Committees, Governance Process aspect is an assessment on
and work units of the Bank. Included in the Bank’s the implementation of the company’s system and
governance infrastructures among others are the Bank’s mechanism in applying GCG as measured by:
policies and procedures, management information systems,
and the main duties and functions of each organizational
structure.
ANNUAL
REPORT 2018
a. The process of implementing GCG, enforcing ethics, In accordance with FSA regulations, the Bank must conduct
information disclosure, monitoring and audit, as well as Self Assessment on GCG implementation. Result of GCG Self
compliance, human resource management, operations/ Assessment for the last 3 (three) years can be seen in the
productions, marketing, finance and accounting, risk table below:
management, information technology governance,
relationships with stakeholders, and so forth. Year 2018 Year 2017 Year 2016
b. Corporate governance mechanisms include GCG
Composite 2 2 2
implementation mechanism and process, ethics Score
enforcement, information disclosure, monitoring
and audit as well as compliance, human resource
management, operations/productions, marketing, Based on the three assessment aspects, through GCG
finance and accounting, risk management, information self assessment in 2018, BNI has set the score for GCG
technology management, relationship with implementation as follows.
stakeholders and so forth.
Self Assessment Result of GCG Implementation
3. Governance Outcome
Ratings Definition of Ratings
Governance Outcome aspect is an assessment on the
results of the implementation of the company’s system and Individual 2 This shows that the Bank
Management has implemented the
mechanism in applying GCG that is measured through GCG Governance, which is generally good.
implementation results, including outputs and outcomes This is reflected from the adequate
of GCG implementation process, ethics enforcement, fulfillment of the Governance
principles. In the event that there is
information disclosure, monitoring and audit as well as weakness in the implementation of
compliance, human resource management, operations/ Governance principles, this weakness
productions, marketing, finance and accounting, risk is generally less significant and can
be resolved by normal actions by
management, information technology governance, the Bank’s Management. Currently,
relationships with stakeholders and so forth. the Bank keeps making efforts for
corrective action to follow-up the
Regulator’s finding results.
As an evaluation of the GCG implementation, BNI has conducted
assessment of GCG implementation. This assessment aims to
measure GCG implementation process in BNI, the assessment
is carried out by self assessment based on Financial Services
Authority Regulation No. 55/POJK.03/2016 on Implementation
of Governance for Commercial Bank that measures GCG
implementation 11 (eleven) aspects consisting of:
1. Implementation of duties and responsibilities of the Board
of Commissioners
2. Implementation of duties and responsibilities of the Board
of Directors
3. Completeness and implementation of duties of the
Committees
4. Management of conflict of interest
5. Implementing compliance function
6. Implementing internal audit function
7. Implementing external audit function
8. Implementing risk management including internal control
system
9. Providing fund to related party and provision of large
exposure
10. Transparency of the Bank’s financial and non-financial
condition, GCG implementation report, and internal
reporting
11. Bank’s Strategic Plans
Good Corporate
Governance
The score determination above is based on strengths and weaknesses of GCG implementation in BNI as follows:
Recommendations obtained by Bank BNI from self-assessment, which have been followed-up can be seen in the table below.
Strengths Weaknesses
Governance Structure Governance Structure
The Bank has had complete Governance structure and infrastructure, None
which is in line with the applicable provisions, in order to support
Governance implementation in every line of work and Bank’s
operations.
Governance Process Governance Process
Generally, GCG implementation has been applied in accordance with Overall, the governance process is carried out well in every activity/
the provisions as reflected from the fulfillment and implementation business and Bank's Operations, in its implementation, there is
of Bank’s obligations to the Regulators as well as the fulfillment and still implementation that is not yet in line due to Human Error, and
implementation of obligations to all stakeholders. the current system and policies are not entirely understood by the
employees.
Governance Outcome Governance Outcome
• GCG implementation is generally well, supported by the rating
result by independent party. BNI’s CGPI score achievement Until December 2018, there was still reprimands/penalties and
increased from 88.38 to 88.94 with the predicate of Indonesia violations done by BNI’s internal, however, the frequency and
most trusted Company, as well as BNI’s ACGS score achievement nominal of penalties imposed decreased significantly compared to
that increased from 88.60 to 91.58, with excellent predicate. that of December 2017.
• Decrease in number of sanctions and reprimands from the
Regulator if compared to that of period of January-December
2017.
Recommendations obtained by BNI from self-assessment, which have been followed-up can be seen in the table below.
Weaknesses Follow-Up
Overall, the governance process is carried out well in every activity/ In order to improve the understanding of SOP by the entire
business and Bank's Operations, in its implementation, there is employees, BNI has mandated all employees to improve their
still implementation that is not yet in line due to Human Error, and awareness through e-learning mandatory, therefore, mistakes
the current system and policies are not entirely understood by the due to human error can be decreased every year.
employees.
Until December 2018, there was still reprimands/penalties and violations Supervision by the Compliance unit will always be improved.
done by BNI’s internal, however, the frequency and nominal of penalties This is evidenced by the significant decrease of number of
imposed decreased significantly compared to that of December 2017. sanctions and penalties from that of the previous period.
ANNUAL
REPORT 2018
CORPORATE GOVERNANCE PERCEPTION INDEX (CGPI)
In order to maintain the trust from all stakeholders, BNI also actively participates in Corporate Governance Perception Index
(CGPI) held by The Indonesian Institute for Corporate Governance (IICG). BNI’s participation in the program aims to evaluate
GCG implementation in BNI. The evaluation results are a reference for BNI to improve the future GCG implementation.
The 2017 CGPI which was carried out in 2018 took the theme of Transforming the Business Model in the Framework of Good
Corporate Governance. The assessment aspects of the 2017 CGPI include governance structure, governance process, and
governance outcome. CGPI’s assessment uses a mandatory GCG implementation and generally applicable best practices as
well as approaches to stakeholders’ perspectives where the relationship with all stakeholders is increasingly important in
maintaining the Company’s business sustainability in the long run.
BNI has completed all the requirements and stages of the 2017 CGPI assessment, in which the results showed very good results
and received the predicate of the “Most Trusted Company”. CGPI assessment results in 2014-2017 are as follows.
88.94
88.38
87.73
87.46
2014 2015 2016 2017
CGPI assessment results in 2017-2018

Indicator 2017 2018
Governance Structure 29.06 23.03
Governance Process 29.73 38.14
Governance Outcome 29.59 27.77
CGPI Score 88.38 88.94
CGPI assessment results in 2015-2016

Assessment Aspect 2015 2016
Self Assessment/Survey 18.17 26.94
Documentation System 23.55 22.35
Paper 22.01 13.12
Observation 23.73 25.33
CGPI Score 87.46 87.73
In the last 4 (four) years, the assessment given by IICG in regard of BNI’s participation in CGPI has always increased. This shows
that the implementation of GCG in BNI is getting better from year to year.
The recommendations obtained by BNI from CGPI on the 2016 fiscal year which were implemented in 2017 and have been
followed up are as follows.
Good Corporate
Governance
No Recommendation Follow-Up
1. Mapping regulatory development and its consequence In order to map the Regulation development, BNI has already had a Policy
for the Company’s business and operations in order to Governance Division, which always reviews the Regulation development
guarantee continuous compliance. by collaborating with Compliance Division to always ensure compliance
with the applicable laws and regulations.
2. Re-mapping the stakeholders in order to guarantee BNI has carried out stakeholder mapping contained in the Bank's Business
harmonious, synergic, and ethically-oriented Plan, which is reviewed periodically to be submitted later to the Regulator.
relationship, and sustainable value creation.
3. Integrating system and corporate value chain in order In order to increase efficiency, BNI has already integrated the business
to support the effectiveness and efficiency of the process so that it can maximize the business process and increase
expected Company’s performance. revenues as reflected in the profit increase obtained by BNI.
4. Updating policies, guidelines, and corporate Every risk impact has been anticipated, through the synergy of business
governance systems in order to refine system weakness units with risk units to minimize the negative impact on the Company's
and prevent negative impact on the Company’s business. Furthermore, efforts to increase awareness of the governance
business and operations. culture are always carried out routinely by using current methods so that
they can be easily accepted by all BNI employees.
5. Increasing understanding and competence in GCG In order to increase understanding of all BNI employees and all
in the internal environment as well as external stakeholders, the Company uses updated methods by maximizing social
stakeholders of the Company through many media function as a program to improve understanding of governance in
dissemination activities and good attachments. BNI.
6. Appealing and encouraging affiliation companies In order to encourage an increase in governance culture of subsidiaries,
and colleagues to have the same commitment and the Company has formed BNI’s Financial Conglomeration in which the
effort in implementing GCG in order to create a members are all Subsidiaries in financial sector, with one of the objectives
conducive situation for the implementation of GCG and to have standardization of governance implementation.
sustainability practices.
ASEAN CORPORATE GOVERNANCE SCORECARD (ACGS)
An assessment of BNI’s GCG implementation is also carried out by Asean CG Scorecard (ACGS) based on the Annual Report
and the Company’s Website. ACGS assessment is carried out by IICD (Indonesian Institute for Corporate Directorship) by using
scorecard components consisting of:
1. Shareholders Rights
2. Equal Treatment to Shareholders
3. Roles of Stakeholders
4. Disclosure and Transparency
5. Responsibilities of the Board of Directors and Board of Commissioners
Based on the assessment results of BNI GCG practices following the principles set forth in the ASEAN Corporate Governance
Scorecard conducted in 2018, BNI achieved a score of 91.58.
No Assessment Component 2017 2016

1. Shareholders' Rights 9.05 9.60
2. Equal Treatment to Shareholders 6 9.17
3. Roles of Stakeholders 15 10
4. Disclosure and Transparency 22.66 22.56
5. Responsibilities of the Board of Commissioners 31.88 30.27
6. Bonus 9 7
7. Penalty (2) 0
Total Score 91.58 (Very Good) 88.60 (Good)
ANNUAL
REPORT 2018
Recommendations obtained by Bank BNI from ACGS, which have been followed-up can be seen in the table below:
No. Recommendation Follow-Up

1 To guarantee shareholders rights, the Company is expected to The announcement process of Summary of GMS Minutes is
notice the announcement time of GMS note-taking, which is no currently in line with the applicable provisions in Indonesia,
later than 1 (one) business day. however, BNI always strives to accelerate the delivery of
information on Annual/Extraordinary General Meeting of
Shareholders in order to comply with these criteria.
2 In the GMS invitation document, it is recommended to Regarding the submission of the Board's profile, which will be
provide further details of the following matters: (1) profile of published at the time of submitting GMS invitation, it will be
Commissioners/Directors who will be selected in GMS, such our improvement in convening GMS in the future, with due
as age, qualifications, experience in directorship in public observance of the provisions applicable in SOE Bank.
companies, (2) disclosure of external auditor names who will be
selected for the following fiscal year, (3) explanation of the policy
to disburse dividend in GMS agenda, (4) the amount of dividend
to be distributed.
3 The Company is also advised to have policies that regulate the Transaction reporting mechanism for a maximum of 3 (three)
reporting of company stock trading transactions by insiders business days by insiders has been carried out with reference to
within 3 (three) business days. the applicable provisions.
4 It is necessary to stipulate provisions on the provision of loan To facilitate this, BNI has compiled provisions on the provision
facilities for members of board of commissioners and board of loan facilities for the Board of Directors and the Board of
of directors in reasonable terms (i.e. the maturity period and Commissioners.
market/normal interest rates without exception).
5 The Company is advised to add information in the Annual Report The Company has informed the CEO Remuneration amount, as
regarding the details of remuneration received by each member per the Financial Services Authority regulations.
of the Board of Commissioners.
6 The Company is advised to disclose fees given to the External This will be our concern in preparing the next Annual Report.
Auditor if there are non-audit services provided, if not, the
statement to be disclosed is that the Company does not receive
non-audit services from external auditors.
7 The company is advised to expedite the issuance of the Annual The Company has issued the Annual Report <120 days from the
Report no later than 120 days from the end of the financial end of the financial statements period.
statements period.
8 The Board must continuously review annually the Bank's vision, For 2018, the Board of Directors has reviewed the vision and
mission, and strategy. mission which become part of the Bank's Business Plan.
9 The Company is advised to plan detailed Board of Directors The schedule plan for the Board of Directors Meeting will be
meetings before the fiscal year starts so that members of the included in the Annual Report of 2018 Fiscal Year.
Board of Directors can plan their attendance earlier at those
meetings.
10 Preparing policies to set a minimum level of attendance The Company has set rules and work procedures of the Board
for members of the Board of Commissioners in Board of of Directors and Board of Commissioners, in which it has set a
Commissioners meetings (minimum 75% of the total Board of minimum level of attendance in accordance with the applicable
Commissioners meetings held in 1 period). provisions.
11 It is necessary to have a policy requiring quorum requirements in The Company has set rules and work procedures of the Board
a decision-making meeting by the Board of Commissioners, i.e. a of Directors and Board of Commissioners, in which it has set a
minimum of 2/3 members shall attend. minimum level of decision making in meetings in accordance
with the applicable provisions.
12 Circulation of meeting material can be accepted by each The Company has set rules and work procedures of the Board of
member of the Board of Commissioners no later than five (5) Directors and Board of Commissioners, in which it has stipulated
(business) days before the Board of Commissioners meeting. the submission of meeting material in accordance with the
applicable provisions.
13 Giving compensation in the form of bonus is not a good practice, Provision of remuneration to the Board of Directors and Board
because bonus relates to the company's performance, which of Commissioners has been carried out in accordance with the
is the Board of Directors performance. It is recommended applicable provisions.
that compensation to the Board of Commissioners, especially
for independent members of the Board of Commissioners,
not be given in the form of bonus because it will affect the
independency of the Independent Commissioner.
Good Corporate
Governance
No. Recommendation Follow-Up

14 The Board of Commissioners or Audit Committee shall state and The adequacy of internal controls has been contained in each of
disclose their statement regarding the adequacy of the company the Company's Annual Reports.
internal control or company risk management system in the
company's annual report.
15 The Company is advised to make a succession plan for the The Company has had a Nomination and Remuneration
President Director, members of Board of Directors, and key Committee with duties to prepare the succession of the
management of the company that will be carried out by the President Director, members of Board of Directors, and Key
Board of Commissioners.The said plan means the process of Management of the Company.
identifying and developing employees who have potential to be
the successors of the President Director, members of the Board
of Directors, and Key Management of the Company.
16 The company is advised to include the duties and responsibilities The duties and responsibilities of the President Commissioner
of the President Commissioner in the work guidelines of the have been included in the Board of Commissioners’ guidelines
Board of Commissioners and disclose it to the public. and work conduct which can be downloaded on BNI’s website.
17 The performance assessment of the President Director by the The Board of Directors Performance Assessment has been carried
Board of Commissioners needs to be carried out and disclosed out in accordance with the applicable laws and regulations in
(not just the assessment for Board of Directors that is carried out Indonesia.
only collectively)
18 The Company is advised to conduct annual performance The performance assessment of Members of Board of
assessments of each/every member of the Board of Commissioner has been carried out in accordance with the
Commissioners (or disclose it if there is such practice) and applicable laws and regulations in Indonesia.
disclose the process occurring during the performance
assessment.
19 The Company is advised to make a policy that regulates the The composition and qualifications policy and Number of
composition of the Nomination/Remuneration Committee, in Members of the Nomination and Remuneration Committee
which the majority of members are Independent Commissioners. have been regulated according to the provisions of laws and
regulations.
20 To support the duty implementation of the Audit Committee, the The Audit Committee composition has been adjusted to the
Company is advised to appoint members of Audit Committee Company needs in order to support the duty implementation of
who have qualifications in accounting. Audit Committee.
21 Related to Audit Committee, it is recommended to add its role or The duties and responsibilities of the Audit Committee are stated
function, which is not only to recommend the appointment of in the BNI Audit Committee charter which can be accessed on
an external auditor, but also to arrive at giving recommendations BNI’s website.
to dismiss the company's external auditor. Such role or function
shall be clearly stated or stipulated in the Audit Committee
charter.
22 The Company is advised to use information technology when The voting by using Information Technology will be our record in
casting votes at the Annual General Meeting of Shareholders. our next GMS implementation in accordance with the applicable
provisions.
23 The New Financial Services Authority Regulation on GMS issued The implementation of GMS notice has been carried out
in December 2016 requires companies to send Annual GMS in accordance with the applicable provisions of laws and
notice to shareholders at least 21 (twenty-one) calendar days. regulations.
However, the GMS notice mechanism itself allows the company
to send notice to the shareholders within 28 (twenty-eight)
calendar days.
24 The Company can consider gender diversification in the Board of This will be the Company's attention in the future.
Commissioners, by increasing the appointment/designation of
women as board members of Independent Commissioners.
25 As one of the big companies in Indonesia, BNI has the ability to This will be the Company's attention in the future.
use a professional search firm to recruit prospective members of
the Board of Commissioners.
26 The Company is advised to disclose the details of remuneration This will be the Company's attention in the future.
received by the President Director.
27 The Company can strengthen the role of the Board of This will be the Company's attention in the future.
Commissioners through empowering the nomination committee
with a composition of 100 percent independent members.
Independent members do not have to be Independent
Commissioners, but can come from outside parties who fulfill
the independence requirements.
ANNUAL
REPORT 2018
SUPERIOR PERFORMANCE ASSESSMENT CRITERIA
Superior Performance Assessment Criteria (KPKU) is a performance management and control system prepared by the Ministry
of State-Owned Enterprises (SOE) as the standard guidelines for the Ministry of SOE and all SOEs in building, managing, and
empowering their company’s systems and resources to achieve superior performance.
KPKU assessment criteria were adopted from the Malcolm Baldrige Criteria for Performance Excellence (MBCfPE) and has been
implemented in SOE since 2012 as per Ministry of SOE Letter No. S-153/S.MBU/2012 dated July 19, 2012.
Since 2005, BNI has integrated the performance assessment system of Malcolm Baldrige Criteria for Performance Excellence
(MBCfPE) into the framework for the company’s performance development, and has continued its implementation in the form
of SOE’s KPKU.
KPKU assessment criteria consists of a number of questions representing the fundamental aspects of the management of
company/organization in the context of achieving superior performance. Such questions are classified in 7 (seven) categories,
as follows:
1. Leadership
2. Strategic Planning
3. Focus on Customers
4. Measurement, Analysis, and Management of Knowledge
5. Focus on Manpower
6. Focus on Operation
7. Business Results
For BNI, as one of the SOEs implementing KPKU, the evaluation process of the above seven categories will result in
performance improvement feedback (OFI/Opportunity For Improvement), and a performance rating with a world class rating
standard because SOE’s KPKU is extracted from Malcolm Baldrige Criteria, which is indeed designed to assess company’s
performance based on the characteristics of world-class companies. The rating performance is divided into several levels,
which are:
World Leader
Benchmark
Leader
Industry
Emerging Leader
Industry
Leader
Good
Performance
Early
Improvement
Early Results
Early
Development
Since implementing MBCfPE system in 2005, the assessment results have shown that BNI’s KPKU score always increases from
time to time. The 2016 KPKU assessment results that took place at the end of January 2017 have succeeded in obtaining
the “Emerging Industry Leader” Band Score. For 2018, KPKU assessment was not carried out, therefore, the previous year’s
assessment results are still valid.
Through KPKU framework implementation, BNI obtains a comprehensive picture of the company’s condition from various
aspects, either the processes or the results. Through a portrait of the company’s condition, BNI can acknowledge the
company’s strengths and weaknesses. The company’s weakness as wrapped up in OFI becomes a study, as well as a source of
inspiration and trigger for BNI to make refinements and improvements in various fields.
Good Corporate
Governance
COMPANY ORGANS AND

IMPLEMENTATION PROCESS OF GOOD
CORPORATE GOVERNANCE
In implementing BNI’s management, the Board of Directors is supported by an organizational structure consisting of major
organs and supporting organs to achieve effective management. In implementing the supervisory and advisory functions, the
Board of Commissioners is supported by supporting organs, which are Secretary to Board of Commissioners, Audit Committee,
Risk Monitoring Committee, Nomination and Remuneration Committee, and Integrated Governance Committee.
STRUCTURE OF COMPANY ORGANS
The structure of BNI’s organs is as follows.
GENERAL MEETING OF
SHAREHOLDERS
Elect & Dismisses
Board of Board of
Directors Commissioners
Check & Balances
Secretary of
the Board of
Commissioners
Reports to
Internal Compliance Audit
Audit Unit Committee
Division
Independent
Review Internal Review Compliance reportsreports Auditor
Audit reports
Management Division
Bank’s Risk
Corporate Division Risk Monitoring
Committee
Secretary Policy Governance
Review Risk
Management reports
GCG Unit Nomination and

Remuneration
Committee
Credit Performance
Committee Management
Committee
Integrated
Integrated Risk Governance
Management Technology Committee
Committee Management
Committee
Risk and Capital Credit Policy

Management and Procedure
Committee
Committee
Risk Management
Sub-Committee Human Capital
(RMC) Committee
Asset & Liability

Sub-Committee
(ALCO)
Anti Fraud Sub-

Committee
Product Committee
ANNUAL
REPORT 2018
Implementation of Good Corporate Governance (GCG) in BNI basically follows the roadmap that has been developed, through
three main process groups (structure, process, and outcome), with reference to the GCG principles.
GCG principles
Principles
Transparency Accountability Responsibility Independency Fairness
RUPS
Dewan Komisaris
Governance Structure
Direksi
Main Organs
Komite Dewan Enterprises Risk
Komite Direksi
Komisaris Management
Internal Audit Corporate Secretary Compliance Unit
Company Policies and Reporting Process Flow
GCG Implementation
Governance
Process
Awareness Internalisasi Assessment Externalization Monitoring/Evaluasi

Output
Performance Growth and Improvement of GCG Assessment Score

(CGPI, ACGS, SA, KPKU)
The process of GCG implementation by company organs in 8. Guidelines of Corporate Secretary, which has been
executing the functions and duties is supported by various validated by Board of Directors’ Decision Letter No.
policies/guidelines called GCG infrastructure. GCG infrastructure KP/356/DIR/R dated September 2, 2016.
owned by BNI, among others, are: 9. Company Guidelines for Securities Transactions which are
1. The Bank’s Articles of Association No. 52 dated May 22, 2018, Prohibited and not Prohibited for Insiders.
which have been received and recorded in the Legal Entity 10. Audit Committee Charter, which has been approved
Administration System of the Ministry of Law and Human by the Board of Commissioners through the Board of
Rights of the Republic of Indonesia under the number AHU- Commissioners’ Decision Letter No. KEP/009/DK/2016
0012962.AH.01.02 Tahun 2018 dated June 25, 2018. dated April 14, 2016.
2. BNI’s Code of Ethics as BNI Employees’ Code of Conduct. 11. Risk Monitoring Committee Charter, which has been
3. Board Manual of the Board of Commissioners, whose approved by the Board of Commissioners through the
update has been validated by Board of Commissioners’ Board of Commissioners’ Decisions Letter No. KEP/024/
Decision Letter No. KEP/0049/DK/2017 dated October 26, DK/2016 dated July 21, 2016.
2017. 12. Remuneration and Nomination Committee Charter,
4. Board Manual of the Board of Directors, whose update has which has been validated through the Board of
been validated by Board of Directors’ Decisions Letter No. Commissioners’ Decision Letter No. KEP 027/DK /2015
KP/228/DIR/R dated June 29, 2018. dated September 21, 2015.
5. The Integrated Governance Guidelines, which have been 13. Integrated Governance Committee Charter and Work
approved by the Board of Commissioners through Board of Conduct, which has been approved by the Board of
Directors’ Decision Letter No. DIR/796 dated 12 December Commissioners through the Board of Commissioners’
2018 and Decision Letter of Board of Commissioners No. Decisions Letter No. KEP/006/DK/2015 dated June 22,
DIR/140 dated 13 December 2018. 2015.
6. Guidelines of Integrated Risk Management, which has been 14. Corporate Governance Handbook No. KEP/001/DK and
approved by the Board of Commissioners through Board of KP/001/Dir dated January 3, 2001, on the Implementation
Commissioners’ Letter No. DK/27 dated March 8, 2016 and of Governance Principles.
stipulated in e-PP No. IN/239/ERM/001 dated April 28, 2016. 15. BNI Anti-Money Laundering and Countering Financing of
7. Guidelines of Conflict of Interest, which has been set forth Terrorism (AML & CFT) Policy Statement.
in the Online Company Manual (e-PP) No. IN/695/KMP/001 16. Related Company Manual for Procurement Procedures
dated October 29, 2014. stipulated in e-PP.
Good Corporate
Governance
17. Whistle Blowing System Policy, which has been GOOD CORPORATE GOVERNANCE MECHANISM
validated through Joint Decision Letter of the
Board of Directors and Board of Commissioners SHAREHOLDERS
No. KEP/019/DK/2010 and No. KP/279/DIR dated A shareholder is a person or a legal entity that legally owns one or
December 1, 2010. more shares of the Company and is a party authorized to exercise
18. Risk and Capital Committee (KRK) Charter, which the rights granted by the law on shares. The Company’s shares are
has been approved by the Board of Directors registered stocks consisting of:
through Board of Directors’ Decisions Letter No. 1. Dwiwarna A Series shares that can only be owned by the State
KP/483/DIR/R dated December 21, 2016. of the Republic of Indonesia, and
19. Integrated Risk Management Committee (KMRT) 2. B Series shares and C Series shares are common stocks that can
Charter, which has been approved by the Board be owned by the State of the Republic of Indonesia and the
of Directors through Board of Directors’ Decisions public.
Letter No. KP/193/DIR/R dated May 26, 2015.
20. Credit Policy and Procedure Committee Charter, SHAREHOLDERS’ RIGHTS
in which there is a Sub-Committee of Credit Unless stipulated otherwise in the Articles of Association,
Procedure (KPP), which has been approved by Shareholders of Dwiwarna A Series, B Series, and C Series have the
the Board of Directors through Board of Directors’ same rights and every 1 (one) share gives 1 (one) voting right.
Decision Letter No. KP/253/DIR/R dated June 1,
2016. Based on the Articles of Association, Dwiwarna A Series Shares are shares
21. Performance Management Committee Charter, specially held by the State of the Republic of Indonesia, which give the
which has been approved by the Board of holders the following privileges:
Directors through Board of Directors’ Decision 1. The right to approve in GMS on the following matters:
Letter No. KP/466/DIR/R dated October 5, 2012, a. Approval for amendment to the Articles of Association.
on BNI’s Performance Management Committee b. Approval for changes to equity.
(PMC). c. Approval for appointment and dismissal of members of
22. Product Committee Charter, which has been Board of Directors and Board of Commissioners.
approved by the Board of Directors through d. Approval for merger, consolidation, acquisition, split, and
Board of Directors’ Decision Letter No. KP/448/ dissolution.
DIR/R dated September 20, 2012, on BNI’s Product e. Approval for remuneration of members of Board of
Committee (PRC). Directors and Board of Commissioners.
23. Technology Management Committee Charter, f. Approval for asset transfer based on Articles of Association
which has been approved by the Board of that requires GMS approval.
Directors through Board of Directors’ Decision g. Approval for participation and reduction of the
Letter No. KP/201/DIR/R dated June 14, 2011, percentage of equity participation in other companies
which has been updated through Memo of the based on the Articles of Association that requires GMS
Planning Division No. REN/2/234/R dated May 4, approval.
2016, on Amendment to Committee Membership. h. Approval for the use of profits.
24. Guidelines for GCG monitoring activities and i. Approval for investment and long-term financing that
Self Assessment Report as stipulated in e-PP No. is not operations in nature based on the Articles of
IN/462/KMP/001 dated October 22, 2015. Association that requires GMS approval.
25. Guidelines for Investor Relations activities as 2. The right to propose candidates for members the Board
stipulated in e-PP No. IN/41/KMP/001 dated of Directors and candidates for members of the Board of
January 26, 2015. Commissioners.
26. Guidelines for Preparation of Bank’s Business Plan 3. The right to propose GMS agenda.
as stipulated in e-PP No. IN/92/REN/001 dated 4. The right to request and access company data and documents
March 17, 2014. with the mechanism of the use of such rights in accordance
27. Guidelines for Accounting Policy Management with the provisions in the Articles of Association and laws and
as stipulated in e-PP No. IN/406/PKU/001 dated regulations.
August 24, 2016.
28. Employment Guidelines for Performance
Assessment as stipulated in e-PP No. IN/99/HCT/001
29. Employment Guidelines for Employee Code of
Conduct No. IN/648/HCT/001 dated October 10, 2014.
ANNUAL
REPORT 2018
In addition to the privileges held by Dwiwarna A Series Shareholders, Dwiwarna

A Series Shareholders, B Series Shareholders, and C Series Shareholders have the
same rights unless otherwise stipulated by the Articles of Association, as follows:
1. The right to attend, express opinions, and vote in GMS based on shares.
2. The opportunity to propose an agenda at the GMS.
3. The opportunity to grant power to another party in the event that the
shareholder is unable to attend the GMS.
4. The right to obtain meeting materials immediately after the GMS notification.
5. In the GMS forum, they are entitled to obtain information relating to the
Company from the Board of Directors and/or the Board of Commissioners,
as long as it relates to the meeting agenda and does not conflict with the
Company’s interests.
6. The opportunity to vote in agreement, disagreement, or abstain from any
proposed resolution of the GMS agenda.
7. The right to obtain information about the company in a timely, correct, and
orderly manner, except for confidential matters.
8. The right to receive a share of the company’s profits designated for
Shareholders in the form of dividends and other profit sharing, that is
proportional to the number of shares held.
9. The right to obtain complete explanation and accurate information about
procedures that shall be fulfilled with regard to GMS implementation.
10. The opportunity to see shareholder register and special register.
POLICY OF RELATIONSHIP WITH SHAREHOLDERS

In order to implement good governance principles, especially in the aspect of
openness, the Company always strives to ensure the company’s transparency
on financial and non-financial information in a fair and timely manner, to all
shareholders, including minority shareholders and foreign shareholders.
In order to realize such transparency of information, the Corporate Secretary

has an active role in the implementation of the bank’s information disclosure to
shareholders as stipulated in Article 5 of FSA Regulation No. 35/POJK.04/2014 on
Corporate Secretary of Issuer or Public Company; the Corporate Secretary serves
as a liaison between the Bank and shareholders, including the Financial Services
Authority and other stakeholders.
To foster intensive, systematic, and planned relationship with Shareholders, the

Bank has internal company policies as stipulated in the Company Regulations No.
IN/794/KMP/001 dated December 23, 2014.
Good Corporate
Governance
GENERAL MEETING OF SHAREHOLDERS GMS IMPLEMENTATION
GMS is the highest organ of a limited liability company, which GMS AGENDA MATERIAL
has the right and authority that are not owned by the Board 1. GMS Agenda Material is a document containing the
of Directors and Board of Commissioners. Thus, GMS is the composition of Meeting Agenda accompanied by the legal
highest organ in the Bank. GMS is a crucial organ in the Bank basis and explanations related to the GMS Agenda.
with roles to determine direction and objectives of the Bank 2. The Bank provides GMS agenda material that can be
as stipulated in the Bank’s Articles of Association. Moreover, accessed by Shareholders from the date of the GMS Notice
the GMS also determines important matters related to the to the GMS implementation.
Bank. 3. GMS Agenda Material is available at the Bank’s Head
Office and can be accessed on the Bank’s Website, both in
Based on the Bank’s Articles of Association, BNI’s GMS consists Indonesian and in English.
of Annual GMS and other GMS, usually called as Extraordinary 4. In the event of Changes in the Management of the Bank,
GMS (EMGS), which can be held any time as deemed curriculum vitae of candidate member of the Board of
necessary. Commissioners and Board of Directors of Public SOE that
will be proposed to be appointed at the GMS, is available
LEGAL FOUNDATION TO ORGANIZE GMS and announced at the time of the GMS, before making
decisions regarding the appointment of the candidate
Organizing Annual GMS and Extraordinary GMS is performed to be member of Board of Commissioners and Board of
by referring to the following requirements: Directors. This is as stipulated in the Minister of State-
1. The Bank’s Articles of Association. Owned Enterprises Regulation No. PER-02/MBU/02/2015
2. Law No. 40 of 2007 on Limited Liability Company. on the Requirements and Procedures for Appointment
3. Law No. 19 of 2003 on State-Owned Enterprises. and Dismissal of Members of Board of Commissioners
4. Financial Services Authority Regulation No. 10/ and Board of Supervisors of State-Owned Enterprises,
POJK.04/2017 on Amendment to Financial Services and State-Owned Enterprise Minister Regulation No.
Authority Regulation No. 32/POJK.04/2014 dated PER-03/MBU/02/2015 on the Requirements, Procedures
December 8, 201, on Planning and Organizing GMS for for Appointment and Dismissal of Members of Board of
Public Company. Directors of State-Owned Enterprises.
5. State-Owned Enterprise Minister Regulation No. PER-02/
MBU/02/2015 on the Requirements and Procedures for GMS CONDUCT
Appointment and Dismissal of Members of the Board of 1. GMS conduct is carried out by referring to Financial
Commissioners and Board of Supervisors of State-Owned Services Authority Regulation No. 10/POJK.04/2017 on
Enterprises. Amendment to Financial Services Authority Regulation
6. State-Owned Enterprise Minister Regulation No. PER-03/ No. 32/POJK.04/2014 on Planning and Organizing
MBU/02/2015 on the Requirements, Procedures for General Meeting of Shareholders of Public Companies.
Appointment and Dismissal of Members of Board of 2. The GMS Conduct is distributed to shareholders/their
Directors of State-Owned Enterprises. proxies at the time of registration.
3. The GMS Conduct regulates, among others, meeting
participants who have the right to attend the GMS,
Meeting Chairperson, Language used in the GMS,
meeting quorum and decision making, mechanism of
questioning and responding, mechanism of decision
making, and voting procedures.
4. The principles of the GMS conduct are read out before
the GMS begins. In accordance with the provisions of
the GMS Conduct as stipulated in the Bank’s Articles of
Association, at the opening of the GMS, the Chairperson
of the GMS provides an explanation to the shareholders
on:
a. The Bank’s general conditions in brief
b. GMS agenda
c. Mechanism of decision-making related to GMS
agenda, and
d. Procedures for using shareholders rights to raise
questions and/or share opinions.
ANNUAL
REPORT 2018
CHAIRPERSON OF THE MEETING VOTING PROCEDURE

Based on Article 24 paragraph (1.1) of the Bank’s Articles 1. In the GMS, each share gives the right to the owner to
of Association, the Chairperson of the GMS is a member cast 1 (one) vote.
of the Board of Commissioners appointed by the Board of 2. In voting, the votes cast by the Shareholders are valid for
Commissioners. all shares owned and the shareholders are not entitled
to give power to more than one power of attorney for
PROVISIONS OF ATTENDANCE QUORUM a portion of the number of shares they have with a
The quorum at the GMS shall be attended by shareholders different vote. These provisions are excluded for:
representing more than ½ (one half ) of the total shares with a. Custodian Bank or Securities Company as Custodian
valid voting rights, and the resolution is valid if approved by representing its customers who are owners of the
more than ½ (one half ) of the total shares with valid voting Bank’s shareholders.
rights attending the GMS unless the laws and/or Articles of b. Investment Managers who represent the interests of
Association stipulate a larger number of quorum. the Mutual Funds they manage.
3. All GMS resolutions are taken based on deliberation to
In the event that the attendance quorum is not met, the reach consensus.
second GMS is valid and has the right to adopt binding 4. In the event that a resolution based on deliberation for
resolutions if attended by shareholders representing at least consensus is not reached, then the GMS resolution is
1/3 (one third) of the total shares with valid voting rights, taken based on the agreed votes.
and the resolution is valid if approved by more than ½ (one 5. Shareholders or their Proxies who disagree or abstain
half ) of the total shares with voting rights attending the GMS from the proposed GMS resolution will be invited by the
unless the laws and/or Articles of Association stipulate a Chairperson of the GMS to raise their hands and submit
larger number of quorum. the voting cards to the Meeting officers to count the
votes. Shareholders and/or their Proxies who do not raise
PROCEDURE FOR QUESTION AND ANSWER AND GIVING their hands are declared agree.
RESPONSE 6. After the votes are counted and reported by the Notary,
1. Only the shareholders and/or their proxies who have the Chairperson of the GMS will announce the voting
registered for the GMS have the rights to ask questions results.
and/or give responses. 7. Shareholders with voting rights who are present at the
2. Question and/or response forms are submitted to GMS but not casting vote (abstain) are considered to
shareholders or their proxies at the time of GMS cast the same vote as the majority vote of the voting
registration. Shareholders..
3. After the Chairperson of the GMS or the party appointed
by the Chairperson of the GMS delivers a proposal VOTING CALCULATION PROCEDURE
regarding matters to be decided at the GMS, the The Notary calculates the vote with the assistance of the
Chairperson of the GMS will provide an opportunity to Share Registrar Bureau by counting the disagree voting cards
the Bank’s shareholders or their proxies to ask questions or abstain votes submitted by the Shareholders/their Proxies
and/or give responses before a vote is held on the related through the Meeting officers. The voting calculation is carried
matter. out by scanning the barcode on the said Sound Card with a
4. For Shareholders or their proxies who wish to raise barcode scanner.
questions and/or give responses, the Chairperson of Abstain votes are added to the Agree votes or to the Disagree
the GMS invites shareholders/their proxies to submit votes, whichever is higher. After that, the Chairperson of
questions and/or responses to the Chairperson of the the GMS will ask the Notary to report the voting calculation
GMS in writing by putting down the names and number results. If the number of votes meets the specified quorum,
of shares owned or represented. Questions and/or then a GMS decision can be adopted.
responses submitted shall relate directly to the GMS
agenda being discussed.
At the Bank’s Annual GMS dated March 20, 2018,

Shareholders were given the opportunity to raise questions
and/or give opinions related to each Meeting agenda, but
no shareholders/their proxies asked questions and/or gave
opinions.
Good Corporate
Governance
INVOLVEMENT OF INDEPENDENT PARTIES IN GMS COMPANY’S EFFORTS TO IMPROVE SHAREHOLDERS

Share Registrar Bureau is a Party that based on a contract ATTENDANCE IN THE GMS
with the Bank/Issuer records the securities ownership and As an effort of the Company to facilitate Shareholders to
distribution of rights relating to the securities. The Share exercise their rights and authority at the GMS, the Company
Registrar Bureau assists the Bank/Issuer in convening the carries out the following efforts:
GMS, which among others includes: 1. The Company announces and summons the GMS in
1. Notary a timely manner, in Indonesian and English, which is
A Notary is a public official who is authorized to make an published in 2 (two) national circulation newspapers,
authentic deed and has other authorities as referred to company websites, and the Indonesia Stock Exchange
in the Law on the position of a notary that is registered website.
with the Financial Services Authority as a capital market 2. In the Announcement and Summon of the GMS, the
supporting profession. Notary plays a role in examining Company clearly describes the authorized shareholders
the validity of supporting documents and paying to attend/represent and vote in the GMS, who are the
attention to the formalities requirements for the GMS Company’s Shareholders whose names are registered
implementation in order not to conflict with the laws and in the Bank’s Shareholders Register or Shareholders in
regulations and articles of association. securities accounts at the Indonesian Central Securities
2. Share Registrar Bureau Depository on the Summoning Day.
Share Registrar Bureau is a Party that based on a contract 3. On the website, the Company provides contacts that
with the Bank/Issuer records the securities ownership shareholders can use to communicate in connection with
and distribution of rights relating to the securities. the holding of the GMS.
The Share Registrar Bureau assists the Bank/Issuer in 4. The company provides services to shareholders who
convening the GMS, which among others includes: need information and/or will ask questions related to
a. Preparing proxies from minority shareholders the GMS plan and/or GMS agenda through either direct
b. Publishing Written Confirmation for Meetings (KTUR) meetings or correspondence via email.
c. Validating shareholders who are entitled to attend
the GMS and register them
d. Calculating shareholders presence in connection
with the GMS quorum
e. Providing voting card for shareholders.
f. Helping Notary in calculating votes using a barcode
scanner.
3. Public Accountant Firm
The Public Accountant Firm is present as the party that
audits the Bank’s Financial Statements and Annual
Report on the Implementation of Partnership and
Community Development Program.
STAGES OF ORGANIZING GMS

Referring to the applicable provisions, the stages of organizing the Company’s GMS are as follows:
1
Notification of the GMS
Plan to FSA 4 GMS
Implementation
2 Publication of the GMS

Announcement 5 Publication of Summary of
GMS Minutes
3 Publication of GMS
Notice 6 Submission of GMS
Minutes to FSA
ANNUAL
REPORT 2018
GMS IMPLEMENTATION IN 2018

Throughout 2018, BNI held 1 (one) GMS, which was the Annual GMS of 2017 Fiscal Year on March 20, 2018 . The
implementation of the Bank’s Annual GMS was carried out in accordance with the Bank’s Articles of Association and the
provisions of organizing GMS for Public Company as stipulated in the Financial Services Authority Regulation No. 32/
POJK.04/2014 dated Dedember 8, 2015 about the plan and implementation of GMS public companies : as much as changed
with The Financial Services authority No. 10/POJK.04/2017:
Notification to GMS GMS Summary of

Stages GMS Notice GMS Minutes
FSA Announcement Implementation GMS Minutes
Provisions The Bank notifies The Bank must The Bank must The Annual GMS The Bank The Bank must
the Financial make a GMS make a Notice must be held must make a make GMS Minutes
Services Authority Announcement to shareholders within 6 (six) summary of the and must submit
no later than 5 to shareholders no later than months the most GMS minutes. it to the Financial
(five) days prior no later than 21 (twenty one) after the Bank's Publication of Services Authority
to the GMS 14 (fourteen) days before the fiscal year ends. Summary of no later than 30
announcement days prior to GMS. Publication GMS Minutes (thirty) days after
the GMS notice. of GMS Notice is is conducted the GMS is held.
Publication of GMS conducted through no later than 2
Announcement is 1 (one) Indonesian (two) business
conducted through language daily days after GMS is
1 (one) Indonesian newspaper, held through 1
language daily Stock Exchange (one) Indonesian
newspaper, website, and Public language daily
Stock Exchange Company website newspaper,
website, and Public in Indonesian and Stock Exchange
Company website foreign languages website, and
in Indonesian and Public Company
foreign languages website in
Indonesian
and foreign
languages
Implementation Notification of the Announcement of The Annual Annual GMS was Summary of the The Bank submitted
plan to convene the Annual GMS GMS Notice was held on March Annual GMS the GMS Minutes
Annual GMS was conducted on conducted on 20, 2018, at 14.00 Minutes was to the Financial
was delivered February 9, 2018. February 26, 2018. WIB (Western published on Services Authority
on January 30, The Publication The Bank Revised Indonesian Time) March 22, 2018, on March 29, 2018,
2018, to FSA. was made through the Annual GMS until finished, through The in the form of Deed
Notification of The Investor Notice, which at Ballroom Investor Daily of GMS Minutes
Changes to the Daily and The was conducted Shangri-La Hotel, and The Jakarta prepared by a
Annual GMS Date Jakarta Post, and on March 9, 2018. Jakarta, located Post, and can be notary, which was
was announced can be accessed Publication was at Jalan Jenderal accessed through Deed of Annual
on February 5, through Indonesia made through The Sudirman Kavling Indonesia GMS Minutes No.
2018. Stock Exchange Investor Daily and 1. Jakarta, 10220. Stock Exchange 37 dated March 20,
website and the The Jakarta Post, website and the 2018, made before
Bank’s website in and can be accessed Bank’s website Notary Fathiah
Indonesian and through Indonesia in Indonesian Helmi, S.H. The
English languages. Stock Exchange and English Bank’s Annual GMS
website and the languages. Minutes can be
Bank’s website in accessed through
Indonesian and the Bank’s website
English languages. in Indonesian and
English languages.
Compliance Complied Complied Complied Complied Complied Complied
The Bank’s 2018 Annual GMS Agenda Material

The Agenda Material of the Annual GMS held on March 20, 2018, can be accessed through the Bank’s website as follows: http://
bni.co.id/portals/1/bni/perusahaan/docs/Buku%20Materi%20Rapat.pdf
The Bank’s 2018 Annual GMS Conduct

The Conduct of the Annual GMS held on March 20, 2018, can be accessed through the Bank’s website as follows: http://bni.
co.id/portals/1/bni/perusahaan/docs/Buku%20Tata%20Tertib.pdf
Good Corporate
Governance
THE BANK’S GMS AGENDA 2018

The agenda of the Annual GMS for 2017 Fiscal Year, which was held on March 20, 2018, is as follows:
Approval for the Annual Report and Ratification of the Bank's Consolidated Financial Statements, Approval
for the Board of Commissioners' Supervisory Duties Report, and Ratification of the Annual Report for the
Implementation of the 2017 Partnership & Community Development Program, including submission of the
Agenda - Item 1 Accountability Report of Realization of the Use of Proceeds of Public Offering of Sustainable Bonds I BNI Phase I
Year 2017 and granting the release of full responsibility (volledig acquit et de charge) to the Board of Directors
and Board of Commissioners of the Bank for the management and supervision actions that were carried out
during the 2017 Fiscal Year
Agenda - Item 2 Approval for the use of the Bank's Net Profit for the 2017 Fiscal Year
Determination of remuneration (salary/honorarium, facilities and allowances) for 2018 Fiscal Year and tantiem
Agenda - Item 3
for 2017 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank
Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for
Agenda - Item 4
the Implementation of Partnership and Community Development Program for 2018 Fiscal Year
Agenda - Item 5 Approval for the Bank's Recovery Plan
Inauguration of the Enactment of SOE Minister Regulation No. PER-02/MBU/7/2017 on Second Amendment
Agenda - Item 6 to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development
Program of State-Owned Enterprises
Agenda - Item 7 Approval for the Amendments to the Bank's Articles of Association
Agenda - Item 8 Change in the composition of the Bank's Management
MEETING CHAIR IN THE BANK’S 2018 ANNUAL GMS

On the GMS dated March 20, 2018, based on the Board of Commissioners’ Letter No. DK/31 dated March 16, 2018, the Board
of Commissioners appointed Ari Kuncoro (President Commissioner/Independent Commissioner) as the Chairperson of the
Meeting and as the Substitute Chairperson of the Meeting I was Mr. Wahyu Kuncoro (Vice President Commissioner), and
Substitute Chairperson of the Meeting II was Mr. Pataniari Siahaan (Independent Commissioner).
ATTENDANCE OF COMPANY’S MANAGEMENT IN GMS

The Board of Commissioners and Board of Directors attending the Annual GMS of 2017 Fiscal year, which was held on March
20, 2018, are as follows:
Attendance
No. Name Position
Present Absent Description
1. Ari Kuncoro President Commissioner/Independent Commissioner √
2. Wahyu Kuncoro Vice President Commissioner √
3. Pataniari Siahaan Independent Commissioner √
4. Revrisond Baswir Independent Commissioner √
5. Bistok Simbolon Commissioner √
6. Marwanto Harjowiryono Commissioner √
7. Joni Swastanto Commissioner √
8. Ahmad Fikri Assegaf Independent Commissioner √
ATTENDANCE 100%
ANNUAL
REPORT 2018
Attendance
No. Name Position
Board of Directors
1. Achmad Baiquni President Director √
2. Herry Sidharta Vice President Director √
3. Rico Rizal Budidarmo Managing Director Finance and Credit Risk √
4. Putrama Wahju Setyawan Managing Director Medium Business √
5. Anggoro Eko Cahyo Managing Director Consumer Banking √
6. Panji Irawan Managing Director Treasury and International √
7. Catur Budi Harto Managing Director Small Business and Network √
8. Adi Sulistyowati Managing Director Institutional Relations and Banking √
Transactional
9. Bob Tyasika Ananta Managing Director Planning and Operations √
10. Imam Budi Sarjito Managing Director Compliance and Corporate Risk √
ATTENDANCE 100%
ATTENDANCE OF INDEPENDENT PARTIES IN 2018 ANNUAL GMS

The independent parties attending the GMS of 2017 Fiscal Year are as follows:
1. Notary
In the Bank’s Annual GMS on March 20, 2018, the Notary who assisted in organizing the Meeting was Notary Fathiah
Helmi, SH.
2. Share Registrar Bureau
In the Bank’s Annual GMS on March 20, 2018, the Share Registrar Bureau that assisted in organizing the Meeting was PT
Datindo Entrycom.
In the Bank’s Annual GMS on March 20, 2018, the Public Accountant Firm that attended was the Public Accountant Firm
Purwantono, Sungkoro & Surja – a member Firm of Ernst & Young global network.
GMS ATTENDANCE AND RESOLUTION QUORUM

Establishing GMS attendance and resolution quorum refers to Article 25 of the Bank’s Articles of Association.
The Bank’s Annual GMS on March 20, 2018, was attended by 16,329,884,642 shares including Dwiwarna A Series Shares, which
had valid voting rights equaling to 87.566% of the total shares with valid voting rights issued by the Bank.
Referring to the Bank’s Annual GMS implementation on March 20, 2018, the Attendance and Resolution Quorum based on the
Agenda are as follows:
Good Corporate
Governance
Attendance
Provisions of Quorum of Resolution Resolution Quorum
Agenda Basis of Proposal Attendance Annual GMS Quorum of Annual GMS
Quorum March 20, Provisions March 20, 2018
2018
Approval for the Annual Article 69 of Law of Limited Attended by Complied Resolutions Approved by
Report and Ratification of the Liability Company. shareholders are valid if 16,294,383,042
Bank’s Consolidated Financial Article 22 paragraph representing approved by votes or 99.78%
Statements, Approval for (2) of SOE Minister more than more than part of the total
the Board of Commissioners’ Regulation No. Per-07/ 1/2 (one half ) 1/2 (one half ) shares with voting
Supervisory Duties Report, MBU/05/2015, which portion of the portion of the rights attending the
and Ratification of the Annual was amended by SOE total shares total shares Meeting, therefore,
Report for the Implementation Minister Regulation No. with valid with valid the resolution
of the 2017 Partnership & Per-02/MBU/7/2017 on the voting rights. voting rights quorum was
Community Development Second Amendment to the attending the fulfilled.
Program, including submission State-Owned Enterprise GMS.
of the Accountability Report Minister Regulation No.
of Realization of the Use of Per-09/MBU/07/2015 on
Proceeds of Public Offering of Partnership Program and
Continuous Bonds I BNI Phase Community Development
I Year 2017 and granting the Program of State-Owned
release of full responsibility Enterprise.
(volledig acquit et de charge) Financial Services
to the Board of Directors and Authority Regulation
Board of Commissioners of No. 30/POJK.04/2015 on
the Bank for management and Report of Actual Use of
supervision actions that were Proceeds from the Public
carried out during the 2017 Offering.
Fiscal Year. Article 21 paragraph (2)
of the Bank’s Articles of
Association.
Approval for the use of the Article 70 and Article 71 Attended by Complied Resolutions Approved by
Bank’s Net Profit for the 2017 of Law on Limited Liability shareholders are valid if 16,253,252,242
Fiscal Year. Company. representing approved by votes or 99.53%
Article 21 paragraph (2) more than more than part of the total
and Article 26 paragraph 1/2 (one half ) 1/2 (one half ) shares with voting
(2) of the Bank’s Articles of portion of the portion of the rights attending the
Association total shares total shares Meeting, therefore,
with valid with valid the resolution
voting rights. voting rights quorum was
attending the fulfilled.
GMS.
Determination of remuneration Articles 96 and 113 of Attended by Complied Resolutions Approved by

(salary/honorarium, facilities Law on Limited Liability shareholders are valid if 15,711,499,429
and allowances) for 2018 Fiscal Company. representing approved by votes or 96.21%
Year and tantiem for 2017 Fiscal SOE Minister Regulation more than more than part of the total
Year for the Board of Directors No. Per-04/MBU/2014, 1/2 (one half ) 1/2 (one half ) shares with voting
and Board of Commissioners of which was amended by portion of the portion of the rights attending the
the Bank. SOE Minister Regulation total shares total shares Meeting, therefore,
No. Per-01/MBU/06/2017 with valid with valid the resolution
on Guidelines to Establish voting rights. voting rights quorum was
Remuneration of Board attending the fulfilled.
of Directors, Board of GMS.
Commissioners, and Board
of Supervisors of SOE.
Article 11 paragraph (19),
and Article 26 paragraph
(2) of the Bank’s Articles of
Association.
ANNUAL
REPORT 2018
Attendance
2018
Determination of the Public Article 21 paragraph (2) Attended by Complied Resolutions Approved by
Accountant Firm to audit the of the Bank's Articles of shareholders are valid if 15,640,575,837
Bank's Financial Statements Association. representing approved by votes or 95.78%
and the Annual Report for the more than more than part of the total
Implementation of Partnership 1/2 (one half ) 1/2 (one half ) shares with voting
and Community Development portion of the portion of the rights attending the
Program for 2018 Fiscal Year. total shares total shares Meeting, therefore,
GMS.
Approval for the Bank's Financial Services Attended by Complied Resolutions Approved by
Recovery Plan. Authority Regulation shareholders are valid if 16,305,925,487
No. 14/POJK.03/2017 on representing approved by votes or 99.85%
Recovery Plan for Systemic more than more than part of the total
Banks. 1/2 (one half ) 1/2 (one half ) shares with voting
portion of the portion of the rights attending the
total shares total shares Meeting, therefore,
GMS.
Inauguration of the Enactment SOE Minister Regulation Attended by Complied Resolutions Approved by
of SOE Minister Regulation No. PER-02/MBU/7/2017 shareholders are valid if 16,319,090,442
No. PER-02/MBU/7/2017 on on the Second representing approved by votes or 99.93%
the Second Amendment to Amendment to Regulation more than more than part of the total
Regulation of Minister of State- of Minister of State- 1/2 (one half ) 1/2 (one half ) shares with voting
Owned Enterprise No. PER-09/ Owned Enterprise No. portion of the portion of the rights attending the
MBU/07/2015 on Partnership PER-09/MBU/07/2015 on total shares total shares Meeting, therefore,
Program and Community Partnership Program and with valid with valid the resolution
Development Program of Community Development voting rights. voting rights quorum was
State-Owned Enterprise. Program of State-Owned attending the fulfilled.
Enterprise. GMS.
Good Corporate
Governance
Attendance
2018
Approval for the Amendments Article 88 of Law of Limited The GMS was Complied The Approved by
to the Bank’s Articles of Liability Company. attended by resolutions 12,014,624,743
Association. Article 28 of the Bank’s Dwiwarna were votes or 73.57%
Articles of Association. A Series approved by part of the total
shareholders Dwiwarna shares with voting
and other A Series rights attending the
shareholders shareholders Meeting, including
and/or their and other Dwiwarna A Series
authorized shareholders shareholders,
proxies who and/or their therefore, the
together authorized resolution quorum
representing proxies who was fulfilled.
at least 2/3 together
(two thirds) representing
of the total more than
shares with 2/3 (two
valid voting thirds) of the
rights. total shares
with valid
voting rights
attending the
GMS.
Change in the Company’s Article 94 and Article 111 The GMS was Complied The Approved by
Management. of Law on Limited Liability attended by resolutions 12,019,850,702
Company. Dwiwarna were votes or 73.61%
SOE Minister Regulation A Series approved by part of the total
No. PER-02/MBU/02/2015 shareholders Dwiwarna shares with voting
dated February 17, 2015, and other A Series rights attending the
on the Requirements, shareholders shareholders Meeting, including
Procedures for and/or their and other Dwiwarna A Series
Appointment and authorized shareholders shareholders,
Dismissal of Members proxies who and/or their therefore, the
of the Board of together authorized resolution quorum
Commissioners and Board representing proxies who was fulfilled.
of Supervisors of State- more than together
Owned Enterprises. 1/2 (one half ) representing
SOE Minister Regulation of the total more than
No. PER-03/MBU/02/2015 shares with 1/2 (one
dated February 17, 2015, valid voting half ) of the
on the Requirements, rights. total shares
Procedures for with valid
Appointment and voting rights
Dismissal of Members of attending the
Board of Directors of State- GMS.
Owned Enterprises.
Article 11 paragraph (10)
(12) of the Bank’s Articles
of Association.
ANNUAL
REPORT 2018
resolutions and follow up of Annual GMS the Company in 2018

The resolutions of the Annual GMS of 2017 Fiscal Year, which was held on March 20, 2018, are as follows:
Agenda – Item 1
Resolution 1. Approved the Bank’s Annual Report including the Supervisory Duty Report that has been carried out by the Board of
Commissioners for the fiscal year ending on December 31, 2017, and ratified the Company’s Consolidated Financial
Statements for the fiscal year ending on December 31, 2017, which was audited by the Public Accountant Firm
Purwantono, Sungkoro & Surja - a member firm of Ernst & Young global network according to Report No. RPC-5575/
PSS/2018 dated January 15, 2018, with reasonable opinion in all material matters.
2. Ratified the Financial Statements for the Implementation of Partnership and Community Development Program
for the fiscal year ending on December 31, 2017, which was audited by the Public Accountant Firm Purwantono,
Sungkoro & Surja - a member firm of the Ernst & Young global network according to Report No. RPC-5806/PSS/2018
dated February 26, 2018, with reasonable opinion in all material matters.
3. Accepted the Accountability Report of Realization of the Use of Proceeds from the Public Offering of BNI Sustainable
Bonds I Phase I Year 2017 of Rp3,000,000,000,000.00 (Three trillion Rupiah).
4. Granted full release of responsibility (volledig acquit et de charge) to all members of the Board of Directors and
members of the Board of Commissioners for the management and supervision actions that were carried out during
the fiscal year ending on December 31, 2017, as long as these actions are not criminal offense and these actions are
reflected in the Annual Report, the Bank’s Consolidated Financial Statements, and the Financial Statements for the
Implementation of Partnership and Community Development Program for the fiscal year ending on December 31,
2017.
Voting Results
Agree 16,294,383,042 votes or 99.78% part of the entire shares with voting rights attending the Meeting
(Total Votes and
Percentage) Disagree 9,994,200 votes or 0.06% part of the entire shares with voting rights attending the Meeting
Abstain 25,507,400 votes or 0.16% part of the entire shares with voting rights attending the Meeting
Realization/ The Financial Statements and Annual Reports had been submitted to the Financial Services Authority and the Indonesia
Follow Up Stock Exchange on January 18, 2018, and February 26, 2018.
Status Completed
Agenda – Item 2
Resolution Approved and stipulated the use of the Bank’s Net Profit for the fiscal year ending on December 31, 2017, amounting to
Rp13,616,475,751,928.00 (Thirteen trillion six hundred sixteen billion four hundred seventy five million seven hundred
fifty one thousand nine hundred twenty eight rupiah), hereinafter referred to as ”Net Income for 2017 Fiscal Year” as
follows:
1. Dividend of 25% or Rp3,404,118,937,982.00 (Three trillion four hundred four billion one hundred eighteen million
nine hundred thirty seven thousand nine hundred eighty two rupiah) and added by special dividend of 10% or
Rp1,361,647,575,192.80 (One trillion three hundred sixty one billion six hundred forty seven million five hundred
seventy five thousand one hundred ninety-two point eight zero cents rupiah), which therefore, the total dividend
is 35% or Rp4,765,766,513,174.80 (Four trillion seven hundred sixty five billion seven hundred sixty six million
five hundred thirteen thousand one hundred seventy four point eight zero cents rupiah), was stipulated as cash
dividends distributed to shareholders to be paid under the following conditions:
a. a. dividend specifically for Government share for 60% share ownership shall be deposited to the account of the
State Treasury.
b. b. granted authority and power to the Bank’s Board of Directors with substitution rights to determine the
schedule and procedures for distributing dividends of 2017 fiscal year in accordance with the applicable
provisions.
2. 65% or Rp8,850,709,238,753.20 (Eight trillion eight hundred fifty billion seven hundred nine million two hundred
thirty eight thousand seven hundred fifty three point two zero cents rupiah) shall be used as Retained Earnings.
Voting Results
(Total Votes and
Abstain 800,000 votes or 0.00% part of the entire shares with voting rights attending the Meeting
Realization/ BNI announced the Schedule and Procedure for Distributing Cash Dividends for the 2017 Fiscal Year on March 22, 2018,
Follow Up and disbursed the cash dividends to shareholders on April 20, 2018
Status Completed
Good Corporate
Governance
Agenda – Item 3
Resolution 1. Granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount for 2017 fiscal year,
and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board of
Commissioners for 2018.
2. Granted authority and power to the Board of Commissioners by first obtaining written approval from Dwiwarna
A Series Shareholder to determine tantiem amount for 2017 fiscal year, and determined the salary/honorarium,
allowances, facilities, and other incentives for members of the Board of Directors for 2018.
Voting Results
(Total Votes and
Realization/ The GMS granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount for the 2017
Follow Up fiscal year, and determined the salary/honorarium, allowances, facilities, and other incentives for members of the Board
of Commissioners for 2018, and
The GMS granted authority and power to the Board of Commissioners by first obtaining written approval from
Dwiwarna A Series Shareholders to determine tantiem amount for the 2017 fiscal year, and determined the salary/
honorarium, allowances, facilities, and other incentives for members of the Board of Directors for 2018.
Status Completed
Agenda – Item 4
Resolution 1. Established Public Accountant Firm Purwantono, Sungkoro & Surja - a member firm of the Ernst & Young global
network, as the Public Accountant Firm to audit the Bank’s Financial Statements and Financial Statements for the
Implementation of Partnership and Community Development Program for 2018 Fiscal Year.
2. Granted power to the Bank’s Board of Commissioners to determine the honorarium and other requirements for the
Public Accountant Firm, as well as established a Substitute Public Accountant Firm in the event that Public Accountant
Firm Purwantono, Sungkoro & Surja - a firm member of the Ernst & Young global network, for any reason cannot
complete the audit of the Bank’s Financial Statements and the Financial Statements for the Implementation of
Partnership and Community Development Program for 2018 Fiscal Year, including determined the honorarium and
other requirements for the substitute Public Accountant Firm.
Voting
Results (Total
Votes and Disagree 688,508,805 votes or 4.22% part of the entire shares with voting rights attending the Meeting
Percentage)
Realization/ Public Accountant Firm Purwantono, Sungkono & Surja (member of Ernst and Young) finished conducting the Banks audit
Follow Up on January 24, 2019
Status Completed
Agenda – Item 5
Resolution Approved the Bank’s Recovery Plan in the framework of meeting FSA Regulation No. 14/POJK.03/2017.
Voting
Results (Total
Percentage)
Realization/ The Bank has implemented the Recovery Plan by observing Financial Services Authority Regulation No. 14/POJK.03/2017
Follow Up dated April 4, 2017, on Recovery Plan for Systemic Bank and fulfillment of obligations in the form of the Bank’s Recovery
Plan document that has obtained approval from the SOE Ministry
Status Completed
ANNUAL
REPORT 2018
Agenda – Item 6
Resolution 1. Approved the inauguration of enforcement of SOE State Minister Regulation No. PER-02/MBU/7/2017 on Second
Amendment to SOE Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community
Development Program of State-Owned Enterprise and its amendments.
2. Granted power to the Board of Commissioners by first obtaining written approval from the Shareholders of Dwiwarna
A Series in relation with GMS authority as stipulated in SOE Minister Regulation No. PER-09/MBU/07/2015 as lastly
amended by SOE State Minister Regulation No. PER-02/MBU/7/2017 and its amendments.
Voting
Results (Total
Percentage)
Realization/ Bank BNI has enacted the SOE Minister Regulation No. PER-02/MBU/7/2017 on Second Amendment to SOE Minister
Follow Up Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Devel-opment Program of State-Owned
Enterprise in 2018.
Status Completed
Agenda – Item 7
Resolution 1. Approved amendments to the Bank’s Articles of Association as long as it does not add the rights of Dwiwarna A Series
Shareholders.
2. Approved the rearrangement of all provisions in the Articles of Association in connection with such amendments as
referred to in point 1 resolution above.
3. Granted power and authority to the Bank’s Board of Directors with substitution rights to take all necessary actions
relating to the resolutions of this Meeting agenda, including drafting and restating all of the Bank’s Articles of
Association in a Notarial Deed and submitting them to competent authorities to obtain approval and/or signs of
receipt of notification of amendments to the Bank’s Articles of Association, to carry out everything that is deemed
necessary and useful for such purpose without excluding anyone, including to make additions and/or amendments to
the Bank’s Articles of Association if such matter is required by the competent authorities.
Voting
Results (Total
Votes and Disagree 4,301,745,199 votes or 26.34% part of the entire shares with voting rights attending the Meeting
Percentage)
Realization/ Amendments to the Articles of Association are contained in Deed No. 52 dated May 22, 2018, made before Fathiah Helmi,
Follow Up SH, a Notary in Jakarta, which has obtained approval from the Minister of Law and Human Rights of the Republic of
Indonesia based on Decree No. AHU-0012962.AH.01.02.TAHUN 2018 dated June 25, 2018, in which the notification has
been accepted and recorded in the database of Legal Entity Administration System under the Receipt Letter of Notification
of Amendments to the Articles of Association No. AHU-AH.01.03-0215738 and has been registered in the Company
Register No. AHU-0082015.AH.01.11.Tahun 2018 dated June 25, 2018
Status Completed
Good Corporate
Governance
Agenda – Item 8
Resolution 1. Dismissed with respect the names stated below from being members of the Bank’s Board of Directors:
a. Mr. Panji Irawan as Director;
b. Mr. Imam Budi Sarjito as Director,
starting from the closing of this Meeting by conveying gratitude for the contribution of energy and thought given
during the term of office as members of the Bank’s Board of Directors.
2. Changed the nomenclature of the Bank’s Board of Directors as follows::
No. Previous Now
1. Director Managing Director Corporate Banking
2. Director Managing Director Retail Banking
3. Director Managing Director Small Business and Network
4. Director Managing Director Treasury and International Banking
5. Director Managing Director Finance
6. Director Managing Director Information Technology and Operation
7. Director Managing Director Institutional Relations
8. Director Managing Director Risk Management
9. Director Managing Director Compliance
3. Transferring the duties of the names stated below as members of the Bank’s Board of Directors:
No. Name Previous Now
1. Putrama Wahju Setyawan Director Managing Director Corporate Banking
2. Catur Budi Harto Director Managing Director Small Business and Network
3. Rico Rizal Budidarmo Director Managing Director Treasury and International
Banking
4. Anggoro Eko Cahyo Director Managing Director Finance
5. Adi Sulistyowati Director Managing Director Institutional Relations
6. Bob Tyasika Ananta Director Managing Director Risk Management
4. Appointing the names stated below as members of the Bank’s Board of Directors:
a. Ms. Tambok P. Setyawati as Managing Director Retail Banking
b. Mr. Endang Hidayatullah as Managing Director Compliance
c. Mr. Dadang Setiabudi as Managing Director Information Technology and Operation.
The end of the term of office of the appointed members of Board of Directors shall be until the closing of the 5th
Annual GMS since the appointment, which will be the Annual GMS to be held in 2022, with due observance of the laws
and regulations in capital market sector and without prejudice to the GMS right to dismiss them at any time.
5. Appointed Mr. Sigit Widyawan as the Bank’s Independent Commissioner.
The end of the term of office of the appointed Independent Commissioner shall be until the closing of the 5th Annual
GMS since the appointment, which will be the Annual GMS to be held in 2022, with due observance of the laws and
regulations in capital market sector and without prejudice to the GMS right to dismiss him at any time.
ANNUAL
REPORT 2018
Agenda – Item 8
6. With the dismissal, changes in nomenclature, transfer of of duties and appointment of members of the Bank’s Board of
Directors and Independent Commissioner, the composition of the Bank’s members of Board of Directors and Board of
Commissioners is as follows:
a. Board of Directors
No. Name Position
1. Achmad Baiquni President Director
2. Herry Sidharta Vice President Director
3. Putrama Wahju Setyawan Managing Director Corporate Banking
4. Tambok P. Setyawati Managing Director Retail Banking
5. Catur Budi Harto Managing Director Small Business and Network
6. Rico Rizal Budidarmo Managing Director Treasury and International
Banking
7. Anggoro Eko Cahyo Managing Director Finance
8. Dadang Setiabudi Managing Director Information Technology and
Operation
9. Adi Sulistyowati Managing Director Institutional Relations
10. Bob Tyasika Ananta Managing Director Risk Management
11. Endang Hidayatullah Managing Director Compliance
b. Board of Commissioners
No. Name Position
1. Ari Kuncoro President Commissioner/Independent
Commissioner
2. Wahyu Kuncoro Vice President Commissioner
3. Bistok Simbolon Commissioner
4. Marwanto Harjowiryono Commissioner
5. Revrisond Baswir Independent Commissioner
6. Joni Swastanto Commissioner
7. Pataniari Siahaan Independent Commissioner
8. Ahmad Fikri Assegaf Independent Commissioner
9. Sigit Widyawan Independent Commissioner
7. Granted power and authority to the Bank’s Board of Directors with substitution right to take all necessary actions in
relation to the resolutions of this Meeting agenda in accordance with the applicable laws and regulations, including
to declare in a separate Notarial Deed and notify the composition of the Bank’s Board of Directors and Board of
Commissioners to the Ministry of Law and Human Rights, as well as to request the Financial Services Authority to
conduct Fit & Proper Test to the candidate members of Board of Directors and Board of Commissioners in accordance
Voting
Results (Total
Percentage)
Realization/ The appointed members of the Bank’s Board of Commissioners and Board of Directors have obtained approval from the
Follow Up Financial Services Authority. The appointment and composition of members of the Bank’s Board of Commissioners and
Board of Directors have been stated in a separate Notarial Deed and have been notified to the Ministry of Law and Human
Rights.
Status Completed
Good Corporate
Governance
GMS IMPLEMENTATION IN 2017

In accordance with the Financial Services Authority Circular No. 30/SEOJK.04/2016 on the Forms and Contents of Annual
Report of Issuers or Public Companies, this Annual Report also provides information about the previous 1 (one) year GMS
resolutions.
In 2017, the Bank held 2 (two) GMS, which are the Bank’s 2017 Annual GMS, held on March 16, 2017, and the Bank’s 2017
Extraordinary GMS, held on November 2, 2017.
The implementation stages of the Bank’s Annual General Meeting of Shareholders in 2017, which was held on March 16, 2017,
are illustrated in the following table.
Implementation of the company annual GMS in 2017

Notification to GMS Summary of
Stages GMS Announcement GMS Notice GMS Minutes
FSA Implementation GMS Minutes
Provisions The Bank notifies The Bank must The Bank must Other GMS can The Bank The Bank must
the Financial make a GMS make a Notice be held at any must make a make GMS
Services Announcement to to shareholders time based on summary of the Minutes and must
Authority no shareholders no later no later than the needs for the GMS minutes. submit it to the
later than 5 than 14 (fourteen) 21 (twenty one) interest of the Publication of Financial Services
(five) days prior days prior to the GMS days before the public company Summary of Authority no later
to the GMS notice. Publication of GMS. Publication GMS Minutes than 30 (thirty)
announcement GMS Announcement of GMS Notice is conducted days after the GMS
is conducted through is conducted no later than 2 is held.
1 (one) Indonesian through 1 (one) (two) business
language daily Indonesian days after GMS is
newspaper, Stock language daily held through 1
Exchange website, newspaper, Stock (one) Indonesian
and Public Company Exchange website, language daily
website in Indonesian and Public newspaper,
and foreign Company website Stock Exchange
languages in Indonesian and website, and
foreign languages Public Company
website in
Indonesian and
foreign languages
Implementation Notification Announcement of The Annual Annual GMS was Summary of the The Bank
of the plan to the Annual GMS GMS Notice was held on March Annual GMS submitted the
convene Annual was conducted on conducted on 16, 2017, at 14.00 Minutes was GMS Minutes
GMS is delivered February 7, 2017. February 22, 2017. WIB (Western published on to the Financial
on January 30, The Publication was Publication was Indonesian Time) March 20, 2017, Services Authority
2017, to FSA. made through The made through - ended, in BNI’s through The on March 23,
Investor Daily and The Investor Daily Multipurpose Investor Daily 2017, in the form
The Jakarta Post, and The Jakarta Room, 25th floor. and The Jakarta of Deed of GMS
and can be accessed Post, and can be Jalan Jenderal Post, and can be Minutes prepared
through Indonesia accessed through Sudirman Kav. 1 accessed through by a notary,
Stock Exchange Indonesia Jakarta, 10220. Indonesia which was Deed
website and the Stock Exchange Stock Exchange of Annual GMS
Bank’s website in website and the website and the Minutes No. 42
Indonesian and Bank’s website Bank’s website dated March 16,
English languages. in Indonesian in Indonesian 2017, made before
and English and English Notary Fathiah
languages. languages. Helmi, S.H. The
Bank’s Annual
GMS Minutes
can be accessed
through the
Bank’s website in
Indonesian and
English languages.
Compliance Complied Complied Complied Complied Complied Complied
ANNUAL
REPORT 2018
THE BANK’S GMS AGENDA 2017

The agenda of the Annual GMS for 2016 Fiscal Year, which was held on March 16, 2017, is as follows:
Approval for the Annual Report and Ratification for the Bank's Consolidat-ed Financial Statements, Approval
for the Board of Commissioners' Super-visory Duty Report, and Ratification for the Annual Report for the Imple-
Agenda - Item 1 mentation of the Partnership and Community Development Program for 2016 Fiscal Year, including the granting
of the release of full responsibility (acquit et de charge) to the Board of Directors and Board of Commissioners of
the Bank for the management and supervision actions that were carried out during the 2016 Fiscal Year.
Agenda - Item 2 Approval for the use of the Bank's Net Profit for the 2016 Fiscal Year
Determination for the remuneration (salary/honorarium, facilities and al-lowances) for 2017 Fiscal Year and
Agenda - Item 3
tantiem for 2016 Fiscal Year for the Board of Directors and Board of Commissioners of the Bank
Determination of the Public Accountant Firm to audit the Bank's Financial Statements and the Annual Report for
Agenda - Item 4
the Implementation of Partnership and Community Development Program for 2017 Fiscal Year
Inauguration of the enactment of SOE Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE
Agenda - Item 5 Minister Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of
State-Owned Enterprises.
Agenda - Item 6 Approval for the Amendments to the Bank's Articles of Association
Agenda - Item 7 Change in the composition of the Bank's Management
ATTENDANCE OF COMPANY’S MANAGEMENT IN GMS

The Board of Commissioners and Board of Directors attending the Annual GMS of 2016 Fiscal year, which was held on March
16, 2017, are as follows:
Table of Attendance Recapitulation of 2017 Annual GMS

Attendance
No. Name Position
1. Hartadi A. Sarwono President Commissioner/Independent √
Commissioner
2. Pradjoto Vice President Commissioner/Independent √
Commissioner
3. Anny Ratnawati Independent Commissioner
8. Wahyu Kuncoro Commissioner √
Total Attendance 100%
BOARD OF DIRECTORS
1. Achmad Baiquni Vice President Director √
2. Suprajarto Managing Director Corporate Business Has been appointed as the
√ President Director of PT Bank
Rakyat Indonesia (Persero) Tbk
3. Herry Sidharta Managing Director Medium Business √
4. Putrama Wahju Setyawan Managing Director Consumer Banking √
5. Anggoro Eko Cahyo Managing Director Finance and Credit Risk √
6. Rico Rizal Budidarmo Managing Director Planning and Operations √
7. Bob Tyasika Ananta Managing Director Treasury and International √
8. Panji Irawan Managing Director Institutional Relations and √
Banking Transactional
Good Corporate
Governance
Attendance
No. Name Position
9. Adi Sulistyowati Managing Director Compliance and Corporate √
Risk
10. Imam Budi Sarjito Managing Director Compliance and Risk √
Company
ATTENDANCE OF INDEPENDENT PARTIES IN 2017 ANNUAL GMS

The independent parties attending the 2017 Annual GMS are as follows:
1. Notary
In the Bank’s Annual GMS on March 16, 2017, the Notary who assisted in organizing the Meeting was Notary Fathiah
Helmi, SH.
In the Bank’s Annual GMS on March 16, 2017, the Share Registrar Bureau that assisted in organizing the Meeting was PT
Datindo Entrycom.
In the Bank’s Annual GMS on March 16, 2017, the Public Accountant Firm that attended was the Public Accountant Firm
Purwantono, Sungkoro & Surja – a member Firm of Ernst & Young global network.
ATTENDANCE AND RESOLUTION QUORUM IN 2017 ANNUAL GMS

The Bank’s Annual GMS on March 16, 2017, was attended by 15,672,907,888 shares including Dwiwarna A Series Shares,
which had valid voting rights equaling to 84.04% of the total shares with valid voting rights issued by the Bank.
Referring to the Bank’s Annual GMS implementation on March 16, 2017, the Attendance and Resolution Quorum based on
the Agenda are as follows:
Table of 2017 Annual GMS Resolutions

Attendance
2017
Approval for the Annual • Article 69 of Law of Limited Attended by Complied Resolutions Approved by
Report and Ratification for Liability Company shareholders are valid if 15,409,422,609
the Bank's Consolidated • Article 22 paragraph (2) of representing approved by votes or 98.32%
Financial Statements, SOE Minister Regulation more than more than part of the total
Approval for the Board No. Per-07/MBU/05/2015, 1/2 (one half ) 1/2 (one half ) shares with voting
of Commissioners' which was amended by portion of the portion of the rights attending the
Supervisory Duty Report, SOE Minister Regulation total shares total shares Meeting, therefore,
and Ratification for the No. Per-02/MBU/7/2017 on with valid with valid the resolution
Annual Report for the the Second Amendment to voting rights voting rights quorum was fulfilled
Implementation of the the State-Owned Enterprise attending the
Partnership and Community Minister Regulation No. GMS
Development Program for Per-09/MBU/07/2015 on
2016 Fiscal Year, including Partnership Program and
the granting of the release Community Development
of full responsibility (acquit Program of State-Owned
et de charge) to the Board Enterprise
of Directors and Board of • Financial Services Authority
Commissioners of the Bank Regulation No. 30/
for the management and POJK.04/2015 on Report
supervision actions that of Actual Use of Proceeds
were carried out during the from the Public Offering
2016 Fiscal Year. • Article 21 paragraph (2)
of the Bank’s Articles of
Association
ANNUAL
REPORT 2018
Attendance
2017
Approval for the use of the • Article 70 and Article 71 Attended by Complied Resolutions Approved by
Bank's Net Profit for the of Law on Limited Liability shareholders are valid if 15,431,337,721
2016 Fiscal Year Company representing approved by votes or 98.46%
• Article 21 paragraph (2) more than more than part of the total
and Article 26 paragraph 1/2 (one half ) 1/2 (one half ) shares with voting
(2) of the Bank’s Articles of portion of the portion of the rights attending the
Association total shares total shares Meeting, therefore,
voting rights voting rights quorum was fulfilled
attending the
GMS
Determination of • Articles 96 and 113 of Attended by Complied Resolutions Approved by
remuneration (salary/ Law on Limited Liability shareholders are valid if 15,711,499,429
honorarium, facilities and Company representing approved by votes or 96.21%
allowances) for 2017 Fiscal • SOE Minister Regulation more than more than part of the total
Year and tantiem for 2016 No. Per-04/MBU/2014, 1/2 (one half ) 1/2 (one half ) shares with voting
Fiscal Year for the Board which was amended by portion of the portion of the rights attending the
of Directors and Board of SOE Minister Regulation total shares total shares Meeting, therefore,
Commissioners of the Bank No. Per-01/MBU/06/2017 with valid with valid the resolution
on Guidelines to Establish voting rights voting rights quorum was fulfilled
Remuneration of Board attending the
of Directors, Board of GMS
Commissioners, and Board
of Supervisors of SOE
• Article 11 paragraph (19),
(2) of the Bank’s Articles of
Association
Determination of the Article 21 paragraph (2) of the Attended by Complied Resolutions Approved by
Public Accountant Firm Bank’s Articles of Association shareholders are valid if 15,640,575,837
to audit the Bank's representing approved by votes or 95.78%
Financial Statements and more than more than part of the entire
the Annual Report for 1/2 (one half ) 1/2 (one half ) shares with voting
the Implementation of portion of the portion of the rights attending the
Partnership and Community total shares total shares Meeting, therefore,
Development Program for with valid with valid the resolution
2017 Fiscal Year voting rights voting rights quorum was fulfilled
attending the on January 20, 2017
GMS
Inauguration of the SOE Minister Regulation No. Attended by Complied Resolutions Approved by
enactment of SOE PER-09/MBU/07/2015 on shareholders are valid if 15,454,940,114
Minister Regulation No. Amendment to SOE Minister representing approved by votes or 98.61%
PER-03/MBU/12/2016 Regulation No. PER-09/ more than more than part of the total
on Amendments to SOE MBU/07/2015 on Partnership 1/2 (one half ) 1/2 (one half ) shares with voting
Minister Regulation No. Program and Community portion of the portion of the rights attending the
PER-09/MBU/07/2015 on Development Program of SOE total shares total shares Meeting, therefore,
Partnership Program and dated December 16, 2016 with valid with valid the resolution
Community Development voting rights voting rights quorum was fulfilled
Program of State-Owned attending the
Enterprises. GMS
Approval for the Article 28 of the Bank's Articles Attended by Complied Resolutions Approved by
Amendments to the Bank's of Association and SOE Ministry shareholders are valid if 11,695,587,769
Articles of Association Letter No. SR-117/MBU/02/2017 representing approved by votes or 74.62%
dated February 13, 2017, on more than more than part of the total
the Proposal to Add the Annual 1/2 (one half ) 1/2 (one half ) shares with voting
GMS Agenda of PT Bank BNI portion of the portion of the rights attending the
(Persero), Tbk for 2016 fiscal total shares total shares Meeting, therefore,
year with valid with valid the resolution
voting rights voting rights quorum was fulfilled
attending the
GMS
Good Corporate
Governance
Attendance
2017
Change in the composition Article 11 paragraph (7) and Attended by Complied Resolutions Approved by
of the Bank's Management Article 14 paragraph (8) of the shareholders are valid if 11,589,196,448
Bank's Articles of Association representing approved by votes or 73.94%
and SOE Ministry Letter No. more than more than part of the total
SR-117/MBU/02/2017 dated 1/2 (one half ) 1/2 (one half ) shares with voting
February 13, 2017, on the portion of the portion of the rights attending the
Proposal to Add the Annual total shares total shares Meeting, therefore,
GMS Agenda of PT Bank BNI with valid with valid the resolution
(Persero), Tbk for 2016 fiscal voting rights voting rights quorum was fulfilled
year attending the
GMS
GMS RESOLUTIONS AND FOLLOW UP IN 2017 GMS RESOLUTIONS

The resolutions of the Annual GMS of 2016 Fiscal Year, which was held on March 16, 2017, are as follows:
Agenda – Item 1
Resolution 1. Approved the Bank’s Annual Report including the Supervisory Duty Report that has been carried out by the Board
of Commissioners for the fiscal year ending on December 31, 2016, and ratified the Bank’s Consolidated Financial
Statements for the fiscal year ending on December 31, 2016, which was audited by the Public Accountant Firm
Purwantono, Sungkoro & Surja - a member firm of Ernst & Young global network according to Report No. RPC-2855/
PSS/2017 dated January 20, 2017, with reasonable opinion in all material matters.
2. Ratified the Financial Statements for the Implementation of Partnership and Community Development Program
for the fiscal year ending on December 31, 2016, which was audited by the Public Accountant Firm Purwantono,
Sungkoro & Surja - a member firm of the Ernst & Young global network according to Report No. RPC-2958/PSS/2017
dated February 3, 2017, with reasonable opinion in all material matters.Granted full release of responsibility (volledig
acquit et de charge) to all members of the Board of Directors and members of the Board of Commissioners for
the management and supervision actions that were carried out during the fiscal year ending on December 31,
2016, as long as these actions are not criminal offense and these actions are reflected in the Annual Report, the
Bank’s Consolidated Financial Statements, and the Financial Statements for the Implementation of Partnership and
Community Development Program for the fiscal year ending on December 31, 2016.
3. Granted full release of responsibility (volledig acquit et de charge) to all members of the Board of Directors and
members of the Board of Commissioners for the management and supervision actions that were carried out during
the fiscal year ending on December 31, 2016, as long as these actions are not criminal offense and these actions are
reflected in the Annual Report, the Bank’s Consolidated Financial Statements, and the Financial Statements for the
Implementation of Partnership and Community Development Program for the fiscal year ending on December 31,
2016.
4. In order to comply with the provisions of the SOE Minister Regulation No. PER-12/MBU/2012 dated August 24, 2012,
on the Supporting Organs of SOE’s Board of Commissioners/Board of Supervisors, the Bank submits a report on
changes in the composition of the Audit Committee, Risk Monitoring Committee, Remuneration and Nomination
Committee, and Integrated Governance Committee.
Voting
Agree 15,409,422,609 votes or 98.32% part of the total shares with voting rights attending the Meeting.
Results (Total
Votes and Disagree 15,145,612 votes or 0.10% part of the entire shares with voting rights attending the Meeting.
Percentage)
Abstain 248,339,667 votes or 1.58% part of the total shares with voting rights attending the Meeting.
Realization/ The Financial Statements and Annual Reports have been submitted to the Financial Services Authority and the Indonesia
Follow Up Stock Exchange on Friday, 27 January, 2017, and Wednesday, 22 February, 2017.
Status Completed
ANNUAL
REPORT 2018
Agenda – Item 2
Resolution Approved and determined the use of the Bank’s Net Profit for the fiscal year ending on December 31, 2016, amounting
to Rp11,338,748,081,836 (eleven trillion three hundred thirty eight billion seven hundred forty eight million eighty one
thousand eight hundred thirty six rupiah), hereinafter referred to as “Net Income for 2016 Fiscal Year” as follows:
1. Dividend of 25% or Rp2,834,687,020,459.00 and added by special dividend of 10% or Rp1,133,874,808,183.60,
therefore, the total dividend of 35% or Rp3,968,561,828,642.60 was determined as cash dividend distributed to the
shareholders that shall be paid under the following provisions:
a. Dividend specifically for Government for 60% share ownership shall be deposited to the account of the State
Treasury in the form of Rupiah in Bank Indonesia.
b. Granted authority and power to the Bank’s Board of Directors with substitution rights to determine the schedule
and procedures for distributing dividends of 2016 fiscal year in accordance with the applicable provisions.
2. 65% or Rp7,370,186,253,193.40 shall be used as Retained Earnings.
Voting
Agree 15,431,337,721 votes or 98.46% part of the total shares with voting rights attending the Meeting.
Results (Total
Votes and Disagree 10,821,800 votes or 0.07% part of the total shares with voting rights attending the Meeting.
Percentage)
Abstain 230,748,367 votes or 1.47% part of the total shares with voting rights attending the Meeting.
Realization/ BNI announced the Schedule and Procedure for Distributing Cash Divi-dends for the 2016 Fiscal Year on March 20, 2017,
Follow Up and disbursed the cash dividends to shareholders on April 20, 2017
Status Completed
Agenda – Item 3
Resolution Granted authority and power to Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal
Year and to determine salary/honorarium, allowances, facilities, and other incentives for members of the Board of
Commissioners for Year 2017, and granted authority and power to the Board of Commissioners by first obtaining written
approval from Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year, and to determine
salary/honorarium, allowances, facilities, and other incentives for members of the Board of Directors and Board of
Commissioners for Year 2017.
Voting
Agree 15.091.429.511 suara atau 96,29% bagian dari seluruh saham dengan hak suara yang hadir dalam Rapat.
Results (Total
Votes and 15,091,429,511 votes or 96.29% part of the entire shares with voting rights attending the Meeting
Percentage)
Disagree 354,190,503 votes or 2.26% part of the entire shares with voting rights attending the Meeting
Realization/ GMS granted authority and power to Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal
Follow Up Year and to determine salary/honorarium, allowances, facilities, and other incentives for mem-bers of the Board of
Commissioners for Year 2017, and Dwiwarna A Series Shareholders granted authority and power by first obtaining written
ap-proval from Dwiwarna A Series Shareholders to determine the tantiem amount for 2016 Fiscal Year, and to determine
salary/honorarium, allow-ances, facilities, and other incentives for members of the Board of Direc-tors and Board of
Commissioners for Year 2017.
Status Completed
Agenda – Item 4
Resolution Approved:
1. The appointment of Public Accountant Firm Purwantono, Sungkoro & Surja as the Public Accountant Firm to audit
the Bank’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community
Development Program for 2017 Fiscal Year.
2. The granting of power to the Bank’s Board of Commissioners to determine the honorarium and other requirements
for the Public Accountant Firm, as well as the appointment of a Substitute Public Accountant Firm in the event
that the Public Accountant Firm Purwantono, Sungkoro & Surja, for any reason cannot complete the audit of the
Bank’s Financial Statements and the Financial Statements for the Implementation of Partnership and Community
Development Program for 2017 Fiscal Year, including the determination of honorarium and other requirements for
the substitute Public Accountant Firm.
Voting
Results (Total
Percentage)
Realization/ The Public Accountant Firm Purwantono, Sungkoro & Surja (member of Ernst and Young) completed the Bank's audit on January 20,
Follow Up 2017.
Status Completed
Good Corporate
Governance
Agenda – Item 5
Resolution Approved the enforcement of SOE State Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister
Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned
Enterprises.
Voting Results
(Total Votes and
Percentage) Disagree 0 votes or 0.00% part of the entire shares with voting rights attending the Meeting
Realization/ The Bank has made effective the SOE Minister Regulation No. PER-03/MBU/12/2016 on Amendments to SOE Minister
Follow Up Regulation No. PER-09/MBU/07/2015 on Partnership Program and Community Development Program of State-Owned
Enterprise in 2017.
Status Completed
Agenda – Item 6
Resolution 1. Approved the amendments to the Bank’s Articles of Association, in the framework of SOE Ministry program to
standardize the Articles of Association of Public SOE.
2. Approved the rearrangement of all provisions in the Articles of Association in connection with such amendments as
referred to in point 1 resolution above.
3. Granted power and authority to the Bank’s Board of Directors with substitution rights to take all necessary actions
relating to the resolutions of this Meeting agenda, including drafting and restating all of the Bank’s Articles of
Association in a Notarial Deed and submitting them to competent authorities to obtain approval and/or signs of receipt
of notification of amendments to the Bank’s Articles of Association, to carry out everything that is deemed necessary
and useful for such purpose without excluding anything, including to make additions and/or amendments to the
Bank’s Articles of Association if such matter is required by the competent authorities.
Voting
Results (Total
Percentage)
Realization/ The Deed of Amendment to the Articles of Association No. 45 dated April 25, 2017, has obtained approval from the Minister
Follow Up of Law and Human Rights of the Republic of Indonesia. No. AHU-0010821.AH.01.02.TAHUN 2017 dated May 17, 2017.
Status Completed
ANNUAL
REPORT 2018
Mata Acara Ketujuh

Resolution 1. Board of Commissioners:
a. Enforced the dismissal of Mr. Kiagus Ahmad Badaruddin as the Commissioner of PT Bank Negara Indonesia
(Persero) Tbk starting from his appointment as Head of Financial Transaction Report and Analysis Center based on
Presidential Decree No. 61/M TAHUN 2016 dated October 25, 2016, by conveying gratitude for the contribution of
energy and thought given during the term of office as members of the Board of Commissioners.
b. Dismissed Mr. Pradjoto as Vice President Commissioner/Independent Commissioner and Ms. Anny Ratnawati as the
Independent Commissioner of PT Bank Negara Indonesia (Persero)Tbk starting from the closing of this Meeting by
conveying gratitude for the contribution of energy and thought given during the term of office as member of Board
of Commissioners.
c. Transferred the assignment of Mr. Wahyu Kuncoro from initially Commissioner to Vice President Commissioner with
the term of office continuing the term of office as Commissioner.
d. Appointed Mr. Marwanto Harjowiryono as Commissioner and Mr. Ahmad Fikri Assegaf as Independent
Commissioner.
2. Board of Directors:
a. Dismissed Mr. Suprajarto as Vice President Director of PT Bank Negara Indonesia (Persero) Tbk starting from the
appointment as the President Director of PT Bank Rakyat Indonesia (Persero) Tbk on March 15, 2017, by conveying
gratitude for the contribution of energy and thought given during the term of office as Vice President Director.
b. Transferred the assignment of Mr. Herry Sidharta from initially Director to Vice President Director, with the term of
office continuing the term of office as Director, appointed at Annual GMS March 17, 2015.
c. Appointed Mr. Catur Budi Harto as Director.
3. The term of office of the newly appointed members of Board of Commissioners and Board of Directors shall be until the
closing of the 5th Annual GMS since the appointment, which will be the GMS held in 2022, with due observance of the
laws and regulations in capital market sector and without prejudice to the GMS right to dismiss them at any time.
4. With these appointments, the composition of the Bank’s Board of Commissioners and Board of Directors shall be as
follows:
• Mr. Hartadi A. Sarwono as President Commissioner/Independent Commissioner
• Mr. Wahyu Kuncoro as Vice President Commissioner
• Mr. Pataniari Siahaan as Independent Commissioner
• Mr. Revrisond Baswir as Independent Commissioner
• Mr. Ahmad Fikri Assegaf as Independent Commissioner
• Mr. Bistok Simbolon as Commissioner
• Mr. Joni Swastanto as Commissioner
• Mr. Marwanto Harjowiryono as Commissioner
Board of Directors
• Mr. Achmad Baiquni as President Director
• Mr. Herry Sidharta as Vice President Director
• Mr. Rico Rizal Budidarmo as Director
• Mr. Anggoro Eko Cahyo as Director
• Ms. Adi Sulistyowati as Director
• Mr. Bob Tyasika Ananta as Director
• Mr. Imam Budi Sarjito as Director
• Mr. Panji Irawan as Director
• Mr. Putrama Wahju Setiawan as Director
• Mr. Catur Budi Harto as Director
5. Granted power and authority to the Bank’s Board of Directors with substitution right to take all necessary actions in
relation to the resolutions of this Meeting agenda in accordance with the applicable laws and regulations, including
to declare in a separate Notarial Deed and notify the composition of the Bank’s Board of Directors and Board of
Commissioners to the Ministry of Law and Human Rights, as well as to request the Financial Services Authority to
conduct Fit & Proper Test to the candidate members of Board of Directors and Board of Commissioners in accordance
Voting
Results
(Total Disagree 3,539,081,050 votes or 22.58% part of the entire shares with voting rights attending the Meeting
Votes and
Percentage) Abstain 544,630,390 votes or 3.47% part of the entire shares with voting rights attending the Meeting
Realization/ The appointed members of Board of Commissioners and Board of Direc-tors have obtained approval by the Financial Services Authority
Follow Up and the Bank has stated in a separate Notarial Deed and has notified the changes in the composition of the Bank's Board of Commissioners
and Board of Directors to the Ministry of Law and Human Rights.
Status Completed
Good Corporate
Governance
THE BANK’S EXTRAORDINARY GMS IN 2017

The stages of the implementation of the Company’s Extraordinary GMS in 2017 which was held on November 2, 2017, are
illustrated in the following table:
Table of Extraordinary GMS Implementation

Notification to GMS An-nounce- GMS Imple- Summary of GMS
Stages GMS No-tice GMS Minutes
FSA ment mentation Minutes
Provisions The Bank notifies The Bank must The Bank must Other GMS can The Bank must The Bank must
the Financial make a GMS An- make a Notice be held at any make a summary make GMS Minutes
Services Au- nounce-ment to sharehold-ers time based on of the GMS and must submit
thority no later to sharehold-ers no later than 21 the needs for the minutes. Publica- it to the Fi-nancial
than 5 (five) days no later than 14 (twenty one) days interest of the tion of Summary Services Authority
prior to the GMS (fourteen) days prior before the GMS. public company of GMS Minutes no later than 30
an-nounce-ment to the GMS notice. Pub-lication of GMS is con-ducted (thirty) days after
Pub-lication of GMS No-tice is conducted no later than 2 the GMS is held.
An-nounce-ment is through 1 (one) In- (two) business
conducted through donesian language days after GMS is
1 (one) Indo-nesian daily newspa-per, held through 1
lan-guage daily Stock Exchange (one) Indone-sian
newspaper, Stock website, and Public lan-guage daily
Ex-change web- Company website in newspa-per, Stock
site, and Public Indonesian and for- Exchange website,
Company website eign lan-guages and Pub-lic Com-
in Indonesian and pany website
foreign languages in Indo-nesian
and for-eign lan-
guages
Implementation Notification Announce-ment Notice of Extraordi- Extraordi-nary Summary of the The Bank
of the plan to of the Extraordi- nary GMS was held GMS was held Annual GMS submitted the
convene Annual nary GMS was on Octo-ber 11, on November 2, Minutes was Ex-traordi-nary
GMS is delivered con-ducted on 2017. Pub-lication 2017, at 14.00 WIB pub-lished on GMS Minutes to
on Septem-ber September 26, 2017. was made through - ended, in BNI’s Novem-ber 6, the Finan-cial Ser-
15, 2017, to FSA. The Publica-tion The Inves-tor Daily Multi-purpose 2017, through The vices Au-thority on
was made through and The Jakarta Room, 25th floor. In-vestor Daily November 7, 2017,
The Investor Dai-ly Post, and can be Jalan Jenderal and The Ja-karta in the form of Deed
and The Jakarta ac-cessed through Su-dirman Kav. 1 Post, and can be of GMS Minutes
Post, and can be Indonesia Stock Ex- Jakarta, 10220. accessed through prepared by a nota-
accessed through change website and Indone-sia Stock ry, which was Deed
In-donesia Stock the Bank’s website in Exchange website of Extraor-dinary
Ex-change web-site Indonesian and Eng- and the Bank’s GMS Minutes No. 2
and the Bank’s web- lish lan-guages. website in Indo- dat-ed No-vember
site in Indo-nesian nesian and Eng-lish 2, 2017, made by
and English lan- lan-guages. Notary Fathiah
guages. Helmi, S.H. The
Bank’s Annual GMS
Minutes can be
ac-cessed through
the Bank’s website
in Indonesian
and Eng-lish lan-
guages.
Compliance Complied Complied Complied Complied Com-plied Complied
The Bank’s 2017 Extraordinary GMS Agenda Material

The Agenda Material of the Bank’s 2017 Extraordinary GMS held on November 2, 2017, can be accessed on the Bank’s website is
as follows:
http://bni.co.id/portals/1/bni/perusahaan/docs/mata-acara-rups-luar-biasa-bni-2-november-2017.pdf
The Bank’s 2017 Extraordinary GMS Conduct

The Conduct of the Bank’s 2017 Extraordinary GMS held on November 2, 2017, can be accessed on the Bank’s website is as
follows:
http://bni.co.id/portals/1/bni/perusahaan/docs/tata-tertib-rups-luar-biasa-bni-2-november-2017.pdf
ANNUAL
REPORT 2018
ATTENDANCE OF COMPANY’S MANAGEMENT IN EGMS

The Board of Commissioners and Board of Directors who attended the Extraordinary GMS held on November 2, 2017, are as
follows:
Table of Recapitulation attendance EGMS

Attendance
No. Name Position
1. Hartadi A. Sarwono President Commissioner/Independent √ Has been appointed as the
Commissioner President Commissioner/
Independent Commissioner at
PT Bank Mandiri (Persero) Tbk
2. Wahyu Kuncoro Vice President Commissioner √
7. Ahmad Fikri Assegaf Independent Commissioner √
8. Marwanto Harjowiryono Commissioner √
Total Attendance 87.5%
BOARD OF DIRECTORS
1. Achmad Baiquni President Director √
2. Herry Sidharta Vice President Director √
3. Putrama Wahju Setyawan Director of Medium Business √
4. Catur Budi Harto Director of Small Business and Network √
5. Anggoro Eko Cahyo Director of Consumer Business √
6. Rico Rizal Budidarmo Director of Finance and Credit Risk √
7. Bob Tyasika Ananta Director of Planning and Operations √
8. Panji Irawan Director of Treasury and International √
9. Adi Sulistyowati Director of Institutional Relations and Banking √
Transactional
10. Imam Budi Sarjito Director of Compliance and Corporate Risk √
ATTENDANCE OF INDEPENDENT PARTIES IN EXTRAORDINARY GMS IN 2017

The independent parties who attended the Extraordinary GMS held on November 2, 2017, are as follows:
1. Notary
Notary who assisted in organizing the Meeting was Notary Fathiah Helmi, SH.
Share Registrar Bureau that assisted in organizing the Meeting was PT Datindo Entrycom.
Good Corporate
Governance
QUORUM OF ATTENDANCE AND RESOLUTION OF THE BANK’S EXTRAORDINARY GMS IN 2017
The Bank’s Extraordinary GMS on November 2, 2017, was attended by 16,148,948,470 shares including Dwiwarna A Series
Shares, which had valid voting rights equaling to 86.59% of the total shares with valid voting rights issued by the Bank.
Referring to the Bank’s Extraordinary GMS implementation on November 2, 2017, the Attendance and Resolution Quorum
based on the Agenda are as follows:
Table of 2017 Extraordinary GMS Resolutions

Attendance
Quorum of Resolution Quorum
Provisions of Resolution
Extraordinary of Extraordinary
Agenda Basis of Proposal Attendance Quorum
GMS on GMS on November
Quorum Provisions
November 2, 2, 2017
2017
Change in the Articles 23 and 24 of Financial Attended by Complied Resolutions are Approved by
composition Services Authority Regulation shareholders valid if approved 11,519,663,335
of the Bank's No. 55/POJK.03/2016 on representing more by more than 1/2 votes or 71.33%
Management Governance Implementation for than 1/2 (one half ) (one half ) portion part of the total
Commercial Bank as well as the portion of the total of the total shares shares with voting
Bank's Articles of Association, shares with valid with valid voting rights attending the
Article 11 on Board of Directors voting rights rights attending Meeting
and Article 14 on Board of the GMS
Commissioners
EGMS RESOLUTIONS AND FOLLOW UP ON EGMS RESOLUTIONS

The resolutions of the Extraordinary GMS held on November 2, 2017, are as follows:
Agenda: Change in the Company’s Management

Resolution Appointed Mr. Ari Kuncoro, as the President Commissioner, concurrently as the Independent
Commissioner, of the Company. The termination of the term of office of the appointed
President Commissioner is until the closing of the 5thAnnual GMS since his appointment,
which is the GMS to be held in 2021.
Voting Results (Total Votes and Agree 11,519,663,335 votes or 71.33% part of the entire shares with voting
Percentage) rights attending the Meeting
Disagree 4,461,192,519 votes or 27.62% part of the entire shares with voting rights
attending the Meeting
Abstain 168,092,616 votes or 1.04% part of the entire shares with voting rights
attending the Meeting
Realization/Follow Up The Company’s appointed President Commissioner is still in the process of obtaining approval
from the Financial Services Authority. The appointment and changes in the composition of the
Bank’s Board of Commissioners have been stated in a separate Notarial Deed and have been
notified to the Ministry of Law and Human Rights.
Status Completed
ANNUAL
REPORT 2018
Board of Commissioners is the bank’s organ with duties to In carrying out the duties, each member of the Board of
supervise the management policy, management course on Commissioners must:
the bank, and the bank’s business, in general and/or specific, in 1. Comply with the Articles of Association and Laws and
accordance with the Articles of Association as well as to provide Regulations, as well as the principles of professionalism,
advice to the Board of Directors. efficiency, transparency, independency, accountability,
responsibility, as well as fairness and equality.
The arrangement of BNI’s Board of Commissioners is guided 2. Have good faith, be full of caution, and be responsible for
by Law of the Republic of Indonesia No. 40 of 2007 on Limited carrying out supervisory and advisory duties to the Board of
Liability Company and other laws and regulations, specifically Directors for the Bank’s interest and in accordance with the
Financial Services Authority Regulation No. 33/POJK.04/2014 Bank’s purposes and objectives.
dated December 8, 2014 on Board of Directors and Board of
Commissioners of Issuers or Public Companies. In order to maintain objectivity and independency in
performing the functions and duties of supervision, the Board
GUIDELINES AND WORK CONDUCT OF BOARD OF of Commissioners is not involved in the decision-making of
COMMISSIONERS the Bank’s operational activities, except for:
1. Provision of funds to related parties as stipulated in the
Guidelines and Work Conduct of BNI’s Board of Commissioners provisions on legal lending limit of commercial banks;
are stipulated in Decision Letter of BNI’s Board of Commissioners and
No. KEP/49/DK/2017 dated 26 October 2017, which essentially 2. Other matters set forth in the Bank’s Articles of
covers regulations on the following matters: Association or Laws and Regulations.
1. Legal Basis;
2. Structure; The decision making of the Bank’s operational activities
3. Requirements for Members of Board of Commissioners; by the Board of Commissioners stated above is part of the
4. Independent Commissioner; Board of Commissioners’ supervisory duties, which does not
5. Duties, Authority, Obligations, and Responsibilities of the eliminate the Board of Directors’ responsibilities for the Bank’s
Board of Commissioners; management activities.
6. Appointment and Dismissal of Members of the Board of
Commissioners; BOARD OF COMMISSIONERS’ AUTHORITY
7. Term of Office of the Board of Commissioners and Vacant
Position; In performing its duties as stated in point a, the Board of
8. Meetings of the Board of Commissioners and Joint Meetings Commissioners has authority to:
of Board of Commissioners and Board of Directors; 1. Examine books, letters, and other documents, examine
9. Division of Work and Working Time of the Board of cash for verification purposes and other securities, and
Commissioners; examine the Bank’s assets;
10. Secretariat of the Board of Commissioners and Secretary of 2. Enter yards, buildings, and offices used by the Bank;
the Board of Commissioners; 3. Request explanation from the Board of Directors and/
11. Corporate Values; or other officials on any issues related to the Bank’s
12. Board of Commissioners’ Work Ethics and Prohibitions, management;
Transparency. 4. Understand all policies and actions that have been and
13. Transparency. will be carried out by the Board of Directors;
5. Request the Board of Directors and/or other officials
BOARD OF COMMISSIONERS’ DUTIES AND under the Board of Directors under the consent of the
RESPONSIBILITIES Board of Directors to attend the Board of Commissioners’
Meeting;
The Board of Commissioners have duties to monitor the 6. Appoint and dismiss a Secretary of the Board of
management policies, management course in general, either Commissioners;
about the Bank or the Bank’s business carried out by the Board of 7. Temporarily dismiss member of Board of Directors
Directors, and to provide advice to the Board of Directors, including in accordance with the provisions of the Articles of
supervising the implementation of the Bank’s Long-Term Plan, the Association;
Bank’s Work Plan and Budget, and the provisions of the Articles of 8. Establish an Audit Committee, Remuneration and
Association and GMS resolutions, as well as the applicable laws and Nomination Committee, Risk Monitoring Committee,
regulations for the Bank’s interest in accordance with the Bank’s and other committees if deemed necessary with due
purposes and objectives. observance of the Bank’s capability;
Good Corporate
Governance
9. Use experts for certain matters and for a certain time a. Release/transfer and/or pledge the Bank’s assets
period at the Bank’s expense, if deemed necessary; with criteria and values exceeding certain amounts
10. Perform Bank’s management in certain circumstances for stipulated by the Board of Commissioners, except
a certain time period in accordance with the provisions of assets that are recorded as inventories, with due
the Articles of Association; observance of the provisions in capital market and
11. Approve the appointment and dismissal of the Corporate banking sector;
Secretary and/or Head of the Internal Audit Unit; b. Cooperate with business entities or other parties,
12. Attend Meetings of the Board of Commissioners and in the form of joint operations (KSO), business
provide insights on matters discussed; cooperations (KSU), license agreements, Build,
13. Carry out other supervisory authority as long as it is Operate, and Transfer (BOT), Build, Transfer, and
not in contrary to the laws and regulations, Articles of Operate (BTO), Build, Operate, and Own (BOO), and
Association, and/or GMS resolutions. other agreements that have the same nature, same
time period, or value exceeding those set by the
BOARD OF COMMISSIONERS’ OBLIGATIONS Board of Commissioners;
Board of Commissioners has the obligations to: c. Establish and change the Bank’s logo;
1. Provide advice to the Board of Directors in conducting d. Establish an organizational structure 1 (one) level
the management of the Bank; below the Board of Directors;
2. Provide opinion and approval for the Bank’s Annual Work e. Undertake capital participation with specified value
Plan and Budget, as well as other work plans that are as stipulated by the Board of Commissioners of other
prepared by the Board of Directors, in accordance with companies, subsidiaries, and joint ventures that are
the provisions of the Articles of Association; not in the framework of rescuing receivables with
3. Follow the Bank’s development, provide opinions due observance of the provisions in Capital Market
and suggestions to the GMS on any matters deemed sector;
necessary for the management of the Bank; f. Establish subsidiary and/or joint venture company
4. Report to the Dwiwarna A Series Shareholders in with certain value as stipulated by the Board
the event of any declining tendency in the Bank’s of Commissioners with due observance of the
performance; provisions in Capital Market sector;
5. Propose to the GMS the appointment of a Public g. Propose the Bank’s representative as a candidate
Accountant Firm to audit the Bank’s books; member of the Board of Directors and Board of
6. Examine and review the periodic report and Annual Commissioners in a subsidiary that gives significant
Report prepared by the Board of Directors, including contribution to the Bank, and/or has strategic value
signing the Annual Report; as stipulated by the Board of Commissioners;
7. Provide explanations, opinions, and suggestions to the h. Release capital participation with specified value as
GMS on the Annual Report, if requested; stipulated by the Board of Commissioners of other
8. Prepare Minutes of Board of Commissioners’ Meetings companies, subsidiaries, and joint ventures that are
and keep a copy; not in the framework of rescuing receivables with
9. Report to the Bank on any personal and/or family share due observance of the provisions in Capital Market
ownership in the Bank and any other Companies; sector;
10. Provide report on the supervisory duties that was i. Perform actions included in material transactions
performed in the previous fiscal year to the GMS; as stipulated by the laws and regulations in capital
11. Provide explanation on all matters questioned or market sector with certain values as determined by
requested by Dwiwarna A Series Shareholders with due the Board of Commissioners, except such actions are
observance of the laws and regulations particularly those included in material transactions excluded by the
applicable in Capital Market sector; laws and regulations applicable in Capital Market
12. Perform other obligations in the framework of sector;
supervisory and advisory duties as long as they do not j. Actions that are not regulated in the RKAP;
violate the laws and regulations, Articles of Association, k. Actions to transfer include selling, releasing the right
and/or GMS resolutions; to charge and/or not to charge again for:
13. Grant approval in writing for legal acts performed by i. The principal of non-performing receivables
the Board of Directors as required in BNI’s Articles of which has been written off in the framework of
Association with regard to the laws and regulations as credit settlement, either partially or entirely;
well as provisions in Capital Market sector. The Board of ii. The difference between the principal value
Directors’ actions shall obtain approval from the Board of of non-performing receivables that has been
Commissioners to: written off with transfer value including sales or
with the value of disposal of right;
ANNUAL
REPORT 2018
i. Has ever not convening an annual GMS;

shall be carried out based on the Board of Directors’ ii. the accountability as a member of Board
policies that have been approved by the Board of of Directors and/or a member of Board of
Commissioners and in the amount of debt-canceled Commissioners has ever not accepted by the
limit set by the GMS which shall remain in force until GMS or has ever not present the accountability
any new limit has been determined by the GMS. as a member of Board of Directors and/or a
member of Board of Commissioners to the GMS;
Approval of the Board of Commissioners specifically with and
regard to letters a, b, e, f, g, h, and i is performed by the Board of iii. has ever caused a company that obtains license,
Commissioners after obtaining approval from Dwiwarna A Series approval, or registration from the Financial
Shareholders. Services Authority not to fulfill its obligation
to submit its annual report and/or financial
Determination of the limits and/or criteria by the Board of statements to the Financial Services Authority.
Commissioners for matters as referred to in letters a, b, e, f, g, h, 4. Having the commitment to comply with the laws and
and i shall be conducted by the Board of Commissioners after regulations;
obtaining approval from Dwiwarna A Series Shareholders. 5. Having the knowledge and/or expertise in the fields
required by the Bank, and any other requirements based
BOARD OF COMMISSIONERS’ CRITERIA AND TERM OF on the laws and regulations applicable to the bank;
OFFICE 6. Satisfying other requirements as stipulated in the
Requirements for members of the Board of Commissioners applicable laws and regulations.
must comply with the provisions of the Law on Limited Liability 7. Among members of the Board of Commissioners and
Companies, Laws and Regulations in Capital Market sector; and between members of the Board of Commissioners and
other laws and regulations including regulations relating to the members of the Board of Directors, there must be no
Bank’s business activities. family bloodline relationship up to third degree, either in
a straight line or side line, including relationship arising
Based on the Articles of Association, persons who can be from marital ties;
appointed as members of the Board of Commissioners are those
individuals that meet the requirements upon appointment and The term of office of the Board of Commissioners is at most 2
during their term of office: (two) consecutive periods, under the following conditions:
1. Having good character, morals, and integrity; 1. The members of the Board of Commissioners are
2. Proficient in performing legal actions; appointed for the term of office commencing from the
3. Within 5 (five) years before appointment and during the date determined by the GMS that appoints them and
term of office: ending at the closing of the 5th (fifth) Annual GMS after
a. Never been declared bankrupt; the appointment date, provided that it shall not exceed
b. never become a member of Board of Directors and/or a the time period of 5 (five) years with due observance of
member of Board of Commissioners who is found guilty the laws and regulations in Capital Market sector, but
for causing a company to be declared bankrupt; without prejudice to the right of the GMS to dismiss the
c. never been sentenced for committing a criminal offense members of the Board of Commissioners at any time
that is detrimental to state finances and/or related to the before their term of office ends.
financial sector; and 2. After the term of office ends, the members of the Board
d. never been a member of Board of Directors and/or a of Commissioners may be reappointed by the GMS for 1
member of Board of Commissioners who during the term (one) term of office.
of office:
Good Corporate
Governance
BOARD OF COMMISSIONERS’ APPOINTMENT PROCESS
The appointment process of candidate members of BNI’s Board of Commissioners is carried out by referring to laws and
regulations stipulating the appointment procedures of members of Board of Commissioners for Bank and SOE sectors,
particularly State-Owned Enterprise Minister Regulations No. PER-02/MBU/02/2015 dated February 17, 2015, on the
Requirements, Procedures for Appointment and Dismissal of Members of Board of Commissioners and Supervisory Board of
State-Owned Enterprise, Financial Services Authority Regulation No. 27/POJK.03/2016 dated July 22, 2016, on Fit and Proper
Test for Main Party of Financial Services Institution and Circular Letter of Financial Services Authority No. 31/SEOJK.05/2016
dated August 30, 2016 on Fit and Proper Test for Main Party of Financial Services Institution, as well as with due observance to
the provisions of appointment of members of Board of Commissioners stipulated in BNI’s Articles of Association.
Members of the Board of Commissioners are appointed by the GMS which are attended and approved by Dwiwarna A Series
Shareholders and the meeting resolutions shall be approved by Dwiwarna A Series Shareholders with due observance to
the provisions of the Articles of Association. GMS resolutions on appointment of members of Board of Commissioners also
determines the effectiveness of the appointment. In the event that GMS does not adopt a resolution, then the appointment as
member of Board of Commissioners will be effective starting from the closing of the GMS. Submission of proposal of candidate
member of Board of Commissioners to the GMS through Dwiwarna A Series Shareholders is carried out by observing the
recommendations of the Nomination and Remuneration Committee.
The Financial Services Authority Regulation No. 27/POJK.03/2016 dated July 22, 2016, on Fit and Proper Test for the Main
Party of Financial Services Institution, among others, regulates that candidate members of Board of Commissioners, who
are included as BNI’s Main Party, which is a Financial Services Institution, must obtain approval from the Financial Services
Authority before carrying out actions, duties, and functions as member of the Board of Commissioners. In order to provide
such approval, the FSA conducts a fit and proper test to candidate members of the Board of Commissioners.
Members of the Board of Commissioners who have passed the fit and proper test without notes and have obtained approval
from the Financial Services Authority shall indicate that such members of the Board of Commissioners have and fulfill the
requirements of integrity, competency, and financial reputation in an adequate manner.
All members of BNI’s Board of Commissioners have passed the fit and proper test and received FSA approval to serve as
members of BNI’s Board of Commissioners which can be seen in the table below:
Table of Fit and Proper Test

Nama Jabatan Pelaksana Tanggal Efektif Hasil
Ari Kuncoro* President Financial Services March 14, 2018 Pass
Commissioner/Independent Commissioner Authority
Wahyu Kuncoro Commissioner Financial Services January 25, 2017 Pass
Vice President Commissioner/ Commissioner Authority May 29, 2017
Revrisond Baswir Commissioner Financial Services June 24, 2015 Pass
Independent Commissioner Authority January 25, 2017
Pataniari Siahaan Commissioner Financial Services June 25, 2015 Pass
Independent Commissioner Authority January 25, 2017
Bistok Simbolon Commissioner Financial Services May 10, 2016 Pass
Authority
Joni Swastanto Commissioner Financial Services April 20, 2016 Pass
Authority
Marwanto Harjowiryono Commissioner Financial Services July 19, 2017 Pass
Authority
Ahmad Fikri Assegaf Independent Commissioner Financial Services July 19, 2017 Pass
Authority
Sigit Widyawan** Independent Commissioner Financial Services September 7, 2018 Pass
Authority
* Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March
14, 2018.
** Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018.
ANNUAL
REPORT 2018
Members of the Board of Commissioners who have passed the fit and proper test were then appointed in the GMS, which was
stated in the Minutes of GMS. Basis of appointment of each member of Board of Commissioners is as follows:
Table of Basis of Appointment of Board of Commissioners

Nama Jabatan Dasar Pengangkatan
Ari Kuncoro President Commissioner /Independent EGMS dated November 2, 2017.
Commissioner
Wahyu Kuncoro • Commissioner AGMS dated March 10, 2016
• Vice President Commissioner/ AGMS dated March 16, 2017
Commissioner
Revrisond Baswir • Commissioner AGMS dated March 17, 2015
• Commissioner Independent AGMS dated March 10, 2016
Pataniari Siahaan • Commissioner AGMS dated March 17, 2015
• Commissioner Independent AGMS dated March 10, 2016
Bistok Simbolon Commissioner EGMS dated January 12, 2016
Joni Swastanto Commissioner AGMS dated March 10, 2016
Marwanto Harjowiryono Independent Commissioner AGMS dated March 16, 2017
Ahmad Fikri Assegaf Independent Commissioner AGMS dated March 16, 2017
Sigit Widyawan Independent Commissioner AGMS dated March 20, 2018
ORIENTATION PROGRAM FOR NEW COMMISSIONERS
The orientation program for members of the Board of Commissioners is carried out by delivering documents, presentations
or explanations, which can be carried out by the Board of Directors, Corporate Secretary, related Divisions or units, which
generally include information/matters pertaining to:
1. Vision, mission, organizational structure of the bank, business activities and operational network;
2. Annual Report, the Bank’s Work Plan and Budget (RKAP), and the Bank’s Business Plan (RBB), Bank’s Code of Ethics, BNI’s
Work Cultures, Boards of Commissioners’ Guidelines for Work Conduct, Corporate Governance Handbook, and the Articles
of Association.
3. Good Corporate Governance (concurrent positions, share ownership, and independent commissioners);
4. Board of Commissioners and Board of Directors’ duties, authority, and responsibilities, Board of Commissioners’ delegation
of authority and limits of authority in conducting supervisory duties on the bank based on the applicable laws and
regulations;
5. Committees under the Board of Commissioners, which are established and directly responsible to the Board of
Commissioners, Secretary of the Board of Commissioners, and Secretariat of the Board of Commissioners, which facilitates
the duties of the Board of Commissioners;
6. Remuneration and facilities provided to members of the Board of Commissioners.
DIVISION OF SUPERVISORY DUTIES OF BOARD OF COMMISSIONERS
The division of supervisory duties of the Board of Commissioners per December 2018 is as follows.
Table of Division of Supervisory Duties of Board of Commissioners

Name Position Period Field of Duty
Ari Kuncoro* President 5 April 2018 – 31 December 2018 Chairman of Nomination and Remuneration
Commissioner/ Committee
Independent
Commissioner
Wahyu Kuncoro Vice President 1 January 2018 – 31 December 2018 Member of Nomination and Remuneration
Commissioner/ Committee
Commissioner
Revrisond Baswir Independent 1 January 2018 - 31 December 2018 • Member of Nomination and Remuneration
Commissioner 1 January 2018 - 31 December 2018 Committee
1 January 2018 - 31 December 2018 • Chairman of Risk Monitoring Committee
• Chairman of Integrated Governance
Committee
Good Corporate
Governance
Name Position Period Field of Duty

Pataniari Siahaan Independent 1 January - 31 December 2018 • Member of Nomination and Remuneration
Commissioner 1 January 2018 - 31 December 2018 Committee
• Chairman of Audit Committee
Bistok Simbolon Commissioner 1 January – 31 December 2018 • Member of Nomination and Remuneration
1 January 2018 - 31 December 2018 Committee
• Member of Risk Monitoring Committee
Joni Swastanto Commissioner 1 January 2018 - 31 December 2018 • Member of Nomination and Remuneration
1 January 2018 - 31 December 2018 Committee
1 January 2018 - 31 December 2018 • Member of Risk Monitoring Committee
• Member of Integrated Governance
Committee
Marwanto Commissioner 1 January 2018 - 31 December 2018 • Member of Nomination and Remuneration
Harjowirjono Committee
Ahmad Fikri Independent 1 January 2018 - 5 April 2018 • Chairman of Nomination and Remuneration
Assegaf Commissioner 5 April 2018 - 31 December 2018 Committee
1 January 2018 - 31 December 2018 • Member of Nomination and Remuneration
Committee
• Member of Audit Committee
Sigit Widyawan** Independent 13 September 2018 -31 December 2018 • Member of Nomination and Remuneration
Commissioner Committee
Information:
* Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March
14, 2018.
DIVERSITY POLICY OF COMPOSITION OF BOARD OF COMMISSIONERS

Based on the Attachment of Circular Letter of Financial Services Authority No. 32/SEOJK.04/2015 dated November 27, 2015
on Governance Guidelines for Public Companies, it is stated that the composition of Board of Commissioners is a combination
of characteristics either from the organ side of the Board of Commissioners or the members of Board of Commissioners as
an individual, which is in line with the Public Companies needs. Such characteristics can be reflected in the determination
of expertise, knowledge, and experience necessary in implementing the supervisory and advisory duties by the Board of
Commissioners of Public Companies. A composition that has observed the Public Companies needs is a positive matter,
particularly related to decision making in the framework of implementing supervisory function performed by considering
various wider aspects.
In the 2018 period, the diversity of the composition of the Board of Commissioners reflected in the education, work
experience, expertise, age and gender, can be seen in the table below:
Name Position Age Gender Education Work Experience Expertise

Ari Kuncoro* President 56 Male • Bachelor of • Program Secretary of Post-Graduate • Economics
Commissioner/ years Economics Study of Economic Science of Universitas
Independent old • Master of Indonesia.
Commissioner Economic • Vice Dean I in the Fields of Teaching,
Development Education, and Community Services.
• Doctor of • Faculty of Economics, Universitas
Economic Indonesia
Science • Guest Professor in Research Field, Brown
University.
• Member of Research Communication
Forum for Financial System Stability of
Bank Indonesia.
• Board of Director of East Asian Economist
Association.
• Dean of the Tri Dharma College of the
Faculty of Economics and Business,
Universitas Indonesia.
ANNUAL
REPORT 2018

Wahyu Vice President 49 Male • Bachelor of • Head of Funding and Resources Section, • Economics
Kuncoro Commissioner/ years Agriculture Directorate General of SOE Development, • Management
Commissioner old • Bachelor of Department of Finance.
Economics • Head of Sub-Division of Planning of
• Master of Agricultural Production Business, Ministry
Management of SOE.
• Secretary of the Board of Commissioners
of PT Perkebunan Nusantara VIII (Persero).
• Head of Plantation IIB Business Sector,
Ministry of SOE.
• Commissioner of PT Perkebunan
Nusantara IX (Persero).
• Head of Primary Industry IIIA Business
Sector, Ministry of SOE.
• Head of Infrastructure and Logistics IA
Business Sector, Ministry of SOE.
• Commissioner of PT Perkebunan
Nusantara XIII (Persero).
• Assistant Deputy of Services III Business
Sector, Ministry of SOE.
• Assistant Deputy of Banking and
Insurance, Ministry of SOE.
• Deputy of Business Infrastructure Sector,
Ministry of SOE.
• Commissioner of PT Angkasa Pura II
(Persero).
• Chairman of Prabunara Employee
Cooperative, Ministry of SOE.
• Member of Prabunara Employee
Cooperative Supervisors, Ministry of SOE.
• Deputy of Agro and Pharmaceutical
Business Sector, Ministry of SOE.
• Commissioner of PT Bank Negara
Indonesia (Persero) Tbk.
• Vice President Commissioner of PT Bank
Negara Indonesia (Persero) Tbk.
Revrisond Independent 60 Male • Bachelor of • Lecturer of Economics and Business, • Economics
Baswir Commissioner years Accounting Universitas Gajah Mada • Accounting
old • Master of • Researcher of P3PK, Universitas Gajah
Business Mada
Administration • Expert Staff of Ministry of Human Rights
• Doctor of of the Republic of Indonesia
Economic • Expert Staff of Pustep, Universitas Gajah
Science Mada
• Expert Staff of DPD of the Republic of
Indonesia
• Head of Center for Economic Democracy
Studies, Universitas Gajah Mada
• Member of the Public Policy Committee,
Ministry of SOE.
• Commissioner and Chairman of Audit
Committee of PTPN XIII, Pontianak.
• Commissioner of PTPN VIII, Bandung.
• Commissioner and Chairman of Audit
Committee of PTPN XI, Surabaya.
• Independent Commissioner of PT Bank
Negara Indonesia (Persero) Tbk
Good Corporate
Governance

Pataniari Independent 72 Male • Bachelor • Member of DPR/MPR RI • Engineering
Siahaan Commissioner years of Civil • Member of Commission I, DPR-RI • Legal
old Engineering • Member of Cooperation Bodies among
• Bachelor of Parliaments of DPR-RI
Transportation • Member of Bilateral Cooperation Group
Civil of Indonesian-Australia of DPR-RI
Engineering • Member of Workers’ Body of MPR-RI
• Master of • Member of Ad Hoc I Committee, Workers’
LawDoctor of Body of MPR-RI
Law • Chairman of Committee A, Annual
Session of MPR-RI
• Member of Commission III of DPR-RI
• Leader of Legislative Body of DPR-RI
• Attorney for DPR-RI for the Constitutional
Court
• Chairman of Working Team of
Dissemination of MPR RI Decision in the
Sector of State Constitution of RI
• Lecturer of Law, Universitas Trisakti
• Chairman of the Center of Constitutional
Studies and the Laws and Regulations,
Faculty of Law, Universitas Trisakti
• Editorial Board of Prioris Law Journal,
Faculty of Law, Universitas Trisakti
Bistok Commissioner 62 Male • Bachelor of • Head of Sub-division of Research Design • Legal
Simbolon years Law 3, Research Section II, Legal Bureau and
old • Master of PPU, Cabinet Secretariat
Economic Law • Head of Political Division, Regional
Government, and District Police at PUU II
Bureau of Cabinet Secretariat
• Division Head of State Administration
Law Analysis, Legal Bureau, Cabinet
Secretariat
• Assistant Cabinet Secretary, Cabinet
Secretariat
• Head of Legal Bureau, Cabinet Secretariat
• Head of Political and Security Affairs,
Defense, Ratification, and Legal Issues,
Cabinet Secretariat
• Deputy Cabinet Secretariat for Political,
Legal, and Security, Cabinet Secretariat
• Commissioner of PT Industri Kereta Api
(Persero)
• President Commissioner of PT Industri
Kereta Api (Persero)
• Commissioner of Pertamina Geothermal
Energy
• Deputy Chief, Cabinet Secretary
• Special Staff, Cabinet Secretary
ANNUAL
REPORT 2018

Joni Swastanto Commissioner 62 Male • Bachelor of • Section Head of Bank Indonesia Bandung • Economics
years Economics • Deputy Head of Non-Foreign Exchange
old • Master of Supervision Division 2, Bank Indonesia
Economics • Senior Bank Supervisor for Bank
• Doctor of Supervision Affairs 3, Bank Indonesia
Economics • Executive Bank Supervisor for Bank
Supervision Affairs 3, Bank Indonesia
• Head of Analysis Division of Foreign
Exchange Management, Bank Indonesia
• Head of Monetary Division, Bank
Indonesia
• Division Head of Bank Indonesia Surabaya
• Senior Executive Bank Supervisor of Bank
Indonesia Surabaya
• Deputy Director of Banking Supervision
Department 3, Bank Indonesia
• Director of Banking Supervision
Department 3, Bank Indonesia.
• Director of Licensing and Banking
Information Department,
• Bank Indonesia
• Chief of Representative Semarang Bank
Indonesia.
• Head of Banking Research and
Development Department, Financial
Services Authority
• Head of Licensing and Banking
Information Department, Financial
Services Authority
• Advisor to the Panelist Group of Financial
Services Authority
• Deputy Commissioner of Strategic
Management 1B of the Financial Services
Authority
• Deputy Commissioner of Strategic
Management 2B of the Financial Services
Authority
Indonesia (Persero) Tbk
Good Corporate
Governance

Marwanto Commissioner 59 Male • Bachelor of • Head of Analysis Bureau of State Revenue • Economics
Harjowiryono years Economics and Expenditure Budget (APBN) of the
old • Master of Department of Finance
Economics • Head of Analysis Center of State Revenue
• Doctor of and Budget Financing of the Department
Economics/ of Finance
Public Policy • Head of Foreign Cooperation Bureau of
the Department of Finance
• Acting Head of International Financial
Cooperation Center of the Department
of Finance
• Head of Public Relations Bureau of the
Department of Finance
• Member of the National Social Security
Board/DJSN
• Daily Chief Executive and Deputy
Chairman of the Bureaucratic Reform
Team of the Department of Finance
• Expert Staff to Minister of Finance for
State Expenditure
• Member of Budget Review Committee,
Asian Development Bank, Manila.
• Chairman of Ethic Committee, Asian
Development Bank, Manila.
• Executive Director, Asian Development
Bank, Manila.
• Commissioner of PTPN XIII, Pontianak,
Kalimantan.
• Commissioner of PT Sucofindo (Persero)
• President Commissioner
• PT Bahana Pembinaan Usaha Indonesia
(Persero).
• Commissioner of PT Semen Indonesia
(Persero) Tbk.
• Commissioner of PT Indonesia
Infrastructure Finance.
• Directorate General of Financial Balance
(DJPK) of the Ministry of Finance
• Director General at the Directorate
General of Treasury of the Ministry of
Finance
Ahmad Fikri Independent 50 Male • Bachelor of • Co founder of PT Justika Siar Publika, • Legal
Assegaf Commissioner years Law Owner & Operator (www.hukum.online.
old • Master of Law com)
• Founder of the Indonesian Law College
of Jentera
• Advisory Member of the Association of
Capital Market Legal Consultants
• Member of Management Center
Supervisory Board of the Kemayoran
Complex
• Founder and Senior Partner of Assegaf
Hamzah & Partners
Sigit Independent 53 Male • Bachelor of • Head of Tax Division - Concrete Product • Economic
Widyawan** Commissioner years Economics Division of PT Wijaya Karya (Persero) Accounting
old • Master of • Head of Finance Division at PT Wijaya • Finance
Accounting Karya Beton
• Director of Finance of Roda Jati Grup
• Director of PT Roda Pembangunan Jaya
• Independent Commissioner of PT
Jasamarga (Persero) Tbk
Information:
*Appointment as President Commissioner/Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March
14, 2018.
**Appointment as Independent Commissioner is based on BNI AGMS, March 20, 2018, and effective based on FSA approval since September 7, 2018.
ANNUAL
REPORT 2018
NUMBER AND COMPOSITION OF THE BOARD OF COMMISSIONERS
In the 2018 period, the number and composition of BNI’s Board of Commissioners amended twice as described below:
PERIOD OF 1 JANUARY 2018 – 20 MARCH 2018

In the period of 1 January 2018 - 20 March 2018, the Board of Commissioners consisted of 8 (eight) persons consisting of 1
(one) President Commissioner concurrently as Independent Commissioner, 1 (one) Vice President Commissioner, 3 (three)
Independent Commissioners, and 3 (three) Commissioners.
Name Position Domicile Appointment Date Effective Date
Ari Kuncoro President Commissioner/ Jakarta November 2, 2017 March 14, 2018
Independent Commissioner
Wahyu Kuncoro Commissioner Jakarta March 10, 2016 January 25, 2017
Vice President Commissioner/ March 16, 2017 May 29, 2017
Commissioner
Independent Commissioner March 10, 2016 January 25, 2017
Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017
PERIOD OF 20 MARCH 2018 - 31 DECEMBER 2018

In the period of 20 March 2018 - 31 December 2018, the Board of Commissioners consisted of 9 (nine) persons consisting of
1 (one) President Commissioner concurrently as Independent Commissioner, 1 (one) Vice President Commissioner, 4 (four)
Independent Commissioners, and 3 (three) Commissioners.
Nama Jabatan Domisili Tanggal Pengangkatan Tanggal efektif
Ari Kuncoro President Commissioner/ Jakarta November 2, 2017 March 14, 2018
Wahyu Kuncoro Vice President Commissioner/ Jakarta March 10, 2016 January 25, 2017
Commissioner March 16, 2017 May 29, 2017
Ahmad Fikri Assegaf Independent Commissioner Jakarta March 16, 2017 July 19, 2017
Sigit Widyawan Independent Commissioner Jakarta March 20, 2018 September 7, 2018
AFFILIATION RELATIONSHIP OF BOARD OF COMMISSIONERS
Among members of the Board of Commissioners and between members of the Board of Commissioners and members of
the Board of Directors, there must be no family relationship up to third degree, either in a straight line or side line, including
relationship arising from marital ties. The entire Board of Commissioners does not have financial, family, and management
relationship, either among members of Board of Commissioners or with members of Board of Directors.
Good Corporate
Governance
Table of Affiliation Relationship of Board of Commissioners

Financial, Family, and Management Relationship of the Commissioners
Financial Relationship With Family Relationship With Management
Board of Board of Controlling Board of Board of Controlling Relationship
Name Position Commissioners Directors Shareholders Commissioners Directors Shareholders With
Yes No Yes No Yes No Yes No Yes No Yes No Yes No
Ari President √ √ √ √ √ √ √
Kuncoro* Commissioner/
Independent
Commissioner
Wahyu Vice President √ √ √ √ √ √ √
Kuncoro Commissioner/
Commissioner
Revrisond Independent √ √ √ √ √ √ √
Baswir Commissioner
Pataniari Independent √ √ √ √ √ √ √
Siahaan Commissioner
Biston Commissioner √ √ √ √ √ √ √
Simbolon
Joni Commissioner √ √ √ √ √ √ √
Swastanto
Marwanto Commissioner √ √ √ √ √ √ √
Harjowirjono
Ahmad Fikri Independent √ √ √ √ √ √ √
Assegaf Commissioner
Sigit Independent √ √ √ √ √ √ √
Widyawan** Commissioner
Information:
14, 2018.
INDEPENDENT COMMISSIONER
The composition of BNI’s Board of Commissioners has complied with the provisions of Financial Services Authority No.
55/POJK.03/2016 dated December 7, 2016, on Governance Implementation for Commercial Banks, regulating that the
Independent Commissioner at commercial bank must be at least 50% (fifty percent) of the total members of Board of
Commissioners. The composition of BNI’s Commissioners per December 31, 2018, amounted to 8 (eight) persons consisting
of 5 (five) Independent Commissioners and 4 (four) Commissioners. Therefore, the composition of BNI’s Independent
Commissioners is more than 50% of the total members of Board of Commissioners. The number has complied with the
Financial Services Authority.
CRITERIA OF INDEPENDENT COMMISSIONER

The determination of BNI’s Independent Commissioner is carried out by observing and following the provisions governing the
requirements and criteria of the Independent Commissioner in the applicable Laws and Regulations particularly:
1. The Circular Letter of Financial Services Authority on Governance Implementation for Commercial Banks, which stipulates
that Independent Commissioners are members of the Board of Commissioners who do not have financial relationship,
management relationship, ownership relationship, and/or family relationship with members of the Board of Directors,
other members of the Board of Commissioners, and/or controlling shareholders, or relationship with the Bank that can
affect the ability to act independently.
The definition of having financial relationship, management relationship, ownership relationship, and/or family
relationship with members of the Board of Directors, other members of the Board of Commissioners, and/or controlling
shareholders, or relationship with a bank that can influence the ability to act independently is guided by the definition in
the applicable Laws and Regulations, particularly the Circular Letter of Financial Services Authority on the Implementation
of Governance for Commercial Banks.
ANNUAL
REPORT 2018
2. Financial Services Authority Regulation (POJK) No. 33/POJK.04/2014 dated December 8, 2014, Article 1 paragraph (4) and
Article 21 paragraph 2 regulating that:
a. Independent Commissioner is a member of the Board of Commissioners from outside the issuer or public company
and fulfills the requirements as an Independent Commissioner as referred to in POJK.
b. Independent Commissioner must meet the following requirements:
i. Not a person who works or has the authority and responsibility to plan, lead, control, or supervise activities
of the Issuer or Public Company within the last 6 (six) months, except for re-appointment as an Independent
Commissioner of Issuer or Public Company in the next period;
ii. Does not have shares either directly or indirectly with the Issuer or Public Company;
iii. Has no Affiliation relationship with the Issuer or Public Company, members of the Board of Commissioners,
members of the Board of Directors, or the main shareholders of the Issuer or Public Company; and
iv. Does not have a business relationship either directly or indirectly that is related to the business activities of the
Issuer or Public Company.
3. Article 120 paragraph (1) and paragraph (2) of the Law on Limited Liability Company which states that:
a. The Articles of Association of the Bank can regulate the presence of 1 (one) Independent Commissioner and 1 (one)
messenger commissioner.
b. Independent Commissioner is appointed based on GMS resolutions from non-affiliated parties with main
shareholders, members of the Board of Directors, and/or other members of the Board of Commissioners.
4. Article 8 of Bank Indonesia Regulation No. 11/19/PBI/2009 dated June 4, 2009, on Risk Management Certification for
Managers and Officials of Commercial Banks as amended by Bank Indonesia Regulation No. 12/7/PBI/2010 dated April 19,
2010, stating that each Independent Commissioner must have Level 2 Risk Management Certificate.
STATEMENT OF INDEPENDENT COMMISSIONERS

Each of the Bank’s Independent Commissioner has made an Independent Statement Letter, which has been submitted to the
FSA as one of the requirements to take the fit and proper test at the FSA.
Good Corporate
Governance
ANNUAL
REPORT 2018
SURAT PERNYATAAN
Saya yang bertanda tangan di bawah ini :
Nama : Sigit Widyawan
No. KTP : 3313121407650004
Alamat : Jayan RT 003 RW 009 Blulukan Colomadu
Jabatan : Calon Komisaris Independen PT Bank Negara Indonesia (Persero) Tbk
1. Menyatakan bahwa saya merupakan pihak yang independen terhadap pemilik bank atau PSP;
2. Menyatakan bahwa saya tidak memiliki hubungan keuangan, kepengurusan, kepemilikan saham
dan/atau hubungan keluarga dengan anggota Dewan Komisaris lainnya, anggota Direksi dan/atau
pemegang saham pengendali atau hubungan lain yang dapat mempengaruhi kemampuan saya
untuk bertindak independen.
Mengetahui, Jakarta, 25 JUNI 2018
(Achmad Baiquni) (Sigit Widyawan)
Direktur Utama
Good Corporate
Governance
CONCURRENT POSITIONS OF BOARD OF COMMISSIONERS
The Board of Commissioners does not have concurrent positions that are prohibited based on the applicable laws and
regulations. Board of Commissioners’ concurrent positions that are allowed based on the applicable Laws and Regulations
are executed by the related members of Board of Commissioners by not ignoring the implementation of duties and
responsibilities as members of the Bank’s Board of Commissioners.
Based on the Guidelines and Conduct of Board of Commissioners, the Board of Commissioners is prohibited to have
concurrent position as:
Ahmad
Ari Wahyu Revrisond Pataniari Bistok Joni Marwanto Sigit
Description Fikri
Kuncoro* Kuncoro Baswir Siahaan Simbolon Swastanto Harjowirjono Widyawan**
Assegaf
Members No No No No No No No No No
of Board of
Directors at
State-Owned
Enterprise,
Regional-
Owned
Enterprises,
Private
Companies
Administrator No No No No No No No No No
of political
party and/
or mem-ber/
candidate
member of
House of
Representative,
DPD, House of
Representative
Level I, and
House of
Representative
Level II and/or
candidate of
regional head/
deputy head.
Other positions No No No No No No No No No
according to
the provisions
in laws and
regulations.
Other positions No No No No No No No No No
that may cause
a conflict of
interest.
Information:
14, 2018.
ANNUAL
REPORT 2018
MANAGEMENT OF CONFLICT OF INTEREST OF BOARD OF MECHANISM OF IMPLEMENTATION OF SUPERVISORY

COMMISSIONERS DUTIES OF BOARD OF COMMISSIONERS
The supervision carried out by the President Commissioner in
Conflict of Interest is a condition in which the Bank’s economic carrying out the functions, duties, and obligations is conducted
interests contradict the personal economic interests. Regarding through the following mechanisms:
such matter, members of the Board of Commissioners shall: 1. Through the Board of Commissioners’ Meetings
1. Prioritize the Bank’s interests and not decrease the Bank’s The implementation of the Board of Commissioners’
financial in the event of any conflict of interest; Meetings is carried out internally by the Board of
2. Avoid making decisions in situations and conditions of Commissioners, or by inviting Sectoral Director or Senior
conflict of interest; Executive Vice President related to the Meeting agenda,
3. Disclose family relationship, financial relationship, as well as the joint meeting between the Board of
management relationship, ownership relationship with Commissioners and Board of Directors on a regular basis.
other members of Board of Commissioners and/or 2. Active roles of Committees under the Board of
members of Board of Directors and/or the bank’s controlling Commissioners in assisting and supporting the duties of the
shareholders and/or other parties in the framework of the Board of Commissioners, among others, are through the
Bank’s business; implementation of Committee meetings, evaluation, study
4. Disclose decisions that shall be made in a condition with or review of matters that become the duties of the Board of
conflict of interest. Commissioners.
3. Providing direction and opinion of the Board of
SHARE OWNERSHIP OF BOARD OF COMMISSIONERS Commissioners in writing to the Board of Directors as a
response to the report of duty implementation of the Board
The entire Board of Commissioners does not own shares of Directors, approval of an application, or consultancy
amounting to 5% or more of the paid-up capital, including types submitted by the Board of Directors on information
and number of shares in BNI, other Banks, Non-Bank Financial regarding strategic and significant matters.
Institutions, and other Companies domiciled inside or outside 4. Working visits of the Board of Commissioners to BNI’s
the country. work environment as well as giving direction and opinion
of the Board of Commissioners to the Board of Directors
IMPLEMENTATION OF DUTIES AND DECISIONS OF BOARD based on the results of such working visit of the Board of
OF COMMISSIONERS Commissioners
WORK PLAN AND BUDGET (RKA) OF BOARD OF REALIZATION OF SUPERVISORY DUTIES OF BOARD OF
COMMISSIONERS COMMISSIONERS
As a guideline in carrying out its duties, authority, and Throughout 2018, the Board of Commissioners carried out its
responsibilities, every beginning of year the Board of duties, obligations, and responsibilities in the framework of
Commissioners prepares the Board of Commissioners’ Work Plan supervising the management policies and course of the Bank
and Budget (RKA), which is submitted to the Board of Directors. as stipulated in the applicable laws and regulations, the Bank’s
The RKA Preparation is required in: Articles of Association, and the Work Plans set out at beginning
1. SOE State Minister Regulation No. PER-01/MBU /2011 dated of the year, which among others as follows:
August 1, 2011, on the Implementation of Good Corporate 1. Perform the supervisory function of the Bank’s Business Plan
Governance in State-Owned Enterprises as amended (RBB), including:
by Regulation of the State Minister of State-Owned a. Directing, monitoring, and evaluating the
Enterprises No. PER-09/MBU/2012 dated July 6, 2012, implementation of the Bank’s strategic policies in 2018,
Article 12 paragraph (5) which stipulates that the Board of among others, evaluation on BNI’s Corporate Plan and
Commissioners/Board of Supervisors must prepare annual RBB as well as 2018 financial performance every month;
work plan and budget of the Board of Commissioners/ b. Supervising the efforts to achieve RBB, particularly
Board of Supervisors, which is an integral part and RKAP, as towards achieving several important aspects of business
well as; plans such as credit lending, improving asset quality,
2. BNI’s Articles of Association Article 17 paragraph (2) which collecting third party funds, productivity and efficiency;
stipulates that the Board of Commissioners must prepare a c. Reviewing and providing approval for RBB Revision for
work program of the Board of Commissioners which is an 2018-2020;
integral part of the Bank’s Annual Work Plan and Budget d. Evaluating RBB realization that is reported to the
prepared by the Board of Directors. Financial Services Authority every semester and
submitting the RBB supervision report to the Financial
Services Authority;
e. Reviewing and approving RBB 2019-2021 and BNI’s
Corporate Plan 2019-2023.
Good Corporate
Governance
2. Evaluating BNI’s Financial Performance and Consolidated e. Evaluating and giving directions the to improve the
financial performance every month. implementation of Integrated Risk Management
3. Reviewing financial information that will be issued by the policies periodically;
Bank. f. Providing approval on the Integrated Risk
4. Reviewing the implementation of 2017 fiscal year Management Policies Guidelines.
financial statements audit conducted by the Public g. Ensuring that the implementation of Integrated
Accountant Office (KAP) or other external parties. Risk Management is in accordance with the
5. Performing supervisory functions on the implementation characteristics and complexity of the Financial
of internal control at BNI, among others by: Conglomeration business and ensuring the
a. Ensuring that the implementation of internal control implementation of Risk Management in each
system in BNI has been running well; Financial Services Institution in BNI’s Financial
b. Ensuring that the Board of Directors has monitored Conglomeration to support the implementation of
the effectiveness of implementation of the Internal integrated risk management effectively.
Audit Work Unit (SKAI) or BNI’s Internal Control Unit; 8. Performing supervisory functions on the implementation of
c. Supervising the duty implementation of BNI’s BNI’s compliance, among others by:
Internal Control Unit, including: a. Evaluating the compliance function in BNI, ensuring
i. Evaluating the internal control or BNI’s Internal that the compliance function in BNI has been well
Control Unit; implemented and providing advice to the Board
ii. Reviewing the plan and audit implementation as of Directors to improve the quality of compliance
well as monitoring the follow-up of audit results function.
from the duty implementation of BNI’s Internal b. Reviewing reports on the implementation of
Control Unit; compliance function and duty implementation of the
iii. Ensuring that the Board of Directors Compliance Director that are regularly submitted by
has followed up on audit findings and the Board of Directors.
recommendations from BNI’s Internal Control c. Monitoring the implementation of Anti-Fraud Strategy,
Unit, the supervision results of the Financial Anti-Money Laundering and Prevention of Terrorism
Services Authority, and/or supervision of other Funding (APU-PPT) Program, and Know Your Customer
authorities, findings of the Audit Board, external Principles.
auditors or audit results of public accountants, 9. 9. Regarding the implementation of principles and
among others by ensuring that there is a follow- practices of Good Corporate Governance (GCG):
up by the Board of Directors on audit findings a. Ensuring the implementation of GCG principles and
either in writing or verbally; practices at all levels or ranks of BNI organization and
iv. Reviewing the principles of audit results from in the Financial Services Institution in BNI’s Financial
BNI’s Internal Audit Unit which is reported to the Conglomeration;
Financial Services Authority every semester. b. Supervising GCG implementation in BNI’s Financial
6. Supervising, monitoring, and evaluating the Bank’s Sound Conglomeration and evaluating/reviewing Integrated
Level Semester II-2016 and Semester I-2017 and supporting Governance Guidelines in the framework of
the Board of Directors to take necessary steps needed in improvement;
order to maintain and/or improve the Bank’s Sound Level. c. Encouraging improvement in GCG practices by
7. Performing supervisory functions on BNI’s Risk referring to the applicable laws and regulations and
Management and Integrated Risk Management, including: international best practices;
a. Evaluating the Board of Directors’ duties on the d. Reviewing the GCG implementation reports submitted
implementation of Risk Management policies by the Board of Directors;
and providing guidance on improvements to the e. Monitoring GCG self assessment results, as well
implementation of Risk Management policies on as conducting self assessment to examine the
a regular basis to ensure that the management of effectiveness of GCG implementation of the Board
the Bank’s activities and risks has been carried out of Commissioners including Committees under the
effectively; Board of Commissioners every semester as required
b. Evaluating BNI’s Risk Management policies and Risk by Financial Services Authority Regulations governing
Management strategies; GCG implementation for Commercial Banks.
c. Reviewing Risk Profiles on a quarterly basis, and 10. Monitoring and evaluating Subsidiaries’ performance and
periodically evaluating BNI’s position and risk Board of Directors’ policies related to creating synergies and
development; strengthening subsidiaries’ business.
d. Ensuring that the Risk Management policies and 11. Evaluating, directing, and monitoring the strategic plan,
process are performed effectively and integrated Information Technology implementation, and Bank’s
comprehensively in the Risk Management process; policies related to BNI’s Information Technology.
ANNUAL
REPORT 2018
12. Reviewing periodic reports on material case progress.

13. Supervising the implementation of prudential principle in providing credit facilities by the Board of
Directors, which includes:
a. Supervising the implementation of credit provision and financing plans as outlined in the RBB.
b. Providing advice and opinion on the Board of Directors’ decision regarding provision of credit
facilities above a certain amount that must be consulted to the Board of Commissioners.
c. Granting approval for provision of credit facilities to related parties based on the applicable laws
and regulations must obtain approval from the Board of Commissioners.
d. Conducting regular and routine reviews of the development and follow-up of credits that have
been consulted with the Board of Commissioners.
e. Evaluating and approving credit policies and strategies according to the obligations regulated
by the applicable Laws and Regulations.
f. Reviewing, periodically, the development and quality of overall credit or financing portfolio
including Non-Performing Loans (NPL).
14. Monitoring and evaluating the development and management of Human Resources (HR) specifically
with regard to the strategic function of Human Resources in supporting the Bank’s performance
achievement.
15. Evaluating the implementation of duties and responsibilities of Sectoral Director on a regular basis,
including the achievement of the Sectoral Director’s work plan, specifically related to strategic and
significant issues.
16. Reviewing the Performance of the Financial Institution Pension Fund (DPLK) as the DPLK Supervisory
Board.
17. Supervising and evaluating, periodically, the implementation of remuneration policies and systems
in BNI including remuneration of the Board of Directors and the Board of Commissioners as well as
employees.
18. Giving approval to matters that must obtain the approval from the Board of Commissioners based
on the applicable laws and regulations and the Bank’s Articles of Association, which include:
a. BNI investment approval;
b. Credit provision to related parties;
c. Approval of BNI Organizational Arrangement;
d. Approval of Revision of Bank BNI Business Plan for 2018-2020;
e. Approval of Bank BNI Business Plan for 2019-2021;
f. Approval of BNI Corporate Plan 2019-2023;
g. Approval of BNI Recovery Plan Document;
h. Approval of Management of BNI Subsidiaries;
i. Approval of Company Policies or Guidelines based on Financial Services Authority Regulations
must be obtained from the Board of Commissioners.
19. Submitting report to SOE Ministry in the form of a response from the Board of Commissioners on
BNI performance reports every quarter as a follow up to SOE Minister Letter in 2014 to BNI’s Board
of Commissioners that in order to streamline supervision and guidance on SOE’s performance, the
Board of Commissioners is required to submit opinions and responses to BNI performance reports
for the quarterly period.
20. Holding Board of Commissioners’ Meetings, either internal meetings of the Board of Commissioners
or by inviting relevant members of the Board of Directors or Sectoral Directors as well as joint
meetings between Board of Commissioners and Board of Directors regularly to discuss certain
aspects such as aspects of business, organization, risk management, legal internal control and
compliance, human resources, technology, and others that are held regularly for 52 (fifty-two)
meetings.
21. Visiting Regional Offices or Branch Offices in order to carry out the supervisory function.
Good Corporate
Governance
BOARD OF COMMISSIONERS’ DECISION BOARD OF COMMISSIONERS’ MEETINGS

As part of implementing its duties and responsibilities, throughout
2018 the Board of Commissioners issued 18 (eighteen) Decision MECHANISM OF BOARD OF COMMISSIONERS’ MEETINGS
Letters (SK) of the Board of Commissioners, which were: AND BOARD OF COMMISSIONERS’ MEETING WITH BOARD
1. Credit Consultation Guidelines. OF DIRECTORS
2. General Provisions for Appointment, Dismissal, Duty Based on FSA Regulation and the Bank’s Articles of Association No.
Arrangement, and Honorarium of Members of Committees 33/POJK.04/2014 dated December 8, 2014, on Board of Directors
Under the Board of Commissioners. and Board of Commissioners of Issuers or Public Company and the
3. Adjustment of Honorarium of Independent Members of Bank’s Articles of Association, the Board of Commissioners must
Committees under the Board of Commissioners. hold Meeting at least 1 (one) time in 2 (two) months and hold Joint
4. Termination of the Appointment of Mr. Ahmad Fikri Assegaf as Meeting with the Board of Directors periodically at least 1 (one)
Chairman of the Nomination and Remuneration Committee. time in 4 (four) months. In addition, the Board of Commissioners
5. Appointment of Mr. Ari Kuncoro as Chairman of the may hold a meeting at any time at the request of 1 (one) or several
Nomination and Remuneration Committee. members of the Board of Commissioners or the Board of Directors
6. Appointment of Mr. Ahmad Fikri Assegaf as Member of the by stating the matters that will be discussed.
Nomination and Remuneration Committee.
7. Appointment of Ms. Pasu Donnaria as an Independent As a guideline for the implementation of Board of Commissioners’
Member of the Audit Committee. Meetings and Board of Commissioners’ Meetings with the
8. Appointment of Ms.Idayu Nilawati as Independent Secretary of Board of Directors, the Board of Commissioners has established
the Nomination and Remuneration Committee. procedures and mechanisms for the implementation of Board of
9. Determination of the Board of Directors ‘Salary and Board Commissioners Meetings and Board of Commissioners’ Meetings
of Commissioners’ Honorarium for 2018 and Tantiem of the with the Board of Directors, which are generally stipulated in the
Board of Directors and Board of Commissioners for 2017 Board of Commissioners’ Decision Letter No. Kep/049/DK/2017
performance. dated October 26, 2017, on Guidelines and Work Conduct of
10. Board of Commissioners’ Meeting Conduct and Joint Meeting the Board of Commissioners, which are further explained in the
Conduct between Board of Commissioners and Board of Decision Letter of the Board of Commissioners No. KEP/010/
Directors. DK/2018 dated July 12, 2018, on the Conduct of Board of
11. Termination of the Appointment of Ms. Nurul Almy Firdausi Commissioners’ Meeting and Board of Commissioners’ Meeting
and Appointment of Mr. Mamat Rohimat as Secretariat staff of with Board of Directors, which basically contain provisions on:
the Board of Commissioners. 1. Meeting Schedule;
12. Enforcement of Termination of the Appointment of Mr. Krisna 2. Meeting Agenda;
Wijaya as a member of the Integrated Governance Committee. 3. Meeting Location;
13. Appointment of Mr. Irwan Rinaldi as an Independent Member 4. Meeting Participants;
of the Risk Monitoring Committee. 5. Authority and Representatives;
14. Appointment of Mr. Sigit Widyawan as Member of the 6. Calling of the Meeting;
Nomination and Remuneration Committee. 7. Meeting Attendance and Decision Making;
15. Guidelines for Nomination for Candidate Members of the 8. Documentation of Meeting Implementation and
Board of Directors and Board of Commissioners of PT Bank Administration Management of Minutes of Meetings;
Negara Indonesia (Persero) Tbk. 9. Decision of the Board of Commissioners Outside the Meeting;
16. Appointment of Mr. Suhendry Hafni as a Member of the 10. Board of Commissioners’ Meetings through Teleconferencing
Integrated Governance Committee. Media;
17. Appointment of Mr. Parikesit Suprapto as a Member of the 11. Meeting Presentation Format and Materials.
Integrated Governance Committee.
18. Appointment of Ms. Efita Praharani as a Member of the The Board of Commissioners’ meeting consists of:
Nomination and Remuneration Committee. 1. The Board of Commissioners’ meeting which consists of:
a. Board of Commissioners’ Internal Meeting
b. Board of Commissioners’ Meeting by inviting the related
Sectoral Directors or Senior Executive Vice President
(SEVP).
2. Joint Meeting Between Board of Directors and Board of
Commissioners is Board of Commissioners’ Meeting with Board
of Directors, which is attended by the Corporate Secretary and
Secretary of the Board of Commissioners.
ANNUAL
REPORT 2018
AGENDA, DATE, AND PARTICIPANTS OF BOARD OF COMMISSIONERS’ MEETING
BOARD OF COMMISSIONERS’ MEETINGS

Throughout 2018, the agenda, dates, and participants of Board of Commissioners’ Meetings were as follows.
Table of Board of Commissioners’ Meetings

No. Date Meeting Agenda Meeting Participants Attendance Description
1. January 11, Internal Meeting of Board of Commissioners Ari Kuncoro*) Present
2018 • Committee’s Independent Members Wahyu Kuncoro Present
• Audit Committee Report on BNI’s Performance until Revrisond Baswir Present
December 2017. Pataniari Siahaan Present
• Overview the Decision Letter of the Board of Bistok Simbolon Present
Commissioners on BNI’s Credit Consultancy Joni Swastanto Present
Guidelines. Marwanto Harjowiryono Present
• Risk Monitoring Committee Report on review Ahmad Fikri Assegaf Present
result against credits consulted to the Board of
Commissioners.
• Monitoring on follow-up of the previous meeting.
2. January 18, Internal Meeting of Board of Commissioners Ari Kuncoro*) Absent On Duty
2018 • Decision on providing credit facility to related Wahyu Kuncoro Absent On Duty
parties Revrisond Baswir Present
• Monitoring on follow-up of the previous meeting. Pataniari Siahaan Present
• Approval document on capital addition on Bistok Simbolon Present
Subsidiary. Joni Swastanto Present
Marwanto Harjowiryono Present
Meeting by inviting the related Sectoral Director Ahmad Fikri Assegaf Present
Credit consultancy to the Board of Commissioners
3. January 25, Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

2018 • Approval on Self Estimated Price (HPS) for Wahyu Kuncoro Absent On Duty
Procurement of General Audit Services for Revrisond Baswir Present
Consolidated Financial Statements and other Bistok Simbolon Present
Reports of BNI for the fiscal year ending on Pataniari Siahaan Present
December 31, 2018. Joni Swastanto Present
• Decision to provide credit facility to related parties. Marwanto Harjowiryono Present
• Monitoring on follow-up of the previous meeting. Ahmad Fikri Assegaf Absent On Duty
Meeting by inviting the related Sectoral Director

High Risk Credit.
4. February 1, Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

2018 • Credit to related party. Wahyu Kuncoro Present
• Monitoring on follow-up of the previous meeting. Revrisond Baswir Present
• Follow-up report on letters submitted to the Board Pataniari Siahaan Present
of Commissioners. Bistok Simbolon Present
• Audit Committee Report on review result against Joni Swastanto Present
the Self Estimated Price (HPS) for Procurement of Marwanto Harjowiryono Absent On Duty
Public Accountant Firm (KAP). Ahmad Fikri Assegaf Present

Implementation of Credit Restructuring Policies.
Good Corporate
Governance

5. February 8, Internal Meeting of Board of Commissioners Ari Kuncoro*) Absent On Duty
2018 • Monitoring on follow-up of the previous meeting. Wahyu Kuncoro Present
• Report on letters submitted to the Board of Revrisond Baswir Present
Commissioners. Pataniari Siahaan Present
• Audit Committee Report on principles of Bistok Simbolon Absent On Duty
suggestions and opinions of the Audit Committee Joni Swastanto Present
Quarter IV-2017. Marwanto Harjowiryono Present
Ahmad Fikri Assegaf Present
6. February Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

15, 2018 • Report of the Audit Committee and Risk Monitoring Wahyu Kuncoro Present
Committee on Self Assessment Result (HPS) Revrisond Baswir Present
against the Implementation of BNI’s DPLK Risk Pataniari Siahaan Present
Management. Bistok Simbolon Present
• Risk Monitoring Committee Report on review Joni Swastanto Present
result against credits consulted to the Board of Marwanto Harjowiryono Present
Commissioners. Ahmad Fikri Assegaf Present
• Audit Committee Report on review result against
the performance of BNI’s Pension Fund of Financial
Institution (DPLK).
• Report on letters submitted to the Board of
Commissioners.
7. February Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

22, 2018 • Integrated Governance Committee Report Wahyu Kuncoro Present
on evaluation of function of BNI’s Integrated Revrisond Baswir Present
Compliance of Financial Conglomeration Semester Pataniari Siahaan Present
II-2017. Bistok Simbolon Present
• Monitoring on follow-up of the previous meeting. Joni Swastanto Present
• Report on letters submitted to the Board of Marwanto Harjowiryono Present
Commissioners. Ahmad
Fikri Assegaf Present
Report of Self Assessment Result (HPS) on the
implementation of BNI’s DPLK Risk Management per
December 31, 2017.
8. March 1, Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

2018 • Monitoring on follow-up of the previous meeting. Wahyu Kuncoro Present
Bistok Simbolon Present
Meeting by inviting the related Sectoral Director Joni Swastanto Present
• Management of Subsidiary. Marwanto Harjowiryono Present
• Risk Mitigation on SOE Infrastructure Project Ahmad Fikri Assegaf Present
Funding
9. March 8, Internal Meeting of Board of Commissioners Ari Kuncoro*) Present

2018 • Risk Monitoring Committee Report on review Wahyu Kuncoro Absent On Duty
result against credits consulted to the Board of Revrisond Baswir Present
• Audit Committee Report on review result against Bistok Simbolon Present
the proposal of Public Accountant Firm. Joni Swastanto Present
• Audit Committee Report on review result against Marwanto Harjowiryono Present
BNI’s asset discharge in Pare-pare. Ahmad Fikri Assegaf Present
Commissioners.

• Management of network and development of Kartu
Tani.
• Treasury performance and overseas transaction as
well as management of overseas branches.
ANNUAL
REPORT 2018

10. March 15, Discussion of the Nomination and Remuneration Ari Kuncoro Present
2018 Committee Wahyu Kuncoro Present
• Presentation by the Head of Corporate Revrisond Baswir Present
Communicate and Secretariat Division on Pataniari Siahaan Present
Performance Assessment of the Board of Directors Bistok Simbolon Present
Year 2017. Joni Swastanto Present
• KPI format for Performance Assessment of the Marwanto Harjowiryono Present
Board of Directors Year 2018. Ahmad Fikri Assegaf Present
• Presentation of Remuneration Review.
Internal Meeting of Board of Commissioners

Commissioners.
11. March 20, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Monitoring on follow-up of the previous meeting. Wahyu Kuncoro Absent On Duty
Joni Swastanto Present
12. March 29, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Composition of the Nomination and Remuneration Wahyu Kuncoro Absent On Duty
Committee. Revrisond Baswir Present
• Structuring BNI’s Board of Directors organization Pataniari Siahaan Present
(BNI’s Board of Directors Division). Bistok Simbolon Present
• Approval on KAP honorarium for Year 2018 Audit. Joni Swastanto Present
• Approval on extension and addition of credit facility Marwanto Harjowiryono Present
to related party. Ahmad Fikri Assegaf Present
• Work Visit Plan of the Board of Commissioners to Sigit Widyawan**) Present
BNI Regional Offices.
Commissioners.
13. April 5, Internal Meeting of Board of Commissioners Ari Kuncoro Present

2018 • Follow-Up on GMS: Proposal of remuneration Wahyu Kuncoro Present
and limit/threshold of Board of Directors’ actions Revrisond Baswir Present
that need written approval from the Board of Pataniari Siahaan Present
Commissioners. Bistok Simbolon Present
• Risk Monitoring Committee Report on review Joni Swastanto Present
result against credits consulted to the Board of Marwanto Harjowiryono Present
• Monitoring on follow-up of the previous meeting. Sigit Widyawan**) Present
Commissioners.

Digital Banking Strategy.
Meeting by inviting the related SEVP

BNI Corporate University & Training of the Board of
Commissioners.
14. April 26, Rapat dengan mengundang Direktur Sektor terkait Ari Kuncoro Absent On Duty
2018 • Review Auto Writte Off Kartu Kredit Wahyu Kuncoro Absent On Duty
Revrisond Baswir Present
Rapat Internal Dewan Komisaris Pataniari Siahaan Present
• Laporan Komite Pemantau Risiko mengenai hasil Bistok Simbolon Present
review kredit-kredit yang dikonsultasikan kepada Joni Swastanto Present
Dewan Komisaris. Marwanto Harjowiryono Present
• Review Keanggotaan Komite Independen. Ahmad Fikri Assegaf Present
• Batasan/treshold perbuatan Direksi yang perlu Sigit Widyawan**) Present
mendapat persetujuan tertulis Dewan Komisaris.
• Monitoring tindak lanjut Rapat sebelumnya.
• Laporan surat-surat yang disampaikan kepada
Dewan Komisaris.
Good Corporate
Governance

15. May 3, Board of Commissioners’ Meeting by inviting the related Ari Kuncoro Present
2018 Sectoral Director Wahyu Kuncoro Absent On Duty
Monitoring on progress to provide credit to debtor Revrisond Baswir Present
groups. Pataniari Siahaan Present
• Internal Meeting of Board of Commissioners Joni Swastanto Present
• Re-appointment of Committee’s Independent Marwanto Harjowiryono Present
Members and Committee’s Secretary. Ahmad Fikri Assegaf Present
Commissioners.
16. May 17, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Proposal of remuneration of Board of Directors and Wahyu Kuncoro Present
Board of Commissioners. Revrisond Baswir Absent On Duty
• Board of Directors’ proposal on the Administrator of Pataniari Siahaan Present
BNI’s Subsidiary. Bistok Simbolon Present
Sigit Widyawan**) Present
Board of Commissioners’ Meeting by inviting the
Sectoral Director
Implementation of compliance function and progress of
Material Cases.
17. May 24, Internal Meeting of Board of Commissioners Ari Kuncoro Absent On Duty
2018 • Candidate to administer Subsidiary. Wahyu Kuncoro Present
• Proposal of remuneration of Board of Directors and Revrisond Baswir Present
Board of Commissioners. Pataniari Siahaan Present
• Follow-up of the previous meeting. Bistok Simbolon Present
• Report on letters submitted to the Board of Joni Swastanto Present
Commissioners. Marwanto Harjowiryono Present
• Determining the time period for re-appointment Ahmad Fikri Assegaf Present
of independent members of Audit Committee Sigit Widyawan**) Present
and Secretary of Nomination and Remuneration
Committee.
18. June 28, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Validating decisions of the Board of Commissioners Wahyu Kuncoro Present
outside the Meeting. Revrisond Baswir Present
• Updating the Board of Commissioners’ Meeting Pataniari Siahaan Present
Conduct. Bistok Simbolon Present
Ahmad Fikri Assegaf Absent On Duty
Board of Commissioners’ Meeting by inviting the related Sigit Widyawan**) Present
Sectoral Director
Revision on Bank BNI’s Business Plan Year 2018-2020.
19. July 5, 2018 Internal Meeting of Board of Commissioners Ari Kuncoro Present
• Corporate Secretary Report on Budget Allocation Wahyu Kuncoro Present
and Realization of Partnership and Community Revrisond Baswir Absent On Duty
Development Program/Corporate Social Pataniari Siahaan Absent On Duty
Responsibility (PKBL/CSR) Year 2017 and Quarter Bistok Simbolon Present
I-2018. Joni Swastanto Present
• Risk Monitoring Committee Report on facility Marwanto Harjowiryono Absent On Duty
review result on credit provision to related party. Ahmad Fikri Assegaf Absent On Duty
• Work Visit Plan of the Board of Commissioners to Sigit Widyawan**) Present
BNI Regional Offices.
Commissioners.
20. July 12, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Presentation by Audit Committee and Integrated Wahyu Kuncoro Absent On Duty
Governance Committee on BNI’s Consolidated Revrisond Baswir Present
Financial Performance Quarter II-2018. Pataniari Siahaan Present
• Monitoring on follow-up of the previous meeting. Bistok Simbolon Absentr On Duty
ANNUAL
REPORT 2018

2018 • Risk Monitoring Committee Report on review result Wahyu Kuncoro Absent On Duty
of BNI’s Risk Profile. Revrisond Baswir Present
• Presentation by Corporate Communication and Pataniari Siahaan Present
Secretariat Division on Remuneration of Board Bistok Simbolon Present
of Commissioners and Board of Commissioners’ Joni Swastanto Present
Organs. Marwanto Harjowiryono Present
• Composition of Committee who is from Ahmad Fikri Assegaf Present
independent party. Sigit Widyawan**) Present
Commissioners.
Board of Commissioners’ Meeting inviting the Sectoral

Director
Effectiveness of duty implementation of the Internal
Audit Unit.
2018 • Refreshment Risk Management Certificate Program Wahyu Kuncoro Present
for the Board of Commissioners. Revrisond Baswir Present
• Determining honorarium of Secretary staff of the Pataniari Siahaan Present
Board of Commissioners who is from outside the Bistok Simbolon Present
company. Joni Swastanto Present
• Presentation by Corporate Communication and
Secretariat Division on Remuneration of Board of
Commissioners.
Joint Meeting Between Board of Commissioners and

Board of Directors
Handling NPL, write off policies, Remedial & Recover,
and Credit Pipeline.
23. August 2, Internal Meeting of Board of Commissioners Ari Kuncoro Present

2018 • Work Visit Plan of the Board of Commissioners to Wahyu Kuncoro Absent On Duty
BNI Regional Offices. Revrisond Baswir Present
• Report on temporary findings of Financial Services Pataniari Siahaan Present
Authority audit. Bistok Simbolon Present
• Monitoring on follow-up of the previous meeting. Ahmad Fikri Assegaf Present
Meeting by inviting the Sectoral Director
Kick Off Meeting of Audit 2018 by Public Accountant
Firm.
2018 • Work Visit Report of the Board of Commissioners to Wahyu Kuncoro Present
BNI Regional Offices. Revrisond Baswir Present
• Threshold of approval authority of the Board of Pataniari Siahaan Absent On Duty
Commissioners and Shareholders of Dwiwarna A Bistok Simbolon Present
Series. Joni Swastanto Present
• Refreshment Risk Management Certificate Program Marwanto Harjowiryono Present
for the Board of Commissioners. Ahmad Fikri Assegaf Present
• Report on letters submitted to the Board of Sigit Widyawan**) Present
Commissioners.
Good Corporate
Governance

25. August 23, Meeting by inviting the Sectoral Director Ari Kuncoro Present
2018 • Implementation of Long-Term Incentive (LTI) Year Wahyu Kuncoro Present
2018. Revrisond Baswir Absent On Duty
• Capital participation to the subsidiary. Pataniari Siahaan Present
Internal Meeting of Board of Commissioners Joni Swastanto Present
2018 • Candidacy of the President Director of the Wahyu Kuncoro Absent On Duty
Subsidiary. Revrisond Baswir Present
• Nomination Guidelines for candidate member of Pataniari Siahaan Present
Board of Directors and Board of Commissioners. Bistok Simbolon Present
• Implementation of Anti-Money Laundering and
Counter-Terrorism Financing (APU-PPT) programs.
• Report of the Head of Corporate Communication
and Secretariat Division on implementation of
Good Corporate Governance in BNI.
27. September Internal Meeting of Board of Commissioners Ari Kuncoro Present

6, 2018 Presentation by BNI’s Nomination and Remuneration Wahyu Kuncoro Absent On Duty
Committee on the Nomination System for candidate Revrisond Baswir Present
member of Board of Directors and candidate member Pataniari Siahaan Present
of the Board of Commissioners Bistok Simbolon Present
Internal Meeting of Board of Commissioners Marwanto Harjowiryono Present
• Review on the Candidates for President Director for Ahmad Fikri Assegaf Present
Subsidiary as proposed by the Board of Directors. Sigit Widyawan**) Absent
Commissioners.

Performance of Overseas Branch Offices and other
strategic issues.

13, 2018 • Report on letters submitted to the Board of Wahyu Kuncoro Absent On Duty
Commissioners. Revrisond Baswir Present
Meeting by inviting the Sectoral Director Joni Swastanto Present
Consumer Business Performance, and development of Marwanto Harjowiryono Present
BNI’s YAP and Agent 46. Ahmad Fikri Assegaf Present
Sigit Widyawan Present

20, 2018 • Discussion on Minutes of Board of Commissioners’ Wahyu Kuncoro Absent On Duty
Meeting. Revrisond Baswir Present
• Evaluation on the realization of Work Program of Pataniari Siahaan Present
the Board of Commissioners and Committee 2018. Bistok Simbolon Present
ANNUAL
REPORT 2018

September Internal Meeting of Board of Commissioners Ari Kuncoro Present
30. 26, 2018 • Implementation of Long-Term Incentive (LTI) Year Wahyu Kuncoro Absent On Duty
2018. Revrisond Baswir Absent On Duty
• Report on letters submitted to the Board of Pataniari Siahaan Absent On Duty
Commissioners. Bistok Simbolon Present
31. October 4, Internal Meeting of Board of Commissioners Ari Kuncoro Present

2018 • Report on letters submitted to the Board of Wahyu Kuncoro Present
Board of Commissioners’ Meeting by inviting the Joni Swastanto Present
Sectoral Director Marwanto Harjowiryono Present
• Development of BNI’s new products in 2018 and Ahmad Fikri Assegaf Present
sales plan of Securities Mutual Funds. Sigit Widyawan Present
• Development on credits consulted to the Board of
Commissioners up to August 2018.
32 October 11, Internal Meeting of Board of Commissioners Ari Kuncoro Present

2018 • Presentation by Enterprise Risk Management Wahyu Kuncoro Present
Division on stress test of macro condition against Revrisond Baswir Present
BNI’s performance. Pataniari Siahaan Present
• Presentation by the Committees on review result of Bistok Simbolon Present
Corporate Plan 2019-2023. Joni Swastanto Present
• Structuring Board of Directors organization (Board Marwanto Harjowiryono Present
of Directors Division) of BNI. Ahmad Fikri Assegaf Present
• Report on letters submitted to the Board of Sigit Widyawan Absent On Duty
Commissioners.

33. October Internal Meeting of Board of Commissioners Ari Kuncoro Present
18, 2018 • Report on letters submitted to the Board of Wahyu Kuncoro Absent On Duty
Ahmad Fikri Assegaf Absent On Duty
34. October 25, Internal Meeting of Board of Commissioners Ari Kuncoro Present
2018 • Report on letters submitted to the Board of Wahyu Kuncoro Present
Bistok Simbolon Absent On Duty
Transformation of BNI to be the most profitable Ahmad Fikri Assegaf Absent On Duty
Financial Institution. Sigit Widyawan Present
35. November Internal Meeting of Board of Commissioners Ari Kuncoro Present

1, 2018 • Report on letters submitted to the Board of Wahyu Kuncoro Present
• Nomination Guidelines for candidate member of Bistok Simbolon Present
Board of Directors and Board of Commissioners. Joni Swastanto Present
• Marwanto Harjowiryono Present
Board of Commissioners’ Meeting by inviting the Ahmad Fikri Assegaf Absent Dinas
Sectoral Director Sigit Widyawan Present
• Stress test of Macro Condition against BNI’s
performance.
• Development of BNI’s new products in 2018 and
sales of Securities Mutual Funds.
Good Corporate
Governance

36. November Nomination and Remuneration Committee: Ari Kuncoro Present
8, 2018 Talent and succession, and Leadership Program Wahyu Kuncoro Absent On Duty
Revrisond Baswir Present
Internal Meeting of Board of Commissioners Pataniari Siahaan Present
• Appointment of Public Accountant Firm to audit Bistok Simbolon Present
Year 2019. Joni Swastanto Present
• Audit Committee Report on settlement progress Marwanto Harjowiryono Present
of findings and recommendations of Internal Audit Ahmad Fikri Assegaf Absent On Duty
Unit and 2016-2018 audit result. Sigit Widyawan Present
• Improvement of effectiveness of BNI’s Board of
Commissioners’ duty implementation.
• External fraud report
Commissioners.
• Nomination Guidelines for candidate member of
Board of Directors and Board of Commissioners.

Sectoral Director
• Discussion on external fraud
• Establishing Provision for Impairment Loss (CKPN),
development of remedial and recovery, and
realization of 2018 investment.

16, 2018 • 2019 Board of Commissioners’ Work Plan and Wahyu Kuncoro Absent On Duty
Budget (RKA). Revrisond Baswir Present
38. November Board of Commissioners’ Meeting by inviting the Ari Kuncoro Present
22, 2018 Sectoral Director Wahyu Kuncoro Present
• Progress of 2018 Financial Statements Audit. Revrisond Baswir Present
Internal Meeting of Board of Commissioners Pataniari Siahaan Present
• Presentation by the Committees on Bank BNI’s Bistok Simbolon Present
Business Plan Year 2019-2021. Joni Swastanto Present
Commissioners. Ahmad Fikri Assegaf Absent On Duty
• Monitoring on follow-up of the previous meeting. Sigit Widyawan Present

29, 2018 • Board of Commissioners’ Approval on: Wahyu Kuncoro Absent On Duty
-- Bank BNI’s Business Plan Year 2019-2021 Revrisond Baswir Present
-- Sustainable Finance Action Plan Year 2019 Pataniari Siahaan Present
-- Document of BNI’s 2018 Recovery Plan Bistok Simbolon Present
-- Work Plan and Budget of the Board of Joni Swastanto Present
Commissioners 2019 Marwanto Harjowiryono Present
-- Nomination Guidelines for candidate of Board Ahmad Fikri Assegaf Present
of Directors and Board of Commissioners. Sigit Widyawan Present
-- Report on letters submitted to the Board of
Commissioners.
-- Monitoring on follow-up of the previous
meeting.

Sectoral Director
Supply Chain Financing
ANNUAL
REPORT 2018

40. December Internal Meeting of Board of Commissioners Ari Kuncoro Present
6, 2018 • Report on letters submitted to the Board of Wahyu Kuncoro Present
Approval of Credit to Related Parties. Ahmad Fikri Assegaf Present
41. December Board of Commissioners’ Meeting by inviting the Ari Kuncoro Absent On Duty
13, 2018 Sectoral Director Wahyu Kuncoro Absent On Duty
• Follow-Up on BPK’s audit result Revrisond Baswir Present
• Key Performance Indicator (KPI) Year 2019 Pataniari Siahaan Present
Internal Meeting of Board of Commissioners Joni Swastanto Present
• Monitoring on follow-up of the previous meeting. Sigit Widyawan Present
Keterangan:
Information:
*Appointment as President Commissioner/Independent Commissioner is based on EGMS, effective based on FSA approval since March 14, 2018.
**Appointment as Independent Commissioner is based on GMS, effective based on FSA approval since September 7, 2018.
JOINT MEETING BETWEEN BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS

Throughout 2018, the agenda, dates, and participants of joint meeting between the Board of Commissioners and Board of
Directors are as follows:
Meeting Meeting
Participants Participants
No. Date Meeting Agenda Attendance Description Attendance Description
Board of Board of
Commissioners Directors
1. January 11, Financial Ari Kuncoro*) Present Achmad Baiquni Absent On Duty
2018 Performance of
BNI’s Consolidation Wahyu Kuncoro Absent On Duty Herry Sidharta Present
Position until
December 2017. Revrisond Baswir Present Anggoro Eko Absent On Duty
Cahyo
Pataniari Siahaan Present Bob Tyasika Present
Ananta
Bistok Simbolon Present Rico Rizal Absent On Duty
Budidarmo
Joni Swastanto Present Putrama Wahju Present
Setyawan
Marwanto Absent On Duty Catur Budi Harto Absent On Duty
Harjowiryono
Ahmad Fikri Present Adi Sulistyowati Present
Assegaf
Panji Irawan***) Absent On Duty
Good Corporate
Governance
Meeting Meeting
Board of Board of
2. February 22, Financial Ari Kuncoro*) Present Achmad Baiquni Absent On Duty
2018 Performance of
BNI’s Consolidation
Position until Wahyu Kuncoro Present Herry Sidharta Present
January 2018.
Revrisond Baswir Present Anggoro Eko Present

Cahyo

Ananta

Budidarmo
Joni Swastanto Present Putrama Wahju Absent On Duty

Setyawan
Marwanto Present Catur Budi Harto Present

Harjowiryono
Ahmad Fikri Absent On Duty Adi Sulistyowati Present

Assegaf
Panji Irawan***) Present
3. March 29, Financial Ari Kuncoro*) Present Achmad Baiquni Absent On Duty
2018 Performance of
BNI’s Consolidation Wahyu Kuncoro Absent On Duty Herry Sidharta Absent On Duty
February 2018.
Cahyo
Ananta
Bistok Simbolon Present Rico Rizal Present
Budidarmo
Setyawan
Marwanto Present Catur Budi Harto Absent On Duty
Harjowiryono
Ahmad Fikri Present Adi Sulistyowati Absent On Duty
Assegaf
Sigit Widyawan**) Present Dadang Present
Setiabudi****)
Tambok P. Present
Setyawati****)
Endang Present
Hidayatullah****)
ANNUAL
REPORT 2018
Meeting Meeting
Board of Board of
4. April 18, • Financial Ari Kuncoro*) Absent On Duty Achmad Baiquni Absent On Duty
2018 Performance
of BNI’s
Consolidation Wahyu Kuncoro Absent On Duty Herry Sidharta Absent On Duty
Position until
March 2018
• Credits to be Revrisond Baswir Present Anggoro Eko Present
consulted to Cahyo
the Board of Pataniari Siahaan Present Bob Tyasika Absent On Duty
Commissioners Ananta
in March 2018.
Budidarmo

Setyawan
Marwanto Present Catur Budi Harto Absent On Duty

Harjowiryono

Assegaf

Setiabudi****)
Tambok P. Present
Setyawati****)
Endang Present
Hidayatullah****)
5. May 24, • Financial Ari Kuncoro*) Present Achmad Baiquni Present

2018 Performance
Wahyu Kuncoro Absent On Duty Herry Sidharta Absent On Duty
of BNI’s
Consolidation Revrisond Baswir Present Anggoro Eko Present
Position until Cahyo
April 2018.
• Decision to Pataniari Siahaan Present Bob Tyasika Present
provide credit Ananta
facility in April Bistok Simbolon Present Rico Rizal Present
2018 that Budidarmo
needs to be
consulted to Joni Swastanto Present Putrama Wahju Present
the Board of Setyawan
Commissioners. Marwanto Present Catur Budi Harto Present
Harjowiryono
Assegaf

Setiabudi****)
Tambok P. Present
Setyawati****)
Endang Present
Hidayatullah****)
Good Corporate
Governance
Meeting Meeting
Board of Board of
6. July 12, Financial Ari Kuncoro*) Present Achmad Baiquni Present
2018 Performance in May
and June 2018
Wahyu Kuncoro Absent On Duty Herry Sidharta Present

Cahyo
Ananta
Bistok Simbolon Absent On Duty Rico Rizal Present
Budidarmo
Setyawan
Marwanto Present Catur Budi Harto Present
Harjowiryono
Assegaf
Sigit Widyawan**) Present Dadang Setiabudi Present
Tambok P. Present
Setyawati
Endang Present
Hidayatullah
7. August 23, • BNI Financial Ari Kuncoro*) Present Achmad Baiquni Absent On Duty
2018 Performance
July 2018 Wahyu Kuncoro Absent On Duty Herry Sidharta Present
• Credits to be
consulted to
the Board of Revrisond Baswir Absent On Duty Anggoro Eko Present
Commissioners Cahyo
in May-July Pataniari Siahaan Present Bob Tyasika Present
2018. Ananta
Bistok Simbolon Present Rico Rizal Present
Budidarmo
Setyawan
Marwanto Absent On Duty Catur Budi Harto Present
Harjowiryono
Assegaf
Sigit Widyawan**) Present Dadang Setiabudi Present
Tambok P. Present
Setyawati
Endang Absent On Duty
Hidayatullah
ANNUAL
REPORT 2018
Meeting Meeting
Board of Board of
September • Financial Ari Kuncoro*) Present Achmad Baiquni Absent On Duty
8. 20, 2018 performance
Wahyu Kuncoro Absent On Duty Herry Sidharta Absent On Duty
August 2018.
• Decision to Revrisond Baswir Present Anggoro Eko Present
provide credit Cahyo
facility in
August 2018 Pataniari Siahaan Present Bob Tyasika Present
that needs to Ananta
be consulted Bistok Simbolon Present Rico Rizal Present
to the Board of Budidarmo
Commissioners.
Setyawan
Marwanto Absent On Duty Catur Budi Harto Present
Harjowiryono
Assegaf
Sigit Widyawan Present Dadang Setiabudi Present
Tambok P. Present
Setyawati
Endang Present
Hidayatullah
9. October 11, • BNI Corporate Ari Kuncoro*) Absent On Duty Achmad Baiquni Absent On Duty
2018 Plan
Wahyu Kuncoro Present Herry Sidharta Present
• Financial
Performance Revrisond Baswir Present Anggoro Eko Present
in September Cahyo
2018
• Decision to Pataniari Siahaan Present Bob Tyasika Present
facility in Bistok Simbolon Present Rico Rizal Absent On Duty
September Budidarmo
2018 that
needs to be Joni Swastanto Present Putrama Wahju Absent On Duty
consulted to Setyawan
the Board of Marwanto Absent On Duty Catur Budi Harto Present
Commissioners. Harjowiryono
Assegaf
Sigit Widyawan Absent On Duty Dadang Setiabudi Present
Tambok P. Present
Setyawati
Endang Hadir
Hidayatullah
Good Corporate
Governance
Meeting Meeting
Board of Board of
10. November • Consolidated Ari Kuncoro*) Present Achmad Baiquni Present
22, 2018 Financial
Wahyu Kuncoro Present Herry Sidharta Absent On Duty
Performance
October 2018. Revrisond Baswir Present Anggoro Eko Present
• Bank BNI’s Cahyo
Business Plan
Year 2019-2021. Pataniari Siahaan Present Bob Tyasika Present
• Sustainable Ananta
Finance Action Bistok Simbolon Present Rico Rizal Present
Plan 2019. Budidarmo
• Credits to be
consulted to Joni Swastanto Present Putrama Wahju Present
the Board of Setyawan
Commissioners Marwanto Present Catur Budi Harto Present
in October Harjowiryono
2018.
Ahmad Fikri Absent On Duty Adi Sulistyowati Present
Assegaf
Tambok P. Present
Setyawati
Endang Absent On Duty

Hidayatullah
December • Consolidated Ari Kuncoro*) Absent Dinas Achmad Baiquni Present
11. 13, 2018 Financial
Wahyu Kuncoro Absent Dinas Herry Sidharta Present
Performance
November 2018 Revrisond Baswir Present Anggoro Eko Present
and Prognosis Cahyo
December 2018
• Decision to Pataniari Siahaan Present Bob Tyasika Absent On Duty
facility in Bistok Simbolon Present Rico Rizal Absent On Duty
November 2018 Budidarmo
that needs to
be consulted Joni Swastanto Present Putrama Wahju Present
to the Board of Setyawan
Commissioners Marwanto Absent Dinas Catur Budi Harto Absent On Duty
Harjowiryono
Assegaf
Tambok P. Present
Setyawati
Endang Absent Dinas

Hidayatullah
Information:
*) Appointment as President Commissioner/Independent Commissioner is based on EGMS, effective based on FSA approval since March 14, 2018.
**) Appointment as Independent Commissioner is based on GMS, effective based on FSA approval since September 7, 2018.
***) No longer in position as the Director since March 20, 2018.
****) Appointment as a Director is based on GMS, effective based on FSA approval since July 5, 2018.
ANNUAL
REPORT 2018
MEETING FREQUENCY AND ATTENDANCE OF BOARD OF COMMISSIONERs

Throughout 2018, the Board of Commissioners held 41 (forty-one) Board of Commissioners’ Meetings, and 11 (eleven) joint
meetings between the Board of Commissioners and the Board of Directors. The meeting frequency and attendance of each
member of the Board of Commissioners are as follows.
Table of Meeting Frequency and Attendance of Board of Commissioners

Joint Meeting Between Board
Meeting of Board of
of Commissioners and Board of
Commissioners
Directors
Name Position
Number and (%) Attendance Number and (%) Attendance
Total Total Total Total
% %
Meetings Attendance Meetings Attendance
Ari Kuncoro* President Commissioner/ 32 28 87.50 9 6 66.66
Wahyu Kuncoro Vice President Commissioner/ 41 26 63.41 11 3 27.27
Commissioner
Revrisond Baswir Independent Commissioner 41 37 90.24 11 10 90.91
Pataniari Siahaan Independent Commissioner 41 38 92.68 11 11 100
Bistok Simbolon Commissioner 41 38 92.68 11 10 90.91
Joni Swastanto Commissioner 41 41 100 11 11 100
Marwanto Harjowirjono Commissioner 41 39 95.12 11 8 72.73
Ahmad Fikri Assegaf Independent Commissioner 41 33 80.48 11 9 81.82
Sigit Widyawan** Independent Commissioner 13 13 100 4 3 75.00
Information:
* Appointment as President Commissioner/ Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since
March 14, 2018.
RISK MANAGEMENT CERTIFICATION
In 2018, the Board of Commissioners who passed the risk management certification is as follows.
Name Position Certification

Ari Kuncoro* President Commissioner/ Independent Commissioner Level 2
Wahyu Kuncoro Vice President Commissioner Level 1
Revrisond Baswir Independent Commissioner Level 2
Pataniari Siahaan Independent Commissioner Level 2
Bistok Simbolon Commissioner Level 1
Joni Swastanto Commissioner Level 1
Marwanto Harjowirjono Commissioner Level 1
Ahmad Fikri Assegaf Independent Commissioner Level 2
Sigit Widyawan** Independent Commissioner Level 2
Information:
*Appointment as President Commissioner/ Independent Commissioner is based on BNI EGMS, November 2, 2017, and effective based on FSA approval since March
14, 2018.
Good Corporate
Governance
BOARD OF COMMISSIONERS’ COMPETENCE the Financial Services Authority based on Financial Services
DEVELOPMENT Authority Circular Letter Number 13/SEOJK.03/2017 dated
March 17, 2017, on Governance Implementation for Commercial
The Board of Commissioners’ competence development can be Bank. The implementation of GCG Self Assessment is conducted
seen in the Company Profile section of this Annual Report. periodically every semester, which is reported to BI/FSA to
obtain approval.
PERFORMANCE ASSESSMENT OF BOARD OF
COMMISSIONERS PERFORMANCE EVALUATION CRITERIA OF BOARD OF
COMMISSIONERS BY GCG ASSESSMENT
Performance Assessment of the Board of Commissioners is The Self Assessment criteria of the Board of Commissioners
carried out through various procedures or mechanisms, which related to GCG implementation is divided into 3 (three) groups,
among others, as follows: which are Governance Structure, Governance Process, and
Governance Outcome.
PERFORMANCE ASSESSMENT OF BOARD OF
COMMISSIONERS BY THE GMS ASSESSORS
Performance Assessment of the Board of Commissioners is The parties conducting GCG Self Assessment are Board of
carried out by the Shareholders at the Annual General Meeting Directors and Board of Commissioners that shall obtain approval
of Shareholders (GMS) at the time of submission of the Board of and monitoring from FSA.
Commissioners’ supervisory report to the GMS in the Company’s
Annual Report, where based on the report the GMS shall state ASSESSMENT RESULT
and give full discharge (acquit et de charge) to the Board of BNI’s GCG self-assessment result for the period of December
Commissioners for the supervisory actions carried out in the 31, 2017, received a composite value of 2 (good). The positive
Fiscal Year ending at the end of the year. factors of Governance Structure, Governance Process, and
Governance Outcome existing in the Board of Commissioners
PERFORMANCE EVALUATION CRITERIA OF BOARD OF and outlined in GCG Self-Assessment for the period of December
COMMISSIONERS BY THE GMS 31, 2017, include the following:
Kinerja Dewan Komisaris selama tahun 2018 tercermin dari 1. The Board of Commissioners’ structure is in accordance
pencapaian realisasi Program Kerja/Rencana Kerja Tahunan with the applicable regulations where 55.5% (fifty-five-
Dewan Komisaris tahun 2018 yang seluruhnya tercapai. point five percent) of the Board of Commissioners are from
independent parties.
ASSESSORS 2. All members of the Board of Commissioners do not violate
Performance assessment of the Board of Commissioners is the provisions of concurrent positions as stipulated in
carried out by the Shareholders at the General Meeting of Regulations issued by the Regulator (in this case, the
Shareholders. Financial Services Authority, Bank Indonesia, and other
provisions of laws and regulations).
PERFORMANCE ASSESSMENT RESULTS OF BOARD OF 3. All members of the Board of Commissioners do not have
COMMISSIONERS financial, management, ownership, and family relationship
The Board of Commissioners has prepared the Annual Work Plan with other members of the Board of Commissioners, Board
and Budget (RKA) of the Board of Commissioners, which is an of Directors, and/or Controlling Shareholders.
integral part of the Company’s Annual RKA. The Annual Work 4. The Board of Commissioners already has a Board of
Plan of the Board of Commissioners is prepared by observing the Commissioners Work Conduct, which is updated regularly
duties, authority, and obligations of the Board of Commissioners in accordance with the applicable provisions of laws and
as stipulated in the applicable laws and regulations. In its regulations and best practices for GCG implementation.
implementation, the Board of Commissioners’ Annual Work 5. The Board of Commissioners already has and continues to
Plan and Budget is used as work guidelines for each member strive to ensure the implementation of GCG principles in
of the Board of Commissioners in carrying out the Company’s each of the Bank’s business activities at all organizational
supervisory duties during the current year. Throughout 2018, ranks or levels, among others, through regular meeting of
the Board of Commissioners’ performance is shown by the the Board of Commissioners or the Board of Commissioners
achievement of realization of the Annual Work Program/Work and Board of Directors or Sectoral Directors each week to
Plan of the Board of Commissioners in 2018, which was entirely ensure that operational activities have been running well
achieved. and in line with GCG principles. All meeting results are
stated in minutes of meeting and are well documented.
PERFORMANCE ASSESSMENT OF BOARD OF 6. The Board of Commissioners had been responsible for
COMMISSIONERS BY GCG ASSESSMENT carrying out its duties to shareholders and was accepted by
Performance assessment of the Board of Commissioners is also shareholders at the Annual GMS of 2017 Fiscal Year.
conducted through GCG Self-Assessment that is submitted to
ANNUAL
REPORT 2018
REMUNERATION POLICY OF BOARD OF COMMISSIONERS
Remuneration Governance
BNI already has a Board of Commissioners’ Remuneration Governance Policy, which refers to the
Financial Services Authority Circular No. 40/SEOJK.03/2016 on Implementation of Governance
in Providing Remuneration for Commercial Bank. In the Board of Commissioners’ Remuneration
Governance Policy, it is stated that the remuneration given is of fixed and variable natures.
The provision of remuneration that is of Fixed and Variable natures is based on business scale,
business complexity, peer group, inflation rate, financial condition and capability of the Bank, as
well as not contrary to the applicable laws and regulations. Regarding the determination of Fixed
Remuneration, it observes the difference (gap) of remuneration between levels of position, thus, it
prevents potential internal conflicts and operational risks such as fraud or other operational risks.
Regarding the determination of Variable Remuneration, the Bank uses the basis of prudent risk
taking which refers to the provisions of the Financial Services Authority regulating Risk Management
Implementation for Commercial Banks.
Based on BNI’s Articles of Association, members of the Board of Commissioners are given
honorariums and allowances/facilities including tantiem and post-retirement benefits whose
types and amounts are determined by the GMS with due observance to the prevailing laws and
regulations.
The Board of Commissioners supervises the implementation of remuneration policies and conducts
regular evaluations through the Nomination and Remuneration Committee. The Nomination and
Remuneration Committee evaluates the Remuneration policy based on performance, risk, fairness
with peer group, targets, the Bank’s long-term strategy, and the fulfillment of reserves as stipulated
in laws and regulations and the Bank’s potential income in the future.
Based on Annual GMS Resolutions for 2017 Fiscal Year, the GMS agreed as follows:
1. Granted authority and power to Dwiwarna A Series Shareholders to determine tantiem amount
for 2017 fiscal year, and determined the salary/honorarium, allowances, facilities, and other
incentives for members of the Board of Commissioners for 2018.
2. Granted authority and power to the Board of Commissioners by first obtaining written approval
from Dwiwarna A Series Shareholder to determine tantiem amount for 2017 fiscal year, and
determined the salary/honorarium, allowances, facilities, and other incentives for members of
the Board of Directors for 2018.
PROCEDURE FOR DETERMINATION OF REMUNERATION

In general, the procedure for determination of the Board of Commissioners’ remuneration is carried
out through the following stages:
1. The Nomination and Remuneration Committee evaluates the remuneration policy applicable to
the Board of Directors.
2. After that, the Nomination and Remuneration Committee will provide recommendations to the
Board of Commissioners on the remuneration policy for the Board of Commissioners.
3. The Board of Commissioners submits proposals on remuneration recommendation in the form
of salary/honorarium and tantiem to be approved by the GMS.
Good Corporate
Governance
REMUNERATION STRUCTURE OF MEMBERS OF BOARD OF COMMISSIONERS

The remuneration structure of the Board of Commissioners based on SOE Minister Regulation No. PER-04/MBU/2014, which
was amended by SOE Minister Regulation No. PER-06/MBU/06/2018 is as follows.
Table of Remuneration Structure for Members of Board Commissioners

Type of
No. Remuneration/ Description
Facilities
1. Honorarium 1. President Commissioner is 45% of the salary of the President Director.
2. Vice President Commissioner is 42,5% of the salary of the President Commissioner.
3. Commissioner is 90% of the honorarium of the President Commissioner.
Allowances
1. Religious Board of Commissioners is given allowances for Religious Holiday for 1 (one) time honorarium
Holiday
2. Transportation Board of Commissioners is given transportation for 20 (twenty) percent of the honorarium.
3. Post- 1. Given during the term of office
Employment 2. Premium borne by the Company is 25% (twenty-five percent) of the honorarium in one year.
Insurance 3. Selecting the program for post-employment insurance is determined by the Board of Directors and Board
of Commissioners, coordinated by the unit managing the facilities and allowances for members of Board of
Directors and Board of Commissioners.
4. Provision of premium, fee, or other terms relevant to post-employment insurance already includes premium
for accident and death insurance.
Facilities
Health 1. Health facilities are given to members of Board of Commissioners in the forms of health insurance or
reimbursement of medical expenses.
2. Health facilities are given to members of Board of Commissioners, the wife/husband, and maximum 3 (three)
children who have not reached the age of 25 (twenty five) provided that in the event that the child is not
yet 25 years but had been married or had previously worked, the said child is not entitled to receive health
facilities. Health facilities are provided in the forms of:
a. Outpatient and medicines;
b. Inpatient and medicines;
c. Medical check up subject to 1 (one) time every year and done inside the country.
3. In the event that the treating doctor provides referrals for treatment overseas, the health facility is provided
in full.
Legal Aid 1. Legal Aid facility to members of Board of Commissioners is given in the event of any action/activity for and
on behalf of a position of members of Board of Commissioners that is related to the purpose and objective as
well as the company’s business activities.
2. Legal aid facility is at cost.
3. Legal aid facility is budgeted at the Bank’s expense as stated in the Bank’s Work Plan and Budget (RKAP).
4. Legal aid facility can only be used during the term of office or no longer in office on the policies taken during
the term of office and cannot be given directly to the person concerned.
5. In the event that members of the Board of Commissioners use lawyers/legal consultants of their own choice,
either at level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial
review, then, the lawyer/legal consultant fee is not borne/compensated by the Bank.
6. Procedures for Board of Commissioners’ legal aid facility are carried out by referring to the applicable Laws
and Regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the
Guidelines for Determining the Income of Board of Directors, Board of Commissioners, and Supervisory Board
of State-Owned Enterprises.
INDICATOR TO DETERMINE REMUNERATION OF BOARD OF COMMISSIONERS

In determining indicators for Board of Commissioners and Board of Directors, the Company refers to SOE Minister Regulation
No. PER-04/MBU/2014 on Guidelines for Determination of Income of the Board of Directors, Board of Commissioners, and
Supervisory Board of SOE as have been amended several times, lastly by SOE Minister Regulation No. PER-06/MBU/06/2018 as
follows:
1. Business scale factor
2. Business complexity factor
3. Inflation Rate
4. Company’s condition and financial capability
5. Other relevant factors, as well as not in violation of the laws and regulations.
ANNUAL
REPORT 2018
TOTAL NOMINAL/COMPONENT OF REMUNERATION OF BOARD OF COMMISSIONERs

The disclosure of remuneration component of the Board of Commissioners refers to Financial Services Authority Circular Letter
No. 40/SEOJK.03/2016 on Implementation of Governance in Providing Remuneration for Commercial Bank.
The total nominal/component of remuneration of Board of Commissioners is as follows.

Amount Received in 1 (one) Year
Type of Remuneration and Other Facilities
Number of People Million Rupiah
Remuneration
Salary 9 13,686.34
Housing Allowance - -
Transportation Allowance 9 2,737.37
Holiday Allowance 9 1,168.65
Tantiem 9 45,142.81
Other Natura Facilities
• Housing (cannot be owned) - -
• Transportation (cannot be owned) - -
• Post-Employment Insurance (can be owned) 9 3,421.59
• Health (cannot be owned) 9 43.07
The honorarium composition of members of the Board of Commissioners is determined as follows:

1. President Commissioner is 45% of the salary of the President Director.
2. Vice President Commissioner is 42.5% of the salary of the President Director
3. Commissioner is 90% of the President Director
The remuneration in one year is grouped in the range of income levels as follows:
Table of Group of Remuneration Amount of Board of Commissioners

Total Remuneration Total Commissioners Million Rupiah
Di atas Rp2 miliar 9 66.199.83
Di atas Rp1 miliar - Rp2 miliar - -
Di atas Rp500 juta - Rp1 miliar - -
Rp500 juta ke bawah - -
Good Corporate
Governance
COMPLETENESS OF ORGANS OF THE BOARD OF MEKANISME KERJA KOMITE-KOMITE DI BAWAH Dewan

COMMISSIONERS Komisaris
In carrying out their duties, the Committees under the Board
Based on the State-Owned Enterprise Minister Regulation of Commissioners are guided by each Committee’s Charter.
No. PER-12/MBU/2012 dated August 24, 2012, the supporting The committees under the Board of Commissioners carry out
organs of the Board of Commissioners may consist of the their duties in accordance with each Committee’s Work Plan
Secretariat of the Board of Commissioners if necessary, Audit Program, which is established at the beginning of the year
Committee, and other committees if necessary. in order to assist the implementation of duties of the Board
To support and facilitate the implementation of duties, of Commissioners, by monitoring, reviewing, and providing
the Board of Commissioners is supported by the following advice or recommendations to the Board of Commissioners
organs: on matters relating to the functions and duties of the related
committees through the following mechanism:
COMMITTEES UNDER THE BOARD OF COMMISSIONERS 1. The Committees conduct meetings either internally or by
Committees under the Board of Commissioners consist of the inviting units and/or divisions and/or related units
Audit Committee (KA), the Risk Monitoring Committee (KPR), 2. The Committees conduct a study/evaluation/review as
the Nomination and Remuneration Committee (KNR), and the well as discussion/talk outside the meeting forum which
Integrated Governance Committee (TKT). The establishment if necessary a discussion is carried out with the related
and implementation of Committees under the Board of unit or divisions/units.
Commissioners are carried out by observing the applicable 3. The results of a meeting or evaluation/review and
laws and regulations, specifically the Financial Services discussion/talk outside the meeting forum are
Authority Regulations and the Minister of State-Owned submitted by the Chair of the Committee to the Board
Enterprises (BUMN) Regulations. of Commissioners as a report either in writing or in a
meeting forum of the Board of Commissioners that
The Board of Commissioners establishes a guideline that discusses the related agenda.
regulates the procedures for appointment, dismissal, 4. Committees under the Board of Commissioners submit
arrangement of duties and honorarium of members of the realization report of work programs/activities every
the Committees under the Board of Commissioners which quarter to the Board of Commissioners.
are continuously refined and updated in accordance
with developments/ amendments in the applicable laws PERFORMANCE ASSESSMENT OF COMMITTEES UNDER
regulations and current conditions. The latest update was BOARD OF COMMISSIONERS
made in 2017, which was stipulated in the Decision Letter In implementing its duties and responsibilities, the Board
of the Board of Commissioners No. KEP/002/DK/2018 dated of Commissioners is assisted by committees under the
February 8, 2018, on “General Provisions for Appointment, Board of Commissioners, which are Audit Committee,
Dismissal, Arrangement of Duties, and Honorarium of Nomination and Remuneration Committee, Risk Monitoring
Members of Committees Under the Board of Commissioners” Committee, and Integrated Governance Committee. The
which basically includes the following matters: Performance Assessment of committees under the Board of
1. Procedures for Appointment of Committee Members Commissioners is reflected in the proper implementation of
2. The principal material that needs to be regulated in the all programs/work plans of the Committees that have been
work agreement of the committee members who come established at the beginning of the year. Implementation of
from independent parties with BNI Programs/Work plans of committees is carried out through
3. Concurrent positions that regulate multiple positions the mechanism of:
which are permitted and which are prohibited for 1. Implementation of committee meetings including by
members of the Committee based on the applicable laws inviting Sectoral Directors or related Divisions/Work units.
and regulations 2. Review/evaluation/review of committees outside the
4. The period of appointment/term of office of committee meeting forum where the results are submitted in writing
members to the Board of Commissioners.
5. Division of duties and scope of duties of the Committee
6. Committee members’ obligation to attend to the Explanation of the realization of completion of all programs/
Company work plans of Committees under the Board of Commissioners
7. Honorarium for Committee members who are from which have been determined at the beginning of the year
independent parties can be seen in the Governance section of each committee
8. Evaluation/assessment of the performance of Committee in the sub chapter of frequency and attendance level of
members who are from independent parties Meetings and reports on the implementation of Audit
9. Termination of Appointment of Committee members Committee, Nomination and Remuneration Committee,
10. Resignation of Committee members Risk Monitoring Committee, and Integrated Governance
Committee activities.
ANNUAL
REPORT 2018
ASSESSMENT OR EVALUATION OF COMMITTEE MEMBERS WHO ARE FROM INDEPENDENT

PARTY
The committee’s chair evaluates/assesses the performance of committee members who are from
independent party every 6 (six) months or at any time. Such evaluation or assessment includes
Performance Assessment Indicators which among others are but not limited to competency and
expertise, output quality, discipline and attendance level of the relevant committee members to the
company, as well as implementation of duties and obligations in accordance with the committee
charter and work conduct that apply to independent members of committees under the Board of
Commissioners.
The evaluation and assessment results as referred above shall be submitted as recommendations
to the Board of Commissioners to extend or continue or terminate the appointment of the relevant
committee members to the company.
Assessment of the Committees under the Board of Commissioners is carried out for Committee
members who are from Independent Party (not the Board of Commissioners). The assessment
factors are:
1. Duty according to Committee Charter (weight 25%)
2. Competence and Skill (weight 30%)
3. Output Quality (weight 30%)
4. Attendance Level (15%)
MANDATORY ATTENDANCE OF COMMITTEE MEMBERS WHO ARE FROM INDEPENDENT PARTY

Committee members who are from outside the company (independent members) have the
obligation to regularly attend on the company’s working days and hours according to the days,
number of days, and schedules set by the Board of Commissioners and/or the committee chair,
among others, to attend Committee Meetings and carry out other duties, and must fill the
attendance list at the Company in order to carry out duties other than attending committee
meetings. If necessary, at the request of the Board of Commissioners and/or committee chair,
Committee members who are from outside the company must also attend at the company or at
Board of Commissioners’ Meetings or committee meetings, or at activities that must be attended by
the Board of Commissioners in accordance with the requirements outside the frequency and such
routine attendance schedule.
Explanations and exposures regarding each Committee are submitted in a separate sub-chapter in
the Corporate Governance Section of this Annual Report.
SECRETARIAT OF THE BOARD OF COMMISSIONERs

The Secretariat of the Board of Commissioners is led by a Secretary who is from outside the company
assisted by the Secretariat staff of the Board of Commissioners. The implementation of functions
and duties of the Secretariat of the Board of Commissioners and the Secretary of the Board of
Commissioners is guided by SOE Minister Regulation that regulates the Supporting Organs of the
Board of Commissioners/Board of Supervisors of State-Owned Enterprises.
Explanations and exposures of the Secretariat of the Board of Commissioners and the Secretary of
the Board of Commissioners are presented in a separate sub-chapter.
Good Corporate
Governance
BOARD OF COMMISSIONERS’ RESIGNATION AND 8. The Company must convene a GMS to resolve the
DISMISSAL MECHANISM resignation request of member of the Board of
Commissioners no longer than 90 (sixty) days after
The mechanism for dismissal and resignation of the Board receiving the resignation letter.
of Commissioners is based on BNI’s Articles of Association as 9. The Company must disclose the information to public
follows: and submit to FSA no later than 2 (two) business days
1. Members of the Board of Commissioners are appointed after receiving such resignation request from the
and dismissed by the GMS, where the GMS is attended member of the Board of Commissioners as referred to in
by Dwiwarna A Series shareholders and the Meeting’s point 7 and the results of the GMS convention as referred
resolution shall be approved by Dwiwarna A Series to in point 8 above.
shareholders, by observing the provisions in the Articles of 10. Before the resignation becomes effective, the relevant
Association. member of Board of Commissioners shall remain
2. Members of the Board of Commissioners may at any time obligated to complete the duties and responsibilities
be dismissed based on the GMS resolution by stating the in accordance with the Articles of Association and
reasons. The reason for dismissal of the related member of applicable Laws and Regulations.
the Board of Commissioners is carried out in the event that 11. The member of the Board of Commissioners who resigns
it is based on the fact that such member of the Board of as mentioned above can still be held accountable
Commissioners, among others: as member of the Board of Commissioners since the
a. Cannot perform the duties properly; appointment until the approval date of the resignation at
b. Violates the provisions of the Articles of Association the GMS.
and/or laws and regulations; 12. The release of the responsibilities of the resigning
c. Engages in action that harms the Company and/or member of the Board of Commissioners is given after the
State; Annual GMS releases him/her.
d. Commits an action that violates ethics and/or 13. In the event that a member of Board of Commissioners
properness that shall be respected as member of the resigns that causes the total number of Board of
Board of Commissioners; Commissioners to be less than 3 (three) people, then
e. Is found guilty by a Court decision that has had such resignation becomes valid if it has been resolved by
permanent legal force; or GMS and new member of Board of Commissioners has
f. Resigns. been appointed, therefore, the minimum requirements
3. Apart from the reasons for dismissal of member of the of the number of members of Board of Commissioners is
Board of Commissioners as mentioned above, members of satisfied.
the Board of Commissioners may be dismissed by the GMS 14. The position of a member of the Board of Commissioners
based on other reasons which are deemed appropriate by shall end in the event that:
the GMS for the interests and objectives of the Company. a. The resignation has become effective as referred to
4. The decision to dismiss due to reasons as stated in point 2 in point 8 above.
letter a, b, c, and d is carried out after the relevant member is b. Pass away;
given opportunity to defend him/herself in the GMS. c. The term of office ends;
5. Dismissal as referred to in letter c and e is a dishonorable d. Terminated based on the GMS; or
discharge. e. Declared bankrupt by a Commercial Court which
6. Among members of the Board of Commissioners and already has legal force; permanent or under-
among members of the Board of Commissioners and guarded;
members of the Board of Directors, there must be no blood f. based on a court decision;
relationship up to the third degree, either in a straight line g. No longer fulfills the requirements as a member of
or side line, or a marriage relationship/family relationship the Board of Commissioners based on Articles of
arising from marital ties, including son/daughter-in-law or Association and other laws and regulations.
brother/sister-in-law ). In the event of such situation, the 15. Member of the Board of Commissioners who resigns
GMS has the authority to dismiss one of them. before or after the term of office ends, unless due
7. A member of the Board of Commissioners has the right to to death, shall still be responsible for actions whose
resign from the position before the term of office ends by accountability has not been received by the GMS.
notifying in writing of the intention to the Company.
ANNUAL
REPORT 2018
BOARD OF DIRECTORS
Board of Directors is the Company’s Organ that has full authority DUTIES AND RESPONSIBILITIES OF THE BOARD OF
over and is responsible for the Company’s management for the DIRECTORS
Company’s interest, in accordance with the Company’s purposes The Board of Directors has duties to perform all activities
and objectives, and represents the Company either inside or relating to the management and is responsible for the
outside the court in accordance with the provisions of the Articles management of the Company for the Company’s interests in
of Association. line with the Company’s purposes and objectives as well as to
represent the Company inside or outside court on all matters
In performing the duties, the Board of Directors must devote full and occurrences with certain limitations as stipulated by the
energy, mind, attention, and devotion to the duties, obligations, laws and regulations, the Articles of Association, and/or GMS
and achievements of the Company’s objectives. Furthermore, Resolutions.
members of Board of Directors shall comply with the Company’s
Articles of Association and laws and regulations, as well as BOARD OF DIRECTORS’ AUTHORITY
must implement the principles of professionalism, efficiency, In performing its duties, the Board of Directors has the
transparency, independency, accountability, responsibility, and authority to:
fairness. Each member of the Board of Directors must perform the 1. Establish policies deemed appropriate in the
duties and responsibilities in good faith, with full responsibility and management of the Company;
prudence, in accordance with the prevailing laws and regulations. 2. Arrange the transfer of power of the Board of Directors
to represent the Company inside and outside the court
REFERENCES FOR REGULATIONS to a person or several persons who are specifically
Based on Law No. 40 of 2007 on Limited Liability Company and designated for such reason including the Company’s
Financial Services Authority Regulation No. 33/POJK.04/2014 on employee, either individually or jointly, and/or other
Board of Directors and Board of Commissioners of Issuers or Public entity;
Company, the Board of Directors has full authority over and is 3. Manage provisions on the Company’s employment
responsible for the Company including to represent the Company, affairs including determining salary, retirement, pension
either inside or outside court according to the provisions of the plan, and other income for the Company’s employees
articles of associations. based on the applicable laws and regulations;
4. Appoint and dismiss Company’s employees based on the
GUIDELINES AND WORK CONDUCT OF THE BOARD OF Company’s employment regulations and applicable laws
DIRECTORS and regulations;
Similar to the Board of Commissioners Charter, in order to 5. Appoint and dismiss the Corporate Secretary and/or
improve the Board of Directors Charter and as an effort to Head of Internal Audit Unit with the approval of the
implement GCG practices at BNI, an improvement was made Board of Commissioners;
to the Board of Directors Charter. The Guidelines of Work 6. Write off bad debts based on provisions stipulated in the
Conduct of the Board of Directors Charter have been ratified Articles of Association and subsequently report them to
through BNI Board of Directors’ Decision Letter No. KP/228/ the Board of Commissioners, which shall subsequently
DIR/R dated June 29, 2018, therefore, the Board of Directors’ be reported and accounted for in the Annual Report;
Decisions Letter No. KP/150/DIR/R dated April 11, 2016, had 7. No longer collect interest receivables, fines, fees, and
been revoked and declared invalid. other receivables other than the principal that is carried
out in the framework of restructuring and/or settlement
The Guidelines of Work Conduct of the Board of Directors of receivables and other actions in order to settle the
regulate, among others, the Legal Basis, Structure, Requirements, Company’s receivables, with the obligation to report to
Duties, Authority, and Responsibilities of the Board of Directors, the Board of Commissioners, in which the provisions and
Appointment and Dismissal of Members of the Board of Directors, procedures for reporting are determined by the Board of
Term of Office of Board of Directors, Establishment of Committees Commissioners.
Under the Board of Directors, Board of Directors ‘Meetings, and 8. Perform any actions and other activities regarding the
Joint Meeting between the Board of Directors and the Board of management or ownership of the Company’s assets,
Commissioners, Term of Office of the Board of Directors, Company bind the Company to other parties and/or other parties
Value, Board of Directors’ Ethics, Transparency, as well as Reporting to the Company, as well as represent the Company inside
and Responsibility. or outside court in all matters and occurrences with
limitations as stipulated under the laws and regulations,
In addition to a number of matters relating to work conduct as the Articles of Association, and/or GMS Resolutions.
set out above, some of the main work guidelines of the Board of
Directors that are regulated in the Guidelines of Work Conduct of
the Board of Directors are described as follows.
Good Corporate
Governance
BOARD OF DIRECTORS’ OBLIGATIONS regulations in Capital Market sector;

15. Prepare the Company’s organizational structure
In addition, the Board of Directors has the obligation to: complete with the details and duties;
1. Promote and ensure the implementation of the 16. Provide explanation on all matters questioned or
Company’s business and activities in accordance with its requested by members of the Board of Commissioners
purposes and objectives as well as its business activities; and Shareholders of Dwiwarna Series A, by observing the
2. Establish in time the Company’s Long-Term Plan, the laws and regulations particularly in Capital Market sector.
Company’s Annual Work Plan and Budget, and other 17. Perform other obligations in accordance with the
work plans, and their amendments to be submitted to provisions stipulated in the Articles of Association and
the Board of Commissioners for approval. those of stipulated by the GMS.
3. Prepare the Shareholders Register, Special Register, GMS
Minutes, and Minutes of the Board of Directors’ meetings. CRITERIA AND TERM OF OFFICE OF THE BOARD OF
4. Prepare Annual Report, which among others contains DIRECTORS
the Financial Statements, as a form of accountability of
the Company’s management as well as the Company’s Those who can be appointed as members of the Board
financial documents as referred to in Law on Company of Directors are individuals who satisfy the following
Documents; requirements upon appointment and during the term of
5. Prepare Financial Statements in point 4 above based on office:
the Financial Accounting Standards and submit them to 1. has good character, morals, and integrity;
Public Accountant to be audited; 2. proficient in performing legal actions;
6. Deliver the Annual Report after being reviewed by the 3. within 5 (five) years before appointment and during the
Board of Commissioners within a maximum period of 5 term of office:
(five) months after the Company’s fiscal year ends to the a. never been declared bankrupt;
GMS for approval and ratification; b. never become a member of Board of Directors and/
7. Provide explanation to the GMS on the Annual Report; or a member of Board of Commissioners who is
8. Deliver the Balance Sheet and Income Statement that found guilty of causing a company to be declared
has been approved by the GMS to the Minister in charge bankrupt;
of Law in accordance with the provisions of laws and c. never been punished for committing a criminal act
regulations; that is detrimental to state finances and/or related to
9. Prepare other reports mandated by the provisions of laws the financial sector;
and regulations; d. never been a member of Board of Directors and/or a
10. Maintain Shareholders Register, Special Register, GMS member of Board of Commissioners who during the
Minutes, Minutes of Board of Commissioners’ Meeting, term of office:
and Minutes of Board of Directors’ Meeting, Annual -- has ever not convened an annual GMS;
Report, and Company’s financial documents as referred -- the accountability as a member of Board
to in point 4 and point 5 above, and other Company’s of Directors and/or a member of Board of
documents. Commissioners has ever not been accepted
11. Maintain the following matters in the Company’s by GMS or has ever not presented the
domicile: Shareholders Register, Special Register, GMS accountability as a member of Board of
Minutes, Minutes of Board of Commissioners’ Meeting, Directors and/or a member of Board of
and Minutes of Board of Directors’ Meeting, Annual Commissioners to GMS; and
Report, and Company’s financial documents as well as -- has ever caused a company that obtains permit,
other Company’s documents; approval, or registration from FSA not fulfilling
12. Procure and maintain the Company’s bookkeeping its obligation to submit its annual report and/or
and administration according to norms applicable to a financial statements to FSA.
company; 4. has a commitment to comply with the laws and
13. Prepare an accounting system in accordance with the regulations;
Financial Accounting Standards and based on the 5. has knowledge and/or expertise in the field required by
principles of internal control, especially the functions of the Company; and
handling, recording, storing, and supervising; 6. meets other requirements as stipulated in:
14. Provide periodic reports in the manner and time in a. Law on Limited Liability Company (UUPT);
accordance with the applicable provisions, as well as b. laws and regulations in Capital Market sector; and
other reports anytime at the request of the Board of c. other applicable laws and regulations and those
Commissioners and/or Shareholders of Dwiwarna Series related to the Company’s business activities.
A; by observing the laws and regulations particularly the
ANNUAL
REPORT 2018
The term of office of the Board of Directors is at most 2 (two) No Previous Now
consecutive periods, under the following conditions: 3 Director Managing Director Small Business &
1. The members of the Board of Directors are appointed Network
for the period commencing from the date determined 4 Director Managing Director Treasury and
by the GMS that appoints them and ends at the closing International Banking
of the 5th (fifth) Annual GMS after the appointment 5 Director Managing Director Finance
date, by observing the laws and regulations in Capital 6 Director Managing Director Information Technology
Market sector, but without reducing the right of the and Operation
GMS to dismiss at any time the members of the Board of 7 Director Managing Director Institutional Relations
Directors before their term of office ends. 8 Director Managing Director Risk Management
2. Dismissal is effective from the closing of the GMS, unless 9 Director Managing Director Compliance
otherwise determined by the GMS.
3. After the term of office ends, the members of the Board
of Directors may be reappointed by the GMS for 1 (one) BASIS OF APPOINTMENT OF MEMBERS OF BOARD OF
term of office. DIRECTORS
BOARD OF DIRECTORS NOMENCLATURESt The Board of Directors’ appointment process is based on

SOE Minister Regulation No. PER-03/MBU/02/2015 on the
The Bank’s Annual GMS which was held on March 20, 2018, Requirements, Procedures for Appointment and Dismissal of
decided to change the nomenclature of position of the Bank’s Members of Board of Directors of State-Owned Enterprises.
Board of Directors as follows: The process of nominating and selecting the Board of
Directors is performed by looking at the Board of Directors’
No Previous Now criteria, then, through a proposal to the GMS with due
1 Director Managing Director Corporate Banking
observance of the recommendations from the Remuneration
and Nomination Committee. Board of Directors who has
2 Director Managing Director Retail Banking
subsequently been elected is then appointed through the
GMS.
According to Article 11 paragraph (10) of the Bank’s Articles of Association, members of Board of Directors are appointed and
dismissed by the GMS. The Bank’s Board of Directors is appointed in the GMS as follows:
Table of Basis of Appointment of the Board of Directors

Name Position Basis of Appointment
Achmad Baiquni President Director Annual GMS dated March 17, 2015
Herry Sidharta Vice President Director Annual GMS dated March 17, 2015, then transferred from his
initial assignment as a Director to be the Vice President Director
in Annual GMS dated March 16, 2017.
Putrama Wahju Setyawan Managing Director Corporate Banking Annual GMS March 10, 2016
Tambok P. Setyawati* Managing Director Retail Banking Annual GMS March 20, 2018
Catur Budi Harto Managing Director Small Business and Annual GMS dated March 16, 2017
Network
Rico Rizal Budidarmo Managing Director Treasury and Annual GMS dated March 17, 2015
International Banking
Anggoro Eko Cahyo Managing Director Finance Annual GMS dated March 17, 2015
Dadang Setiabudi* Managing Director Information Technology Annual GMS March 20, 2018
and Operation
Adi Sulistyowati Managing Director Institutional Relations Annual GMS dated March 17, 2015
Bob Tyasika Ananta Managing Director Risk Management Annual GMS dated March 17, 2015
Endang Hidayatullah* Managing Director Compliance Annual GMS March 20, 2018
Good Corporate
Governance
Name Position Basis of Appointment

Imam Budi Sarjito* Managing Director Compliance and Annual GMS dated March 17, 2015
Corporate Risk
Panji Irawan* Managing Director Treasury and Extraordinary GMS dated January 12, 2016
International
Information:
*No longer in position since March 20, 2018
FIT AND PROPER TEST
Appointment of members of Board of Directors will be effective after obtaining approval from the Financial Services Authority based
on the Fit and Proper Test, in accordance with the Financial Services Authority Regulation No. 27/POJK.03/2016 on Fit and Proper Test
for the Main Entity of Financial Services Institutions as well as satisfying the applicable laws and regulations. To be eligible for Fit and
Proper Test, the Bank files an application for approval of candidates of members of the Board of Directors to the Financial Services
Authority.
Table of Fit and Proper Test
Effective
Date is Effective
Name Position Assessor
Based on Date
FSA Letter
Achmad Baiquni President Director April 16, 2015 Financial Services April 16, 2015
Authority
Herry Sidharta* Managing Director Corporate May 22, 2015 Financial Services May 22, 2015
Authority
Busnine Vice President Director May 29, 2017 Financial Services May 29, 2017
Authority
Putrama Wahju Setyawan Managing Director Corporate Banking July 15, 2016 Financial Services July 15, 2016
Authority
Tambok P. Setyawati Managing Director Retail Banking July 5, 2018 Financial Services July 5, 2018
Authority
Catur Budi Harto Managing Director Small Business and July 19, 2017 Financial Services July 19, 2017
Network Authority
Rico Rizal Budidarmo Managing Director Treasury and International April 16, 2015 Financial Services April 16, 2015
Banking Authority
Anggoro Eko Cahyo Managing Director Finance May 22, 2015 Financial Services April 16, 2015
Authority
Dadang Setiabudi Managing Director Information Technology July 5, 2018 Financial Services July 5, 2018
and Operation Authority
Adi Sulistyowati Managing Director Institutional Relations May 22, 2015 Financial Services May 22, 2015
Authority
Bob Tyasika Ananta Managing Director Risk Management April 16, 2015 Financial Services April 16, 2015
Authority
Endang Hidayatullah Managing Director Compliance July 5, 2018 Financial Services July 5, 2018
Authority
Imam Budi Sarjito** Director May 22, 2015 Financial Services May 22, 2015
Authority
Panji Irawan** Director April 11, 2016 Otoritas Jasa Keuangan April 11, 2016
Information:
* transfer of assignment from initially Director to Vice President Director in Annual GMS dated March 16, 2017.
** no longer in position since March 20, 2018
ORIENTATION PROGRAM FOR NEW BOARD OF DIRECTORS
Considering the Annual GMS for 2017 Fiscal Year held on March 20, 2018, in which there were Agenda on Changes to the members
of the Company’s Board of Commissioners and Board of Directors, where members of the Board of Commissioners and members of
the Board of Directors appointed have various backgrounds, therefore, BNI conducted orientation program for new members of the
Board of Directors, including:
ANNUAL
REPORT 2018
1. Discussion on the Annual Report, the Company’s Work Plan been conducted.
and Budget (RKAP), and the Company’s Long-term Plan
(RJPP), Code of Ethics, Boards of Directors’ Guidelines for The division of duties and authority of the Board of Directors
Work Conduct, Corporate Governance Handbook, and the is carried out based on the Bank’s Annual GMS Resolutions
Articles of Association. dated March 20, 2018, related to the Board of Director’s
2. Explanations relating to the delegated authority, internal Nomenclature. In carrying out its duties and responsibilities,
and external audits, internal control systems and policies, as the Field Director has full authority over SEVP or the work unit
well as duties and roles of the Audit Committee and other it manages and has the authority to act for and on behalf of
committees under the Board of Directors and the Board of the Board of Directors, as long as it does not deviate from:
Commissioners.
3. Description on duties, authority, and responsibilities of the 1. General Meeting of Shareholders Resolutions
Board of Commissioners and Board of Directors. 2. Bank’s Articles of Association
3. Corporate Plan
These explanations are given by way of a presentation by the 4. Board of Directors’ General Policy (KUD), and
related Unit to the related members of the Board of Directors 5. Board of Directors’ special policies stipulated in Board
as well as by conducting visit to Regional/Branch Offices. of Directors’ Meeting or in Board of Directors’ Decisions
Letter or in other written forms.
SCOPE OF WORK AND RESPONSIBILITIES OF EACH
MEMBER OF THE BOARD OF DIRECTORS DIVISION OF DUTIES AND AUTHORITIES OF THE BOARD
OF DIRECTORS
In order to facilitate the implementation of the In performing the duties, the Board of Directors is divided
responsibilities and work of managing the Company, a based on duties as follows:
division of the Board of Directors’ duties and authority has
Fostered
Fostered
Name Position Field of Duty Regional
Subsidiary
Office
Achmad Baiquni President Director • Acting for and on behalf of the Board of Directors and -
representing the Company
• Coordinating the management of the Company as set
out in the Articles of Association and the Company’s GMS
resolutions as well as observing the applicable provisions.
• Having overall responsibilities over the duties and authority
of the Company’s Board of Directors.
• Coordinating, controlling, and evaluating the functions and
areas of Internal Control and Corporate Communications
& Secretariat which includes the field of Partnership and
Community Development
Herry Sidharta Vice President • Acting for and on behalf of the Board of Directors and - All
Director representing the Company, in accordance with the job Subsidiaries
description of the duties or sector.
areas of Policy Governance and Subsidiary Development.
Putrama Wahju Managing Director • Acting for and on behalf of the Board of Directors and Denpasar BNI
Setyawan Corporate Banking representing the Company, in accordance with the job Yogyakarta Multifinance
description of the duties or sector. BNI
• Coordinating, controlling, and evaluating the functions Securities
and areas of Corporations and Multinational Business
1, Corporations and Multinational Business 2, SOE and
Government Institutions and Syndication Business
Tambok P. Managing Director • Acting for and on behalf of the Board of Directors and Semarang BNI Life
Setyawati* Retail Banking representing the Company, in accordance with the job Surabaya Insurance
areas of Consumer Product Management, Consumer Sales,
Card Business, e-Banking, and Marketing Communication.
Good Corporate
Governance
Fostered
Fostered
Name Position Field of Duty Regional
Subsidiary
Office
Catur Budi Harto Managing Director • Acting for and on behalf of the Board of Directors and All Regional BNI Syariah
Small Business and representing the Company, in accordance with the job Office
Network description of the duties or sector.
areas of Small Business, Network Management, Services
Quality, and Customer Service Center.
Rico Rizal Managing Director • Acting for and on behalf of the Board of Directors and Jakarta BNI
Budidarmo Treasury and representing the Company, in accordance with the job Senayan Remittance
International description of the duties or sector.
Banking • Coordinating, controlling, and evaluating the functions
and areas of Treasury, International, and Pension Fund of
Financial Institution.
Anggoro Eko Managing Director • Acting for and on behalf of the Board of Directors and Makassar -
Cahyo Finance representing the Company, in accordance with the job Manado
• Coordinating, controlling, and evaluating the functions
and areas of Strategic Planning, Finance Control, Asset and
Procurement Management, and Data Management.
Dadang Setiabudi* Managing Director • Acting for and on behalf of the Board of Directors and Palembang -
Information representing the Company, in accordance with the job Malang
Technology and description of the duties or sector.
Operation • Coordinating, controlling, and evaluating the functions and
areas of Solutions and Security of Information Technology;
Operation of Information Technology, and e-Channel.
Adi Sulistyowati Managing Director • Acting for and on behalf of the Board of Directors and Jakarta -
Institutional representing the Company, in accordance with the job Kemayoran
Relations description of the duties or sector.
and areas of Institutional Relations, Banking Transactional
Services, and Wealth Management.
Bob Tyasika Managing Director • Acting for and on behalf of the Board of Directors and Jakarta BSD -
Ananta Risk Management representing the Company, in accordance with the job
and areas of Bank’s Risk Management, Corporate Credit
Risk, Credit Risk for Small and Medium Enterprises, Credit
Administration, and Process & Collection of Consumer Credit.
Endang Managing Director • Acting for and on behalf of the Board of Directors and Bandung -
Hidayatullah Compliance representing the Company, in accordance with the job Banjarmasin
areas of compliance, legal, bank’s risk management, human
capital, and BNI Corporate University
Imam Budi Sarjito* Managing Director • Acting for and on behalf of the Board of Directors and - -
Compliance and representing the Company, in accordance with the job
Corporate Risk description of the duties or sector.
areas of compliance, legal, policy governance, and bank’s risk
management.
Panji Irawan* Managing Director • Acting for and on behalf of the Board of Directors and - -
Treasury and representing the Company, in accordance with the job
International description of the duties or sector.
and areas of Treasury, International, and Pension Fund of
Financial Institution.
Information:
* Stop served since dated March 20, 2018.
ANNUAL
REPORT 2018
Director in Charge of Compliance Function g. Internal audit.

3. Replacing Director who is in charge of compliance
As the complexity of the Bank’s business activities as a bank function:
and a public company increases, mitigation of risks that may be a. In the event that the Director in charge of
faced by the Bank is needed. To mitigate the risk of such business Compliance function cannot carry out the office
activities, various preventive (ex-ante) and curative (expost) duties for more than 7 (seven) consecutive business
efforts are necessary. As part of preventive (ex-ante) efforts, days, the implementation of the relevant duties must
the Bank always adheres to various applicable banking rules to be temporarily replaced by another Director until the
reduce or minimize the risk of the bank’s business activities. Director in charge of Compliance function can carry
out the duties again.
b. In the event that the Director in charge of
In this regard, the Board of Directors has an obligation to grow Compliance function is unable to remain in duty,
and realize the implementation of Compliance Culture at all resigns, or finishes the term of office, the Bank must
organizational levels and the Bank’s business activities. immediately appoint a replacement Director in
charge of Compliance function no later than 6 (six)
In order to enforce the Bank’s compliance function, the Bank has months after the Director in charge of Compliance
a Director in charge of compliance function, in which its function function is unable to remain in duty, resigns, or
is guided by the Financial Services Authority Regulation No. 46/ finishes the term of office.
POJK.03/2017 on Implementation of Compliance Function of c. During the process of replacing the Director in
Commercial Bank and Board of Directors Work Conduct. charge of Compliance function, the Bank must
appoint or assign one of the other Directors to
Requirements for Director in Charge of temporarily carry out the duties of the Director in
Compliance Function charge of Compliance function.
In relation to its function, the candidate for Director in d. The Director who carries out the temporary
charge of compliance function shall fulfill the following assignment as the Director in charge of Compliance
requirements: function must fulfill the above conditions, it is
1. Candidate for Director in charge of compliance function excluded if there is no Director in the Bank who
must have sufficient integrity and knowledge on the fulfills the conditions referred to.
provisions of the Financial Services Authority, Bank e. Temporary substitution of the position of Director in
Indonesia, and applicable laws and regulations. charge of Compliance function as referred to must
2. The Director in charge of Compliance Function must be reported to the Financial Services Authority
fulfill the independence requirement.
3. The “independence requirement” means not having Duties and Responsibilities of the Director in
financial, management, share ownership, and/or family Charge of Compliance Function
relationship up to second degree with members of The duties and responsibilities of the Director in charge of
Board of Commissioners, Board of Directors, and/ Compliance function, shall at least include:
or Controlling Shareholders or relationship with the 1. Formulating strategies to encourage the creation of the
Bank, which may affect the ability to act independently Bank’s Compliance Culture
as stipulated in the provisions of Good Corporate 2. Proposing compliance policies or compliance principles
Governance Implementation for Commercial banks. to be stipulated by the Board of Directors
3. Establishing compliance systems and procedures to be
Structure used to develop the Bank’s internal rules and guidelines
1. The President Director and/or Vice President Director are 4. Ensuring that all policies, regulations, systems, and
not permitted to hold concurrent positions as Director in procedures as well as business activities conducted
charge of Compliance Function. by the Bank are in accordance with provisions of the
2. The Director in charge of Compliance Function is Financial Services Authority, Bank Indonesia, and the
prohibited to be in charge of the following functions: applicable laws and regulations
a. Business and operations 5. Minimizing the Bank’s Compliance Risk
b. Risk management related to decision-making for the 6. Taking precautionary measures so that the policies and/
Bank’s business activities or decisions taken by the Bank’s Board of Directors do
c. Treasury not deviate from the provisions of the Financial Services
d. Finance and accounting Authority, Bank Indonesia, and the applicable laws and
e. Logistic and goods or services procurement regulations
f. Information technology, and
Good Corporate
Governance
7. In the context of implementing the Anti Money manner.

Laundering (APU) and Prevention of Terrorism Funding 10. Performing other duties related to Compliance Function
(PPT) Program, the Compliance Director has at least the
duties and responsibilities to: DIVERSITY POLICY IN BOARD OF DIRECTORS’
a. recommend strategic written policies and COMPOSITION
procedures on implementation of APU and PPT
programs to the Board of Commissioners; In the Financial Services Authority recommendation as
b. ensure that there are discussions related to money outlined in the Attachment of Financial Services Authority
laundering and/or terrorism financing in meetings of Circular Letter No. 32/SEOJK.04/2015 on Guidelines of Public
Board of Directors and Board of Commissioners; Corporate Governance, it is stated that the composition of
c. determine the necessary steps to ensure that the Board of Directors shall observe the diversity of composition
Bank has complied with Bank Indonesia regulations of Board of Directors. The diversity of composition of Board
on APU and PPT and other relevant laws and of Directors is a combination of necessary characteristics
regulations; either the Board of Directors as an organ or as individual
d. ensure the coverage of the Board of Directors’ active member of the Board of Directors, according to the needs
supervision has been adequately fulfilled; of the Public Company. Such combination is determined by
e. monitor and maintain the Bank’s compliance with all considering the expertise, knowledge, and experience in
commitments made by the Bank to Bank Indonesia, accordance with the division of duties and functions of the
among others, commitments in Action Plan, Report Board of Directors’ position in achieving the Public Company’s
on Data Updating Activity Plan, and Bank Indonesia objectives. Therefore, the consideration of the combination
monitoring results related to the implementation of of such characteristics will have an impact in the accuracy of
APU and PPT Programs; nomination process and individual appointment of members
f. monitor the duty implementation of the Special of the Board of Directors or the Board of Directors in a
Work Unit and/or Bank officials responsible for the collegial manner.
implementation of APU and PPT;
g. recommend the President Director on officials who In accordance with Article 5 paragraph (4) letter c.2 of the
will lead the Special Work Unit or officials responsible Bank's Articles of Association, Dwiwarna A series shareholders
for implementing APU and PPT Programs; have the privilege to propose a candidate member of the
h. approve Suspicious Financial Transaction Report Bank's Board of Directors. Also, based on Article 11 paragraph
(LTKM); (10) of the Articles of Association, members of Board of
i. propose Action Plan Report and Data Updating Plan Directors are appointed and dismissed by the GMS, in which
Report before being submitted to Bank Indonesia. the GMS is attended by Dwiwarna A Series shareholders and
8. The Director in charge of Compliance Function must the meeting's resolution shall be approved by Dwiwarna
submit the reports to Bank Indonesia on the duty A Series shareholders by observing the provisions in the
implementation that cover: Articles of Association.
a. Compliance Work Plan contained in the Bank’s
Business Plan; By observing the provisions of the Articles of Association,
b. Compliance Report; and the determination of composition of members of Board of
c. Special Report on policies and/or decisions of the Directors who observe the diversity of expertise, knowledge,
Board of Director in which according to the Director and experience needed as referred to in the Financial
in charge of Compliance Function has deviated from Services Authority Recommendation in the Attachment
Bank Indonesia regulations and/or the applicable to the Financial Services Authority Circular Letter No.
laws and regulations, as part of the duties of the 32/SEOJK.04/2015 on Guidelines for Public Company
Director in charge of Compliance Function. Governance is carried out by Dwiwarna A Series Shareholders
9. Reporting the implementation of duties and as shareholders entitled to propose candidate members of
responsibilities to the President Director with copies Board of Directors.
to the Board of Commissioners at least in a quarterly
ANNUAL
REPORT 2018
In 2018, the diversity of composition of Board of Directors was reflected in the education, work experience, age, and gender, as
can be seen in the table below:

Achmad Baiquni President 62 Male • Bachelor of • BNI Consumer Director Economics
Director Economic • BNI Corporate Director
Development • BNI Business Director for Small,
• Master of Business Medium, and Sharia Business
Management • BRI Finance Director
Herry Sidharta Vice President 62 Male • Bachelor of • BNI Corporate Division Head Economics
Director Management • BNI Medium Business Division Head
• Master of Business • BNI Small Business Division Head
Administration

Putrama Wahju Managing 49 Male • Bachelor of Forestry • BNI Corporate Credit Rescue and Business
Setyawan Director • Master of Settlement Division Head Management
Corporate Accounting • BNI SOE and Government
Banking Management Institution Division Head
• BNI Commercial and Small Business
Credit Rescue and Settlement
Division Head
Tambok P. Managing 55 Female • Bachelor of • Finance Director at PT Krakatau Business
Setyawati Director Agriculture Steel (Persero) Tbk Management
Retail Banking • Master of • SEVP of BNI Digital Banking
Management • CEO of BNI Jakarta Kemayoran
Region
Catur Budi Harto Managing 54 Male • Bachelor of • BNI Corporate Credit Rescue and Business
Director Agronomy Settlement Division Head Management
Small Business • Master of • BNI SOE and Government
and Network Management Institution Division Head
Rico Rizal Managing 56 Male • Bachelor of • GM/EVP of BRI Treasury Finance

Budidarmo Director Economics • BTN Risk and Compliance Director Management
Treasury and Management
International • MBA and MIS
Banking Business and
Finance
• Doctor of Business
Management
Anggoro Eko Managing 50 Male • Bachelor • BNI Jakarta Kota Regional Office Management
Cahyo Director of Industry Head
Finance Management • BNI Jakarta BSD Regional Office
Engineering Head
• Master of • BNI Network and Services Division
Agribusiness Head
• BNI Human Capital Division
• Head
• Supervisory Board Chairman of
Bank Negara Indonesia Pension
Fund
• Chairman of Association of
Indonesian Payment Systems (ASPI)
Dadang Managing 57 Male • Bachelor of • SEVP of BNI Information Technology Technology

Setiabudi Director Accounting & Digital Banking Management
Information • Master of • Director of Information Technology
Technology Agribusiness at BPJS Health
and Operation • Head of Micro Business Work
Network Division at PT Bank Rakyat
Good Corporate
Governance

Adi Sulistyowati Managing 52 Female • Bachelor of Economics • BNI Jakarta Senayan Regional Office Economics
Director Head
Institutional • BNI Network Management Division
Relations Head
Bob Tyasika Managing 56 Male • Bachelor of • General Manager of BNI Overseas Finance
Ananta Director Accounting Branch Office Hong Kong
Risk • Master of Finance • BNI International Division Head
Management • BNI Strategic Planning Division
Head
Endang Managing 48 Male • Bachelor of Law • BNI Legal Division Head Legal
Hidayatullah Director • Master of • BNI Legal Division Vice Head
Compliance Marketing
Management
Panji Irawan* Director 54 Male • Bachelor of • Commissioner of PT Mandiri Sekuritas Manajemen

Agricultural • Executive Vice President
& Resource • Treasury Group Bank
Economics • Mandiri (Persero) Tbk,
• Head of Association Cambiste
Internationale (ACI) Indonesia
• Chairman of Indonesia Foreign
Exchange Market Committee (IFEMC)
Imam Budi Director 60 Male • Bachelor of • BNI Strategic Planning Division Economics
Sarjito* Economics Head
• Master of • BNI Enterprise Risk Management
Economics Division Head
• Commissioner of PT BNI Syariah
Information:
*No longer in position since March 20, 2018
BOARD OF DIRECTORS’S NUMBER AND COMPOSITION
In 2018, the number and composition of the Board of Directors were amended as follows:
BOARD OF DIRECTORS’S NUMBER AND COMPOSITION BEFORE ANNUAL GMS MARCH 20, 2018
The number and composition of Board of Directors before Annual GMS, March 20, 2018, was 10 (ten) people consisting of
1 (one) President Director, 1 (one) Vice President Director, and 8 (eight) Directors. All members of the Board of Directors are
domiciled in BNI Head Office areas.
Name Position Domicile Appointment Date Effective

Herry Sidharta Director Jakarta March 17, 2015 May 22, 2015
Vice President Director March 16, 2017 May 29, 2017
Putrama Wahju Managing Director Medium Business Jakarta March 10, 2016 July 15, 2016
Setyawan
Rico Rizal Budidarmo Managing Director Treasury and Jakarta March 17, 2015 April 16, 2015
Anggoro Eko Cahyo Managing Director Finance Jakarta 17 Maret 2015 22 Mei 2015
Bob Tyasika Ananta Managing Director Risk Management Jakarta 17 Maret 2015 16 April 2015
Adi Sulistyowati Managing Director Institutional Jakarta 17 Maret 2015 22 Mei 2015
Relations
Catur Budi Harto Managing Director Small Business & Jakarta 16 Maret 2017 19 Juli 2017
Network
Panji Irawan* Director Jakarta 12 Januari 2016 11 April 2016
Imam Budi Sarjito* Director Jakarta 17 Maret 2015 22 Mei 2015
ANNUAL
REPORT 2018
BOARD OF DIRECTORS’S NUMBER AND COMPOSITION AFTER ANNUAL GMS MARCH 20, 2018
The number and composition of Board of Directors after Annual GMS, March 20, 2018, was 11 (eleven) people consisting of
1 (one) President Director, 1 (one) Vice President Director, and 9 (nine) Directors. All members of the Board of Directors are
domiciled in BNI Head Office areas.
Name Position Domicile Appointment Date Effective

Herry Sidharta Director Jakarta March 17, 2015 May 22, 2015
Vice President Director March 16, 2017 May 29, 2017
Putrama Wahju Managing Director Corporate Jakarta March 10, 2016 July 15, 2016
Setyawan Banking
Tambok P. Setyawati Managing Director Retail Banking Jakarta March 20, 2018 July 5, 2018
& Network
Rico Rizal Budidarmo Managing Director Treasury and Jakarta March 17, 2015 April 16, 2015
Anggoro Eko Cahyo Managing Director Finance Jakarta March 17, 2015 May 22, 2015
Dadang Setiabudi Managing Director Information Jakarta March 20, 2018 July 5, 2018
Technology and Operation
Relations
Bob Tyasika Ananta Managing Director Risk Jakarta March 17, 2015 April 16, 2015
Management
Endang Hidayatullah Managing Director Compliance Jakarta March 20, 2018 July 5, 2018
AFFILIATION RELATIONSHIP OF BOARD OF DIRECTORS
The Board of Directors always acts independently, in the sense that there is no conflict of interest that may interfere with
the ability to perform its duties independently and critically, either in regard of relationship with one another or in regard of
relationship with the Board of Commissioners.
The Board of Directors has no financial relationship, management relationship, share ownership, and/or family relationship
with other members of the Board of Commissioners, Board of Directors, and/or Controlling Shareholders or relationship with
the Bank, therefore, the Board can perform the duties and responsibilities independently.
Affiliation relationship between members of Board of Directors, Board of Commissioners, and Main and/or Controlling
Shareholders includes:
1. Affiliation relationship between member of Board of Directors and other member of Board of Directors.
2. Affiliation relationship between members of Board of Directors and members of Board of Commissioners.
3. Affiliation relationship between members of Board of Directors and Main and/or Controlling Shareholders.
4. Affiliation relationship between member of Board of Commissioners and other member of Board of Commissioners; and
5. Affiliation relationship between members of Board of Commissioners and Main and/or Controlling Shareholders.
Good Corporate
Governance
Independence of the Board of Directors can be seen in the table below:

Table of Board of Directors’ Affiliation Relationship
Financial, Family, and Management Relationship of the Board of Directors
Financial Relationship With Family Relationship With Management
Relationship
Name Position Board of Board of Controlling Board of Board of Controlling with Other
Commissioners Directors Shareholders Commissioners Directors Shareholders Companies
Yes No Yes No Yes No Yes No Yes No Yes No Yes No
Achmad President Director √ √ √ √ √ √ √

Baiquni
Herry Sidharta Vice President Director √ √ √ √ √ √ √
Putrama Wahju Managing Director √ √ √ √ √ √ √

Setyawan Corporate Banking √ √ √ √ √ √ √
Tambok P. Managing Director √ √ √ √ √ √ √

Setyawati * Retail Banking
Catur Budi Managing Director √ √ √ √ √ √ √
Harto Small Business and
Network
Rico Rizal Managing Director √ √ √ √ √ √ √
Budidarmo Treasury and
International
Banking
Anggoro Eko Managing Director √ √ √ √ √ √ √
Cahyo Finance
Dadang Managing Director √ √ √ √ √ √ √
Setiabudi* Information
Technology and
Operation
Adi Sulistyowati Managing Director √ √ √ √ √ √ √
Institutional
Relations
Bob Tyasika Managing Director Risk √ √ √ √ √ √ √
Ananta Management
Endang Managing Director √ √ √ √ √ √ √
Hidayatullah* Compliance
Imam Budi Managing Director √ √ √ √ √ √ √
Sarjito** Compliance
and Corporate Risk
Panji Irawan** Managing Director √ √ √ √ √ √ √
Treasury
and International
Information:
*Effective served dates July 5, 2018
**Stop served dated March 20, 2018
BOARD OF DIRECTORS’ CONCURRENT POSITION POLICY
The provisions on concurrent position of Board of Directors are stipulated in the following regulations.
1. Based on SOE Minister Regulation Number PER-03/MBU/02/2015, members of Board of Directors are prohibited to hold
concurrent position as:
a. Members of Board of Directors at State-Owned Enterprise, Regional-Owned Enterprise, Private Companies; and/or
b. Members of Board of Commissioners at State-Owned Enterprise; and/or
c. Structural and other functional positions at central and/or regional government institutions/agencies;
d. Administrator of political party and/or member/prospective member of legislature; and/or candidate for regional
head/deputy head;
e. Position that may cause conflict of interest and/or other position in accordance with the provisions in laws and
regulations;
f. Stands as a legislator candidate or regional head/deputy head candidate.
ANNUAL
REPORT 2018
2. Based on Financial Services Authority Regulation Number 55/POJK.03/2016, members of the Board of Directors are
prohibited to hold concurrent position as members of Board of Directors, members of the Board of Commissioners, or
Executive Officers at other bank, company, and/or institution. Nonetheless, it does not include concurrent position in the
event that the Board of Directors is in charge of monitoring Bank’s placement at subsidiary, running functional duties as
members of the Board of Commissioners at non-bank subsidiary that is controlled by the Bank, as long as it does not cause
the related Board of Directors to ignore the implementation of duties and responsibilities as members of the Bank’s Board
of Directors.
3. Board of Directors’ concurrent position that is not included in the provisions above shall need to obtain approval from
Board of Commissioners' Meeting.
Board of Directors does not have concurrent position that is prohibited based on the applicable laws and regulations. Board of
Directors’ concurrent position that is allowed based on the applicable Laws and Regulations is executed by the related member
of Board of Directors by not ignoring the implementation of duties and responsibilities as member of the Bank’s Board of
Directors.
Table of Concurrent Position of Board of Directors

Putrama
Achmad Herry TambokP. Catur Budi Rico Rizal Anggoro Dadang Adi Bob Tyasika Endang Imam Budi Panji
Description Wahju
Baiquni Sidharta Setyawati* Harto Budidarmo Eko Cahyo Setiabudi* Sulistyowati Ananta Hidayatullah* Sarjito** Irawan**
Setyawan
Members of Board No No No No No No No No No No No No No
of Directors at State-
Owned Enterprise,
Regional-Owned
Enterprises, Private
Companies
Administrator of No No No No No No No No No No No No No
political party and/or
member/candidate
member of House
of Representative,
DPD, House of
Representative
Level I, and House of
Representative Level
II and/or candidate
of regional head/
deputy head.
Other positions No No No No No No No No No No No No No
according to the
provisions in laws and
regulations.
Other positions that No No No No No No No No No No No No No
may cause a conflict
of interest.
Information:
*Effective in position since July 5, 2018
**No longer in position since March 20, 2018
MANAGEMENT OF CONFLICT OF INTEREST OF THE BOARD OF DIRECTORS
Management of the Board of Directors’ conflict of interest is stipulated in the Guidelines for Handling Conflict of Interest
Number IN/695/KMP/ 001 dated October 29, 2014. Conflict of Interest is a condition in which the Company’s economic
interests contradict the personal economic interests. Regarding the above matter, members of the Board of Directors:
1. Must prioritize the Company’s economic interest over personal economic interest or family’s or other party’s.
2. Must never use their position for personal interest or for other person’s or party’s interest that is in contrary to the
Company’s interest.
3. Must complete a Special Register containing their and/or their family's share ownership that reaches 5% (five percent) or
more on the Bank or other companies located inside and outside the country.
4. Must disclose financial relationship and family relationship with other members of the Board of Commissioners, members
of the Board of Directors, and/or the Company's controlling shareholders.
Good Corporate
Governance
5. Are prohibited to take action that may harm the In order to fulfill the transparency principle in the
Company or reduce Company’s profit and must disclose implementation of Good Corporate Governance, with due
conflict of interest in any decision in the event that a observance to the Bank’s Articles of Association, the Board of
conflict of interest occurs. Directors must disclose its share ownership, either at BNI or at
6. Shall not participate in the discussion and decision- banks and other companies domiciled inside and outside the
making that contains elements of conflict of interest. country.
SHARE OWNERSHIP OF BOARD OF DIRECTORS As of 31 December 2018, there were no members of BNI’s
Board of Directors who owned BNI shares reaching 5% or
Members of the Bank’s Board of Directors have an obligation more of BNI’s paid-up capital, or in other banks or other
to report to the Financial Services Authority on ownership companies, domiciled inside or outside the country.
and any changes in the ownership of the Bank’s shares, either
directly or indirectly, as stipulated in the Financial Services IMPLEMENTATION OF DUTIES AND DECISIONS OF THE
Authority Regulation No. 11/POJK.04/2017 on the Report of BOARD OF DIRECTORS YEAR 2018
Ownership or Any Changes in Ownership of Public Company
Shares. The reporting obligation is also regulated in Board of Throughout 2018, the Board of Directors had implemented
Directors’ Decisions Letter No. KP/228/DIR/R dated 29 June the management duties in accordance with the applicable
2018 on Guidelines and Work Conduct of Board of Directors laws and regulations and the Company's Articles of
Charter, which are also published on the Bank’s website. Association, which are:
1. Preparation of the Company’s planning, among others,
Throughout 2018, the Bank had submitted reports of share RBB revision 2018-2019.
ownership or any changes to the ownership of the Board of 2. Meeting the Company’s performance target.
Directors and/or Board of Commissioners to the Financial 3. Asset and finance management, including share
Services Authority by referring to the Financial Services participation on companies that are not listed in stock
Authority Regulation No. 11/POJK.04/2017 on the Report of exchange.
Ownership or Any Changes in Ownership of Public Company 4. Organizing Board of Directors’ meeting.
Shares. 5. Attending Board of Commissioners’ meeting.
6. Convening General Meeting of Shareholders.
7. Monitoring and improving the internal business process.
8. Other duty implementation related to the Company's
management.
DECISIONS ISSUED BY BOARD OF DIRECTORS IN 2018
No. Decisions Decision Matter
KP/003/DIR/R Organizational Structuring of the Strategic Planning Division (REN)

KP/012/DIR/R Official Travel Policies and Procedures for the Board of Commissioners and Board of Directors
KP/024/DIR/R Establishment of the Consumer Business and Digital Banking Coordination Forum
KP/033/DIR/R BNI’s Release Committee of Immovable Fixed Assets (ATTB) affected by the Government project
KP/034/DIR/R The Jakarta BNI Taplus Proliga 2018 Committee
KP/035/DIR/R Recovery Management Team
KP/039/DIR/R Write-off of Immovable Fixed Assets of KCP Pemangkat’s Building
KP/040/DIR/R Write-off of Immovable Fixed Assets of KCP Sahari’s Building
KP/042/DIR/R BNI’s Release Committee of Immovable Fixed Assets (ATTB) affected by the Government project
KP/120/DIR/R BNI’s Event Committee for the 2018 Asian Games
KP/122/DIR/R Appointment of the Management of BNI’s UPZ BAZNAS
KP/125/DIR/R 201-2023 Corporate Plan Preparation Team
KP/127/DIR/R Establishment of Small Business Division 2 (BSL 2)
KP/128/DIR/R Establishment of Small Business Division 1 (BSL 1)
ANNUAL
REPORT 2018
No. Decisions Decision Matter
KP/130/DIR/R Board of Directors’ Decision on Bank Negara Indonesia Pension Fund

KP/138/DIR/R Structuring the Organization of BNI’s Board of Directors
KP/145/DIR/R Committee for Procurement of BSK Division Server Cloning and Relocation Services
KP/153/DIR/R Team Force of Yap! Merchant Acquisition
KP/158/DIR/R Write-off of Immovable Fixed Assets of KCP Kanaka’s Building
KP/160/DIR/R Formation of BNI’s 2018 Subordinated Medium Term Notes (MTN) Task Force Team
KP/164/DIR/R BNI's Fixed Assets (Land and Building) Revaluation Committee
KP/169/DIR/R BNI’s 72nd (seventy-second) Anniversary Committee
KP/182/DIR/R Organizational Structuring of Banking Transactional Services Division (TBS)
KP/191/DIR/R BNI’s Event Committee for the 2018 Asian Games
KP/196/DIR/R Procurement Committee of BNI’s SimPel Debit Starter Kit
KP/215/DIR/R Write-off of Immovable Fixed Assets of KCP Mamuju’s Building at Jalan Urip Sumoharjo No. 125 Mamuju
KP/220/DIR/R Decision Letter of IFRS 9 Implementation Team
KP/232/DIR/R Beauty Contest Assessment Committee BNI’s Commercial Card Credit Insurance
KP/234/DIR/R Procurement Committee of BNI’s Credit Card Billing Statement Printing Service
KP/246/DIR/R Appointment as Member of Supervisory Board of Bank Negara Indonesia Pension Fund
KP/247/DIR/R Structuring Organization of Operational Division
KP/251/DIR/R Organization of Crisis Management Team (CMT) Head Office
KP/284/DIR/R The EDW Appliance Machine Implementation Project Team
KP/321/DIR/R Beyond Banking Program Implementation Team - 33 Initiatives of Corporate Plan 201-2023
KP/322/DIR/R General Policies of Board of Directors (KUD) of 2019
KP/323/DIR/R Organizational Structuring of Information Technology Solutions & Security Division (STI)
KP/366/DIR/R Millennial Task Force Team
KP/384/DIR/R Structuring the Organization of BNI’s Board of Directors
KP/385/DIR/R BNI’s Long Term Plan (RJP/Corporate Plan) of 2019-2023
KP/387/DIR/R Jakarta’s Volley Team Management and Coaching of BNI 46 Pro-league Period 2019 - 2023 Dir kN
KP/395/DIR/R Organizational Structuring of Information Technology Solutions and Security Division (STI)
KP/396/DIR/R Assignment of Task Force 46’s Millennial Championship Program
KP/400/DIR/R Assignment as the Technical Committee for the Glowing Night Run Event and the Food Coffee Festival
KP/401/DIR/R Substitution Arrangement for Senior Executive Vice President (SEVP)
KP/406/DIR/R Bank’s Business Plan (RBB) 2019-2021
KP/412/DIR/R Sustainable Financial Action Plan (RAKB) of 2019
KP/413/DIR/R Organizational Structuring of Corporate Credit Risk Division (BNR)
KP/420/DIR/R Release and Write-off Committee of the Immovable Fixed Asset of BNI Singapore’s Caimhill Mansion Unit
KP/433.1/DIR/R Assignment of BNI Cyber Squad Team
Good Corporate
Governance
THE BOARD OF DIRECTORS’ MEETINGS
BOARD OF DIRECTORS’ MEETING MECHANISM
The Bank’s Board of Directors’ Meetings are held by referring to the Financial Services Authority Regulation No. 33/
POJK.04/2014 on Board of Directors and Board of Commissioners of Issuers or Public Companies and Article 13 of the Bank’s
Articles of Association.
The Board of Directors’ Meetings are carried out with the following conditions:
1. Board of Directors must hold the Board of Directors’ meeting at least 1 (one) time every month.
2. The Board of Directors must hold joint meeting of the Board of Directors with the Board of Commissioners
Organizing periodically at least 1 (one) time in 4 (four) months
Meetings 3. Board of Directors’ Meetings may be held at any time in the event that:
a. a. It is deemed necessary by one or more members of the Board of Directors
b. b. It is upon a written request from one or more members of the Board of Commissioners
1. Meetings can be held at the Bank’s domicile or elsewhere in the territory of the Republic of Indonesia or at the
place of business of the Bank.
2. The calling of a Board of Directors’ Meeting shall be made by the member of Board of Directors who is entitled to
represent the Board of Directors.
3. The calling of a Board of Directors’ Meeting shall be made in writing and submitted or delivered directly to each
Calling of the member of the Board of Directors with an adequate receipt or by registered mail or by courier or telex, facsimile,
Meeting or e-mail no later than 5 (five) days before the meeting is held by not including the Calling Date and the meeting
date or in a shorter time if in an urgent situation.
4. The calling for a meeting shall state the agenda, date, time, and place of the meeting.
5. Such calling is not required for meetings that have been scheduled based on the decisions of the Board of
Directors’ Meeting held previously or if all members of the Board of Directors are present at the meeting.
1. All Board of Directors’ Meetings are chaired by the President Director. In the event that the President Director is
absent or unavailable, the Vice President Director will chair the Board of Directors’ meeting or a Director who is
appointed in writing by the President Director who will chair the Board of Directors’ Meeting in the event that
at the same time the Vice President Director is also absent or unavailable or the Director appointed by the Vice
President Director who will chair the Board of Directors’ Meeting in the event that at the same time the President
Director is absent or unavailable and does not appoint anyone.
Board of 2. If the GMS does not appoint a Vice President Director, then in the event that the President Director is absent or
Directors Meeting unavailable, one of the Directors who is appointed in writing by the President Director will chair the Board of
Chair Directors’ Meeting.
3. In the event that the President Director does not appoint anyone, one of the Directors with the longest term of
office as member of Board of Directors will chair the Board of Directors’ Meeting.
4. In the event that there are more than 1 (one) members of the Board of Directors who have the longest term of
office as a member of the Bank’s Board of Directors, then the Director as stated in point 3 above who is the oldest
in age will act as the chair of the Board of Directors’ Meeting.
1. 1A member of the Board of Directors may be represented at the Board of Directors’ Meeting only by another
member of the Board of Directors based on a Power of Attorney. A member of the Board of Directors may only
represent one other member of the Board of Directors.
2. 2 Members of the Board of Directors who are unable to attend a Board of Directors’ Meeting can submit their
opinions in writing and sign, then submit it to the President Director or Vice President Director or to other
members of the Board of Directors who will chair the Board of Directors’ Meeting, whether or not they support
the matters will be discussed and this opinion will be deemed as a vote legally issued at the Board of Directors’
Attendance Meeting.
3. 3In the event that a member of the Board of Directors is unable to attend a meeting physically, then such member
of the Board of Directors may attend the meeting through teleconferencing, video conferencing, or other
electronic media facilities, in accordance with the applicable regulations.
4. Each member of the Board of Directors who personally in any way, directly or indirectly, has an interest in a
transaction, contract, or proposed contract, in which the Bank is one of the parties shall state the nature of
interest in a Board of Directors’ Meeting, and therefore, has no right to take part in voting on matters related to
such transaction or contract.
ANNUAL
REPORT 2018
1. Board of Directors’ Meeting is valid and entitled to make binding decisions if attended and/or represented by
more than 1/2 (one half ) from the total members of the Board of Directors.
2. In the event that there is more than one proposal, a re-election is conducted so that one of the proposals gets
votes more than 1/2 (one half ) part of the total votes cast.
3. Board of Directors’ Meeting Decisions shall be made based on deliberation to reach a consensus. In the event
that decision based on deliberation to reach a consensus is not reached, then the decision shall be taken by
voting based on the agreed votes that are more than 1/2 (one half ) part of the total valid votes cast at the related
Decision Making meeting.
4. In Board of Directors’ Meetings, each member of the Board of Directors is entitled to cast 1 (one) vote and 1 (one)
additional vote for each other member of the Board of Directors represented.
5. Blank vote (abstention) is considered to approve the proposal submitted at the meeting. Void votes are
considered non-existent and not counted in determining the number of votes cast at the meeting.
6. Voting concerning an individual shall be in folded ballots without signature, while voting concerning other
matters shall be conducted orally, unless otherwise determined by the Chair of the Meeting, without any
objection being raised by those present.
1. The results of the Board of Directors’ Meeting must be stated in Minutes of Meeting. Minutes of Meeting shall be
made by a person present at the meeting who is appointed by the Chair of the Meeting, and then signed by all
members of the Board of Directors present and delivered to all members of the Board of Directors.
2. Results of Board of Directors’ Meetings with the Board of Commissioners must be stated in Minutes of Meeting.
Minutes of Meeting shall be made by a person present at the meeting who is appointed by the Chair of the
Meeting, and then signed by all members of the Board of Directors and members of the Board of Commissioners
Minutes of
present and delivered to all members of the Board of Directors and members of the Board of Commissioners.
Meeting
3. In the event that there are members of the Board of Directors and/or members of the Board of Commissioners
who do not sign the meeting results as referred to in number 1 and 2 above, such member must state the reason
in writing in a separate letter attached to the minutes of meeting.
4. Minutes of Meeting as referred to in number 1 and number 2 above must be documented by the Bank.
5. Minutes of the Board of Directors’ Meeting are legitimate evidence for members of Board of Directors and third
parties regarding the decisions taken in the related Meeting.
1. Board of Directors may also make valid decision without holding Board of Director’s Meeting, provided that
Decisions Outside
all members of Board of Directors have been notified in writing and all members of Board of Directors have
the Board
approved the related proposal submitted in writing and have signed such approvals.
of Directors’
2. Decisions made by such way have the same binding power as that of made validly in Board of Director’s Meeting.
Meeting
AGENDA, DATE, AND PARTICIPANTS OF THE BOARD OF DIRECTORS’ MEETING IN 2018
Throughout 2018, the agenda, dates, and participants of the Board of Directors’ Meeting are as follows.
Table of Board of Directors’ Meeting

No. Date Agenda Participants Attendance Description
1. 4 January 2018 1. Capacity Planning Achmad Baiquni Present
2. Flextime
Herry Sidharta Present
Putrama Wahju Setyawan Present
Catur Budi Harto Present
Rico Rizal Budidarmo Present
Anggoro Eko Cahyo Absent On Leave
Adi Sulistyowati Present
Bob Tyasika Ananta Absent On Leave
Imam Budi Sarjito** Present
Panji Irawan** Present
Good Corporate
Governance

2. 8 Januari 2018 1. Structuring BSL Achmad Baiquni Present
Organization
2. Financial Performance Herry Sidharta Present
December 2017 Putrama Wahju Setyawan Present
3. 11 January Remedial & Recovery Achmad Baiquni Absent On Duty
2018 Management Strategy
Herry Sidharta Absent On Duty
Catur Budi Harto Absent On Duty
Rico Rizal Budidarmo Absent On Duty
Adi Sulistyowati Absent On Duty
Bob Tyasika Ananta Present
Panji Irawan** Absent On Duty
4. 15 January 1. Presentation of BNI Achmad Baiquni Absent On Duty
2018 Corporate Recovery Plan
2. Structuring Herry Sidharta Present
Organization of BSL Putrama Wahju Setyawan Present
Division
Anggoro Eko Cahyo Present
5. 18 January Update on YAP Launching Achmad Baiquni Present
2018 Preparation
ANNUAL
REPORT 2018

6. 25 January 1. Discussion of Pre-NPL Achmad Baiquni Absent On Duty
2018 Middle Segment
2. Corporate Iconic Event Herry Sidharta Absent On Duty
Panji Irawan** Absent On Leave
7. 29 January 1. Establishing Corporate Achmad Baiquni Absent On Duty
2018 Securities Purchase
Limit Herry Sidharta Present
2. Assessment Update Putrama Wahju Setyawan Present
on Criteria for Superior
Performance Appraisal Catur Budi Harto Absent On Duty
Panji Irawan** Absent On Leave
8. 5 February 2018 Update on 2018 Business Achmad Baiquni Present
Meeting Plan
9. 8 February 2018 1. Update Java Jazz Achmad Baiquni Present
2. Beauty Contest
Procurement Uniform Herry Sidharta Present
Good Corporate
Governance

10. 15 February 1. Approving Product Achmad Baiquni Present
2018 Name and Launching of
BNI Mobile Remittance Herry Sidharta Present
2. Others Putrama Wahju Setyawan Present
Imam Budi Sarjito** Absent On Duty
11. 19 February 1. Beauty Contest on Achmad Baiquni Present
2018 Frontliner Uniform
Procurement Herry Sidharta Present
2. Finalizing PMS Score of Putrama Wahju Setyawan Present
Unit December 2017
3. BNI Chat Banking Catur Budi Harto Present
12. 22 February BNI Emerald Program Java Achmad Baiquni Absent On Duty
2018 Jazz 2018
Putrama Wahju Setyawan Absent On Duty
13. 26 February 1. Customer Satisfaction Achmad Baiquni Absent On Duty
2018 Survey 2017
2. Progress Update Herry Sidharta Absent On Duty
on Preparation for Putrama Wahju Setyawan Present
Launching BNI Mobile
Remittance (More) Catur Budi Harto Present
ANNUAL
REPORT 2018

14. 5 March 2018 1. Update on Financial Achmad Baiquni Present
Statements February
2018 and Prognosis Q1 Herry Sidharta Present
2018 Putrama Wahju Setyawan Present
2. Issuance of Debt
Instrument with Capital Catur Budi Harto Present
Characteristic Rico Rizal Budidarmo Present
15. 12 March 2018 Update on PIR Achmad Baiquni Present
Implementation on 92 KCP
decision maker on credit Herry Sidharta Present
approval (Standard and Putrama Wahju Setyawan Present
Consumer Credit)
16. 15 March 2018 1. Status Progress on Achmad Baiquni Absent On Duty
Financial Information
Service System (SLIK) Herry Sidharta Absent On Duty
2. BNI Digimudik Program Putrama Wahju Setyawan Present
and Proposal of Cong
AD Nyepi Catur Budi Harto Present
17. 19 March 2018 M Project (Bank Acquisition) Achmad Baiquni Present
Good Corporate
Governance

18. 22 March 2018 1. Proposal of BNI’s Board Achmad Baiquni Present
of Directors’ Division
2018 Herry Sidharta Present
2. Review on Segment Putrama Wahju Setyawan Present
Authority
Tambok P. Setyawati* Present
Dadang Setiabudi* Present
Bob Tyasika Ananta Absent On Duty
Endang Hidayatullah* Present
19. 26 March 2018 Prognosis Update on Achmad Baiquni Present
Financial Performance Q1
Anggoro Eko Cahyo Absent On Duty
20. 2 April 2018 1. Finalizing KPI for Achmad Baiquni Present
Supporting Unit 2018
2. Preparation of SOE Herry Sidharta Present
PORSENI 2018 Putrama Wahju Setyawan Absent On Duty
21. 5 April 2018 1. Concept of BNI’s 72nd Achmad Baiquni Present
Anniversary
2. Proposal of Sharing Herry Sidharta Present
Session in the Putrama Wahju Setyawan Present
framework of Preparing
BNI’s Corporate Plan Tambok P. Setyawati* Present
2019-2023 Scenario Catur Budi Harto Absent On Duty
Planning
ANNUAL
REPORT 2018

22. 9 April 2018 1. Strategy to Improve Achmad Baiquni Present
Savings with YAP Game
Changer Herry Sidharta Present
2. YAP Progress Update Putrama Wahju Setyawan Present
23. 16 April 2018 Update on 2018 Inacraft Achmad Baiquni Present
Event and Update on
Corporate Advertisement Herry Sidharta Present
for Ramadan, Vesak, and Eid Putrama Wahju Setyawan Present
Al-Fitr
24. 19 April 2018 1. Prognosis on Financial Achmad Baiquni Present
Performance Q2 2018
2. Workshop on “Discovery Herry Sidharta Present
and Dream” Corporate Putrama Wahju Setyawan Present
Plan 2019-2023
3. Sharing Session - Tambok P. Setyawati* Present
Capturing the Digital Catur Budi Harto Absent On Duty
Banking Opportunity
Dadang Setiabudi* Absent On Duty
25. 26 April 2018 WMO Audit Examination Achmad Baiquni Present
Result
Endang Hidayatullah* Absent On Duty
Good Corporate
Governance

26. 30 April 2018 1. Prognosis Update on Achmad Baiquni Present
Financial Performance
Q2 2018 Herry Sidharta Present
2. Sharing Session: Putrama Wahju Setyawan Present
Unleashing the Value of
Talent in a Digital Area Tambok P. Setyawati* Present
27. 3 May 2018 Performance Highlights Achmad Baiquni Absent On Duty
April 2018
28. 7 May 2018 1. PT Namasindo Plas Achmad Baiquni Present
2. BNI Digital
Transformation Herry Sidharta Present
3. Update on BNI Service & Putrama Wahju Setyawan Present
Sales Excellence Award
Activity 2018 Tambok P. Setyawati* Present
29. 8 May 2018 B Project Achmad Baiquni Present
ANNUAL
REPORT 2018

30. 14 May 2018 1. Progress Update on Achmad Baiquni Present
Remedial and Recovery
2. YAP Progress Update Herry Sidharta Present
31. 17 May2018 1. Homologation/ Achmad Baiquni Present
Settlement PKPU
PT Intan Baruprana Herry Sidharta Present
Finance, Tbk. And PT Putrama Wahju Setyawan Present
Namasindo Plas
2. Middle Segment Tambok P. Setyawati* Present
Performance Catur Budi Harto Absent On Duty
3. Others: YAP! Directives
32. 24 May 2018 1. Credit Quality Achmad Baiquni Present
Improvement Review
2. Update on Ramadan Herry Sidharta Present
and Eid Al-Fitr Activities Putrama Wahju Setyawan Present
33. 28 May 2018 1. Implementation of BNI Achmad Baiquni Present
Digimudik
2. Advertisement of Herry Sidharta Present
Lebaran Agenda Putrama Wahju Setyawan Present
Good Corporate
Governance

34. 4 June 2018 1. Update on Facility Achmad Baiquni Present
Provision to Bank
Bukopin Herry Sidharta Present
2. Update on Cyber Squad Putrama Wahju Setyawan Present
35. 7 June 2018 1. Update on RBB 2018- Achmad Baiquni Present
2020
2. Spreading Flower in the Herry Sidharta Present
framework of BNI’s 72nd Putrama Wahju Setyawan Present
Anniversary
36. 25 June 2018 1. Update on Preparation Achmad Baiquni Present
to Support IMF-WB
Group Annual Meeting Herry Sidharta Present
Bali October 2018 Putrama Wahju Setyawan Present
2. Evaluation on Limited
Operational During Eid Tambok P. Setyawati* Present
Al-Fitr Holiday 2018 Catur Budi Harto Present
3. Update on BNI’s
Anniversary Preparation Rico Rizal Budidarmo Present
37. 2 July 2018 Update on Halal Bihalal Achmad Baiquni Absent On Duty
Gathering Program with
BNI’s Retirees’ Association Herry Sidharta Present
ANNUAL
REPORT 2018

38. 9 July 2018 BNI Financial Performance Achmad Baiquni Present
June 2018
39. 12 July 2018 Progress Update on Big Data Achmad Baiquni Present
Tambok P. Setyawati* Absent On Duty
40. 16 July 2018 1. Building Name Achmad Baiquni Present
and Event Concept
for Inaugurating Herry Sidharta Present
Penjopongan Building Putrama Wahju Setyawan Present
2. Execution of Corporate
Plan Tambok P. Setyawati* Present
3. YAP Progress Update Catur Budi Harto Present
(YAP! On the move
41. 23 July 2018 BNV Corporate Update Achmad Baiquni Absent On Duty
Adi Sulistyowati Absent On Permission
Good Corporate
Governance

42. 26 July 2018 Prognosis on Financial Achmad Baiquni Absent On Duty
Performance Q3 and Q4
43. 6 August2018 1. Business Meeting Achmad Baiquni Present
Update
2. Merger of SMBCI and Herry Sidharta Present
BTPN Putrama Wahju Setyawan Present
3. Update on Asian
Games Advertisement Tambok P. Setyawati* Present
and Congratulation Catur Budi Harto Present
Advertising
44. 13 August 2018 Update on Preparation for Achmad Baiquni Present
73rd Anniversary of the
Republic of Indonesia Herry Sidharta Absent On Duty
45. 20 August 2018 1. Proposal of Corporate Achmad Baiquni Present
Action of Commercial
Bank Herry Sidharta Present
2. Update on Preparation Putrama Wahju Setyawan Present
to Support IMF-WB
Annual Meeting Bali Tambok P. Setyawati* Present
October 2018 Catur Budi Harto Present
3. Progress Update
on Procurement for Rico Rizal Budidarmo Present
Consulting Services
on Credit Quality
Improvement Dadang Setiabudi* Present
ANNUAL
REPORT 2018

46. 23 August 2018 Proposal to Name BNI’s Achmad Baiquni Present
Building
47. 27 August 2018 BNI Services Day Achmad Baiquni Present
48. 30 August 2018 2018 National Customer Day Achmad Baiquni Present
49. 3 September General Policy of Board of Achmad Baiquni Present
2018 Directors 2019
Herry Sidharta Absent On Leave
Good Corporate
Governance

50. 10 September Financial Performance Achmad Baiquni Absent On Leave
2018 August 2018 and Prognosis
Financial Performance 2018 Herry Sidharta Present
51. 13 September 1. Progress Report on Achmad Baiquni Absent On Leave
2018 Commitment of BNI’s
Business Meeting Herry Sidharta Present
Semester II - 2018, RR Putrama Wahju Setyawan Present
Sector
2. Update on Preparation Tambok P. Setyawati* Present
to Support IMF-WB Catur Budi Harto Present
3. Financial Performance
August 2018 and Rico Rizal Budidarmo Present
Prognosis Financial
Performance 2018
52. 20 September 1. Sectoring the Board of Achmad Baiquni Absent On Duty
2018 Directors
2. Follow-up on FSA Letter Herry Sidharta Present
regarding RBB Revision Putrama Wahju Setyawan Present
53. 24 September 1. Relocation of KCLN Achmad Baiquni Present
2018 Singapore
2. Sectoring the Board of Herry Sidharta Present
Directors Putrama Wahju Setyawan Present
ANNUAL
REPORT 2018

54. 27 September Volatility Stress Test on Achmad Baiquni Present
2018 Exchange Rates and Interest
Rates Herry Sidharta Present
55. 1 October 2018 CMRT Draft in the Achmad Baiquni Absent On Duty
framework of Earthquake
Management in Palu and Herry Sidharta Present
surrounding areas Putrama Wahju Setyawan Present
56. 4 October 2018 1. Progress Report on Achmad Baiquni Absent On Duty
Commitment of BNI’s
Business Meeting Herry Sidharta Present
Semester II - 2018, RR Putrama Wahju Setyawan Absent On Duty
Sector
2. Update on Preparation Tambok P. Setyawati* Present
to Support IMF-WB Catur Budi Harto Absent
Group Annual Meeting
Bali October 2018 Rico Rizal Budidarmo Absent On Duty
3. Update on Paviliun
Indonesia
57. 8 October 2018 Loan Processing Digital Achmad Baiquni Present
Good Corporate
Governance

58. 11 October 1. Volatility Stress Test on Achmad Baiquni Absent On Duty
2018 Exchange Rates and
Interest Rates Herry Sidharta Present
2. Corporate Plan 2019- Putrama Wahju Setyawan Absent On Duty
2023
Tambok P. Setyawati* Absent On Duty
59. 15 October 1. Executive Talent Achmad Baiquni Present
2018 Committee
2. Follow-Up on Herry Sidharta Present
Anticipation Plan Putrama Wahju Setyawan Present
of Qanun, a Sharia
Financial Institution, Tambok P. Setyawati* Present
in Nangroe Aceh Catur Budi Harto Present
Darussalam Province
60. 18 October Analyst Meeting and Q&A Achmad Baiquni Present
2018 on Issues from Analyst and
Reporter Herry Sidharta Present
61. 22 October Review on Calculation of Achmad Baiquni Absent On Duty
2018 SPK Receivable as Controlled
Collateral Herry Sidharta Present
ANNUAL
REPORT 2018

62. 25 October 1. Prognosis on Financial Achmad Baiquni Present
2018 Performance Q4 2018
2. Update on SOE Herry Sidharta Present
Millennial Program Putrama Wahju Setyawan Present
3. Progress on
Procurement for Tambok P. Setyawati* Present
Consulting on Credit Catur Budi Harto Present
Quality Improvement
63. 29 October Bank’s Business Plan (RBB) Achmad Baiquni Absent On Duty
2018 2019-2021
64. 1 November 1. Update on Volatility Achmad Baiquni Present
2018 Stress Testing Material
on Exchange Rates and Herry Sidharta Present
Interest Rates Putrama Wahju Setyawan Present
2. Bank’s Business Plan
(RBB) 2019-2021 Tambok P. Setyawati* Present
Adi Sulistyowati Absent On Leave
65. 5 November 1. Digitalization of Achmad Baiquni Present
2018 Account Opening
Process Herry Sidharta Absent On Duty
2. Cooperation of BNI with Putrama Wahju Setyawan Absent On Duty
WeChat and Alipay
Adi Sulistyowati Absent On Leave
Good Corporate
Governance

66. 8 November BSSN Letter - Cyber potential Achmad Baiquni Present
2018 threat on ‘DanaBot’ Banking
Infrastructure Herry Sidharta Present
67. 12 November Progress Update on BEYOND Achmad Baiquni Present
2018 Project 2019-2023
68. 15 November Future Capability Academy Achmad Baiquni Present
2018
69. 19 November 1. Level Escalation Achmad Baiquni Absent On Duty
2018 2. Monitoring on Budget
Loss of AFS Head Office Herry Sidharta Present
Marketable Securities Putrama Wahju Setyawan Present
Bob Tyasika Ananta Absent On Permission
ANNUAL
REPORT 2018

70. 22 November Sustainable Financial Action Achmad Baiquni Absent On Duty
2018 Plan (RAKB) BNI Year 2019
71. 26 Novenber 1. BNI’s 2018 Recovery Achmad Baiquni Present
2018 Plan
2. Provisions for Prima Herry Sidharta Present
Debtors Putrama Wahju Setyawan Present
3. Update on Event
Indonesia Masters Tambok P. Setyawati* Present
72. 29 November 1. Progress Report on SOE Achmad Baiquni Present
2018 Millennial Program:
Glowing Night Run and Herry Sidharta Present
Food & Coffee Festival, Putrama Wahju Setyawan Present
dated December 1, 2018
2. Proposal of Exterior and Tambok P. Setyawati* Present
Interior Design of BNI Catur Budi Harto Present
KCLN Singapore
73. 3 December Further Update on Review of Achmad Baiquni Present
2018 Provisions for Prima Debtors
Good Corporate
Governance

74. 6 December Performance November Achmad Baiquni Absent On Duty
2018 2019 and Prognosis of BNI
Financial Position End of Herry Sidharta Absent On Duty
December 2018 Putrama Wahju Setyawan Present
75. 10 December 1. Proposal of Theme & Achmad Baiquni Present
2018 Design of BNI Annual
Report Year 2018 Herry Sidharta Present
2. Update on Activities in Putrama Wahju Setyawan Present
Welcoming Christmas
and New Year Tambok P. Setyawati* Absent On Duty
3. Finalization of BOD’s KPI Catur Budi Harto Present
76. 13 December Review on Provisions for Achmad Baiquni Present
2018 Prima Debtors and Review
on Financial Reference per Herry Sidharta Present
Industrial Sector Putrama Wahju Setyawan Present
77. 17 December Impact of Crude Palm Oil Achmad Baiquni Absent On Duty
2018 Price Decrease Against
Corporate Debtor Herry Sidharta Present
ANNUAL
REPORT 2018

78. 20 December Financial Performance Achmad Baiquni Absent On Duty
2018 Prognosis of December 2018
79. 27 December Financial Prognosis of 2018 Achmad Baiquni Present
2018 Fiscal Year
80. 31 December Financial Prognosis of 2018 Achmad Baiquni Present
2018 Fiscal Year
Information:
**Not in position since March 20, 2018
The agenda of joint meeting between the Board of Directors and the Board of Commissioners has been presented in the
section of Board of Commissioners' Meeting in Good Corporate Governance Chapter in this Annual Report.
MEETING FREQUENCY AND ATTENDANCE THE BOARD OF DIRECTOR

Throughout 2018, the Board of Directors attended the Board of Directors’ meetings for 80 (eighty) times as well as the joint
meeting between the Board of Directors and the Board of Commissioners for 11 (eleven) times. The meeting frequency and
attendance of each Director are as follows.
Good Corporate
Governance
Table of Meeting Frequency and Attendance of Board of Directors

Joint Meeting between Board
Board of Directors’ Meeting of Directors and Board of
Commissioners
Name Position
Number and (%) of Attendance Number and (%) of Attendance
Total Total Total Total
% %
Meetings Attendance Meetings Attendance
Achmad Baiquni President Director 80 54 64.56 11 4 36.36
Herry Sidharta Vice President Director 80 67 83.54 11 6 54.55
Putrama Wahju Setyawan Managing Director 80 72 88.61 11 9 81.82
Corporate Banking
Tambok P. Setyawati* Managing Director Retail 64 60 93.44 6 6 100
Banking
Catur Budi Harto Managing Director Small 80 58 74.68 11 7 63.64
Business and Network
Rico Rizal Budidarmo Managing Director 80 61 75.95 11 7 54.55
Treasury and
Anggoro Eko Cahyo Managing Director 80 66 82.28 11 8 81.82
Finance
Dadang Setiabudi* Managing Director 64 55 88.52 6 6 100
Information
Technology and
Operation
Adi Sulistyowati Managing Director 80 56 72.15 11 8 72.72
Institutional
Relations
Bob Tyasika Ananta Managing Director Risk 80 71 88.61 11 9 81.82
Management
Endang Hidayatullah* Managing Director 64 49 76.67 6 2 33.33
Compliance
Imam Budi Sarjito** Managing Director 17 14 88.89 2 - 0
Compliance
and Corporate Risk
Panji Irawan** Managing Director 17 11 72.22 2 2 100
Treasury and
International
Information:
**No longer in position since March 20, 2018
BOARD OF DIRECTORS’ SCHEDULED MEETINGS IN 2019

According to Article 13 of the Bank’s Articles of Association, the Board of Directors must hold the Board of Directors’ meetings
periodically at least 1 (one) time every month. However, the Board of Directors’ Meeting can be held at any time if deemed
necessary by one or more members of the Board of Directors or at the written request of one or more members of the Board of
Commissioners.
ANNUAL
REPORT 2018
In 2019, the Board of Directors’ Meetings are scheduled to be risks such as fraud or other operational risks. Regarding the
held for 12 (twelve) times that fall on every Monday. Board of determination of Variable Remuneration, the Bank uses the
Directors’ Meeting Schedule for 2019 is as follows: basis of prudent risk taking which refers to the provisions of
No Date Agenda the Financial Services Authority regulating Risk Management
1. 14 January 2019 Bank's Business Performance
Implementation for Commercial Banks.
2. 11 February 2019 Bank's Business Performance

Based on BNI's Articles of Association, members of the Board
3. 11 March 2019 Bank's Business Performance of Directors are given honorarium and allowances/facilities
4. 15 April 2019 Bank's Business Performance including tantiem and post-retirement benefits whose
5. 13 May 2019 Bank's Business Performance types and amounts are determined by the GMS with due
6. 10 June 2019 Bank's Business Performance observance to the prevailing laws and regulations.
7. 15 July 2019 Bank's Business Performance
The Board of Commissioners supervises the implementation
8. 12 August 2019 Bank's Business Performance
of remuneration policies and conducts regular evaluations
9. 16 September 2019 Bank's Business Performance through the Nomination and Remuneration Committee.
10. 14 October 2019 Bank's Business Performance The Nomination and Remuneration Committee conducts
11. 11 November 2019 Bank's Business Performance evaluation on the Remuneration Policy that is based on
12. 16 December 2019 Bank’s Business Performance performance, risk, fairness with peer group, targets, and the
Bank's long term strategy, as well as fulfillment of reserves as
regulated in laws and regulations, and the Bank’s potential
BOARD OF DIRECTORS’ COMPETENCE DEVELOPMENT revenue in the future.
Board of Directors competence development can be seen the
Company Profile section of this Annual Report. PROCEDURE FOR DETERMINATION OF REMUNERATION
In general, the procedure for determination of the Board of
RISK MANAGEMENT CERTIFICATION Directors’ remuneration are carried out through the following
All of BNI’s Board of Directors have passed Level 5 Risk stages.
Management Certification as it is one of the requirements to 1. The Nomination and Remuneration Committee evaluates
take fit and proper test, which is administered by the Financial the remuneration policy applicable to the Board of
Services Authority. Directors.
2. Next, the Nomination and Remuneration Committee
BOARD OF DIRECTORS’ REMUNERATION POLICY provides recommendations to the Board of
Commissioners on the remuneration policy for the Board
REMUNERATION GOVERNANCE of Directors.
BNI already has a Board of Commissioners’ Remuneration 3. The Board of Commissioners submits proposals on
Governance Policy, which refers to the Financial Services remuneration recommendation in the form of salary/
Authority Circular No. 40/SEOJK.03/2016 on Implementation honorarium and tantiem to be approved by the GMS.
of Governance in Providing Remuneration for Commercial
Bank. In the Board of Directors Remuneration Governance REMUNERATION STRUCTURE FOR MEMBERS OF BOARD OF
Policy, it is stated that the remuneration given is of Fixed DIRECTORS
and Variable natures. The provision of remuneration that The remuneration structure of members of the Board of
is of Fixed and Variable natures is based on business scale, Directors refers to SOE Minister Regulation No. PER-06/
business complexity, peer group, inflation rate, financial MBU/06/2018 dated June 4, 2018, and SOE Minister Letter No.
condition and capability of the Bank, as well as not contrary S-574/MBU/D5/06/2018 dated June 5, 2018, on Submission
to the applicable laws and regulations. Regarding the of Remuneration Determination of the Board of Directors
determination of Fixed Remuneration, it observe the and Board of Commissioners of PT Bank Negara Indonesia
difference (gap) of remuneration between levels of position, (Persero), Tbk. in 2018, as follows.
thus, it prevents potential internal conflicts and operational
Table of Remuneration Structure for Members of Board of Directors

Type of
No. Remuneration/ Explanation
Facilities
1 Salary President Director is 100%
Vice President Director is 90% of the President Director’s salary
Good Corporate
Governance
Type of
No. Remuneration/ Explanation
Facilities
Director is 85% of the President Director’s salary.
2 Allowances
Religious Holidays Members of the Board of Directors are given allowance for Religious Holiday for 1 (one) time salary each year.
Housing Members of the Board of Directors are given housing allowances of the salary provided that the maximum allowance
is IDR27,500,000.
Post-Employment 1. Given during term of office
Insurance 2. The premium borne by the company is maximum 25% of the annual salary
3. Selecting the post-employment insurance program is determined by each member of the Board of Directors
that is coordinated by the unit managing the facilities and allowances for members of the Board of Directors and
members of the Board of Commissioners.
4. Provision of premiums, fees, or other terms relevant to post-employment insurance already includes premiums
for accident and death insurance.
3 Facilities
Vehicles Members of the Board of Directors are only entitled to 1 (one) Company vehicle.
1. Vehicle facilities including maintenance and operational costs are provided with due regard to the Company’s
financial condition.
2. Vehicle specifications and standards are determined by the Minister.
3. Members of the Board of Directors who are no longer in position must return the official vehicle to the Company
no later than 30 (thirty) days after being no longer in position.
Health Health facilities are given in the forms of health insurance or reimbursement of medical expenses.
1. Health facilities are given to members of the Board of Directors and a wife/husband as well as maximum 3 (three)
children who have not reached the age of 25 (twenty-five) provided in the event that the child is not yet 25
(twenty-five) years but had been married or had previously worked, the said child is not entitled to receive health
facilities. Health facilities are provided in the forms of:
2. Outpatient and medicine,
3. Inpatient and medicine,
4. Medical check up provided that it is 1 (one) time every year and taken domestically.
5. In the event that the treating doctor recommends overseas treatment, the health facility may be covered fully or
partially by observing the Company’s capability.
Legal Assistance 1. Legal Aid facility to members of the Board of Directors is given in the event of any action/deeds for and on behalf
of a position of members of the Board of Directors with the intention and objective as well as the company’s
business activities.
2. Legal aid facility is at cost.
3. Legal aid facility to members of Board of Directors is budgeted at the Bank’s expense as stated in the Bank’s Work
Plan and Budget (RKAP).
4. Legal aid facility can only be used in the event of a claim from third party, either during term of office or no longer
in office on the policies taken during the term of office and cannot be given directly to the person concerned.
5. In the event that members of the Board of Directors use lawyers/legal consultants of their own choice, either at
level of preliminary investigation/investigation, first-level court, appeal, cassation, and judicial review, then the
attorney/legal consultant fee is not borne/compensated by the Bank.
6. Procedures for Board of Directors’ legal aid facility are carried out by referring to the applicable laws and
regulations, specifically the Minister of State-Owned Enterprises Regulation which regulates the Guidelines for
Determining the Remuneration of Board of Directors, Board of Commissioners, and Supervisory Board of State-
Owned Enterprises.
Housing Facilities 1. In the event that the Bank provides official house for the Board of Directors, the related Director must use the
house as a housing facility and is not provided with housing allowance.
2. In the event that the Bank does not provide Board of Directors’ residential housing, then the related member of
the Board of Directors shall be given a housing allowance.
3. The housing facility received by the Board of Directors include utilities and maintenance of the house of
residence.
4. Details of utility amount (electricity, water, telephone, etc.) as mentioned above refer to the policies stipulated in
the Bank.
ANNUAL
REPORT 2018
INDICATORS FOR DETERMINING BOARD OF DIRECTORS’ REMUNERATION

In determining the Board of Directors’ indicators, BNI refers to SOE Minister Regulation Number: PER-04/MBU/2014, which was
amended by SOE Minister Regulation No. PER-06/MBU/2018 on Guidelines to Establish Remuneration of Board of Directors,
Board of Commissioners, and Board of Supervisors of State-Owned Enterprise as follows:
• Business scale factor
• Business complexity factor
• Inflation Rate
• Company’s condition and financial capability
• Other relevant factors, as well as not in contradiction to the laws and regulations.
TOTAL NOMINAL/COMPONENT OF BOARD OF DIRECTORS’ REMUNERATION

Disclosure of remuneration components for the Board of Commissioners and Board of Directors refers to Financial Services
Authority Circular Number 40/SEOJK.03/2016 on Commercial Bank’s Governance Implementation in Granting Remuneration.
Amount Received in 1 Year

Type of Remuneration and Other Facilities
Person (in million rupiah)
Remuneration
• Salary 11 35.396.46
• Housing Allowances 11 1.651.77
• Transportation Allowances - -
• Religious Allowances 11 3.008.25
• Tantiem 11 128.477.99
Other Natura Facilities
• Housing (cannot be owned) ? -
• Transportation (cannot be owned) 11 7.785.97
• Post-Employment Insurance (can be owned) 11 8.847.69
• Health (cannot be owned) 11 801.83
The remuneration in one year is grouped in income level range as follows.
Table of Remuneration by Group

Total Remuneration Number of Person Rp Million
Above IDR 2 Billion 10 Person 165,457.41
Above IDR 1 Billion - IDR 2 Billion - -
Above IDR 500 million - IDR 1 Billion - -
IDR Rp500 million below - -
TANTIEM
Tantiem paid in 2017 was 1.17% of the Bank's net profit for the period of 1 January 2016 - 31 December 2016, which was given
to the Board of Directors with a proportion of 100% for the President Director, 95% for the Vice President Director, and 90% for
other members of Board of Directors.
IMPLEMENTATION OF DUTIES AND RESPONSIBILITIES OF THE BOARD OF DIRECTORS 2018

Throughout 2018, the Board of Directors had implemented the management duties in accordance with the applicable laws
and regulations and the Bank’s Articles of Association, which are:
1. Preparation of the Bank’s planning, among others, RBB revision 2018-2019.
2. Achieving the Bank’s performance target.
3. Asset and finance management, including share participation on companies that are not listed in stock exchange.
4. Organizing Board of Directors’ meetings.
5. Attending Board of Commissioners’ meetings.
6. Convening General Meeting of Shareholders.
Good Corporate
Governance
7. Monitoring and improving the internal business process.

8. Other duty implementation related to the Bank’s management.
BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT

The performance of the Board of Directors and each member of the Board of Directors will be evaluated by the Board of
Commissioners and submitted to the Shareholders at the GMS.
BOARD OF DIRECTORS PERFORMANCE ASSESSMENT USING THE SUPERIOR PERFORMANCE ASSESSMENT CRITERIA
METHOD (KPKU)
Ministry of SOE specifically determines the performance assessment of SOE’s Board of Directors by using KPKU method
through Letter No. S-153/S-MBU/2012 dated July 19, 2012, on Performance Reporting Based on SOE's Superior Performance
Assessment Criteria Approach.
KPKU ASSESSMENT IMPLEMENTATION PROCEDURE

The procedures for implementing KPKU Assessment are as follows
1. The Ministry of SOE establishes SOE Excellent Forum (FEB) which is tasked with implementing Assessment.
2. The Ministry of SOE delivers the FEB Team to the Bank as personnel who carries out Assessment in the Bank.
3. The FEB Team conducts Assessment and makes conclusions or assessment results.
4. The FEB team submits the Assessment results to the Ministry of SOE to be approved.
5. The Ministry of SOE determines the Assessment results.
KPKU EVALUATION CRITERIA

KPKU Version of
KPKU Performance Measurement Indicators
Perspective
Leadership, Governance, -- GCG Implementation Quality
and Social Responsibility -- Compliance Level/fulfillment of SOE portals (assets, PKBL, FIS, HR, Public)
-- Strategic Proper level of the Bank’s performance rating assessment program in environmental
management.
-- The suitability level of capital expenditure (capex) preparation with the company needs and
synchronization with MP3E
Strategic Planning -- Objective strategy development and action plan of strategy implementation.
-- Strategy Implementation
Focus on customers -- A measure that shows the Bank’s sincerity in achieving, retaining, expanding, and creating markets
and customers.
Focus on Manpower -- Workforce Capability and Capacity
-- Environment
-- Employee Development and Engagement
Effectiveness of Product and -- Percentage of business process improvement
Process -- The utilization level of production equipment
-- Risk management implementation quality
-- Measures showing the Bank’s achievements in creating value from products/services, which are
realized by appropriate operational planning
-- SOE Synergy
Finance and Market -- Profitability
-- Revenue growth
-- Efficiency/Cost
-- Market Growth
-- Market Control
KPKU ASSESSORS
The party conducting KPKU Assessment is the FEB Team and the Ministry of SOE.
KPKU ASSESSMENT RESULTS

Since MBCfPE system revision in 2015, in which the main focus of the revision result was the company's strategy, each senior
leader in the company has been required to be able to develop a route of success and guarantee the survival of the company.
Based on the assessment results, BNI's KPKU score always increases from time to time. The 2016 KPKU assessment results that
took place at the end of January 2017 succeeded in obtaining the "Emerging Industry Leader" Band Score.
ANNUAL
REPORT 2018
PERFORMANCE ASSESSMENT OF BOARD OF DIRECTORS’

GCG IMPLEMENTATION (SELF ASSESSMENT) ACCORDING BOARD OF DIRECTORS SELF ASSESSMENT RESULTS
TO PROVISIONS OF BANK INDONESIA/FINANCIAL SERVICES RELATED TO GCG IMPLEMENTATION
AUTHORITY BNI’s GCG self assessment results for December 31, 2017,
BI/FSA specifically regulates the Board of Directors’ period received a composite value of 2 (good). The positive
performance assessment based on the parameters of factors of Governance Structure, Governance Process, and
assessment criteria of the Duties and Responsibilities of Governance Outcome that are on the Board of Directors and
the Board of Directors as set forth in the self assessment outlined in the GCG Self Assessment for December 31, 2017,
provisions of GCG implementation as stipulated in Bank period are as follows:
Indonesia Circular SEOJK No. 13/SEOJK.03/2017 on 1. The Board of Directors structure is very suitable
Implementation of Governance for Commercial Bank. compared to the size and complexity of the Bank’s
business and has complied with the applicable
GCG SELF ASSESSMENT IMPLEMENTATION PROCEDURES regulations where the number of Board of Directors is
The implementation procedures of GCG Self Assessment 11 (eleven) Directors and in carrying out their duties
related to the Board of Directors' Performance are as follows: and responsibilities, the Board of Directors have very
1. The Board of Directors assigns the Bank’s Compliance satisfying integrity, competence, and knowledge.
Division (dhi. GCG unit) to carry out Self Assessment. 2. All members of the Board of Directors do not violate
2. The Compliance Division coordinates all related the provisions of concurrent positions as stipulated in
work units including coordinating with the Board of the Regulations issued by the Regulator (in this case the
Commissioners and the Remuneration and Nomination Financial Services Authority, Bank Indonesia, and other
Committee in order to carry out the Self Assessment. provisions of laws and regulations).
3. The Compliance Division proposes composite value 3. All members of the Board of Directors do not have
recommendations including positive and negative financial, management, ownership, and family
factors to be submitted to the Board of Directors and relationship with fellow members of the Board of
subsequently request for approval from the Board of Directors, Board of Commissioners, and/or Controlling
Commissioners. Shareholders.
4. The Board of Directors determines the composite 4. The Board of Directors already has a Board of Directors
value, including positive and negative factors in GCG Work Guidance Book and is updated regularly in
implementation. accordance with the applicable laws and regulations as
5. The implementation of GCG Self Assessment is well as best practices in GCG implementation.
conducted periodically every semester, which is then 5. The Board of Directors has established policies and
reported to BI/FSA to obtain approval. strategic decisions through effective and efficient Board
of Directors’ Meetings and every decision of the Board
BOARD OF DIRECTORS’ SELF ASSESSMENT CRITERIA of Directors’ Meeting is stated in the Minutes of Board of
RELATED TO GCG IMPLEMENTATION Directors’ Meeting along with the obligation to submit
The Board of Directors Self Assessment Criteria related to follow-up reports from the implementing units.
GCG implementation are divided into 3 (three) groups, 6. The Board of Directors has accounted its duty
which are Governance Structure, Governance Process, and implementation to shareholders which has been
Governance Outcome. Governance Structure consists of accepted by shareholders in the Annual GMS of 2017
16 (sixteen) indicators, Governance Process consists of 14 Fiscal Year.
(fourteen) indicators, and Governance Outcome consists of
10 (ten) indicators. BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT
THROUGH KEY PERFORMANCE INDICATOR (KPI)
GCG SELF-ASSESSORS The Board of Directors performance assessment through KPI
The parties conducting GCG Self Assessment are Board of is carried out in a 100% collegial pattern which is measured
Directors and Board of Commissioners that shall obtain based on 5 (five) KPKU's perspective and the achievement of the
approval and monitoring from BI/FSA. implementation of SOE tasks as an Agent of Developmen:
Good Corporate
Governance
Perspective No KPI Unit
Finance and Market 1 Income After Tax Trilion Rp

2 Market Cap Growth %
3 NPL Ratio %
4 Cost to Income Ratio %
KPI Based on KPKU’s Perspective
Focus on Customers 5 Customer Satisfaction Survey Result by Independent Ratings

Surveyor
6 Implementation on PAB that has already been approved by %
the Financial Services Authority
Effectiveness in Product and 7 Improvement of Digitalized Banking Products and Services %
Process
8 Growth of Branchless Banking Agent Total
9 Online Subrogation System Development for KUR Unit
Focus on Manpower 10 Employee Productivity Rp/Worker
11 Employee Engagement Survey Score
Leadership, Governance, and 12 KPKU Score Score
Social Responsibility
13 Realization of Distribution of Partnership and Community to RKAP budget %
Development Program
14 Corporate Governance Perception Index Score
Synergy among SOEs 1 Realization of Total Interest Income from SOE/Total Interest %
Income
2 Realization of DPK from SOE/Total DPK %
Agent of Development
3 )Implementation of ATM, Merah Putih EDC (OPEX Efficiency %

Downstreaming and Local 4 Improvement of Fee Based Income Trillion Rp
Content
5 Improvement of Non-Interest Income Trillion Rp
Integrated Regional Economic 6 Increase in the Total Creative House Total
Development
7 Increase in Total Village-Owned Enterprise Total
Financial Independence and 8 Financing Bank Himbara for Infrastructure Sector Trillion Rp
Value Creation
Government Assignment 9 Realization of KUR Distribution %
10 Realization of BANSOS and Tani Card %
PERFORMANCE ASSESSMENT OF COMMITTEES UNDER THE Committee members. The Board of Directors periodically
BOARD OF DIRECTORS assesses the performance of Committees under the Board of
In carrying out its management duties, the Board of Directors Directors. Throughout 2018, the performance assessment of the
establishes committees at Board of Directors’ level according committees under the Board of Directors was entirely satisfying.
to BNI’s business needs and regulatory requirements, which BOARD OF DIRECTORS’ RESIGNATION AND DISMISSAL
are expected to create operational effectiveness and efficiency, MECHANISM
including:
1. Credit Committee The mechanism of resignation and dismissal of the Board
2. Integrated Risk Management Committee of Directors is stipulated in the Company’s Articles of
3. Risk and Capital Management Committee Association, which refers to Financial Services Authority
4. Product Committee Regulation No. 32/POJK.04/2014 and Financial Services
5. Performance Management Committee Authority Regulation No. 33/POJK.04/2014, stating that:
6. Technology Management Committee 1. The GMS may dismiss members of the Board of Directors
7. Credit Policy and Procedure Committee at any time by stating the reasons.
8. Human Capital Committee 2. The reason for dismissing member of the Board of
Directors are made, in the event that based on fact, the
Assessment of members of Committees under the Board of related member of the Board of Directors:
Directors is conducted by the Board of Directors by appraising a. Does not perform/underperforms in fulfilling the
their Duties, in accordance with the Committee Charter, obligations that have been agreed upon in the
Competencies, and Skills, as well as Attendance Levels of the management contract.
ANNUAL
REPORT 2018
b. Does not perform the duties properly. e. In the event that the time period to convene GMS as
c. Violates the provisions of Articles of Association and/ referred to in item 8 letter d has passed or the GMS
or laws and regulations. cannot adopt a resolution, then such temporary
d. Engaged in action that harms the Company and/or dismissal shall become void;
State. f. The limitation of authority in item 8 letter c shall be
e. Commits action that violates ethics and/or effective since the decision of temporary dismissal
properness that must be upheld as Board of by the Board of Commissioners until:
Directors. -- There is a GMS resolution that reinforces or
f. Convicted by a Court decision that has permanent cancels the temporary dismissal in item 8 letter
legal force. d; or
g. Resigns. -- The time period in item 8 letter d has passed;
h. Other reasons considered appropriate by the GMS g. In the GMS as referred to in item 8 letter d, the
for the interests and objectives of the Company. related member of the Board of Directors is given an
3. The decision for dismissal shall be made after the related opportunity to defend him/herself.
person has had the opportunity to defend him/herself, h. Such temporary dismissal cannot be extended or
except for reasons as referred to in item 2 letter f and g. re-established for the same reasons, in the event that
4. Termination for reasons as referred to in item 2 letter d such temporary dismissal is declared void as referred
and f shall constitute dishonorable dismissal. to in item 9 letter e.
5. A member of the Board of Directors may resign from his/ i. In the event that the GMS cancels a temporary
her post before the term of office expires. In this matter, dismissal or there are circumstances as referred to in
the member of the Board of Directors who resigns must item 8 letter e, then the related member of the Board
state such intention in writing to the Company. of Directors must resume the duties properly.
6. The Company must convene GMS to resolve the j. In the event that the GMS reaffirms the temporary
resignation proposal of members of the Board of dismissal resolution, then the related member of the
Commissioners no longer than 90 (sixty) days after Board of Directors shall be dismissed going forward.
receipt of the resignation letter. k. In the event that the temporary dismissed member
7. Member of the Board of Directors who resigns before or of the Board of Directors is not present at the
after his/her term of office expires, unless due to death, GMS after being summoned in writing, then the
shall still be responsible to submit accountability for temporary dismissed member of the Board of
actions that have not been received by the GMS. Directors shall be deemed not to have exercised
8. Member of Board of Directors may be dismissed the right to defend him/herself in the GMS and has
temporarily by the Board of Commissioners by stating accepted the GMS resolution.
the reasons in the event that such member acts in
contrary to the Articles of Association or there is an ORGANS AND COMMITTEES UNDER THE BOARD
indication of doing an action that harms the Company OF COMMISSIONERS
or neglects in performing obligations or there are
compelling reasons for the Company by considering the In implementing its duties, the Board of Commissioners is
following provisions: assisted by the Secretary of the Board of Commissioners and the
a. Such temporary dismissal shall be notified in writing Supporting Committees, which are Audit Committee, Nomination
to the concerned member of the Board of Directors and Remuneration Committee, Risk Monitoring Committee, and
along with the reasons causing such action with a Integrated Governance Committee. All of these committees are
copy to the Board of Directors; chaired by Independent Commissioner. The details are as follows.
b. The notification as referred to in item 8 letter a shall
be delivered no later than 2 (two) business days after SECRETARY OF THE BOARD OF COMMISSIONERS
the determination of such temporary dismissal;
c. The temporary dismissed member of the Board of Based on BNI's Articles of Association, to facilitate its duties,
Directors is not authorized to perform Company the Board of Commissioners can be assisted by Secretary of
management in the Company’s interest in the Board of Commissioners who is appointed by the Board of
accordance with the Company’s purposes and Commissioners.
objectives nor to represent the Company, either
inside or outside court; The Secretary of BNI’s Board of Commissioners comes from
d. Within a period of no later than 90 (ninety) days outside the Bank, who is appointed and dismissed by the Board of
after such temporary dismissal, the Board of Commissioners based on the Board of Commissioners' Decision
Commissioners shall convene the GMS to withdraw Letter and is directly responsible to the Board of Commissioners.
or enforce such temporary dismissal resolution;
Good Corporate
Governance
The Secretary of BNI’s Board of Commissioners oversees the DUTIES AND RESPONSIBILITIES OF SECRETARY OF THE
Secretariat of the Board of Commissioners, which is formed and BOARD OF COMMISSIONERS
tasked with assisting and supporting the smooth activities and The Secretary of the Board of Commissioners has duties and
duties of the Board of Commissioners and in carrying out the duties, responsibilities to facilitate the duty implementation of the Board
the Secretary of the Board of Commissioners is assisted by Staff of of Commissioners in performing the supervisory function on
Secretary of the Board of Commissioners, who is from outside the policies and the course of management of the bank by the Board
company and Staff who is an internal staff of the Bank. of Directors in accordance with the applicable laws and regulations,
as well as ensuring the implementation of Good Corporate
Duty implementation of the Secretary of the Board of Governance (GCG) in each of the Bank’s business activities. Duties
Commissioners and the Secretariat of the Board of Commissioners and Responsibilities of the Secretary of the Board of Commissioners:
are guided by the Regulation of State Minister for State-Owned 1. Coordinating the duties of the Secretariat of the Board of
Enterprises No. PER-12/MBU/2012 dated August 24, 2012, on Commissioners in performing the following tasks:
Supporting Organs of the Board of Commissioners/Supervisory a. Preparing meeting, including briefing sheet of the Board
Board of State-Owned Enterprises, which among others regulates of Commissioners;
the Secretariat of the Board of Commissioners and Secretary of the b. Preparing Minutes of Board of Commissioners’ Meeting
Board of Commissioners. according to the Bank’s Articles of Association, including
attending and preparing Minutes of joint meeting of the
The Board of Commissioners have issued a Decision Letter of the Board of Commissioners and Board of Directors;
Board of Commissioners No. KEP/041/DK/2017 dated September c. Administering Board of Commissioner’s documents either
28, 2017, on Guidelines and Work Conduct of the Secretariat of the incoming letters, outgoing letters, minutes of meeting, or
Board of Commissioners, which regulates the following matters: any other documents;
1. Appointment and Position of Secretary of the Board of d. Drafting Work Plan and Budget of the Board of
Commissioners, Commissioners;
2. Term of Office of the Secretary of the Board of Commissioners e. Drafting Board of Commissioners’ Reports;
and Secretariat Staff of the Board of Commissioners who is 2. In addition to performing duties as stated in number 1 above,
from outside the bank, the Secretary of the Board of Commissioners as the head of
3. Requirements for Secretary of the Board of Commissioners, the Secretariat of the Board of Commissioners performs the
4. Remuneration of the Secretary of the Board of Commissioners following duties:
and Secretariat Staff of the Board of Commissioners who is a. Ensuring that the Board of Commissioners complies with
from outside the bank, the laws and regulations and implements Good Corporate
5. Duties of Secretariat and Secretary of the Board of Governance principles;
Commissioners, b. Providing information needed by the Board of
6. Access to and confidentiality of information, Commissioners periodically or at any time when requested;
7. Working time of the Secretary of the Board of Commissioners c. Coordinating Committee members, if necessary, to ensure
and Secretariat Staff of the Board of Commissioners who is the ease of the Board of Commissioners’ duties;
from outside the bank, d. Becoming the liaison officer between the Board of
8. Performance assessment of Secretariat of the Board of Commissioners and other parties;
Commissioners, e. Performing other duties given by the Board of
9. Prohibition of concurrent positions, Commissioners, among others but not limited to:
10. Mechanism for Coordination of the Secretariat of the Board of -- Coordinating the draft of Board of Commissioners’
Commissioners with the Corporate Secretary and committees Decision Letter;
under the Board of Commissioners. -- Coordinating study/review necessary by the Board of
Commissioners;
REQUIREMENTS OF SECRETARY OF BOARD OF -- Accompanying the Board of Commissioners
COMMISSIONERS during work visit/official travel at work units within
The Secretary of the Board of Commissioners shall fulfill the the Bank’s environment and coordinating with
following requirements: committees under the Board of Commissioners in
1. Understand SOE’s management, monitoring, and preparing the report of such work visit/official travel
development systems; of the Board of Commissioners;
2. Have good integrity; -- Accompanying the Board of Commissioners in
3. Understand secretariat function; meetings with the regulators or bank’s supervisory
4. Have the ability to communicate and coordinate properly; party related to the duties and obligations of the
5. Have sufficient time to perform the duties at the Bank. Board of Commissioners as the bank’s supervisor.
ANNUAL
REPORT 2018
3. In the framework of administration order and good Corporate governance implementation, the Secretariat of the Board of
Commissioners must ensure that documents reflecting Board of Commissioners’ activities are well-kept at the Bank.
PROHIBITION OF CONCURRENT POSITIONS FOR SECRETARY OF THE BOARD OF COMMISSIONERS

The Secretary and Secretariat Staff of the Board of Commissioners who is from outside the bank cannot hold concurrent
positions as:
1. Member of the Board of Commissioners/Supervisory Board at other SOE/Company;
2. Secretary/Secretariat Staff of the Board of Commissioners at other State-Owned Enterprise (SOE) of company;
3. Member of other committees at the Bank; and/or
4. Member of committee at other SOE/company.
PROFILE OF SECRETARY OF BOARD OF COMMISSIONERS

The Secretary of the Board of Commissioners at present is Fahrudin, who has been appointed as Secretary of BNI’s Board of
Commissioners since July 3, 2017, based on Decision Letter of the Board of Commissioners No. KEP/032/DK/2017 dated July 3,
2017.
Fahrudin
Secretary to the Board of Commissioners
Born in 1983, Graduated from Sekolah Tinggi AkuntansiNegara, Non-Degree Program in

Accounting in 2005, Bachelor of Accounting, Universitas Indonesia in 2009and Master of
Accounting, Universitas Gadjah Mada in 2012.Currently also serves as Head of Sub Analysis
and Information Presentationat the Ministry of SOEs (2015 - present), previously served as
InformationPresentation Sub Division Head at Ministry of SOEs (2014 - 2015), servedas Audit
Committee Member at PT Perkebunan Nusantara XI (Persero)(2013-2016), Secretary to the
Board of Commissioners PT PembangunanPerumahan (Persero) Tbk (April 2016-October 2017).
Secretary to the Board of Commissioners’ Competence Development

No. Training Time Place Organizer
14-15 Mei 2018
1. Excellence Supervisory Skills Jakarta Elevate-MHG
May 14-15, 2018
25-26 Oktober 2018
2. Legal for Non Legal Jakarta Value Consult
October25-26, 2018
SECRETARY TO THE BOARD OF COMMISSIONERS’ IMPLEMENTATION OF DUTIES in 2018

During 2018, the Secretary to the Board of Commissioners carried out the functions and duties to assist and support the
implementation of the duties of Board of Commissioners through the provision of information, studies and reports to the Board of
Commissioners, generally including the following matters:
1. Assisting in the preparation the Board of Commissioners’ FY 2019 Work Plan and FY 2018 Work Plan Realization Report.
2. Assisting in the preparation of Board of Commissioners’draft reports which are the obligation of the Board ofCommissioners in
accordance with the applicableregulators, among others:
a. Reports to the SOE Ministry quarterly
b. Reports to FSA
c. Reports of Board of Commissioners’ working visits
3. Monitoring, reviewing and informing the Latest legislation development to be submitted to the Board of Commissioners,
including the creation, renewal/adjustment of the Board of Commissioners’ Decrees as well as charters forcommittees under the
Board of Commissioners based on applicable rules and regulations.
4. Coordinating and organizing Board of Commissioners meetings, and Board of Commissioners meetings with Board of
Directors including preparing meeting schedules, materials, preparing and administering minutes of Board of Commissioners
Good Corporate
Governance
meetings, providing recommendations and opinions of Board of Commissioners Decree No. KEP/037/DK/2017 dated
Boardof Commissioners based on meetingsof the Board of September 14, 2017 regarding the Audit Committee Charter
Commissioners with the Boardof Directors and monitoring and Code of Conduct of PT Bank Negara Indonesia (Persero)
the follow-up of therecommendations and opinions from Tbk, with the following rules:
Board of Commissioners. 1. FSA Regulation No. 55/POJK.04/2015 dated December
5. Assisting and facilitating the duties of Committees under 23, 2015, regarding the Establishment and Work
the Board of Commissioners aspart of the Board of Guidelines of the Audit Committee.
Commissioners’ duties based on applicable laws, among 2. FSA Regulation No. 55/POJK.03/2016 dated December
others: 7, 2016, regarding Implementation of Governance for
a. Coordinating division of the committees under the Commercial Banks.
Board of Commissioners. 3. FSA Regulation No. 13/POJK.03/2017 dated March 27,
b. Coordinating and organizing meetings of committees 2017, regarding the Use of Public Accounting Services
under the Board of Commissioners, including preparing and Public Accounting Firms in Financial Service
meeting materials,preparing and administering activities.
minutes of meetings, and providing recommendations 4. State Minister for State-Owned Enterprises Regulation
and opinions on the evaluation and committee No. PER-12/MBU/2012 dated August 24, 2012, regarding
meetings to theBoard of Commissioners as input. Supporting Organsof the Board of Commissioners/
c. Monitoring the implementation of the committees’ Supervisory Board of State-Owned Enterprises.
Work Plan under the Board of Commissioners. 5. Board of Directors of PT Bursa Efek Indonesia Decree
d. Ensuring the completion of committees’ reports under No. Kep-00001/BEI/01-2014 dated January 20, 2014,
the Board of Commissioners. regarding Amendment to Regulation Number I-A
6. Carrying out administrative duties related to the smooth regarding Stock Listing and Equity-Type Securities Issued
operation of the Commissioner’s duties, namely the by the Listed Company.
management, storage and administration of minutes of
meetings of the Board of Commissioners, and meetings of Audit Committee Charter
the Board of Commissioners with the Boardof Directors, The Audit Committee Charter covers the structure andterms
as well as minutes of meetings ofCommittees under the of membership, tenure, duties and responsibilities,
Board of Commissioners, documents/correspondence of authorities, meetings of the Audit Committee, as well as
the Board ofCommissioners including preparing drafts reporting obligations on the Audit Committee executionof
ofapproval letters, and strategic input/advice of the Board of duties or activities. The Audit Committee’s Code of
Commissioners submitted to the Boardof Directors or other Conduct covers integrity, objectivity and independence,
parties. confidentiality, and competence.
7. Accompanying the Board of Commissioners official visit
to work units within the Company, andat meetings with Audit Committee Duties and Responsibilities
regulators or bank supervisorsrelated to the duties and The Audit Committee hasduties and responsibilities to:
obligations of the Board ofCommissioners. 1. Review the financial information to be published by the
Company to the public and/or authorities, such as financial
AUDIT COMMITTEE statements, projections,and other statements relating to the
Company’s financial information.
The Audit Committee is a committee formed by and 2. Review the adherence to laws and regulations relating to
responsible to the Board of Commissioners in helping carry the Company’s activities.
out the duties and functions of Board of Commissioners in 3. Provide independent opinion in the case of:
order to ensure good governance in the business activities, a. disagreements between management and the
and supervision of the duties and responsibilities of the Accounant for services rendered; and/or
Board of Directors. b. non-compliance of the public accounting firm’s audit
with applicable auditing standards.
AUDIT COMMITTEE FORMATION BASIS 4. 4. Provide recommendations to the Board of
The BNI Audit Committee was established in 2000 based on Commissioners on the appointment of a Public
the Board of Commissioners' Decree No. Kep/05/DK/2000 Accountant and Public Accounting Office to be
dated July 28, 2000 regarding the Establishment of the Audit submitted to the General Meeting of Shareholders.
Committee. The BNI Audit Committee Charter is continuously Recommendations at least consider:
refined and updated in accordance with the applicable a. Independence of Public Accountant, Public
rules and regulations’ developments/amendments and Accounting Firm and insiders of the Public
current conditions. The latest amendments to BNI Audit Accounting Firm;
Committee Charter were made in 2017 stipulated by the b. Audit scope;
ANNUAL
REPORT 2018
c. Remuneration of audit services; may be conducted bythe Audit Committee, or an

d. Expertise and experience of Public Accountant, independent partyproposed by the Audit Committee
Public Accounting Firm and Audit Team of Public and approvedby the Board of Commissioners at the
Accounting Firm; expense ofBank;
e. Methodology, techniques and audit facilities used by 9. Review and advice the Board of Commissionersregarding
the Public Accounting Firm; potential conflict of interest;and
f. Fresh eye perspectives that will be obtained 10. Maintain the confidentiality of documents, data and
through the replacement of Public Accountant, information.
Public Accounting Firm, and Audit Team from Public
Accounting Firm; In carrying out its duties and responsibilities, the
g. Potential risks for the use of audit services by the AuditCommittee takes into account the Audit Committee
same Public Accounting Firm successively for a Code of Conduct as follows:
sufficiently long period of time; and/or 1. Integrity
h. Evaluation result on the implementation of audit Audit Committee Members are committed to always
services for annual financial information by Public being consistent in thoughts, sayings andactions based
Accountant and Public Accountant Office in the on conscience and belief in essentialtruth principles. In
previous period, if any. performing their duties AuditCommittee Members:
The Audit Committee is obliged to ensure that reports on a. ashall carry out their duties honestly, diligently and
the appointment of a Public Accountant and/or Public responsibly;
Accounting Office in the framework of an audit of annual b. shall be subject to the law and make disclosures in
historical financial information attached to the document accordance with the rules of law and profession;
of appointment of a Public Accountant and/or Public c. shall practice and encourage others to act in
Accounting Office accompanied by recommendations and aprofessional manner;
considerations from the Audit Committee,shall be reported d. shall respect and support the established Visionand
to the Financial Services Authority periodically every year at Mission of BNI;
the latest 10 working days after the appointment of a Public e. shall be prohibited from intentionally becoming
Accountant and/or Public Accounting Office; part of illegal activities, or engaging inacts that
5. Evaluate the audit services for annual historical financial undermine the credibility of the Audit Committee;
information by Public Accountant and/or Public Accounting f. shall be prohibited from deliberate
Office, at least through: misrepresentation or manipulation in carrying out
a. The suitability of the audit performed by the Public the duties,responsibilities and authorities given.
Accountant and/or Public Accounting Office with the 2. Objective and Independent
applicable audit standards; The Audit Committee members provide fair and
b. adequacy of fieldwork time; balanced assessments of all relevant conditions and are
c. assessment of the scope of services provided and not affected by the personal or other interests of the
the adequacy of the quotation test; and party in expressing their opinions. In performing their
d. recommendation for improvements provided by the duties, Audit Committee Members:
Public Accountant and/or Public Accountant Office. a. shall pay attention to balance, and place the interests
The Audit Committee is obliged to ensure that the Audit of stakeholders above other interests;
Committee’s evaluation report on the execution of audit b. shall disclose all material facts which, if not disclosed,
services on annual historical financial information by may obscure the result reporting;
a Public Accountant and/or Public Accounting Office c. shall disclose if there is a relationship that hasthe
shall be reported to the Financial Services Authority potential to affect explicit judgment andcause a
periodically every 6 months after the end of the financial conflict of interest;
year; d. shall be prohibited from accepting anything
6. 6Review the execution of audits by internal auditors that may, or may potentially, affect professional
and external auditors, and overseethe implementation judgment.
of follow-up actions by the Board of Directors on the 3. Confidentiality
auditor findings, in order to provide recommendations to Audit Committee Members shall always keep the
the Boardof Commissioners; confidentiality of information that is secret and
7. Review complaints relating to the Company’s accounting confidential to the Bank in accordance with the Bank’s
and reporting process; policies and prevailing regulations. Inperforming their
8. Examine allegations of errors in decisions at the Board duties, Audit Committee Members
of Directors Meetings, or irregularities in theexecution a. shall be prudent in the use and safeguard of
of the Board of Directors’ decisions. Such inspections information obtained;
Good Corporate
Governance
b. shall be prohibited from using information AUDIT COMMITTEE MEMBERS TERM OF OFFICE
forpersonal or other purposes unless there is a legal Audit Committee term of office is as follows:
obligation or professional obligation. a. Audit Committee members term of office may not be
4. Competence longer than the Board of Commissioners term of office
Audit Committee Members use their knowledge, as stipulated in the Articles of Association and can be re-
expertise, and experience necessary to perform the tasks, elected only for the next 1 (one) period.
responsibilities, and authorities provided. In performing b. If the member of the Commissioner who is the chairman
their duties, Audit Committee Member: of the Audit Committee stops before his term of office as
a. shall perform the duties, responsibilities, and a Commissioner of the Company, the Audit Committee is
authorities given in accordance with their replaced by another Independent Commissioner.
competence;
b. shall maintain and improve their knowledge and Audit Committee Structure, Membership and
expertise sustainably. Expertise
The structure of the Audit Committee is set forth in the Audit
Audit Committee Authorities Committee Charter set by the Board of Commissioners, as
In performing its duties, the Audit Committee has the follows:
authority to: 1. The Audit Committee is established by and responsible
1. Access documents, data and information about the to the Board of Commissioners.
Company’s employees, funds, assets and resources as 2. The Audit Committee members are appointed and
required. dismissed by the Board of Commissioners.
2. Communicate directly with employees, including Board 3. The Audit Committee members shall consist of at least:
of Directors and those who performthe function of a. an independent commissioner;
internal audit, risk management and accountant related b. one independent party with expertise in finance or
to duties andresponsibilities of the Audit Committee. accounting; and
3. Involve independent parties outside of the Audit c. one independent party with expertise in law or
Committee required to assist the implementation of the banking.
duties (if required); and 4. The Audit Committee Chairman may only hold the
4. Perform other authorities granted by the Board of position of Committee Chairman in no more than 1 (one)
Commissioners. other committee.
5. Audit Committee membership comprises an
In exercising its authority, the Audit Committee works in Independent Commissioner as Audit Committee
cooperation with SPI. Chairman. In the case of more than one Independent
Commissionerbeing members of the Audit Committee,
then one of them will act as the Audit Committee
Chairman.
Table of Audit Committee Structure, Membership and Expertise

Nama/Name Jabatan/Position Keterangan/Description Keahlian/Expertise
Pataniari Siahaan Chairman Independent Commissioner Law
Ahmad Fikri Assegaf Member Independent Commissioner Law
Donnaria Silalahi Member Independent Party Banking and Technology
Lungguk Gultom* Member Independent Party Banking and Technology
*) served as member of the Audit Committee since January 2, 2018
To comply with the FSA Regulation No. 55/POJK.04/2015 dated December 23, 2015 regarding the Implementation of Good
Corporate Governance for Commercial Banks, information on the appointment and dismissal of the Audit Committee has been
submitted to Financial Services Authority at a maximum of 2 (two) days after appointment ordismissal, and has been posted
on the Securities Exchange Website and/or Bank’s Website.
ANNUAL
REPORT 2018
Audit Committee Profiles Indonesia Tbk ., Asset Management Investment Division

Audit Committee Chairman Head at the National Bank Restructuring Agency (IBRA)
PATANIARI SIAHAAN (1999-2001), and various positions with the last position as
Profile can be viewed in the Board of Commissioners section Corporate Banking Group Head at PT Bank Niaga Tbk. (1982-
1999).
Audit Committee Member
AHMAD FIKRI ASSEGAF
Profils can be viewed in the Board of Commissioners section Audit Committee Education Qualifications and
Work Experience
Audit Committee Member In general, the requirements of the Audit Committee are as
DONNARIA SILALAHI follows:
Indonesian citizen, domiciled in Jakarta. Born on September 1. Must have high integrity and good moral character,
16, 1952, 66 years old. Appointed as a Company Audit ability, knowledge, experience in accordance with the
Committee member in June 2016 based on the Decree of the line of work and ability to communicate well;
Board of Commissioners No.KEP/020/DK/2016 dated May 26, 2. Shall not be a person who works or has the authority
2016 and Decree of the Board of Commissioners No.KEP/007/ and responsibility for planning, directing, controlling,
DK/2018 dated May 24, 2018. orsupervising the activities of the company within the
last 6 (six) months unless as Independent Director;
She held several important positions in several companies, 3. Shall not be a person from a public accounting firm,
including QA & HC Operation Division Head (EVP) (2014- law firm, public appraisal services office or any other
2015) and Operational DivisionHead (EVP) (2012-2013) at parties that have provided assurance services, non-
PT Bank Savings Pensiun Nasional Tbk. and PT Bank BTPN assurance services, appraisal services and/or other
Syariah, Operational Risk Division Head (EVP) at PT BankOCBC consultingservices to the company within the last 6 (six)
NISP Tbk. (2009-2012), various positions with the last position months;
as Operation Risk Management Head (EVP) at PT Bank 4. Must understand financial statements, the Company’s
Danamon IndonesiaTbk. (2001-2009), and various positions businesses, particularly related to the service or
with the last position as System and Operation Policy Group businessactivities, audit process, risk management and
Head (VP) at PT Bank Niaga Tbk. (1984-2001). rules and regulations in capital marketsand other related
rules and regulations;
Audit Committee Member 5. Mustbe subject to the Code of Conduct set by the Audit
LUNGGUK GULTOM Committee;
Indonesian citizen, domiciled in Jakarta. Born on December 6. Shall be willing to increase their competence
30, 1954, currently 64 years old. Appointed as a member of continuously through education and training;
the Audit Committee since January 2018 based on the Decree 7. Must have at least one member who has an educational
of the Board of Commissioners No.KEP/053/DK/2017 dated background and expertise in accounting and/or finance;
December 21, 2017. 8. Shall not have a direct or indirect stake in the Company;
9. In the case of audit committee members acquiring
He holds a Bachelor’s degree in Economics,majoring in Company’s shares either directly or indirectly as a resultof
Management from Universitas Parahyangan in 1979. He held a legal event, then such shares shall be transferred to
various important positions in several companies, including another party within a maximum period of 6 (six)months
as a Member of the Board of Directors (2013-2017) and after obtaining such shares;
Member of Audit Committee and Risk Monitoring Committee 10. Shall not have affiliated with members of the Board of
(2011-2013) at PT BPD Banten Tbk, Member of the Audit Commissioners, members of the Board of Directors or
Committee and Risk Monitoring Committee at PT Bank majorshareholders of the Company; and
Commonwealth Indonesia (2011-2013), Risk Management 11. Shall not have a business relationship, directly or
and Compliance Division Head (2002-2003) and Internal indirectly related to the Company’s business activities.
Audit Division Head (2001-2002) at PT Bank Danamon
As of December 31, 2018, the Chairman and Members of the Audit Committee educational qualifications and work experiences
are as follows.
Table of Education Qualifications and Work Experiences of Audit Committee

Name Position Education Work Experience
Pataniari Chairman His education history can be viewed • His work experience can be viewed in the Board ofCommissioners
Siahaan in the Board ofCommissioners DiversityComposition section
DiversityComposition section
Good Corporate
Governance

Ahmad Fikri His education history can be viewed • His work experience can be viewed in the Board of Commissioners
Assegaf in the Board of Commissioners Diversity Composition section
Diversity Composition section
Donnaria Member • QA & HC Operation Division Head (EVP)and Operational Division
Silalahi Head (EVP) atPT Bank Tabungan Pensiun Nasional Tbk& PT Bank
BTPN Syariah
• Operational Risk Division Head (EVP) atPT Bank OCBC NISP Tbk
• Various positions with the last positionbeing Operation Risk
ManagementHead (EVP) at PT Bank DanamonIndonesia Tbk
• Various positions with the last positionbeing System and
Operation PolicyGroup Head (VP) at PT Bank Niaga Tbk
Lungguk Member Bachelor’s degree in Economy • Member of the Board of Directors as well as Member of the Audit
Gultom Committee and Risk Monitoring Committee at PT BPD Banten Tbk
• Member of the Audit Committee and Risk Monitoring Committee
at PT Bank Commonwealth Indonesia
• Risk Management and Compliance Division Head and Internal
Audit Division Head at PT Bank Danamon Indonesia Tbk
• Asset Management Investment Division Head at the Indonesian
Bank Restructuring Agency (IBRA)
• Various positions with the last position as Corporate Banking
Group Head at PT Bank Niaga Tbk
AUDIT COMMITTEE INDEPENDENCE All Members of the Audit Committee shall be independent
The independence of the Audit Committee is governed parties with no financial, management, share ownership
by the BNI Audit Committee Codeof Conducts. The Audit and/or family relationship with the Board ofCommissioners,
Committee members provide fair and balanced assessments Board of Directors and/or Controlling Shareholders or
of allrelevant conditions and are not affected by personal or relationship withthe Bank, which could affect their ability to
other parties interests inexpressing their opinions. act independently. No Member of the AuditCommittee can
be a member of other committees.
Table of Audit Committee Independence

Pataniari Ahmad Fikri Donnaria Lungguk
Independence Aspect
Siahaan Assegaf Silalahi Gultom
No financial relationships with the Board of Commissioners and Board of ü ü ü ü
Directors
No management relationships inthe company, subsidiaries or ü ü ü ü
affiliatedcompanies
No shares in the company ü ü ü ü
No family relationships withthe Board of Commissioners, Board of Directors, ü ü ü ü
and/or fellow members of theAudit Committee
Not serving on the board of politicalparty or government official ü ü ü ü
AUDIT COMMITTEE MEETING CommitteeChairman or an Independent Commissioner

The rules of Audit Committee meeting as set forth in the memberof the Audit Committee if the Audit
Audit Committee Charter are: CommitteeChairman is unable to attend.
1. The Audit Committee shall hold meetings at leastonce a 5. All meetings must be documented in the minutes of
month. meetings, signed by all members present. Any dissenting
2. Decisions can be made if attended by at least 51% (fifty opinions shall be clearly detailed in the minutes
one percent) ofthe number of members including an ofmeetings.
IndependentCommissioner and Independent Party.
3. Decisions are doneby consensus. In the event that AUDIT COMMITTEE AGENDA
deliberation can not be made,it shall be decided The dates, agendas and attendees of the Audit Committee
bymajority votes. Meetings in 2018 as follows
4. The meetings will be chaired by the Audit
ANNUAL
REPORT 2018
Table of Audit Committee Agenda

No. Date Agenda Attendees
1. January 9, 2018 • Audit Progress Fiscal Year 2017 • Pataniari Siahaan
• Ahmad Fikri Assegaf
• Donnaria Silalahi
• Lungguk Gultom
2. January 11, 2018 • Financial Statement Publication – December 31, 2017 • Pataniari Siahaan
• Lungguk Gultom
3. January 18, 2018 • Realization of Compliance Division Review up to 4th Quarter of 2017 • Pataniari Siahaan
• Compliance Division Work Plan for 2018 • Ahmad Fikri Assegaf
• Anti-Fraud Strategy Program • Donnaria Silalahi
• Whistleblowing System Program • Lungguk Gultom
• POJK No.14/POJK.03/2017 dated April 4, 2017 regarding Recovery Plan for
Systemic Banks
• Audit Committee Reports for the 2017 Annual Report
4. January 25, 2018 • Establishment of KAP Procurement HPS Review for 2018 • Pataniari Siahaan
• Lungguk Gultom
5. February 1, 2018 • Establishment of KAP Procurement HPS Review for 2018 • Pataniari Siahaan
• Realization of Facilities for Board of Directors and Board of Commissioners • Ahmad Fikri Assegaf
Review – 2018 • Donnaria Silalahi
• Lungguk Gultom
6. February 15, 2018 • DPLK Performance Review – December 31, 2017 • Pataniari Siahaan
• DPLK Risk Management Implementation Review – December 31, 2017 • Ahmad Fikri Assegaf
• Lungguk Gultom
7. February 22, 2018 • RKAT SPI Implementation of the 4th Quarter of 2017 Evaluation • Pataniari Siahaan
• Audit Results Evaluation • Ahmad Fikri Assegaf
• Follow-up on SPI Inspection • Lungguk Gultom
• Follow-up on External Auditors Examination
• Follow-up on Fraud Case Monitoring
8. March 8, 2018 • Recommendation for Appointment of KAP for Fiscal Year 201 • Pataniari Siahaan
• The Release of Land & Building Assets Review in Parepare • Ahmad Fikri Assegaf
• Lungguk Gultom
9. April 18, 2018 • Financial Statement Publication – March 31, 2018 • Pataniari Siahaan
• Lungguk Gultom
10. April 26, 2018 • Audit Progress Financial Year 2017 • Pataniari Siahaan
• Credit Card Auto Write-Off Review (Board of Commissioners Meeting) • Ahmad Fikri Assegaf
• Lungguk Gultom
11. May 17, 2018 • SPI RKAT Implementation of the 1st Quarter of 2018 Evaluation • Pataniari Siahaan
• Material SPI Findings • Ahmad Fikri Assegaf
• Follow-up on SPI Inspection • Donnaria Silalahi
• Follow-up on External Auditors Examination • Lungguk Gultom
• Compliance Function Implementation and Material Cases Development
(Board of Commissioners Meeting)
12. May 24, 2018 • SPI RKAT Implementation of the 1st Quarter of 2018 Evaluation • Pataniari Siahaan
• Material SPI Findings • Ahmad Fikri Assegaf
13. June 28, 2018 • BNI Intern Audit Function Review Year 2015-2017 • Pataniari Siahaan
• Lungguk Gultom
14. July 12, 2018 • Financial Statement Publication – June 30, 2018 • Pataniari Siahaan
• Lungguk Gultom
Good Corporate
Governance
No. Date Agenda Attendees

15. August 2, 2018 • Audit Kick Off Fiscal Year 2018 (Board of Commissioners Meeting • Pataniari Siahaan
• Lungguk Gultom
16. August 14, 2018 • SPI RKAT Implementation of the 2ndQuarter of 2018 Evaluation • Pataniari Siahaan
• Audit Result Evaluation • Ahmad Fikri Assegaf
17. September 20, • Realization of Compliance Division Review up to the 2ndQuarter of 2018 • Pataniari Siahaan
2018 • Anti-Fraud Strategy Program • Ahmad Fikri Assegaf
• Whistleblowing System Program • Donnaria Silalahi
• Lungguk Gultom
18. October 16, 2018 • Financial Statement Publication – September 2018 • Pataniari Siahaan
• Lungguk Gultom
19. November 1, 2018 • SPI RKAT Implementation of the 3rd Quarter of 2018 Evaluation • Pataniari Siahaan
• Audit Result Evaluation • Donnaria Silalahi
• Follow-up on SPI Inspection • Lungguk Gultom
• Follow-up on External Auditors Examination
20. November 8, 2018 • Review of Progress in Resolving SPI Audit Result, Recommendation for SPI & • Pataniari Siahaan
Disposition of Board of Directors of the3rdQuarter of 2018 • Donnaria Silalahi
• OJK Letter No.SR-126/PB.31/2018 dated November 1, 2018 regarding • Lungguk Gultom
Improving Effectiveness of Commissioners Duties
• KAP Procurement Preparation for Fiscal Year 2019
• Special attention for SPI Findings
21. November 22, • Audit Progress Fiscal Year 2018 (Board of Commissioners Meeting) • Pataniari Siahaan
2018 • Donnaria Silalahi
• Lungguk Gultom
22. December 4, 2018 • Realization of Compliance Division Review up to the 3rd Quarter of 2018 • Pataniari Siahaan
• Anti-fraud Strategy Program • Ahmad Fikri Assegaf
• Whistleblowing System Program • Donnaria Silalahi
• Compliance Division Work Plan Year 2019 • Lungguk Gultom
23. December 5,2018 • RKAT and SPI Audit Methodology 2019 • Pataniari Siahaan
• SPI ORSA • Ahmad Fikri Assegaf
• Lungguk Gultom
AUDIT COMMITTEE MEETING FREQUENCY AND ATTENDANCE

In 2018, the Audit Committee held 23 (twenty three) meetings, such as internal Committee meetings, joint meetings Sector
Directors and related Divisions, as well as Board of Commissioners Meetings attended by Audit Committee Members so that
substantive matters could be immediately reported to the Board of Commissioners.
The followings are the Audit Committee Meetings frequency and attendance
Name Position Number of Meetings Attendance Percentage
Pataniari Siahaan Chairman 23 23 100%
Ahmad Fikri Assegaf Member 23 18 78,26%
Donnaria Silalahi Member 23 22 95,65%

Lungguk Gultom Member 23 23 100%
BRIEF REPORT OF AUDIT COMMITTEE ACTIVITIES IN 2018

n order to carry out good management of the Company (Good Corporate Governance), the Board of Commissioners has established
an Audit Committee with reference to the prevailing regulations. The Audit Committee Duties and Responsibilities, as well as Code of
Conduct are governed by the Audit Committee Charter, and the Code of Conduct was established by the Board of Commissioners.
ANNUAL
REPORT 2018
To comply with OJK Regulation No. 55/POJK.04/2015 dated The Audit Committee reviews the audited and
December 23, 2015, BNI has posted the Audit Committee unauditedfinancial statements which will be published
Charter and other information required in the OJK Regulations in2018, to ensure that the content and disclosureof
on Bank’s Web Site. information is in accordance with accountingstandards
and applicable regulations. Evaluation ofaudit
In 2018, the Audit Committee has performed its dutiesand effectivenessby the external auditors.The Independence,
responsibilities as follows: objectivity, and adequacy of theexamination are
1. Review the financial information to be issued to the also carried out by the AuditCommittee through
public and/or the authorities. discussions with management.The Committee also
2. Review the compliance with laws and regulations related held discussions and follow-upmonitoring regarding
to the Company’s activities. the Audit findings, bothInternal and External Audit
3. Evaluate the effectiveness of the audit/ Completion, follow-up monitoring settlement of cases
servicesimplementation provided by the that occurr toaccelerate the settlement and actions
Public Accounting Firm (KAP), including necessary forany administrative sanctions. To improve
reviewingindependence and objectivity. the Bank credit quality, Audit Committee through the
4. Provide recommendations to the Board of Board of Commissioners has made recommendation to
Commissioners regarding the appointment of Public Management to thoroughly review BNI credit process.
Accountants and KAP for the audit of FiscalYear 2017. b. External Auditor
5. Review the conduct by internal auditors and external In the framework of financial statement audit per
auditors audits, and overseeing the implementation of December 31, 2018 conducted by PublicAccounting
follow-up actions by the Boardof Directors on the auditor Firm (KAP), the Audit Committeediscusses the audit plan,
findings. monitors the audit
a. Review the planning and implementation forSPI progress including findings that required
audits and consultations, as well as follow-up adjustments, evaluates internal control, including
supervision for the SPI examination results. internal control over Company financialreporting, as
b. bReview the Compliance Division’s review (KPN) well as the quality of the Company’soverall financial
planning and implementation, as well as follow-up reporting.
supervision for KPN Division review results.
c. cReview the OJK Examination, as well as follow-up To monitor the results of audits conducted by
supervision of the OJK examination results. external auditors, namely Bank Indonesia (BI)/Financial
d. dReview the execution of BPK Audits, as well as Services Authority (FSA), Badan PemeriksaKeuangan
follow-up supervision of the BPK audit results. (BPK), Pusat Pelaporan dan AnalisisTransaksi Keuangan
e. Review the execution of KAP Inspection, and follow- (PPATK), and KAP, the Audit Committee evaluates the
up supervision of KAP results (Management Letter). follow-up actions conducted by themanagement on
f. Monitor the Board of Directors and Board of the intended results from theexternal auditors audit. A
Commissioners reports preparation on theaudit review and evaluation on the external audit results was
results points. conducted by theAudit Committee at the end of 2018 as
g. Monitor the progress of employee case settlement, follows:
and follow-up of cases related to Fraud.
6. Conduct BNI Internal Control System assessment -- BI audit completion is 100% or all recommendations
a. Evaluate the Whistleblowing System (WBS). have been followed-up.
b. Evaluate the Anti-Fraud Strategy -- FSA audit completion is 93.70% with a total pending
7. Review the Company’s monthly performance report. of 87 recommendations.
8. Review Management proposals that require Board of -- BPK audit completion was 87.94% with a total
Commissioners approval. pending of 48 recommendations.
9. Prepare reports related to implementation of Audit -- PPATK audit completion is 85.71% with a total
Committee’s duties. pending of 1 recommendation.
10. Coordinate between Committees -- Management Letter KAP Purwantono, Sungkoro
& Surja (member of Ernst & Young) completion is
In fiscal year 2018, the Audit Committee through 85.71% with a total pending of 4 recommendations.
Committee meetings has discussed with related partiesthe The Audit Committee prepares an Evaluation Report
following matters: onthe Audit Service for the Annual Historical Financial
a. Management Information Year 2017 by KAP Purwantono, Sungkoro
Good Corporate
Governance
& Surja(member of Ernst & Young). To comply with five) cases. As many as 62 (sixty two) cases have been
the FSA Regulation No. 13/POJK.03/2017 dated March processed, while 33 (thirty three) cases are still in the
27, 2017regarding the Use of Public Accountant process of being resolved.
Services andPublic Accounting Firm in Financial
Services Activities,the Company has reported the Audit Employees who are proven to have committed
Committee’s violations and fraud are immediately given layoff
Evaluation Result Report to FSA in June 2018. sanctions (Termination of Employment) to 32 (thirty
c. Internal Control Unit two) employees, Demotion sanctions to 13 (thirteen)
The Audit Committee reviews the annual internal audit employees, STK sanctions (Stern Written Warning)
plan, monitors the implementation and results of the to 16 ( sixteen) employees, STE sanctions (Letter of
audit, and follows- up untilcompletion by the Company’s Reprimand) to 52 (fifty two) employees, and SP sanctions
Management. TheAudit Committee also discusses with (Development Letter) to 84 (eighty four) employees.
the InternalAudit Unit (SPI), in an effort to encourage With regard to efforts to further optimize the functions
theeffectiveness and strengthen SPI function. of the SPI, the Audit Committee has recommended to
SPI to continue to improve auditor capabilities, so that
The result of the KAP Siddharta Widjaja dan Rekan SPI auditors are expected to have adequate expertise
(KPMG) review of the SPI function for the 3-year both in banking and technology, as well as in various
period ending December 31, 2017, is concluded that industrial sectors in relation to the distribution of bank
in general the SPI function fulfills (Generally Conform) credit facilities.
the provisions in the Commercial Bank Internal Audit
Function Standards ( SPFAIB) based on Bank Indonesia d. Director of Compliance
Regulations, and in general the implementation of audit Based on the Audit Committee review on Compliance
using Information Technology has referred to the FSA Report to Banking provisions and other related
Regulations on the Application of Risk Management in legislations, the report shall be delivered in the form of
the Use of Information Technology by Commercial Banks, Duty Implementation Report of Director of Compliance.
although there are necessary improvements to some In 2018, The Bank has routinely submitted the report to
applicable regulations or standards but do not affect the the Financial Services Authority No. 46/POJK.03/2017 on
achievement of internal audit objectives in fulfilling its Implementation of Compliance Function of Commercial
responsibilities within reasonable limits. Bank. Also, the Audit Committee conducts a review
anddiscussion on the Compliance Division work
Based on RKAT SPI in 2018, the realization of the planned plan,employee cases, Whistleblowing System (WBS)
activities carried out by SPI is as follows: implementation and the application of the Anti-Fraud
No Activity Plan Realization Strategy Program.
1 General Audit 316 318
The Compliance Division work plan discussion is done to
2 Information 13 14
Technology Audit
encourage effective synergies between theCompliance
Division and SPI in conducting oversight functions,
3 Issue Audit 7 7
especially the Company’scompliance with applicable
4 In-depth Audit - 21 regulations.
5 Consultation - 8
Total 336 368 Based on the WBS reports review and evaluationin 2018,
there are93 (ninety three) reports submitted through
Based on the review and evaluation of the SPI audit WBS, consisting of 42 (forty two) reportsoutside the
follow-up up to the end of 2018, there were 143 (one WBS scope, 22 (twenty two) reports withinsufficient
hundred and forty three) follow-up actions that are evidence, 1 (one) report proven to be relatedto conflict
still in the process of completion, each consisting of 5 of interest, 2 (two) reports proven to berelated disorderly
(five) follow-up actions for the 2016 SPI audits, 106 (one conduct, 7 (seven) reports proven to be related to fraud,
hundred and six) follow-up actions for the 2017 SPI 7 (seven) reports proven to be related to violation of
audits and 32 (thirty two) follow-up actions for the 2018 law, 12 (twelve) follow-up reports still in the process of
SPI audits. completion.
Based on the review and evaluation of the employee The Anti-Fraud Strategy for the second half of
case completion process, in 2018 there are 95 (ninety- 2017was reported to FSA in January 2018 and in the first
ANNUAL
REPORT 2018
half of 2018 was reported to FSA in July 2018. In 2018, Remuneration Committee. The Nomination and
there was 2 (two) fraud cases reported as an incidental Remuneration Committee is established by the Board
reports to FSA. Based on the review and evaluation of the ofCommissioners and carries out their duties according to
Anti-Fraud Strategy in 2018, the number of internal fraud regualtions, which are as follows:
that occurred was 7 (seven) incidents and the number of 1. Minister of State-Owned EnterprisesRegulation Number
externalfraud was 1 (one). PER-12/MBU/2012 dated August 24, 2012 regarding
the Supporting Organs of the Board of Commissioners/
e. The Board of Commissioners Supervisory Board of State-Owned Enterprises.
Duties and responsibilities, as well asthe Audit 2. Financial Services Authority Regulation number 34/
Committee recommendations, havebeen periodically POJK.04/2014 dated December 8, 2014 regardingthe
reported to the Board ofCommissioners, as follows: Nomination and Issuer Remuneration Committee or
-- Review the proposed KAP appointmentand the Public Company.
Audit Committee recommendation tothe Board 3. Financial Services Authority Regulation Number45/
of Commissioners to appoint KAPPurwantono, POJK.03/2015 dated December 23, 2015regarding
Sungkoro & Surja (memberof Ernst &Young) the Implementation of CorporateGovernance in
to conduct an audit ofthe BNI Consolidated Remuneration forCommercial Banks.
Financial Statementsended December 31, 2018, 4. Financial Services Authority Circular Letter Number40/
and to reviewthe effectiveness of the Public SEOJK.03/2016 dated September 26, 2016regarding
Accounting Office Audit Services including aspects the Implementation of CorporateGovernance in
ofindependence and objectivity. Remuneration forCommercial Banks.
-- Review the Published Financial Reports. 5. Financial Services Authority Regulation Number 55/
-- Review the effectiveness of the internal POJK.03/2016 dated December 7, 2016 regarding
auditfunction with regard to realization of theImplementation of Corporate Governance
RKAT, the findings and recommendations forCommercial Banks.
including compliance audit on Internal Control, 6. Financial Services Authority Circular Letter Number
riskmanagement and corporate governance (GCG) 13/SEOJK.03/2017 dated March 17, 2017 regarding
processes. theImplementation of Corporate Governance for
-- Review the effectiveness of the follow-up onthe Commercial Banks.
completion of Internal Auditor and ExternalAuditors
(FSA, CPC, PPATK) findings. Nomination and Remuneration Committee
-- Review the Company’s monthly performance report, Charter
RBB revision proposal 2018-2020 and RBB proposal The Company has a Nomination and
2019-2021 submitted by Management. RemunerationCommittee Charter that is continually refined
-- Review Management’s proposals thatrequire the andupdated, in accordance with the developmentof
Board of Commissioners approval. rules and regulations, and current conditions. Renewal/
-- Prepare the Audit Committee Suggestionsand improvement of the BNI Remuneration andNomination
Recommendations based on the Audit Committee Charter was last conducted in
CommitteeMeeting results, and recommended 2017 as stipulated in the Decree of the Board of
to theBoard of Commissioners to submit the Commissioners of PT Bank Negara IndonesiaTbk No. KEP 030/
AuditCommittee Recommendations and Opinions to DK/2017 dated June 08, 2017 regarding the Nominationand
Management forfollow-up. Remuneration Committee Charter. The Nominationand
Remuneration Committee Charter contains:
NOMINATION AND REMUNERATION COMMITTEE 1. Legal Basis;
2. Organizational structure and Nomination and
BNI’s Board of Commissioners has formed a Nomination Remuneration Committee membership;
and Remuneration Committee to assist the Board of 3. Membership requirements;
Commissioners in relation to nomination and remuneration 4. Responsibilities;
policies. 5. Duties;
6. Rights and obligations;
NOMINATION AND REMUNERATION COMMITTEE BASIS 7. Meetings;
OF FORMATION 8. Term of office.
The Nomination and Remuneration Committee was
established in 2002 by virtue of a decision by the Board DUTIES AND RESPONSIBILITIES OF NOMINATION AND
ofCommissioners No. Kep/01/DK/2002 dated December2, REMUNERATION COMMITTEE
2002 regarding the Establishment of the Nominationand To evaluate, prepare and provide recommendationsto the
Good Corporate
Governance
Board of Commissioners regarding thenomination and Nomination and Remuneration Committee at

remuneration system/policy for the Board of least once a year.
Commissioners, Board of Directors, executive officers c. Deliver evaluation results and provide
andemployees overall. recommendations to the Board of Commissioners on:
Nomination and Remuneration Committee Duties --remuneration policy for the Board ofnDirectors
1. Related to nomination: and Board of Commissioners to be submitted to
a. Provide recommendations to the Board of the GMS.
Commissioners on: -- remuneration policy for executive officers and
-- composition of members of the employees overall to be submitted to the Board
Board of Directors and/or of Directors.
members of Board of d. Ensure that the remuneration policy is in compliance
Commissioners; with applicable regulations.
-- policies and criteria required in the Nomination e. Conduct periodic evaluations of the implementation
process; and of remuneration policies.
-- performance evaluation policy for members of f. Assist the Board of Commissioners in assessing
the Board of Directors and/or membersof the the compatibility between performance and
Board of Commissioners. remuneration received for each member of the
b. Assist the Board of Commissioners to assess Board of Directors and/or members of the Board of
the performanceof members of the Board of Commissioners.
Directors and/or members of the Board of 3. Carry out other tasks given by the Board of
Commissionersbased on benchmarks that had Commissioners related to the nomination and
been developedas an evaluation. remuneration functions.
c. Provide recommendations to the Board of 4. The procedures for duties and functions of
Commissioners regarding the capacity building Nominationand Remuneration Committee
program of members of Board of Directors and/ shall be conducted in accordance with FSA
ormembers of Board of Commissioners. Regulations governing the Nominationand
d. Provide proposals/recommendations Remuneration Committees of Commercial Banks,
forcandidates who qualify as members of the FSA Regulationsgoverning the Nomination and
Board of Directors and/or members of theBoard of RemunerationCommittee of Issuers or public company
Commissioners to the Board of Commissioners to be as well as FSA Regulations governing governance in
submitted to the GeneralMeeting of Shareholders. applicable remuneration for commercial banks.
e. e. Develop and provide recommendations to the
Board of Commissioners regarding the systems Nomination and Remuneration Committee
and procedures and/or replacement of members Responsibilities
of Board of Commissionersand members of Board Evaluate, prepare and provide recommendations to the
of Directors to the Board of Commissioners to be Board of Commissioners regarding the nomination and
submitted to the General Meeting of Shareholders. remuneration system/policy for Board of Commissioners,
f. Provide recommendations to the Board of Board of Directors, executive officers and employees overall.
Commissioners for Independent Parties to become a
member of the Audit Committee and Risk Oversight Nomination and Remuneration Committee Rights
Committee. and Obligations
2. Related to remuneration: 1. Based on a written assignment from theBoard of
a. Evaluate remuneration system/policy based Commissioners, Nomination andRemuneration
onperformance, risk, fairness against peer group,target, Committee may access the recordsor information about
and long term Bank strategy, fulfillmentof reserves as employees, funds, assets, andother resources owned by
regulated in rules and regulations andfuture potential the company relating tothe performance of its duties.
of Bank earnings. The Committee shallreport in writing the result of the
b. Develop and provide recommendations to theBoard of assignment to theBoard of Commissioners.
Commissioners regarding: 2. 2. To carry out its duties, Nomination and
-- remuneration structure; Remuneration Committee shall cooperate with the
-- remuneration policy; and HumanCapital Division and other relevant Divisions.
-- amount of remuneration; 3. 3. Nomination and Remuneration Committee,with
The structure, policies and amount of the approval of the Board of Commissioners,reserves the
remuneration for the Board of Commissioners right to appoint a third party (person or entity) to assist
and Board of Directors are evaluated by the their duties.
ANNUAL
REPORT 2018
4. 4. Members of the Nomination and Committee member ceases performing their functions.
RemunerationCommittee shall perform their duties 6. The term of office for member of Nomination and
properly andmaintain the confidentiality of all Remuneration Committee from independent party is 3
documents, dataand company information from both (three) years and this can be extended once for 2 (two)
internal andexternal parties and use them only for the years, sothe accumulation tenure in the company is for
benefit of theCommittee’s duties. amaximum of 5 (five) years, but not prejudicing therights of
5. The Nomination and Remuneration Committee, relatedto the Board of Commissioners to discharge any member of
the remuneration policy, shall take into account at least: the Committee at any time.
a. Financial performance and reserves as set forth in
the applicable legislation. NOMINATION AND REMUNERATION COMMITTEE
b. Individual job performance. STRUCTURE, MEMBERSHHIP AND EXPERTISE
c. fairness of peer groups, and The Nomination and Remuneration Committee structure and
d. Consideration of the Bank’s long-term goals and membership is set forth in the Nomination and Remuneration
strategies. Committee Charter as follows:
e. Before the end of the current financial 1. The Nomination and Remuneration Committee is
year,Nomination and Remuneration Committeeshall established by the Board of Commissioners. The Board
prepare and submit work plan and annual budget ofCommissioners can establish a separate Nomination and
to the Board of Commissionersto be set, and a Remuneration Committee.
copy of which will be deliveredby the Board of 2. The Nomination and Remuneration Committee shall act in
Commissioners to the Boardof Directors. The an independent and responsible manner reporting directly
implementation of Nomination and Remuneration to the Board of Commissioners.
Committeework plan and annual budget will be 3. Appointment of Nomination and Remuneration Committee
reportedto the Board of Commissioners. Members for the Board of Directors is based ondecisions
f. Nomination and Remuneration Committeeshall made by the Board of Commissioners.
prepare and submit reports on their 4. The Nomination and Remuneration Committee consists
tasks,responsibilities and procedures to the Boardof of at least three (3) members, namely 1 (one) Independent
Commissioners. Commissioner serving as Chairman, 1 (one) Commissioner
and 1 (one) company executiveofficer in charge of human
TERM OF OFFICE OF NOMINATION AND REMUNERATION resources, or those who occupy managerial positions below
COMMITTEE MEMBER the Board of Directorsin charge of human resources at BNI.
1. The term of office for Nomination and Remuneration 5. Nomination and Remuneration Committee Members, other
Committee member who is a Boardof Commissioners than those mentioned in point d above maycome from
member is equal to the period oftheir appointment as a other Board of Commissioners members and those from
Commissioner as determined by the General Meeting of outside BNI.
Shareholders. 6. In the event that the membership of the Nomination and
2. Nomination and Remuneration CommitteeMember who is Remuneration Committee is more than 3 (three)persons,
Board of Commissioners member shall cease if the term of committee members who are Independent Commissioners
office as amember of the Board of Commissioners ends. shall be at least 2 (two) persons.
3. If a Board of Commissioners member appointed as a 7. Other Nomination Committee members as referred to in
member of the Nomination and Remuneration Committee point e cannot come from a managerial party underthe
resigns from his/her position as Board ofCommissioners Board of Directors in charge of human resources.
member before his/her term of office is completed, then 8. The Nomination and Remuneration Committee Chairman
the said Committee member may be replaced by other will be an Independent Commissioner at BNI.
member of the Board of Commissioners. 9. The Nomination and Remuneration Committee Chairman
4. If a member of the Board of Commissioners who serves as shall not concurrently serve as chairman in morethan 1
the Nomination and Remuneration Committee Chairman (one) other committee, and may only concurrently serve as
resigns from their position as a member of the Board Committee Chairman in at most 1 (one)other committee in
of Commissioners,the Nomination and Remuneration BNI.
CommitteeChairman shall be replaced by other 10. Nomination and Remuneration Committee Members shall
memberfrom the Independent Board of Commissioners not be allowed coming from the Board ofDirectors, either in
within 30 (thirty) days at the latest. BNI or other Banks.
5. A replacement of Nomination and 11. If deemed necessary, the Committee may appoint
RemunerationCommittee member who is not from the a Secretary to the Committee with the assignment,
Boardof Commissioners shall take place no laterthan rights,powers and responsibilities established by the
60 (sixty) days after the Nomination andRemuneration Chairman of the Committee.
Good Corporate
Governance
In 2018, the structure and membership of the Nomination and Remuneration Committee underwent several changes as
explained in the table below
JANUARY 1, 2018 – APRIL 5, 2018

Name Position Description Expertise
Ahmad Fikri Assegaf Chairman Independent Commissioner Law
Wahyu Kuncoro Member Vice President Commissioner Management Economics
Revrisond Baswir Member Independent Commissioner Accounting
Pataniari Siahaan Member Independent Commissioner • Civil Engineering
• Law
Bistok Simbolon Member Commissioner Law
Joni Swastanto Member Commissioner Economics
Marwanto Harjowiryono Member Commissioner Economics
Reny Wiriandhani Member Independent Party Psychology
Ayu Sari Wulandari Member Head of Human Capital Management Division • Industrial
Engineering
• Finance
APRIL 5, 2018 – SEPTEMBER 3, 2018

Ari Kuncoro*) Chairman President Commissioner/Independent • Economics
Commissioner
Wahyu Kuncoro Vice President Commissioner • Management
Economics
Revrisond Baswir Member Independent Commissioner • Accounting
• Law
Bistok Simbolon Member Commissioner • Law
Joni Swastanto Member Commissioner • Economics
Marwanto Harjowiryono Member Commissioner • Economics
Ahmad Fikri Assegaf**) Member Independent Commissioner • Law
Reny Wiriandhani Member Independent Party • Psychology
Ayu Sari Wulandari Member Head of Human Capital Management Division • Industrial
Engineering
• Finance
Information:
*) Served as Chairman of the NRC since April 5, 2018
**) Again as a member of the NRC since April 5, 2018
SEPTEMBER 3, 2018 – SEPTEMBER 13, 2018

Ari Kuncoro Chairman President Commissioner/Independent • Economics
Commissioner
Wahyu Kuncoro Vice President Commissioner • Management
Economics
Revrisond Baswir Member Independent Commissioner • Accounting
• Law
Joni Swastanto Member Commissioner • Economics
ANNUAL
REPORT 2018

Marwanto Harjowiryono Member Commissioner • Economics
Ahmad Fikri Assegaf Member Independent Commissioner • Law
Reny Wiriandhani Member Independent Party • Psychology
Ayu Sari Wulandari*) Member Head of Human Capital Management Division • Industrial
Engineering
• Finance
Efita Praharani**) Member Head of Human Capital Management Division • Psychology
• Administration
Information:
*) Ceased serving as member of the NRC since September 3, 2018
**) Served as member of the NRC since September 3, 2018
NOMINATION AND REMUNERATION COMMITTEE PROFILE Member of Nomination and Remuneration

Committee
Brief profile of the Chairman and Members of BNI Bank Ahmad Fikri Assegaf
Nomination and Remuneration Committee as of December Profile can be viewed in the Board of Commissioners section
31, 2018 is as follows:
Nomination and Remuneration Committee Member
Nomination and Remuneration Committee Ayu Sari Wulandari
Chairman Indonesian citizen, domiciled in Bogor. Born on December
Ari Kuncoro 1, 1969. 50 years old. Appointed Member of the Company’s
Profile can be viewed in the Board of Commissioners section Remuneration andNomination Committee in January 2016
based on Board of Commissioners Decree No. KEP/002/
Member of Nomination and Remuneration DK2016 dated February 29, 2016.
Committee Holds a Bachelor’s degree in Agricultural Industrial
Wahyu Kuncoro Engineering from Institut Pertanian Bogor and obtained a
Profile can be viewed in the Board of Commissioners section Master’s degree in Applied Finance from The University of
Melbourne. Has served as Deputy Head of Small Business
Member of Nomination and Remuneration Division at PT Bank Negara Indonesia Tbk (2010-2011),
Committee Deputy Head of Small Business at PT Bank Negara Indonesia
Revrisond Baswir Tbk (2011-2012), Deputy Head of BUMN and Institutions
Profile can be viewed in the Board of Commissioners section Division at PT Bank Negara Indonesia (2012-2014), Division
Head of Market Intelligence & Portfolio at PT Bank Negara
Member of Nomination and Remuneration Indonesia (Persero) Tbk (2014-2015). Currently serving as
Committee Division Head of Human Capitalat PT Bank Negara Indonesia
Pataniari Siahaan (Persero) Tbk (January 2016-present).
Profile can be viewed in the Board of Commissioners section
Nomination and Remuneration Committee Member
Member of Nomination and Remuneration Efita Praharani
Committee Indonesian citizens, domiciled in Bekasi, West Java. Born on
Joni Swastanto September 14, 1967. 51 years old. Appointed as Nomination
Profile can be viewed in the Board of Commissioners section and Remuneration Committee Member for the Company
since September 2018 based on the Decree of the Board of
Member of Nomination and Remuneration Commissioners No. KEP/018/DK/2018 dated December 17,
Committee 2018.
Bistok Simbolon
Profile can be viewed in the Board of Commissioners section She holds a Bachelor's degree in Psychology from Universitas
Gadjah Mada and obtained a Master of Science degree in
Member of Nomination and Remuneration Administration from the University of Indonesia.
Committee She once served as the Head of Regional Banking Consumer
Marwanto Harjowiryono Leader - Jakarta Kemayoran Regional Office of PT Bank
Profile can be viewed in the Board of Commissioners section Negara Indonesia (Persero) Tbk (2016-2018), and Deputy
Good Corporate
Governance
Head in the Consumer Product Management Division of Committeemembers who are independent parties must
PT Bank Negara Indonesia (Persero) Tbk (May-September meet the following requirements:
2018). Currently she is the Head of the Human Capital a. Have no affiliation or financial relationship,
Management Division of PT Bank Negara Indonesia (Persero) management relationship, ownership and/or
Tbk (September 2018-now). family relationship with members of the Board of
Commissioners, members of the Board of Directors
Nomination and Remuneration Committee Member and/orSeries A Dwiwarna BNI Shareholders or
Reny Wiriandhani relations with BNI that may affect their ability to act
Indonesian citizens, domiciled in Jakarta. Born on April 29, independently.The definition of an Independent
1969. 49 years old. Appointed as an Independent Member Party in the Charter shall be guided by the provisions
of Nomination and Remuneration Committee since January governing theindependent committee under the
2018 based on the Decree of the Board of Commissioners No. Board of Commissioners in the prevailing laws
KEP/055/DK/2017 December 21, 2017. and regulations, inparticular Financial Services
Authority Circulars governing the Implementation
She holds a Bachelor's degree in Psychology from Universitas of Governance for CommercialBanks and Financial
Indonesia in 1995 and a Master of Human Resources Services Authority Regulations governing the
Management from Monash Univesity Melbourne, Australia. Nomination Committee and Remunerationof Issuers
She served as Head of Human Resources for Consumer Banking or Public Companies.
at Standard Chartered Bank (2004-2011), Head of Human b. Have experience related to nomination and/or
Resources at PT Bank ICBC Indonesia (2011-2015) and Head of remuneration.
Human Resources for Permata Bank (2015-2016). c. Not an employee of BNI.
d. Not concurrent as:
-- Member of the Board of Commissioners/
NOMINATION AND REMUNERATION COMMITTEE Supervisory Board in State-Owned Enterprises
EDUCATION QUALIFICATIONS AND WORK EXPERIENCE (SOEs)/other companies;
-- Secretary / staff Secretary to the Board of
Requirements for Nomination and Remuneration Committee Commissioners / Supervisory Board in SOEs /
members include: Other Companies.
1. Nomination and Remuneration Committee Members -- Other committee members in the company.
should meet the following conditions: e. The executive officer in charge of human resources
a. Have high integrity, skills, knowledge and sufficient must have knowledge of the remuneration and/
work experience in Nomination and Remuneration ornomination systems and the bank’s succession
Committee tasks, and have an understanding of plan.
banking. f. BNI shall examine the validity of all documents or
b. Have no personal interests/links that may have data supporting the fulfillment of the Independent
negative impact and conflict of interest to the Partyrequirements, including personal statements of
Company. integrity from independent parties.
c. Provide enough time to complete tasks.
d. dAble to cooperate and communicate well and As of December 31, 2018, the educational qualification
effectively. and work experience of the Chairman and Members of the
2. In addition to the requirements referred to in Remuneration and Nomination Committee are as follows.
point a above, the Nomination and Remuneration
Table of Educational Qualification and Work Experience of Nomination and Remuneration Committee
Ari Kuncoro* Chairman His Work Experience History can be seen in the • His Work Experience History can be seen in the
Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Wahyu Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Kuncoro Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Revrisond Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Baswir Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Pataniari Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Siahaan Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Joni Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Swastanto Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
ANNUAL
REPORT 2018

Bistok Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Simbolon Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Marwanto Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Harjowiryono Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Ahmad Fikri Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Assegaf Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Sigit Member His Work Experience History can be seen in the • His Work Experience History can be seen in the
Widyawan** Board of Commissioners Composition Diversity. Board of Commissioners Composition Diversity.
Ayu Sari Member Bachelor of Agriculture Industrial Engineering • BNI,Deputy Head of Small Business f
Wulandari*** Master of Finance • BNI, Division Head of Business
• BNI,Deputy Division Head of BUMN and Institution
• BNI,Deputy Division Head of Market Intelligence &
Portfolio
• BNI,Division Head of Market Intelligence & Portfolio
• BNI,Division Head of Human Capital
Efita Bachelor of Psychology • S2 Administration Sciencer - Jakarta Kemayoran.
Praharani**** Master of Administration Science • BNI, Deputy Head of Consumer Product
Management Division.
• BNI, Head of Human Capital Management Division.
Renny Member Psychology • Standard Charter Bank, Head of Human Resources

Wiriandhani for Consumer Banking.
• PT Bank ICBC Indonesia, Head of Human Resources.
• Permata Bank,Head of Human Resources.
Information:
*) Served as Chairman of NRC since April 5, 2018.
**) Served as Chairman of Nomination Remuneration Committee since September 13, 2018.
***) Ceased serving as member of Nomination Remuneration Committee since September 3, 2018.
****) Served as member of Nomination Remuneration Committee since September 3, 2018.
NOMINATION AND REMUNERATION COMMITTEE INDEPENDENCE

Nomination and Remuneration Committee members shall provide fair and balanced assessments on all relevant conditions
and shall not influenced by personal interests or any other parties in conveying their opinions.
Table of Nomination and Remunerasi Committee Independence

Ahmad
Independence Ari Wahyu Revrisond Pataniari Joni Bistok Marwanto Sigit Ayu Sari Efita
Fikri Renny
Aspect Kuncoro Kuncoro Baswir Siahaan Swastanto Sombolon Harjowiyono Widyawan Wulandari Praharani
Assegaff
No finansial √ √ √ √ √ √ √ √ √ √ √ √
affiliation with
the Board
of Directors
Commissioners
and Board of
Directors
No √ √ √ √ √ √ √ √ √ √ √ √
management
affiliation in
the company,
subsidiaries
or affiliated
companies
No shares in the √ √ √ √ √ √ √ √ √ √ √ √
company
No family √ √ √ √ √ √ √ √ √ √ √ √
affiliation with
the Board of
Commissioners,
Good Corporate
Governance
Ahmad
Independence Ari Wahyu Revrisond Pataniari Joni Bistok Marwanto Sigit Ayu Sari Efita
Fikri Renny
Aspect Kuncoro Kuncoro Baswir Siahaan Swastanto Sombolon Harjowiyono Widyawan Wulandari Praharani
Assegaff
Not serving on √ √ √ √ √ √ √ √ √ √ √ √
the board of
political party,
government
official
NOMINATION AND REMUNERATION COMMITTEE MEETINGS

1. Nomination and Remuneration Committee meetings shall be held in accordance with the needs of theCompany, at least
four (4) times a year.
2. Nomination and Remuneration Committee meetings may only be held if attended by a majority of members, with the
majority thereof being the Chairman and 1 (one) Executive Officer in charge of Human Resources, or the partyoccupying a
managerial position under the Board of Directors in charge of Human Resources.
3. The meetings shall be chaired by the Chairman, and if he/she is unable to attend the meeting, it shall be chaired by a
senior committee member appointed/agreed upon in the meeting.
4. Decision making of the meetings shall be conducted basedon consensus agreement. In the absence of consensus,
decision shall be made on the basis of majority votewith the principle of 1 (one) person 1 (one) vote.
5. If the result of voting is a tie, then the decision shall be made on the basis of amajority vote with the principle of 1
(one) person 1 (one) vote, excluding the votes from the ExecutiveOfficer of Human Resources, or the party occupying a
managerial position under the Board of Directors in charge of Human Resources.
6. The result of meeting will be recorded in the minutes ofmeeting signed by all members of the Committee and properly
documented.
7. Any dissenting opinions that occurred in the meeting shall be clearly detailed in the minutes of meeting.
8. The minutes of meeting, as referred to in item 6 above, shall be submitted in writing by Nomination and Remuneration
Committee to the Board of Commissioners.
9. Members attendance at meetings will be reported in thequarterly report and the annual report of the Nomination and
Remuneration Committee.
NOMINATION AND REMUNERATION COMMITTEE MEETING AGENDA

In 2018, NRC held 8 (eight) meetings with the explanation table as follows
.No Date Agenda Attendance

1. February 08, 2018 Report from Humab Capital’s Senior Executive Vice President (SEVP) • Ahmad Fikri Assegaf*
regarding: • Wahyu Kuncoro
• Revrisond Baswir
1. Risk Taker Material • Pataniari Siahaan
2. Update for Human Capital Architecture and Talent Management • Joni Swastanto
• Reny Wiriandhani
• Ayu Sari Wulandari****
2. 1. Proposing candidates for members of the Subsidiary’s Board of • Ahmad Fikri Assegaf*
Directors • Wahyu Kuncoro
• Revrisond Baswir
• Pataniari Siahaan
• Bistok Simbolon
• Joni Swastanto
• Marwanto Harjowiryono
3. February 15, 2018 1. Presentation of Willis Tower Watson Consultant on the Draft • Ahmad Fikri Assegaf*
of Remuneration Study of Board of Directors and Board of • Wahyu Kuncoro
Commissioners in 2018 and tantiem in 2018. • Revrisond Baswir
2. Board of Directors’ performance assessment in 2017 • Pataniari Siahaan
3. Board of Directors’ performance assessment Format and KPI in 2018 • Bistok Simbolon
4. Granting mandates and powers to the Chairman of the NRC to: • Joni Swastanto
Present, vote and recommend in a meeting with the Evaluation Team • Marwanto Harjowiryono
of prospective BNI management candidates and the signing of related • Reny Wiriandhani
documents. • Ayu Sari Wulandari****
4. March 15, 2018 1. Discussion of prospective management of the Company in the • Proxy of KNR members
context of BNI’s annual GMS to KNR Chair Ahmad Fikri
Assegaf.
ANNUAL
REPORT 2018
.No Date Agenda Attendance

5. March 20, 2018 1. Report from Humab Capital’s Senior Executive Vice President (SEVP) • Ari Kuncoro**
regarding: • Wahyu Kuncoro
a. Update for implementation of employee remuneration system • Revrisond Baswir
b. Update for improving Talent Management System • Pataniari Siahaan
• Bistok Simbolon
• Joni Swastanto
• Marwanto Harjowirjono
6. May 17, 2018 1. Report of the Senior Capital Executive Vice President (SEVP) on the • Ari Kuncoro**
system of sanctions for employees • Wahyu Kuncoro
2. Proposed remuneration of the Board of Directors on the allocation of • Revrisond Baswir
Long Term Incentive. • Joni Swastanto
7. August 16, 2018 1. Nomination system of members of the Board of Directors and Board • Ari Kuncoro**
of Commissioners • Revrisond Baswir
2. Review of senior staff with prohire status • Pataniari Siahaan
3. Proposed candidates for the President Director of the Subsidiary • Bistok Simbolon
Company • Joni Swastanto
• Efita Praharani*****
8 November 08, Review of HCA BNI Road Map based on Core Plan 2019-2023, including: • Ari Kuncoro**
2018 1. Sustainability of Human Capital Architecture (HCA) • Revrisond Baswir
• Management Talent Strategy for critical role • Pataniari Siahaan
• Leadership Program • Bistok Simbolon
• Improvement of Performance Management System • Joni Swastanto
2. Result of the 2018 Employee Engagement Survey (EES) and follow-up • Marwanto Harjowiryono
3. Work plan of Human Capital division and coordination with Corporate • Ahmad Fikri Assegaf
University Division in order to prepare the organization. • Sigit Widyawan***
• Efita Praharani*****
Information:
*) Ceased serving as Chairman of Nomination Remuneration Committee and return to being a member of Nomination Remuneration Committee since April 5,
2018.
**) Served as Chairman of Nomination Remuneration Committee since April 5, 2018.
***) Served as member of Nomination Remuneration Committee since September 13, 2018.
****) Ceased serving as member of Nomination Remuneration Committee since September 3, 2018.
*****) Served effectively as member of Nomination Remuneration Committee since September 3, 2018.
FREQUENCY AND ATTENDANCE MEETING OF NOMINATION AND REMUNERATION COMMITTEE

Frequency and attendance of Nomination and Remuneration Committee meetings can be viewed in the table below.
Table of Frequency and Attendance of Nomination and Remuneration Committee Meeting

Name Position Total Meeting Number of Meeting Percentage
Ari Kuncoro* Chairman 4 4 100%
Wahyu Kuncoro Member 6 8 75%
Revrisond Baswir Member 8 8 100%
Pataniari Siahaan Member 7 8 87,5%
Joni Swastanto Member 8 8 100%
Bistok Simbolon Member 6 8 75%
Marwanto Harjowiryono Member 7 8 87,5%
Ahmad Fikri Assegaf Member 8 8 100%
Sigit Widyawan** Member 1 1 100%
Good Corporate
Governance

Reny Wiriandhany Member 8 8 100%
Ayu Sari Wulandari*** Member 6 6 100%
Efita Praharani**** Member 2 2 100%
Information:
*) Served effectively as Chairman of Nomination Remuneration Committee since April 5, 2018.
**) Served effectively as member of the Nomination Remuneration Committee since September 13, 2018.
***) Ceased serving effectively as member of the Nomination Remuneration Committee since September 3, 2018
****) Served effectively as member of the Nomination Remuneration Committee since September 3, 2018
BRIEF REPORT ON NOMINATION ANDREMUNERATION Commissioners to be submitted to the GMS through

COMMITTEE ACTIVITIES 2018 Serie A Dwiwarna Shares including a review on
In 2018 the Nomination and RemunerationCommittee Board of Directors remuneration recommendation
implemented all the Programs/Work Plansestablished at the related to Long Term Incentive allocation.
beginning of the year in order toassist the execution of the d. Ensure that employee remuneration policy is in
Board of Commissionersduties: accordance with applicable provision by periodically
1. Implementation of nomination duties evaluating the implementation of employee
a. Conduct a review of internal candidates for remuneration policy.
BNI managers and providing suggestions/
recommendations on BNI management candidates Board of Directors Succession Policy
that meet the requirements to be proposed in To prepare for future leadership regeneration, theCompany’s
the BNI GMS through the Series A Dwiwarna internal programs have been harmonizedwith SOE Ministry
Shareholders. Regulation No. PER- 03/MBU/02/2015dated February 17, 2015
b. Conduct a review of complete requirements of BNI regarding Requirements,Procedure for Appointment and
management candidates for fit and proper test to Termination ofDirectors of SOEs. In this program potential
the Financial Services Authority. employees
c. Conducting a review of candidates for BNI subsidiary who enter the Talent Pool will have the opportunityto attend
companymanagement that will be proposed to the a training or activities related to the field ofmanagement,
Series A Dwi Warna Shareholders (Ministry of SOE). business strategy, strategic planning, riskanalysis and
d. Provide recommendations on the Capacity Building business potential, analysis of operationaland financial
Program for members of the Board of Directors and performance as well as a variety of othersimilar programs.
the Board of Commissioners.
e. Provide recommendations on Nomination System With this program, if the Company requires
of Members of the Board of Directors and Board of leadershipreplacements, the Company will apply for
Commissioners. internalcandidates from the program participants,
f. Conduct performance appraisal of members of the facilitatedby the Board of Commissioners, after
Board of Directors and the Board of Commissioners. consideringthe Nomination and Remuneration Committee
g. Review Human Capital Architecture (HCA) system. recommendations. Furthermore, the results of theinternal
h. Review Board of Directors’ Performance Appraisal candidate selection will be submitted to theMinistry of SOE
in 2017 as well as the format and Key Perfomance to conduct a fit and proper test.
indicator (KPI) of BOD performance appraisal in 2018.
i. Evaluate talent management system. RISK MONITORING COMMITTEE
j. Evaluate employee sanction system.
k. Conduct a review onpro-hire senior employees. The Risk Monitoring Committee assists the Boardof
Commissioners in carrying out the functions andduties of
2. Implementation of remuneration duties Board of Commissioners in the application of the principles of
a. Evaluate remunerationpolicies for members of the Good Corporate Governance, particularly with regard
Board of Directors andBoard of Commissioners, to risk management.
executive officials and employees overall.
b. Review of Board of Directors and Board of RISK MONITORING COMMITTEE APPOINTMENT
Commissioners remuneration 2018 and tantiem BASIS
2017 BNI’s Risk Monitoring Committee was formed in 2004 based
c. Evaluate and provide recommendation on on the Board of Commissioners Decree No. Kep/002/DK/2004
remuneration structure, policy and number for dated March 1, 2004 regarding theEstablishment of Risk
members of the Board of Directors and Board of Monitoring and ComplianceCommittee.The Risk Monitoring
ANNUAL
REPORT 2018
Committee wasestablished by the Board of Commissioners along with the policies that is required by a regulator
and carryout their duties according to regulations, as follows: that delivered member Board of Directors to
1. Ministry of State-Owned Enterprises Regulation PER-12/ obtained approval from the Board of Commissioners.
MBU/2012 dated August 24, 2012 regarding Board of 2. To review and provide opinions to the Board of
Commissioners/Supervisory Board Supporting Organs of Commissioners on the General Policy of Credit andother
State-Owned Enterprises (SOEs). policies required by the regulator submittedby the
2. Financial Services Authority Regulation Number 33/ Board of Directors to obtain approval fromthe Board of
POJK.04/2014 dated December 8, 2014 regardingBoard Commissioners:
of Directors and Board of Commissioners ofIssuers or a. To monitor the implementation of Risk Management
Public Companies. Work Unit work plan and the Risk Management
3. Financial Services Authority RegulationNumber Committee duties.
55/POJK.03/2016 dated December 7, 2016 b. Monitoring the work unit work plan integrated
regardingImplementation of Good Corporate risk management and duties integrated risk
Governance forCommercial Banks. management committee.
4. Financial Services Authority Circular Letter c. To provide recommendations to the Board
Number13/SEOJK.03/2017 dated March 17, 2017 ofCommissioners to enhance the effectiveness of risk
regardingImplementation of Good Corporate management implementation at BNI,including the
Governance for Commercial Banks. implementation of integrated risk management in
the subsidiaries.
Risk Monitoring Committee Charter
The Company’s Risk Monitoring Charter which continuously d. To provide evaluation result on risk-related regulator
refined and updated is in accordance with developments/ assessment to the Board of Commissioners.
amendments in applicable laws as well ascurrent condition. 3. Carrying out other certaintasks relatedto the function
The latest renewal/revision of BNI Risk MonitoringCommittee and scope of RiskMonitoring Committee assigned by the
Charter was carried out in 2017, asstipulated in the Board Boardof Commissioners.
of Commissioners Decree Number KEP/028/DK/2017 dated
May 18, 2017 on “Risk Monitoring Committee Charter.” Risk Monitoring Committee Authorities
The Risk MonitoringCommittee Charter includes basis of 1. Based on written assignment from the Board of
formation and implementation of tasks, goals and objectives, Commissioners, Risk Monitoring Committee can access
formation and structure, membership requirements, duties, records or information about employees, funds, assets and
powers, rights and obligations, meetings and term of office other resources owned by BNI relevant to the performance
formembers of the Risk Monitoring Committee. of its duties.The Committee shall report in writing the result
of the assignment to the Board of Commissioners.
Risk Monitoring Committee Duties and 2. Risk Monitoring Committee is authorized to conduct testing
Responsibilities and perform inspections of BNI branches/representatives/
The Risk Monitoring Committee duties and regions and business units, if necessary.
responsibilities shall be: 3. Members of Risk Monitoring Committee shall be authorized
1. To evaluate the suitability of risk managementpolicies to communicate directly with partiesrelated to Risk
and the implementation of Bank policies,which include: Monitoring Committee duties,including communicating
a. Evaluating the conformity between the bank’s risk matters related tofinancial and management information.
management policy with the implementation of 4. To carry out its duties,Risk Monitoring Committee in
other policies, including credit risk, market risk, cooperation with Risk Management Committee, Integrated
liquidity risk, operationalrisk, strategic risk, legal risk, Risk Management Committee, Risk Management Work Unit
compliance risk,and reputation risk. and relevant work units.
b. Evaluating the conformity between the integrated
risk management policy with the implementation of RIGHTS AND OBLIGATIONS OF THE RISK MONITORING
other policies, consisting of the 8 (eight),as well as COMMITTEE
insurance risk and the risk ofintra-group transactions. 1. Members of the Risk Monitoring Committee must
c. Providing recommendations to the Board carry out their duties properly by referring to the Risk
of Commissioners on the suitability of risk Monitoring Committee Charter.
management and integrated risk management 2. 2Members of the Risk Monitoring Committee from
policies to ensure that BNI has adequately managed independent parties have the right to receive
risks. honorarium from BNI, in which the amount is determined
d. Exploring and gives an opinion to the Board of by the Board of Commissioners based on the applicable
Commissioners over public policy on the other credit laws and regulations.
Good Corporate
Governance
3. Members of the Risk Monitoring Committee must

maintain the confidentiality of all documents, data, TERM OF OFFICE OF RISK MONITORING COMMITTEE
information, and everything related to the duty MEMBERS
implementation of the Risk Monitoring Committee. 1. Term of office of Risk Monitoring Committeemember who
4. Before the current fiscal year, the Risk Monitoring is Board of Commissioners member is equal to the period
Committee must prepare and submit the Annual Work of their appointmentas Board of Commissionersmember as
Plan and Budget to the Board of Commissioners for determined by GMS.
determination, in which copies of it is submitted by 2. Risk Monitoring Committee member who is also Board of
the Board of Commissioners to the Board of Directors Commissioners member shall ceaseif his/her term of office
for information. Implementation of the Annual Work as member of the Board of Commissioners ends.
Plan and Budget of the Risk Monitoring Committee is 3. If the Board of Commissioners member who serves as Risk
reported to the Board of Commissioners. Monitoring Committee Chairman resigns from his/her
5. Members of the Risk Monitoring Committee must position as member of the Boardof Commissioners, Risk
prepare and submit the report to the Board of Monitoring Committee Chairman shall be replaced by other
Commissioners, which is signed by Committee Chair and Independent Commissioner.
Committee Members as follows: 4. Term of office of independent Risk MonitoringCommittee
a. Report on each duty implementation is membershall be 3 (three) years andcan be extended once
accompanied by recommendations if deemed for 2 (two) years, sothe accumulation tenure in the company
necessary. is amaximum of 5 (five) years, but not prejudicing therights
b. Quarterly report and annual report. of the Board of Commissioners to dischargeany member of
6. Every year, the Committee through the Board of the Committee at any time.
Commissioners reports to the General Meeting of 5. Board of Commissioners, taking into account the proposal
Shareholders on the responsibilities and achievements as from Risk Monitoring CommitteeChairman, may terminate
well as other information that needs to be delivered. any independent partymember of Risk Monitoring
7. Members of the Risk Monitoring Committee are Committee if he/she does not perform the duties and
prohibited from accepting gifts or gifts of any kinds obligations as member of the committeeasstipulated in
related to their position. the appontment decreeand/or work agreement between
8. Members of the Risk Monitoring Committee must the committeemember concerned with BNI, as well as
provide sufficient time to carry out their duties and underapplicable regulations.
responsibilities optimally. 6. In the event that the member of the Board of
9. Committee members from independent parties must Commissioners whoserves as Risk Monitoring Committee
attend the Company’s working days and hours under the Chairman resigns from his/her position as member of Board
following conditions: of Commissioners, Risk MonitoringCommittee Chairman
a. At least 1 (one) day in one week according to the day shall be replaced by othermember from the Board of
and attendance schedule determined by the Board Commissioners within30 (thirty) days at the latest.
of Commissioners and/or Committee Chair, among
others, to attend the Committee Meetings and carry RISK MONITORING COMMITTEE STRUCTURE,
out other duties according to assigned duties and MEMBERSHIP AND EXPERTISE
obligations; as well as The structure and membership of Risk Monitoring Committee
b. If necessary, at the request of the Board of are as follows:
Commissioners and/or Committee Chair, Committee 1. Risk Monitoring Committee is established by decision
members from independent parties must attend the at Board of Commissioners’ meeting and in a Board of
Company or at Board of Commissioners’ Meetings Commissioners’ Decree.
or Committee Meetings, or at activities that must 2. Risk Monitoring Committee is under the coordination of
be attended by the Board of Commissioners in the Board of Commissioners and is directly responsible to
accordance with the requirements outside the day the Board of Commissioners.
and routine attendance schedule. 3. Appointment of Risk Monitoring Committee Members
10. In order to avoid overlapping duty implementation shall be conducted by Board of Directors based on
among the Committees under the Board of decision at Board of Commissioners’Meeting.
Commissioners and cooperation in the duty 4. Risk Monitoring Committee shall at least consist of:
implementation, the Risk Monitoring Committee must a. 1 (one) Independent Commissioner as concurrent as
coordinate with other Committees under the Board of chairman
Commissioners. b. 1 (one) person from an independent party
withexpertise in risk management.
c. 1 (one) person from an independent party
ANNUAL
REPORT 2018
withexpertise in finance. a. Member of the Board of Commissioners/Supervisory

5. Independent Commissioners and independentparties Board of SOE/other companies;
who are members of Risk MonitoringCommittee shall b. Secretary/Secretariat staff to the Board of
at least make up 51% (fiftyonepercent) of the total Commissioners/Supervisory Board of SOEs/other
members of RiskMonitoring Committee. companies.
6. Risk Monitoring Committee Chairman is an Independent 10. Board of Directors shall appoint and dismiss of member
Commissioner concurrent as member as stipulated in of Risk MonitoringCommittee from independent party
the decision of Board ofCommissioners’ meeting and in a based on Board of Commissioners decisionand Board of
Boardof Commissioners Decree. Commissioners’ Decree.
7. Risk Monitoring Committee Chairman may only 11. Risk Monitoring Committee Chairman shall havethe
concurrently hold 1 (one) other Committee Chairman right to propose the replacement of RiskMonitoring
position at BNI. Committee member to Board ofCommissioners if one
8. Former member of BNI Board of Directors and former of the members of the RiskMonitoring Committee ends
executive officer or party with links toBNI that may affect their term, resigns oris dismissed.
the ability to act independently,who may become an 12. Risk Monitoring Committee memberis prohibited from
independent member of Risk Monitoring Committee, being member of BNI’s Board ofDirectors or other banks.
shall be subjectto a 6 (six) month long cooling off period. 13. Risk Monitoring Committee shall work collectivelyin
The cooling off provision shall not apply to former performing its duties to assist Boardof Commissioners.
member of Board of Directors and former BNI executive 14. Risk Monitoring Committee shall be independent both
officerwhose duties are only to performa supervisory in the execution of its duties and reporting, and directly
function for at least 6 (six) months. The term “cooling responsible to Boardof Commissioners.
off” refers to the cooling off period as stipulated in FSA 15. In performing daily tasks, the Committee shall beassisted
Regulations and Circular on the Implementation of by external staff or secretary to the Committee. The
Governance for Commercial Banks. staff or secretary shall be appointed on the basis of
9. Member of Risk Monitoring Committee from decision of Board ofCommissioners Meeting and Board
independent party may not concurrently hold positions ofCommissioners’ Decree.
as:
In 2018, the structure and membership of Risk

Monitoring Committee was amended several times asexplained in the tables below:

Revrisond Baswir Chairman Independent Commissioner • Economics
Joni Swastanto Member Commissioner • Banking
Irwan Rinaldi Member Independent Party • Banking and
• Risk Management
Kartika Siwi Member Independent Party • Banking
RISK MONITOR COMMITTEE PROFILE

A brief profile of the Chairman and Members of Risk Member of Risk Monitoring Committee
Monitoring Committee as of December 31, 2018 as follows: Irwan Rinaldi
Indonesian citizen, domiciled in Jakarta. Born on July 6,
Chairman of Risk Monitoring Committee 1960. 56 years old. Appointed as Member of Company’s Risk
Revrisond Baswir Monitoring Committee in August 2016 based on Decree of
Profiles can be viewed in the Board of Commissioners section Board of Commissioners No.KEP/026/DK/2016 dated August
16, 2016.
Member of Risk Monitoring Committee
Joni Swastanto Has a Bachelor’s degree in Economics majoring inAccounting
Profiles can be viewed in the Board of Commissioners section from Universitas Andalas in 1985 and a Master’sdegree in
Management from Institut Pertanian Bogor in 1999. Served
Member of Risk Monitoring Committee as Deputy Head of Management and FinanceAccounting
Bistok Simbolon Division at PT Bank Rakyat Indonesia Tbk (2006-2013),
Profiles can be viewed in the Board of Commissioners section DivisionHead of Risk Management at PT Bank Rakyat
Good Corporate
Governance
Indonesia Tbk (2013-2016) and attaended various training, management in accordance with the requirements
such as theAssociation of Indonesian Audit Committee stipulated by Financial Services Authority
(2015), Association of Regional Development Banks/ Regulations regulating requirements for member of
Asbanda(2015), BARa Risk Forum (2016). Risk Monitoring Committee.
b. Able to work together and have the ability to
Member of Risk Monitoring Committee communicate well and effectively and provide
Kartika Siwi sufficient time to carry out duties.
Indonesian citizen, domiciled in Jakarta, born on October 11, c. Have sufficient knowledge and understanding of
1959. 59 years old. Appointed as Member of the Company's the laws and regulations in the banking sector,
Risk Monitoring Committee since January 2018 based on Capital Market, SOE and other laws and regulations,
the Decree of Board of Commissioners No. KEP/054/DK/2017 especially those relating to BNI’s operational
December 21, 2017. activities, implementation of Good Corporate
Governance and risk management.
Has a Bachelor’s degree in Economics majoring in Financial Independence Requirements
Management from Universitas Jayabaya in 1992 and Risk Monitoring Committee member from independent
obtained a Masters in Management from Universitas Gadjah parties:
Mada in 1998. Served as Deputy Head of the Information a. Shall be external party with no relation to financial,
Technology Division of PT Bank Negara Indonesia (Persero) management, share ownership and/or family
Tbk (2004-2008), Deputy Head of Internal Control Unit of PT relations with the Board of Commissioners, Board
Bank Negara Indonesia (Persero) Tbk (2009-2010), and Head of Directors and/or Series A Dwiwarna Shareholders
of Operational Division of PT Bank Negara Indonesia (Persero) or relationships with banks that can affect their
Tbk (2011-2014). ability to act independently, based on applicable
legislation.
EDUCATION QUALIFICATION AND WORK EXPERIENCE OF b. No business relationship either directly or indirectly
RISK MONITORING COMMITTEE related to BNI’s business activities.
Requirements for Member of Risk Monitoring Committee c. In the last 1 (one) year before being appointed as
shall be based on Risk Monitoring Committee Guidelines and member of Risk Monitoring Committee, he/she shall
Work Order: not work in Public Accounting Office or a consultant
1. General Requirements who provides audit services, risk management
a. Have integrity, good character and morals and services and/or non-audit consultations to BNI.
sufficient work experience related to the duties of d. Not an employee of Bank.
other committees.
b. No personal interests/relationships that can have As of December 31, 2018, educational qualifications and
negative impact and conflict of interest with BNI. work experiences of the Chairman and Members of Risk
2. Competency Requirements Monitoring Committee are as follows.
a. Have expertise, ability, knowledge and adequate
experience in economics, finance and banking or risk
Table of Education Qualification and Work Experience of Risk Monitoring Committee

Revrisond Baswir Chairman • Educational Experience can be viewed • Work Experience can be viewed on Board of
on Board of Commissioners’Composition Commissioners’Composition Diversity section
Diversitysection
Joni Swastanto Member • Educationa Experience can be viewed on • Work Experience can be viewed on Board of
Board of Commissioners’ Composition Commissioners’Composition Diversity section
Diversitysection
Bistok Simbolon Member • Educational Experience can be viewed • Work Experience can be viewed on Board of
on Boardof Commissioners’Composition Commissioners’Composition Diversity section
Diversitysection
Irwan Rinaldi Member • Bachelor’s degree in Acounting • BRI Deputy Head of Management and Finance
• Master’s degree in Management Accounting Division
• BRI Head of Risk Management Division
Kartika Siwi Member • Bachelor’s degree in Economic • Vice Head of BNI Information Technology
• Master’s degree in Management Division.
• Vice Head of BNI Internal Audit Unit.
• Head of BNI Operations Division
ANNUAL
REPORT 2018
Risk Monitoring Committee Independence and/or family relationships from Board of Commissioners,
Board of Directors and/or controlling shareholder or any
All members of Risk Monitoring Committee shall be relationships with the Bank, which may affect their ability to
independent from financial, management, share ownership act independently.
Table of Risk Monitoring Committee Independence

Independence Aspect Revrisond Baswir Joni Swastanto Bistok Sombolon Irwan Rinaldi Kartika Siwi
No financial relationship with Board √ √ √ √ √
ofCommissioners and Board of Directors
No management relationship in the √ √ √ √ √
company, subsidiaries or affiliated
companies
No shares in the company √ √ √ √ √
No family relationship with Board √ √ √ √ √
ofCommissioners, Board of Directors and/
or fellow membersof Risk Monitoring
Committee
Not serving on boards of political parties, √ √ √ √ √
government officials
of Risk Monitoring Committee members present. The

Risk Monitoring Committee Meetings principle of votes for members shall be 1 (one) person 1
1. Risk Monitoring Committee shall meet at least 1 (one) (one) vote.
time in 1 (one) month. 8. Committee meetings results shall be recorded in minutes
2. Risk Monitoring Committee Meetings shall only of meeting signed by all members of Committee present
be conducted if attended by at least 51% (fifty one and documented in accordance with the laws and
percent) of the total number of members including an regulations.
Independent Commissioner and Independent Party 9. Any dissenting opinions that occur in committee
members. meetings shall be clearly detailed in the minutes of
3. Risk Monitoring Committee meeting shall be led by Risk meeting.
Monitoring Committee Chairman or mostsenior Risk 10. Committee Meetings minutes of meeting shall
Monitoring Committee Member, if absent. be recorded by Committee Secretary, or by one
4. If deemed necessary, Risk Monitoring Committee may Committeemember who is an independent party, in the
invite other parties related to the meeting to attend Risk absence of Committee Secretary.
Monitoring Committee Meeting. 11. Committee Meetings Minutes of meeting shall be
5. Committee meetings decisions shall be made on the submitted in writing by Risk Monitoring Committee to
basis of consensus. Boardof Commissioners.
6. In the absence of consensus, decision-making shall be 12. Attendance of Committee Members at meetings shall be
based on majority votes with principle of 1 (one)person reported in the quarterly reports and annual reports of
1 (one) vote. the Committee.
7. Risk Monitoring Committee meetings decisions shall be
considered valid if approved by more than ½ (one-half )
Risk Monitoring Committee Meeting Agenda

In 2018, Risk Monitoring Committee (RMC) held 8 (eight) meetings,either internal meetings or joint meetings with related
divisions with the following agenda:
No. Date Agenda Attendance
1. February 01, 2018 KPR meeting with Enterprise Risk Management Divisionregarding • Revrisond Baswir
realization of work plan of the Enterpise Risk Management Division in • Joni Swastanto
the fourth quarter of 2017 and ERM Division’s work plan for 2018. • Irwan Rinaldi
• Kartika Siwi
2. February 22, 2018 KPR meeting with Enterprise Risk Management Divisionregarding • Revrisond Baswir
Risk Profile for Quarter IV-2017 and Bank BNI Semester Soundness • Joni Swastanto
LevelII-2017. • Bistok Simbolon
• Irwan Rinaldi
• Kartika Siwi
Good Corporate
Governance
No. Date Agenda Attendance

3. March 15, 2018 KPR meeting with Enterprise Risk Management Division, Credit • Revrisond Baswir
Administration Division, Treasury Division and Internal Control Unit • Joni Swastanto
regarding in-depth Credit Risk, Market Risk and Liquidity Risk. • Bistok Simbolon
• Irwan Rinaldi
• Kartika Siwi
4. April 26, 2018 KPR meeting with Enterprise Risk Management Division regarding • Revrisond Baswir
Quarterly Risk Profile I-2018 and evaluation of the implementation of • Joni Swastanto
Risk Management Committee’s work. • Bistok Simbolon
• Irwan Rinaldi
• Kartika Siwi
5. June 28, 2018 Meeting with Enterprise Risk Management Division, Information • Revrisond Baswir
Technology Operations Division, Legal Division, Compliance Division, • Joni Swastanto
and Information Technology Solutions & Security Division regarding key • Bistok Simbolon
issues of Operational Risk, Legal Risk and Compliance Risk. • Irwan Rinaldi
• Kartika Siwi
6. August 23, 2018 Meeting with Enterprise Risk Management Division, Strategic Planning • Revrisond Baswir
Division and Corporate Communication and Secretariat Division • Joni Swastanto
regarding Bank BNI Soundness Level, as well as Main Issues of Strategic • Bistok Simbolon
Risk and Reputation Risk. • Irwan Rinaldi
• Kartika Siwi
7. October 25, 2018 Meeting with Enterprise Risk Management Division and Subsidiary • Revrisond Baswir
Development Division regarding Integrated Risk Profile of Semester • Joni Swastanto
I-2018 with in-depth on Intra-Group Transaction Risk and Insurance Risk, • Bistok Simbolon
Report on Implementation of Integrated Risk Management Committee • Irwan Rinaldi
Meeting for Semester I-2018 and BNI Risk Profile Quarter III-2018. • Kartika Siwi
8. November 29, 2018 Joint meeting with Enterprise Risk Management Director and Bank Risk • Revrisond Baswir
Management Division regarding BNI Recovery Plan Document 2018. • Joni Swastanto
• Bistok Simbolon
• Irwan Rinaldi
• Kartika Siwi
FREQUENCY AND ATTENDANCE OF RISK MONITORING COMMITTEE MEETING

In 2018, Risk Monitoring Committee conducted 8 (eight) KPR meetings, both internal meetings and joint meetings with
divisions or units. The total attendance of each KPR member in the KPR Meeting is as shown in the table below:

Revrisond Baswir Chairman 8 8 100%
Bistok Simbolon Member 8 7 87%
Irwan Rinaldi Member 8 8 100%
Kartika Siwi Member 8 8 100%
BRIEF REPORT OF RISK MONITORING COMMITTEE ACTIVITIES IN 2018

In 2018, Risk Monitoring Committee completed all Programs/Work Plans established at the beginningof the year in order to
assist the execution of Board of Commissioners duties.Implementation of activities/duties is done through:
• KPR meetings including inviting related divisions/units.
• Review/evaluation outside the forum of meetings
Results of the meetings and monitor, review and evaluation of KPR shall be submitted to
Board of Commissioners as reports and recommendations either in writing or within Board of Commissioners Meeting forum.
The Monitoring Committee activities generally covered the following matters:

1. Soundness Level per semester and Risk Profile per Quarter.
2. Bank Business Plan 2019-2021 and BNI Corporate Plan 2019-2023.
3. Compliance Report submitted by the Compliance Director to the Board of Commissioners.
4. Credit lending to related parties submitted by Board of Directors to Board of Commissioners for approval.
5. BNI Recovery Plan Document 2018.
6. Anti-Money Laundering and Terrorism Funding Prevention (APU PPT) report.
ANNUAL
REPORT 2018
7. In-depth on the main issues of Risk Profile.

8. Request for credit consultation submitted by Board of Integrated GovernanceCommittee Duties and
Directors to Board of Commissioners. Repsonsibilities
9. BNI Financial Performance and BNI Subsidiary Company Integrated Governance Committee’s duties and
Performance. responsibilities including:
10. Work Plan and realization of Risk Management Work 1. Evaluating Integrated Governance implementation
Unit Plan, as well as the realization and result of Risk at least through assessment of adequacy of internal
Management Committee’s work plan and Integrated Risk controls, implementation of integrated compliance
Management Committee quarterly. functions and implementation of IntegratedGovernance
11. General Policy for Risk Management, Company Guidelines. In conducting theevaluation, Integrated
Guidelines for Internal Control System, as well as General Governance Committee obtains information from
Policy for Integrated Risk Management and Integrated evaluations of internal audit and compliance functions of
Capital Management. each Financial Services Institute from membersof Board
12. BNI Financial Institution Pension Funds Risk Management of Commissioners of each Financial Services Institution
Guidelines. where members are in the Integrated Governance
Committee.
INTEGRATED GOVERNANCE COMMITTEE 2. Providing recommendations to the Main EntityBoard of
Commissioners regarding the evaluationof Integrated
The Integrated Governance Committee in PT BankNegara Governance and improvement ofIntegrated Governance
Indonesia (Persero)Tbk was established based onthe legislation Guidelines.
in force, in particular with referenceto Financial Services Authority Integrated Governance Committee works collectively in
regulation No. 18/POJK.03/2014 dated November 18, 2014 carrying out its duties to assist the Main Entity Board of
regardingIntegrated Governance for Finance Conglomerateand Commissioners.
Ministry of State-Owned Enterprises No. PER-
12/MBU/12/2012 dated August 24, 2012 on Supporting Organs of Integrated Governance Committee Authorities
SOE’s Board of Commissioners/Supervisory Board. Integrated Governance Committee Authorities:
1. Integrated Governance Committee may requestan
INTEGRATED GOVERNANCE COMMITTEE APPOINTMENT explanation or the necessary information
BASIS aboutemployees, funds, assets, and other
Establishment of Integrated Government Committee resourcesrelated to the performance of its duties
for Financial Conglomerate in BNI is based on Board of to theInstitute of Financial Services in the BNI
Commissioners of PT Bank Negara Indonesia(Persero)Tbk financialconglomerate, with due regard to the
Decree No. Kep/006/DK/2015 dated June22, 2015 regarding prevailingregulations.The Committee shall report in
the Establishment of Integrated Governance Committee. writingthe result of the assignment to the Boardof
The Integrated GovernanceCommittee shall be independent Commissioners.
both in the execution of itsduties and reporting and directly 2. Members of Integrated Governance Committee shall
responsible to the Main Entity of Board of Commissioners. be authorized to communicate directly with the parties
related to the Integrated Governance Committee duties.
INTEGRATED GOVERNANCE COMMITTEE CHARTER 3. To carry out its duties, the Integrated Governance
The Company has an Integrated Governance Committee Committee can cooperate or coordinate with
Charter that is continuously refined and updated in otherCommittees under the Board of Commissioners,
accordance with progress/amendment of applicable laws aswell as relevant divisions/units/ work units on
and current conditions. The renewal/revision of the latest thenMain Entity or others in the Institute of Financial
BNI RiskMonitoring Committee Charter was carried out in Services in the BNI Financial Conglomerate.
2017,as stipulated in the Board of Commissioners Decree No. 4. Integrated Governance Committee membersnshall
KEP/044/DK/2017 dated October 12, 2017 on be independent parties who have the right to receive
The Integrated Governance Committee Charter. anhonorarium from BNI as determined by Boardof
TheIntegrated Governance Committee Charter containslegal Commissioners under the applicable rules.
basis; definition; establishment and committee structure; 5. Member of Main Entity Board of Commissioners, Member
committeemembers requirements; committee membership; of Board of Commissioners and Supervisory Board of
committee’ duties and responsibilities; committee’s Financial Services Institution who becomes Chairman/
authorities, rightsand obligations; committee member’s member of Integrated Governance Committee shall not
appointment, dismissal and term of office; and committee receive additionalincome other than income from their
meetings. office as member of Board of Commissioners/Supervisory
Good Corporate
Governance
Board Members. member of the committee as set forth in the Decree of

6. Integrated Corporate Governance CommitteeMembers appointment of committee member concerned.
shall perform their duties properly andmaintain 5. In the event that member of Main Entity Board of
confidentiality for all documents, data, information Commissioners who concurrently servesas Chairman of
and everything related to the IntegratedCorporate Integrated Corporate Governance Committee resigns
Governance Committee’s tasks used strictly only for their as member of Main Entity Board of Commissioners,
duties. the Chairman of the Committee shallbe replaced by
7. Integrated Corporate Governance Committee shallbe other member of Main Entity Independent Board of
required to evaluate the compatibility between Commissioners who is Chairman of one of Committee in
Integrated Governance policies and the implementation Main Entity within 30 (thirty) days at the latest.
of these policies, and provide recommendations to the 6. Dismissal and appointment of Committee members shall
Main Entity Board of Commissioners regarding Integrated be reported to the GMS.
Governance policies and their implementation, to ensure
that Integrated Governance managementhas been INTEGRATED GOVERNANCE COMMITTEE STRUCTURE,
conducted adequately. MEMBERSHIP AND EXPERTISE
8. Before the current financial year, Integrated Governance The structure and membership of Integrated Governance
Committee shall prepare and submit Business Plan and Committee are as follows:
Annual Budget to Main Entity Board of Commissioners 1. Integrated Governance Committee is formed based on
to be established, a copy of which is delivered by the decision of Board of Commissioners’ meeting and settled
Main Entity Boardof Commissioners to the Main Entity in a Decree of Board of Commissioners.
Board ofDirectors for their infomation. The Work Plan 2. Integrated Governance Committee shall be under the
andAnnual Budget implementation, by the Integrated coordination of Board of Commissioners and directly
Corporate Governance Committee, shall be reportedto responsible to Board of Commissioners.
the Main Entity Board of Commissioners. 3. Members of Integrated Governance Committee at least
9. Integrated Corporate Governance Committee shall consist of:
prepare and submit reports on the executionof their a. An Independent Commissioner who is the Chairman
tasks, if necessary, with recommendationto the Main of one of the committees at the Main Entity, and
Entity Board of Commissioners signedby Committee concurrently serves as member;
Chairman and Members. b. An independent Commissioner who represents and
is appointed by each Financial Services Institution in
TERM OF OFFICE OF MEMBER OF INTEGRATED the BNI Financial Conglomerate, as member;
GOVERNANCE COMMITTEE c. An independent party who serves as member. An
1. Chairman and members of Integrated Governance independent party can come from an independent
Committee shall be appointed and dismissed by Main party member of the Committee in the Main Entity;
Entity Board of Commissioners. d. Members of the Sharia Supervisory Board of
2. Member of Integrated Governance Committeewho is a Financial Service Institution that carry out
member of Main Entity Board of Commissioners or Board business activities based on Sharia principles
of Commissionersand Supervisory Board of Financial in the BNI Financial Conglomerate as members,
Services Institution: whose numbers are adjusted to the needs of BNI
a. Term of office shall be equal to the period of Financial Conglomerate as well as the efficiency
appointment as member of Board of Commissioners and effectiveness of the duties of the Integrated
or Supervisory Board stipulated by the GMS. Governance Committee.
b. Ceases by itself if the term of office as memberof 4. 4. The number and composition of Independent
Board of Commissioners or SupervisoryBoard ends. Commissioners who are members of the Integrated
3. Term of office of member of Integrated Governance Committee as referred to in point 3 letter
GovernanceCommittee member from independent party b above are adjusted to the needs of the BNI Financial
shallbe 3 (three) years, and may be renewed once for2 Conglomerate as well as the efficiency and effectiveness
(two) years so that the total term shall be a maximum of the duties of the Integrated Governance Committee
of 5 (five) years without prejudicing the right of Main taking into account the least representation of each
Entity Board of Commissioners to dismiss any committee financial services sector.
member at any time. 5. The membership of Independent Commissioner in
4. Main Entity Board of Commissioners may dismiss any Integrated Governance Committee as referred to in point
member of Integrated Governance Committee if he/ 3 above can be in the form of permanent and non-
she is deemed to have not performed his/her duties as permanent membership, in accordance with the needs
ANNUAL
REPORT 2018
of BNI Financial Conglomerate, where if necessary the Board as referred to in letter 3 above to Integrated
Main Entity can add a non-permanent membership to Governance Committee in BNI Financial Conglomerate
the Independent Commissioner who is not yet member are not considered as concurrent positions. In 2018
of Integrated Governance Committee. period, the structure and membership and expertise of
6. Membership of Independent Commissioners, Integrated Governance Committee are as explained in
Independent parties and members of Sharia Supervisory the table below.
In 2018 period, the structure and membership and expertise of Integrated Governance Committee are as explained in the table
below.
Revrisond Baswir Chairman Independent Commissioner of PT Bank Negara Economics
Indonesia (Persero) Tbk
Joni Swastanto Member Commissioner of PT Bank Negara Indonesia (Persero) Banking
Tbk
Krisna Wijaya*) Member President/Independent Commissioner of PT BNI Life Banking and Economics
Insurance
Parikesit Suprapto**) Member President/Independent Commissioner of PT BNI Life Economic Development
Insurance
Utang Ranuwijaya Member Sharia Supervisory Board of PT BNI Life Insurance Sharia Economic
Rizqullah Member Independent Commissioner PT Bank BNI Syariah Sharia Economics and Finance
General and Sharia Banking
Hasanuddin Member Sharia Supervisory Board of PT Bank BNI Syariah Sharia Economic Law
Rosa Lima Dwi Mutiari Member President/Independent Commissioner of PT BNI Banking (Credit)
Multifinance
Eddy Siswanto Member President/Independent Commissioner of PT BNI Aset Finance, tax and accounting,
Management capital market, pension fund
Suhendry Hafni**) Member Independent Commissioner of PT BNI Sekuritas Management
Setyowati Member Independent Party Risk Management & Compliance
Banking
Information:
*) Ceased as member of Integrated Governance Committee since June 26, 2018
**) Served as member of Integrated Governance Committee since December 13, 2018
INTEGRATED GOVERNANCE COMMITTEE PROFILE 2015). He has been President /Independent Commissioner
of PT BNI Life Insurance since October 2015. Other positions
Chairman of the Integrated Governance Committee to date are Director of Indonesian Banking Development
REVRISOND BASWIR Institute, Chairman of Independent Commissioner and
Profile can be viewed in the Board of Commissioners section Audit Committee of PT Adira Finance Tbk, Independent
Commissioner of PT Mahaka Radio Tbk, Member of Sharia
Member of Integrated Governance Committee Supervisory Board of PT Chubb Syariah Insurance.
JONI SWASTANTO
Profile can be viewed in the Board of Commissioners section Member of Integrated Governance Committee
PARIKESIT SUPRAPTO
Member of Integrated Governance Committee (President Commissioner/Independent of PT BNI Life
KRISNA WIJAYA Insurance) Born in 1951. Obtained a Bachelor of Economics
(President/Independent Commissioner of PT BNI Life Insurance) (1980) from the College of Industrial Management, Master of
Born in 1955. Obtained his Bachelor’s Degree in Agricultural Economic Development (1990) from Indiana University, USA,
Socioeconomic from Institut Pertanian Bogor (1980), Master’s PhDin Economic Development (1995) from the University of
Degree in Agribusiness Management from Universitas Gajah Notre Dame, USA. Member of BNI’s Integrated Governance
Mada (1990) and PhD Degree in Interdisciplinary Studies from Committee since December 2018. Previously served as an
Universitas Gajah Mada. Member of BNI’s Integrated Governance Independent Commissioner at Bank Bukopin (2013-2018),
Committee since November 2015, previously served as Deputy of Services Business in the Ministry of SOE (2010-
Board Member Commissioner/Chief ExecutiveOfficer (CEO) 2012), Deputy Minister of SOE for Banking and Financial
of Lembaga Penjamin Simpanan (2005-2007), Commissioner Industry (2008-2010) , Expert Advisor for Small Business for
of PT Bank Danamon Indonesia Tbk. (2008-2010) and Minister of SOE (2006-2008), Assistant Deputy Minister of
IndependentCommissioner of PT Bank Mandiri Tbk (2010- SOE in Finance and Development Industry Restructuring
Good Corporate
Governance
and Privatization (2002-2005), Director of Restructuring and Member of the Integrated Governance Committee
Privatization, Director General of SOE, Ministry of Finance ROSA LIMA DWI MUTIARI
(2001-2002). (President/Independent Commissioner of PT BNI
Multifinance) Born in 1956. Obtained a Bachelor’s Degree in
Member of Integrated Governance Committee Economics from Universitas Diponegoro (1980) and Master’s
UTANG RANUWIJAYA Degree from Sekolah Ilmu Ekonomi IPWI (1995). Member
(Member of Sharia Supervisory Board at PT BNI Life Insurance) of BNI Integrated Governance Committee since October
Born in 1958. Obtain a Bachelor’s degree from Syari’ah 2016. Previously held various positions from 2004 with the
IAIN “SGD” Bandung (1984), Master’s degree (S2) from IAIN last position as Head of BUMN and Government Institutions
“Syahid” Jakarta (1992), and PhDdegree from IAIN “Syahid” Division at PT Bank Negara Indonesia (Persero) Tbk. (2012-
Jakarta (1999). Member of BNI Integrated Governance 2014), Indonesian Professional CertificationAuthority,
Committee since January 2017. Previously served as Dean of Competency Assessor at Banking Profession Certification
Faculty of Sharia and Islamic Economicsof IAIN “SMH” Banten Institute (LSPP) (2012-Now), Lecturer and Credit Consultant
(2011-2015), Director of PostgraduateProgram of IAIN SMH at BNI CorporateUniversity of PT Bank Negara Indonesia
Banten (2015-2017). (Persero) Tbk. (2014-present).
Member of the Integrated Governance Committee Member of Integrated Governance Committee

RIZQULLAH EDDY SISWANTO
(Independent Commissioner of PT Bank BNI Syariah) (President/Independent Commissioner of PT BNI Asset
Born in 1957. Graduated with a Bachelor’s degree in Management) Born in 1956. Graduated with Bachelor’s
Economics from Universitas Islam Indonesia Yogyakarta in degree in Accounting from Universitas Sumatera Utara -
1982, obtained his Master’s degreein International Business Medan (1982) and Master’s degree in Finance and Banking
from University of Baldwin Wallace College, Ohio, USA in from Universitas Gadjah Mada - Yogyakarta (1993). Has tax
1986 and earned his PhD degree in Islamic Economics brevet A, B and C as well as WMI,WPPE, WPEE Capital Market
&Finance from Universitas Trisakti in 2013. Member of the certifications. Member of Integrated Governance Committee
Company’s Integrated Corporate Governance Committee since September 2017. Previously served at BNI Group from
since October 2016. He held important positions in various 1982 and from 2001-2010, as Accountant in Finance Division
companies,including Director of PT Sarana Multigriya of PT BNI Sekuritas (2001-2004), Director of Investment at BNI
Finansial (2005-2007), Head of Credit Risk Division of PT Bank Pension Fund (2004- 2006), Head of Budgeting &Financial
Negara Indonesia (Persero) Tbk. (2007--2008), Project Head Control Division at PT Bank Negara Indonesia (Persero) Tbk
of Bank Syariah Establishment of PT Bank Negara Indonesia (2006-2009), President Director of PT BNI Sekuritas (2009-
(Persero) Tbk. (2008-2010), President Director of PT Bank 2010), and President Director of PT Tri Handayani Utama
BNISyariah (2010-2012), Director of Islamic Economics & (subsidiary of Dana Pensiun BNI) (2011-present).
Finance,Postgraduate Program, Universitas Trisakti (2013-
2015), Independent Commissioner of PTAsuransi Tripakarta
(2015-2016), Independent Commissioner of PT Grha 165 , Tbk Member of Integrated Governance Committee
(2015-2017). SUHENDRY HAFNI
(Independent Commissioner of PT BNI Securities)
Member of the Integrated Governance Committee Born in 1958. He received a Bachelor's degree from UNKRIS
HASANUDDIN and Master of Management from Universitas Gadjah
(Member of Sharia Supervisory Board of PT Bank BNI Syariah) Mada in 1995. He participated in various domestic and
Born in 1961. Obtained his Bachelor’s degree in Sharia Faculty foreign seminars, including the World Bank Management
of Universitas Islam Tribhakti, Kediri in 1985, Master’s degree Audit Framework held by the Internal Audit Association
from Sharia Faculty, InstitutAgama Islam Negeri (IAIN- now in Washington, United States of America in 2012 and the
UIN) Syarif Hidayatullah, Jakarta in 1997, and completed Executive Leadership Workshop held by Marcus Evan
his PhD Program in Sharia Assessment Studies inthe same in Kuala Lumpur in 2011. In 2012, he attended the Ethic
university. Member of BNI Integrated Governance Committee and Compliance Forum seminar, held by the Ethic and
since January 2017. Served as member of LP POM-MUI Expert Compliance Forum in Shanghai. Member of Integrated
Team in 2006, currently serving as Deputy Head of National Governance Committee since December 2018. Previously
Board of Executives of National Sharia Board (BPH - DSN) MUI. held various strategic positions at BNI Group, including
Active in academic activities and served as Dean of Faculty Deputy Leader of the Institutional Financial Services Division
of Shariah IIQ, Jakarta in 1993-1997 and 1999-2002 and as of PT BNI (Persero) Tbk, Denpasar, Regional Head of PT BNI
lecturer of Islamic Law in UIN and IIQuntil now. (Persero) Tbk, Head of PT BNI Compliance Division (Persero)
Tbk, and Commissioner of PT BNI Sekuritas (2015-2018).
ANNUAL
REPORT 2018
Member of Integrated Governance Committee knowledge and experience in banking or other

SETYOWATI financial services institutions;
(Integrated Corporate Governance Committee, Independent b. Able to work together, have the ability
Party) Born in 1958. Obtained a Bachelor’s degree in tocommunicate properly and effectively, and
Economics, Universitas Diponegoro (1982). Became Member provideenough time to carry out their duties;
of Integrated Governance Committee of PT Bank Negara c. Have sufficient knowledge and understanding of
Indonesia (Persero) Tbk on November 16, 2015. Previously the principles and processes of Good Corporate
served at PT Bank Niaga 1983-2001 with the last position Governance in general, as well as laws and
as Head of Compliance Group, Commissioner of Niaga regulations in the banking sector and other financial
Securities (2000-2001) , Credit & MarketRisk Management services institutions, especially related to operational
of PT Bank Danamon (2001-2006), Head of Corporate activities of banking and other financial services
Credit Audit Department of PT Bank Mandiri (Persero) Tbk institutions.
(2006-2007), Head of Credit Risk & Policy Group of PT Bank 3. Independence Requirements
Mandiri (Persero) Tbk (2007-2009 ), Head of Policy, System Independent Members of Integrated Governance
& Procedure Group of PT Bank Mandiri (Persero) Tbk(2010- Committee:
2014), advisor at PT Bank Syariah Mandiri (2015-2017) a. Shall beexternal party who has no financial
relationship, stewardship, share ownership and/or
EDUCATIONAL QUALIFICATIONS AND WORK family relationship with Board of Commissioners,
EXPERIENCES OF INTEGRATED GOVERNANCE COMMITTEE Board of Supervisors, Board of Directors and/
Requirements for Integrated Governance Comittee or Controlling Shareholders of Financial Services
MembersiPersyaratan Umum Institutions in the BNI Financial Conglomerate, or
1. General requirements relationship with Financial Services Institutions
a. Have good integrity, character, moral and sufficient in BNI’s Financial Conglomerate that may affect
work experience related tocommittee duties; their ability to act independently. Financial
b. Have no personal interests/links that mayhave relationship, stewardship, share ownership and/or
negative impact and conflict of intereston the family relationship as referred to above shall be in
Financial Services Institutions in BNI’sFinancial accordance with applicable rules and regulations;
Conglomerate. b. Has no direct or indirect business relationship
2. Competency Requirements relating to Financial Services Insitution in BNI’s
a. Have adequate educational background, ability, Financial Conglomerats.
Table of Educational Qualifications and Work Experiences of Integrated Governance Committee

Revrisond Chairman His education history can be viewed His work experience history can be viewed in the Board
Baswir in the Board ofCommissioners ofCommissioners DiversityComposition section
DiversityComposition section
Joni Member His education history can be viewed His work experience history can be viewed in the Board of
Swastanto in the Board of Commissioners Commissioners Diversity Composition section
Diversity Composition section
Krisna Member • Bachelor of Economics • Member of Board of Commissioners/Chief Executive (CEO) of
Wijaya*) • Master of Economic Deposit Insurance Corporation
Development • Commissioner of PT Bank Danamon Indonesia (Tbk)
• PhDin Economic Development • Independent Commissioner of PT Bank Mandiri (Tbk)
• Director of Indonesian Banking Development Institute
• Independent Commissioner and Chairman of Audit Committee of
PT Adira Finance Tbk
• Independent Commissioner of PT Mahaka Radio Tbk
• Member of Sharia Supervisory Board of PT Chubb Syariah
Insurance.
Parikesit Member • Bachelor of Economics • Independent Commissioner at Bank Bukopin)
Suprapto**) • Master of Economic • Deputy for Services Business at the Ministry of SOE
Development • Deputy Minister of SOE for Banking and Financial Industry
• PhDin Economic Development • Expert Advisor for Small Business for Minister of State-Owned
Enterprises (2006-2008), Assistant Deputy Minister of SOE, Finance
and Development Industry Restructuring and Privatization
• Director of Restructuring and Privatization, Director General of
SOE, Ministry of Finance
Good Corporate
Governance

Utang Member • Bachelor of Religious Courts • Dean of Faculty of Sharia and Islamic Economics of IAIN “SMH”
Ranuwijaya • Master of Islamic Studies Banten
• PhD in Islamic Studies • Director of PostgraduateProgram of IAIN SMH, Banten
Rizqullah Member • Bachelor of Economics • General Manager of Bank BNI – London Branc, England
• Master of International Business • Regional Head of Bank BNI - East Java
• PhD in Islamic Economy and • Division Head of Bank BNI - Sharia Business Unit
Finance • Director of PT Sarana Multigriya Finansial
• Head of Bank Division, BNI Credit Risk Division
• Project Head of Establishing a Sharia Bank
• Assessor of Public Banking and Bank Risk Management
• Managing Director PT Bank BNI Syariah
• Trisakti University Program Director - Islamic Economics & Finance
Masters Program
• Independent Commissioner of PT Asuransi Tripakarta
• Independent Commissioner of PT Grha 165, Tbk
Hasanuddin Member • Diploma from Sharia • Vice Chairman of MUI Fatwa Commission
Faculty,Universitas Islam • Member of LPPOM-MUI Expert Team in 2006
Tribhakti • Member of Syariah Accounting Committee (KAS)-IAI in 2006.
• Bachelor of Sharia Faculty, IAIN • Dean of Faculty of Syariah IIQ, Jakarta in 1993-1997 and 1999-
(now UIN) 2002.
• Master of Religion in Islamic • Instructors in Islamic Law at UIN and IIQ and served as Deputy
Studies (concentration of sharia) Head of National Sharia Board (BPH-DSN) Daily Council of MUI.
from IAIN Syarif Hidayatullah • Sharia Supervisory Board at PT Bank BNI Syariah since 2010
• PhD in Islamic Studies
(focus on sharia) from IAIN
SyarifHidayatullah.
Rosa Lima Member • Bachelor of Corporate • Head of SOE Division and Government Institution at PT Bank
Dwi Mutiari Economics Negara Indonesia (Persero) Tbk.
• Master from IPWI School of • Head of Corporate Division 1 at PT Bank Negara Indonesia
Economics (Persero) Tbk
• Indonesian Professional Certification Authority
• Competency Assessor at Banking Professional Certification
Institute (LSPP)
• Lecturer and Credit Consultant at BNI Corporate University, PT
Bank Negara Indonesia (Persero) Tbk
Eddy Member • Bachelor of Accounting • Accountant in Finance Division of PT BNI Securities
Siswanto • Master of Finance and Banking • Director of Investment in BNI Pension Fund
• Head of PT BNI (Persero) Tbk. Budgeting & Financial Control
Division
• Managing Director of PT BNI Sekuritas
• President Director of PT Tri Handayani Utama (BNI Pension Fund
Subsidiary)
Suhendry Member • Bachelor of Management • Deputy Head of PT BNI (Persero) Tbk. Financial Services Division
Hafni**) • Master of Management • Head of PT BNI (Persero) Tbk
• Denpasar
• Head of Compliance Division of PT (BNI) Persero Tbk
• Commissioner of PT BNI Sekuritas
Setyowati Member • Bachelor of Economics • Head of PT Bank Niaga Compliance Group
• Commissioner of Niaga Securities
• Credit & Risk Management of PT Bank Danamon
• Head Department of Corporate Credit Audit of PT Bank Mandiri
(Persero) Tbk.
• Group Head of PT Bank Mandiri (Persero) Tbk. Credit Risk & Policy
• Group Head of PT Bank Mandiri (Persero) Tbk’s Policy, System &
Procedure
• Advisor at PT Bank Syariah Mandiri
Information:
ANNUAL
REPORT 2018
INTEGRATED GOVERNANCE COMMITTEE INDEPENDENCE Commissioners, Board of Directors and/or controlling

Member of Integrated Governance Committee coming from Shareholders or relations with the Bank, which can affect
independent party shall not have financial, management, their ability to act independently.
share ownership and/or family relations with Board of
Table of Integrated Governance Committee Independence
Rosa
Revrisond Joni Krisna Parikesit Utang Eddy Suhendry
Independence Aspect Rizqullah Hasanuddin Lima Dwi Setyowati
Baswir Swastanto Wijaya*) Suprapto**) Ranuwijaya Siswanto Hafni**)
Mutiari
No financial √ √ √ √ √ √ √ √ √ √ √
relationship
with Board of
Commissioners
and Board of
Directors
Nomanagement √ √ √ √ √ √ √ √ √ √ √
relationship
in companies,
subsidiaries
or affiliated
companies
No shares √ √ √ √ √ √ √ √ √ √ √
ownership in the
Company
No family √ √ √ √ √ √ √ √ √ √ √
relationship
with Board of
Commissioners,
Board of
Directors and/or
fellow members
of Integrated
Governance
Committee
Not serving √ √ √ √ √ √ √ √ √ √ √
as political
party manager,
government
official
Information:
INTEGRATED GOVERNANCE COMMITTEE MEETINGS event that independent Commissioners are unable to
1. Integrated Governance Committee shall hold meetings attend Integrated Governance Committeemeeting, other
of at least 1 (one) time per semester. Commissioners who are not members of Integrated
2. Integrated Corporate Governance Meeting may only be Governance Committee or officials ofthe respective
held if it is attended by at least 51% (fifty one point per Financial Services Institutions may be required to
one hundred) of the total members. attend the meeting by filling out the attendance list
3. Integrated Governance Committee meeting is chaired of the meeting, but are not counted in the quorum
by the Chairman of Integrated GovernanceCommittee of attendance andthe votes to reach decisions at the
or the most senior member of Integrated Governance meeting.
Committee if the Chairman of Integrated Governance 6. Decisions of the Committee meetings shall be based on
Committee is absent. consensus deliberation.
4. If deemed necessary, Integrated Governance Committee 7. In the absence of consensus deliberation, decision-
may invite other parties related to the agenda/discussion making is based on the majority of votes. Meeting
of the meeting to attend Integrated Governance decisions are considered valid if approved by
Committee Meeting. more than (one-half ) the number of members of
5. The committee meeting shall be attended by each IntegratedGovernance Committee present. The votes
Independent Commissioner of the Financial Services of members of the Committee shall be based onthe
Institution in the BNI Financial Conglomerate who are principle 1 (one) person 1 (one) vote.
members of Integrated Governance Committee. In the 8. Committee meetings may be conducted through
Good Corporate
Governance
teleconferencing media, video conferences, or other means of electronic media.

9. The result of meetings shall be recorded in minutes of meetings signed by all Committee members present and be
properly documented.
10. Dissenting opinions that occur at the meetings will be clearly stated in the minutes of meeting along with the reasons for
the dissent.
11. Attendance of Committee members at meetings will be reported in committee quarterly reports and annual reports.
INTEGRATED CORPORATE GOVERNANCE COMMITTEE MEETING AGENDA

In 2018, the Integrated Governance Committee has conducted 5 (five) meetings, both internal meetings and meetings by
inviting relevant Directors or Divisions/Units. The agenda of 2018 Integrated Governance Committee meeting is as follows.
Table of Integrated Governance Committee Meeting Agenda

No. Date Agenda Attendee
1. January 25, 2018 Compliance Division (KPN) and Internal Control Unit (SPI) 1. Revrisond Baswir
Presentation: 2. Joni Swastanto
1. Problems and Improvements to Integrated Compliance 3. Krisna Wijaya
Function 4. Utang Ranuwijaya
2. Follow-up to FSA Recommendations 5. Rizqullah
3. Adequacy, Methodology and Problems of Integrated 6. Hasanuddin
Internal Control based on the Integrated Internal Audit 7. Rosa Lima Dwi Mutiari
Results 8. Eddy Siswanto
9. Suhendry Hafni*)
10. Setyowati
2. April 12, 2018 BNI Compliance Director Presentation: 1. Revrisond Baswir
1. Integrated Risk Profile 2. Krisna Wijaya
2. Integrated Risk Appetite Statement, Limit All Integrated 3. Utang Ranuwijaya
Exposures and Stress Tests 4. Rizqullah
3. Results of the Self Assessment of Integrated Management 5. Rosa Lima Dwi Mutiari
Evaluation in Semester II/2017 6. Eddy Siswanto
7. Suhendry Hafni*)
8. Setyowati
3. May 24, 2018 BNI Finance Director PresentationI: 1. Revrisond Baswir
1. Financial Performance of Subsidiary Companies in Quarter 2. Joni Swastanto
I/2018 3. Krisna Wijaya
2. Subsidiary Business Development Strategy 4. Rizqullah
5. Hasanuddin
6. Rosa Lima Dwi Mutiari
7. Eddy Siswanto
8. Suhendry Hafni*)
9. Setyowati
4. August 30, 2018 1. SPI Presentation: FSA Recommendation Follow-Up 1. Revrisond Baswir
Progress related to Integrated Governance 2. Joni Swastanto
2. Corporate Communication & Secretariat Division (KMP) 3. Parikesit Suprapto**)
Presentation: Review of Integrated Governance Policy 4. Rizqullah
Guidelines 5. Rosa Lima Dwi Mutiari
6. Eddy Siswanto
7. Suhendry Hafni*)
8. Setyowati
5. November 1, 2018 1. Subsidiary Development Division (PPA) Presentation: 1. Revrisond Baswir
Quarterly/2018 Subsidiary Company Performance 2. Joni Swastanto
2. Internal TKT Committee: 2019 Integrated Governance 3. Parikesit Suprapto**)
Committee Work Program 4. Rizqullah
5. Hasanuddin
6. Rosa Lima Dwi Mutiari
7. Eddy Siswanto
8. Suhendry Hafni*)
9. Setyowati
Information:
*) Present as a representative of PT BNI Sekuritas
**) Present as a representative of PT BNI Life
ANNUAL
REPORT 2018
FREQUENCY AND ATTENDANCE LEVEL OF MEETINGS OF INTEGRATED GOVERNANCE COMMITTEE

In 2018, Integrated Governance Committee has conducted 5 (five) meetings, both internal meetings and meetings by inviting
relevant Directors or Divisions/Units. With the change in membership in 2018, the percentage of attendance of each member
of Integrated Governance Committee as shown in the table below is adjusted to the effective time as member of Integrated
Governance Committee.
Table of Attendance Level of Integrated Governance Committee Meeting

Revrisond Baswir Chairman 5 5 100%
Krisna Wijaya*) Member 3 3 100%
Parikesit Suprapto**) Member - - -
Utang Ranuwijaya Member 5 2 40%
Rizqullah Member 5 5 100%
Hasanuddin Member 5 3 60%
Rosa Lima Dwi Mutiari Member 5 5 100%
Eddy Siswanto Member 5 5 100%
Suhendry Hafni**) Member - - -
Setyowati Member 5 5 100%
Information:
**) Served as member of the Integrated Governance Committee since December 13, 2018
BRIEF REPORTON INTEGRATED GOVERNANCE COMMITTEE ACTIVITIES 2018
In 2018, Integrated Governance Committee has implemented all programs/work plans that have been established in order to
assist the implementation of Board of Commissioners' duties by monitoring, reviewing/providing advice on matters relating to the
functions and duties of Integrated Governance Committee through conducting internal meetings and discussions with relevant
Directors or Divisions/units and by conducting reviews/evaluations as well as discussions with related divisions/units outside the
meeting forums where the results are submitted to Board of Commissioners as a report either in writing or in a forum meeting
the results of which are submitted to Board of Commissioners as a report, either in writing or in a forum meeting of Board of
Commissioners.
In 2018, Integrated Corporate Governance Committee conducted the following activities:

1. Reviewing and discussing subsidiaries’ performance following the company’s growth strategy in line withPT Bank Negara
Indonesia (Persero)Tbk vision to be a financial institution that excels in service andperformance, so that corporate plan of
subsidiaries are integrated with corporate plan of parent company.
2. Encouraging the improvement of synergy of subsidiaries as part of BNI Group, including synergy in terms financing
cooperation, sharing “know your customer” information, exploration of prospective new products and optimization of
business opportunities from PT Bank Negara Indonesia (Persero) Tbk as parent company.
3. Evaluating implementation of Integrated Governance covering the adequacy of integrated internal control; integrated
compliance functions; Integrated Governance Guidelines; integrated risk management, and subsidiary performance.
4. Evaluating implementation of Integrated Governance Policy and Integrated Risk Management Policy.
5. Evaluating the adequacy of methodology and integrated internal control problems based on the results of integrated
audit.
6. Evaluating integrated risk profile, integrated risk appetite, limits on all integrated exposures and integrated stress tests.
7. Encouraging the acceleration of BNI Incorporated, so the impact on the profitability of each subsidiary, accompanied by
risk control, fulfillment of quality human resources and good governance.
8. Discussing and recommending settlement of the issues raised in the company’s subsidiariesand improvement of
integrated compliance function.
9. Reviewing and ensuring Integrated Governance Report to FSA identifies strengths andweaknesses of implementation of
integrated governance and ensures the weaknesses that exist havecreated an action plan/improvement measures.
10. Preparing an Evaluation Report on the Application of Integrated Governance to Board of Commissioners.
Good Corporate
Governance
11. Reviewing and revising/updating Integrated Governance communication program to all stakeholders, including
Policy Guidelines. Financial Services Authority, Indonesia Stock Exchange
12. Reviewing and monitoring financial performance of and public at large.Corporate Secretary shall has access to
subsidiaries in the context of achieving business targets relevant information and material relating to the Company
as a result of integrated governance. and control of capital market legislation, especially with
13. Reviewing the subsidiary companies proposal for regard to information disclosure.
additional capital for BNI Syariah, acquisition of BNI
Asset Management shares, and additional credit to BNI CORPORATE SECRETARY APPOINTMENT BASIS
Multifinance. Regulations used in the formation, recruitment, and
14. Promoting joint commitment for all commissioners of implementation of the CorporateSecretary, include:
subsidiary companies and all members of Integrated 1. BNI’s Articles of Association.
Governance Committee that monitoring should be based 2. FSA Regulation No. 35/POJK.04/2014 regarding
on the context of risks to main entities. Corporate Secretary of Issuers of Public Company.
15. Monitoring and ensuringFSA findings have been 3. Decree of PT. Bursa Efek Indonesia’s Board of Directors
followed up and provide ecommendations for No. Kep-00001/BEI/01-2014 regarding Amendments to
improvements related to human resources, database Law No. I-A: regarding Registration of Shares and Equity
needs, complete rules including conflicts of interest. In addition to Shares Issued by the Listed Company.
16. Ensuring that subsidiaries has anticipated changes in 4. Ministry of SOE Regulation No. PER-01/MBU/2011
external conditions, namely the fluctuation of rupiah regarding Implementation of Good Corporate
exchange rate and the digital era which is currently Governance (GCG) in SOE, as amended by PER-09/
becoming a trend and developing in the community. MBU/2012.
17. Conducting a review of the effectiveness of internal 5. Law No.19 Year 2003 on State-Owned Enterprises.
controls carried out by Integrated Governance 6. Decree of Ministry of SOE KEP117/M-MBU/2002 dated
Committee. July 31, 2002.
18. Reviewing the revisions to Integrated Risk Management 7. Decision of BEJ’s Board of Directors No. 339/BEJ/07-
Policy and Integrated Capital Management. 2001 dated July 20, 2001 regarding Amendment to
19. Performing duties of Integrated Governance Committee Provision letter C.2.e Listing Rule Number I-A: regarding
quarterly to Board of Commissioners. General Provision on the Registration of Equity Securities
20. Developing a working program for Integrated Exchange.
Governance Committee in 2019 with a focus on: 8. Regulation No.IX.I.4 Decree of Bapepam Chairman No.
ensuringthe structure of Integrated Governance Kep 63/PM/1996 dated January 17, 1996.
functions optimally; ensuring the Integrated Governance
processworks properly; evaluating the results of CORPORATE SECRETARY STRUCTURE
Integrated Governance. Related to the Company organizational structure,
Corporate Secretary shall be responsible directly to
the PresidentDirector in providing guidance and
ORGANS AND COMMITTEES UNDER THE BOARD monitoring the activities of working units according
OF DIRECTORS to their respectivesectors, including investor relations,
corporate branding, external communications, internal
CORPORATE SECRETARY communications,
legal and GCG monitoring, as well as protocol, secretarial and
BNI’s Corporate Secretary shall be directly responsible to the housekeeping.
President Director and in charge of expanding the mission
to support the creation of a consistent and continuous
good corporate image through an effective management
ANNUAL
REPORT 2018
The following is the organizational structure of Corporate Communication and Secretariat Division.
BOARD OF
PRESIDENT COMMISSIONERS
DIRECTOR
DIRECTOR OF DIRECTOR OF TREASURY
FINANCE AND INTERNATIONAL
BANKING CORPORATE
SECRETARY AND
COMMUNICATION
DIVISION
DEPUTY HEAD HEAD DEPUTY OF

INVESTOR OF CORPORATE CGC AND BUREAU
RELATIONS COMMUNICATION DIRECTORS
DIVISION DIVISION
GCG
EXTERNAL INTERNAL COMMUNITY REGULATIONS BUREAU OF COMMISSIONERS
DEVELOPMENT
COMMUNICATION COMMUNICATION DEVELOPMENT AND DIRECTORS SUPPORTING
GROUP
GROUP GROUP GROUP MONITORING GROUP
GROUP
GCG
RESEARCH RESEARCH PERSONAL REGULATIONS
INSTITUTION COMMUNITY SECRETARIAT EMPLOYEE
AND INTERNAL DEVELOPMENT ASSISTANT OF AND
RELATION DEVELOPMENT DEPARTMENT SERVICE
COMMUNICATION AND REPORTING DIRECTORS MONITORING
Management of
MEDIA development program HUMAN CAPITAL
RELATION of community PROTOCOL
REPRESENTATIVE
development & CSR
ELECTRONIK
COMMUNICATION
BUSINESS
PARTNER AND
SPONSORSHIP
CORPORATE SECRETARY FUNCTIONS AND DUTIES

In BNI, Corporate Secretary function shall be handled by the Communications and Secretariat Division. BNI’s Corporate
Secretary shall be directly responsible to the President Director and serves a mission to support the creation of consistent and
continuous good corporate imagethrough an effective management communication program to all stakeholders. Corporate
Secretary shall have access to relevant information and material relating to the Company and control of rules and regulations
in the field of capital markets, especially with regard to disclosure of information.
Referring to the FSA Regulation No. 35/POJK/2014 regarding Corporate Secretary of

Public Company, Corporate Secretary functions include:
1. Following the development of Capital Market, especially the legislation in force in the Capital market.
2. Providing input to Board of Directors and Board of Commissioners to comply with the rules andregulations in the Capital
Market.
3. Assisting Board of Directors and Board of Commissioners in the implementation of corporategovernance including:
a. Disclosure of information to the public, including the availability of information on the Company website.
b. Submiting timely reports to FSA.
c. Implementing and documenting General Meeting of Shareholders.
d. Implementing and documenting Board of Directors and/or Board of Commissioners Meetings.
e. Implementing the Company’s orientation program for Board of Directors and/or Board of Commissioners.
4. Acting as a liaison between the Issuer or a Public Company with shareholders of the Issuer orPublic Company, FSA and
other stakeholders.
Good Corporate
Governance
In line with the FSA Regulations mentioned above and in the the public.
achievement and implementation, the Corporate 2. In addition to implementing these main functions,
Secretary vision and mission shall be aligned with BNI vision Corporate Secretary shall also perform the following
and mission and BNICorporate Secretary functions andduties duties.
as set out in the Corporate Communications and Secretariat a. Attends Board of Directors meetings and takes the
Division Guidelines are as follows. minutes of the meeting.
1. The principal of Corporate Secretary main functions are b. Establishes a Special Register related to the Board
as follows: of Directors, Board of Commissioners and their
a. Following the development of Capital Markets, familiesboth in the Company and its affiliates which
particularly the regulations prevailing in the Capital include stock ownership, business relations and
Market. other roles that may give rise to a conflict of interest
b. Providing the public with any information needed by with the Company.
investors (investor relations) with respect to the Bank c. Prepares a List of Shareholders including those with
condition. ownership of 5% (five percent) or more.
c. Providing the public with all information needed by d. Organizes GMS.Prepares materials required with
stakeholders (public relations) related to the Bank regard to reports/routines of Board of Directors to
condition. be submitted to external parties. Prepares materials
d. Providing input to Board of Directors to comply needed with regard to Board of Directors’s decisions
with the provision of Law No. 8 Year 1995 regarding with respect to theCompany’s management.
CapitalMarkets and its regulations. e. Organizes meetings within Board of Directors, both
e. As a contact person between the Bank and FSA and routine and non-routine.
CORPORATE SECRETARY PROFILE

Since April 25, 2016-present, the Corporate Secretary position has beenheld by Mr. Kiryanto.
KIRYANTO
(April 25, 2016 - January 28, 2019)
Indonesian citizen, domiciled in Jakarta, 50 years old. Earned his Bachelor’s degree in
FinancialManagement from Universitas Gajah Mada (1992) and Master in Economic
Management from Universitas Indonesia (2000).
Previously served as BNI Senior Economist, Strategic Planning Division (2006-2016) and
AssistantVice President of Corporate Communications and Secretariat Division (2004-2006). In
addition, he is a professional Indonesian economist whose work has been published in several
print media andprovides training to bank employees.
The appointment of Mr Kiryanto as Corporate Secretary was based on Decree of BNI’s Board of
Directors No. KP/161/DIR/R dated April 18, 2016.
On January 29, 2019, BNI appointed Meiliana as Temporary Substitute of Corporate Secretary to replace Kiryanto. Subsequenty,
she serves as the Corporate Secretary on March 22, 2019.
MEILIANA
(March 22, 2019 - Present)
Indonesian citizen, domiciled in Jakarta. 46 years old. Earned her Master’s degree in
Agribusiness from the Bogor Agricultural Institute.
She has had a career since 1997 as a Credit Analyst. After that, she has taken part in product
development sector as Taplus Manager since 2016 and Assistant Vice President Corporate
Branding in 2010. In 2014, she became the Vice Head of Marketing Communication Division.
Currently, she is the Head of Corporate Secretary on BNI since dated March 21, 2019. The
basis of his appointment of Corporate Secretary based on BNI Director Decree No. KP/118/
DIR/R dated March 22, 2019.
ANNUAL
REPORT 2018
CORPORATE SECRETARY IMPLEMENTATION OF DUTIES – 2018

Several stakeholders activities undertaken by the Corporate Secretary in 2018 includes:
1. Organizing Corporate Actions, namely:
a. Annual GMS on March 20, 2018.
b. Dividend Payment on April 20, 2018.
2. Following development of Capital Market in accordance with the applicable provisions of Capital
Market.
3. Creating GCG awareness for BNI’s Board of Directors and Board of Commissioners including updates
onnew policies and issues concerning GCG.
4. Making disclosures in accordance with applicable regulations.
5. Managing communications with the capital market community, especially investors and analysts
toensure transparency of information, BNI held Analyst Meeting and Public Exposes, receiving
Investors/Analyst Conference Calls and Visits, organizing Analyst Gatherings, Economic Outlooks and
publishing BNIMonthly Report.
6. Following the Non-Deal Roadshow both at home and abroad in Asia, Europe and USA.
7. Providing up to date information access to public at large, such as shaing databases, website
applications,preparing Annual Report for Fiscal Year 2018.
8. Optimizing strategy through GCG implementation, GCG Self-Assessment and Integrated Governance
Self-Assessment, as well as GCG socialization in several Head Office Divisions, Regional offices and
Subsidiary Company representatives.
9. Submitting regular and incidental reports to regulators, among others, Securities Holders Register
statements,Register of Shareholders, Report of Foreign Debt, etc.
10. Arranging Fit and ProperTest for Board of Directors and Board of Commissioners.
11. Documenting legality of data, among others GMS Deed, Deed of Amendment of Management
Composition, etc.
12. Holding press conferences and teleconferences with stakeholders.
13. Establishing communication with Ministry of State-Owned Enterprises, Ministry of Finance,
StateSecretary, Financial Services Authority, Self-Regulatory Organizations (Indonesia Stock
Exchange, Indonesian Central Securities Depository and Indonesia Clearing and Guarantee),
Securities Administration Bureau, andother relevant institutions.
14. Actively participating in hearings and working visits to the House of Representatives.
15. Attending Board of Commissioners and Board of Directors meetings and taking minutes of
Meetings.
Corporate Secretary Reports 2017

Corporate Secretary’s reports are set forth in Article 11 of Financial Services Authority Regulation No. 35/
POJK/2014 which
states that:
1. Corporate Secretary shall make a report at least 1 (one) time in 1 (one) year regarding the
CorporateSecretary functions to Board of Directors and copied to Board of Commissioners.
2. Issuer or Public Company must disclose a brief description of Corporate Secretary functions and
information about education and/or training undertaken by Corporate Secretary in the Public
Companyannual report.
Good Corporate
Governance
Guided by the foregoing, BNI’s Corporate Secretary had prepared a report regarding Corporate Secretary to Board of Directors
and Board of Commissioners, which was delivered via Memo No.KMP/7/1716 dated May 4, 2018 and Board of Directors’ Letter
No.DIR/320 dated May 9, 2018
The report among others contains about:
Implementation of Corporate Secretary's Functions Based on Pojk No. 35/POJK.04/2014.

Function According
No. Program Realization
to FSA
1. Following the Following the Created operational guidelines for all divisions and conducting
development of Capital development of Capital disseminationrelated to Information Disclosure to comply with FSA
Market particularly Market in accordance Regulation No. 31/POJK.04/2015 on Disclosure of Information or Material
applicablelaws and with Capital Market Facts by Issuers orPublic Companies.Prepared a Periodical Report on the
regulations in Capital laws and regulationsto Implementation of CorporateSecretary Function and reported it to the
Market coordinate with other President Director and the Board of Commissioners.Conveyed a concept
Divisions in relation response for the Amendment to Indonesia StockExchange Regulation
to the fulfillment of Number II-H and Number III-1. Conducted a juridical analysis of FSA
prevailing Capital Market Regulation No. 29/POJK.04/2016regarding the Issuer or Public Company
provisions. Annual Report.Compiled the Corporate Secretary WorkGuidelines
approved by theCompany President Director through Directors’Decree No.
AHR. KP/356/DIR/R dated September 2nd, 2016 and published it on the
Company’s website.
In addition to that in 2017, the implementation of such functions is carried
out by:
1. Coordinated with the Commissioner Support Unit to be submitted
to Board of Commissioners of legal analysis in connection with the
Regulation of Financial Services Authority No. 13/POJK.03/2017
regardomg the Use of Public Accountant Services and Public Accounting
Firm in Financial Services Activity through Intern Note No. GCG/204
dated May 3, 2017.
2. Conveyed to Finance Budgeting and Controlling Division through Memo
No. KMP/7/1789 dated May 18, 2017 regarding the appeal of Financial
Services Authority to BNI as the LCR reporting bank in connection with
the obligation to submit LCR Report through APOLO online media.
3. Submitted legal review to Board of Directors through Memo No.
KMP/7/2437 dated July 6, 2017 regarding Submission of Financial
Services Authority Provisions regarding obligation to report on Shares
Ownership.
4. Filed an affirmation to all Divisions/Units by Memo Number KMP/7/3106
dated August 31, 2017 regarding Submission of Information Reports
and/or Material Facts of the Bank.
5. Submitted legal review to the Treasury Division through Memo No.
KMP/7/3485 dated September 18, 2017 regarding obligation to report
the use of Public Offering Fund.
ANNUAL
REPORT 2018
Function According
to FSA
Fulfillment of In the framework of perfecting the BNI Integrated Governance Manual
POJKon Integrated forFinancial Conglomeration (TKT Guidelines) and following-up the v
Governance of Financial Regulation no. POJK No. 8/POJK.03/2014, review of Integrated Governance
Conglomeration Guidelines had been conducted.
Conducting a Review of Integrated Governance Guidelines

In order to improve the Integrated Governance Guidelines, BNI Financial
Conglomeration (Guidelines for TKT), and to follow-up on the provisions of
the Financial Services Authority Regulation No. POJK No. 18/POJK.03/2014,
Guidelines and Code of Conduct for Integrated Governance Committee
approved by Board of Commissioners through Decree of Board of
Commissioners No. KEP/006/DK/2015 dated June 22, 2015 and Integrated
Governance Guidelines have been approved by Board of Commissioners
through Letter of Board of Commissioners No DK/71 dated July 8, 2015.
With respect to the enhancement of Good Corporate Governance in the

Company as the Main Entity and to all of the Company’s Subsidiaries, which
are Members of the Company’s Financial Conglomeration, through the letter
of Board of Commissioners DK/109 dated November 20, 2017, Board of
Commissioners has provided inputs and directives related to the guidelines
for Integrated Governance of Company Financial Conglomeration submitted
by Board of Directors through DIR/695 letter dated November 2, 2017.
Establishment of the Integrated Governance Committee

The establishment of the Financial Conglomeration Integrated Governance
Committee was chaired by Decree of Board of Commissioners No. KEP/006/
DK/2015 dated June 22, 2015 regarding the Establishment of Integrated
Governance Committee. The Integrated Governance Committee shall be
independent in the performance of its duties and reporting, and shall be
directly responsible to Board of Commissioners of the Main Entity.
Integrated Governance Committee Charter

The Company has Governance Committee Charter which is continuously
refined and renewed in accordance with the current legal developments/
amendments. The renewal/refinement of the Company’s Risk Committee
Charter which is last conducted in 2017, stipulated in the Decree of Board of
Commissioners No. KEP/044/DK/2017 dated October 12, 2017 regarding the
“Integrated Governance Charter.”
The Integrated Governance Committee Charter contains basis of law;

definition; establishment and structure of the committee; requirements
of committee members; membership; duties and responsibilities of the
committee; authority, rights and obligations of the committee; appointment
and termination of members and meetings.
Good Corporate
Governance
Function According
to FSA
2. Provide input to Public GCG Awareness for the Have done and present Juridical Studies/ Analysis:
Company’s Board of BOC and BOD includes Has drafted and delivered the Juridical Analysis of Procedure Amendment
Directors and Board new and updated to State Capital Investment in relation to the developing issue of Financial
of Commissioners to policies regarding Services Holding SOE Plan to the President Director via Vice President
comply with the rules corporate governance Director through Memo No. KMP/0286 dated January 23, 2017.
and regulations in issues Has drafted Juridical Analysis regarding Amendment to Company’s Articles
Capital Market. of Association regarding written consent for Directors’ actionsfrom Board of
Commissioners and/or Shareholders of A Dwiwarna Series to Secretary of
Board of Commissioners through Memo No. KMP/1/1594 dated May 4, 2017.
Has compiled and submitted Juridical Review on updating of Financial
Services Authority Regulation Number 31/POJK.04/2017 regarding Share
Expenditures with Nominal Differences to all Board of Directors by Memo
Number KMP/7/3157 dated August 23, 2017.
Has drafted and submitted Juridical Review of on Provision of Financial

Services Authority Regulation Number 30/POJK.04/2017 on Share Buy Back
issued by Open Company to all Board of Directors through Memo Number
KMP/7/3156 dated August 29, 2017.
Have arranged and submitted Juridical Review on Financial Services

Authority Regulation No. 51/POJK.03/2017 on the Implementation of
Sustainable Finance for Financial Services Institutions, Issuers and Public
Companies to Board of Directors through Memo No. KMP/7/3739 dated
October 6, 2017.
3. Assist Board of
Directors and Board
of Commissioners in
the implementation of
corporate governance
Disclosure of Guarantee transparency Compiled, performed and communicated:
information to of corporateinformation Information Disclosure on all BNI corporate actions; Publiished Information
thepublic, includingvthe either financial or Disclosure in print media, BNI website, Issuer Reporting System (SPE), FSA
availability ofinformation nonfinancial, to keep and e-reporting at Indonesia Stock Exchange(idx.net);Information Disclosure
on thePublic such information Letter to FSA and/or Indonesia Stock Exchange.
Companywebsite conveyedin a reasonable
andproper manner.
Intensification ofthe Compiled, performed and conveyed:
publication ofthe Published Company Financial Statements in Local Media; Corporate
material andinformation Presentation Materials; Smartbook; Published financial reports highlights in
company performance print and in foreign media
Provision of Provided regular information on company performance, BNI stock
information on a performance as well as overall market outlook through Weekly,
regular basisabout the Monthly,Quarterly and Annual Reporting; Submitted Monthly updates to
company’sperformance, internal and external parties regarding market developments and company
the BNI shares’ stock performance.
performance and
marketoutlook
Providing up to Built a database of stocks, investor data and input/feedback as a basis
date information forfutureimprovements; Provided up-to-dateinformation on corporate
where access is performance and corporategovernance through digital media (websites);
widelyaccessible by the Developed Applications and Content Website. Access to Company
public through updated Information as well as corporate actionrelated data can be accessedthrough
digital media material in the official Company website at http://bni.co.id/. Persons requiringfurther
order to provide easier information relating to corporate actions or Company data may
and broader access. contact via phone at 021-5728387, Fax at 6221-5728053 or email to: investor.
relations @ bni.co.id.
Upgrading BNI website material in accordance with POJK No. 8/

POJK.04/2015 regarding Issuer Web Site (material coordinated with Division/
Units related cfm KMP Memo No. KMP/7/2128 dated 19 August 2015).
Preparing summarized Organized an Annual Report Team Coordinated with internal and external
management reports in parties in the preparation of Annual Report TB 2018.
the Annual Report
ANNUAL
REPORT 2018
Function According
to FSA
Submission ofreports Optimizing GCG Conducting the GCG Self-Assessment submitted to the Financial Services
to Financial Services implementation and Authority along with the Bank’s Health Level document by letter No. DIR/055
Authority in a timely monitoring strategy dated January 22, 2018 and BNI received
manner
Composite 2 (PK-2) or “Healthy” Rating.
Conducting GCG Self-Assessment submitted to the Financial Services

Authority along with the Bank’s Health Level document by letter No. DIR/468
dated July 21, 2017 and BNI received Composite 2 (PK-2) or “Healthy” Rating.
Presentation of TKS Self-Assessment Report as follows:

ConductingTKT Self-Assessment submitted to the Financial Services
Authority through Letter Number DIR/125 dated February 13, 2018 and BNI
received Stage 2(Good).
ConductingTKT Self-Assessment submitted to the Financial Services
Authority through Letter No. DIR/474 dated July 27, 2017 and BNI received
Stage 2 (Good).
Routine report delivery Securities Registration Report every month. Report of 10 Largest
to the FSA Shareholders every quarter. Forex Payable Report every month.
Incidental report Incidental reports in compliance with FSA provisions submitted by mail and
delivery SPE FSA uploads including, among others, Disclosure Reports on corporate
to the FSA actions.
Implementation and Organizing the Annual Held the Annual GMS on March 20, 2018, as stated in the Deed of Minutes
documentation of the General Meeting of of Annual GMS No. 37 dated March 20, 2018, made before Notary Fathiah
General Meeting of Shareholders (AGMS) Helmi, S.H.
Share holders
Arranging the Fitand Coordinated with FSA for the implementation of fit and proper test for 1
Proper TestFor Board of Board of Directors candidate and 4 Board of Commissioners candidates. All
Directors and Board of prospectivemembers of Board of Directors and Board of Commissioners
Commissioners who followedthe fit and proper test in 2017 passed the FSA fit and proper
test and have beenincluded in an Amendment to Board Composition Deed
made by Notary Fathiah Helmi, SH
Implementation and GCG data Has prepared hardcopy and softcopy administration through filling and
documentation of documentation, suchas scanning of company documents such as GMS Deeds and Minutes of Board
Board of Directorsand/ minutes of AGMS and of Directors Meeting.
or Board of Board ofDirectors
CommissionersMeetings meetings forCorporate
database
Implementation of Orientation Has been outlined in the 2018 Year Book Annual Report.
orientation programs programcarried
to Board of Directors out to increase the
and/or Board of competence for Board of
Commissioners Directors and Board of
Commissioners
Good Corporate
Governance
Function According
to FSA
Other GCG related Supporting Board of Carried out strategic initiatives to support the smooth functioning of Board
implementation Commissioners of Commissioners in implementing GCG and improved the qualityof services
through the support for the TKT, administration for the newCommissioners
to ensure GCG and GSM, enhanced the quality of juridicaland strategic
services as references for Board of Commissioners indecision making,
improved the quality of reports containing analysis or reviews to comply
with the regulatory requirements, and prepared theCommissioners Meetings
and Committee Meetings Reports and followed-upthe meetings results in
accordance with applicable provisions and principlesof GCG. Supported
the BoC program based on the Work Plan and Budget of the Board of
Commissioners for 2017.
Promoting GCG Created a GCG Commitment signed by all BNI Personnel at the beginning
Principles effectively of each year. Developed BNI Integrity Pact signed by all Board of Directors.
and efficiently, thus Conducted Anti Gratification publications through external and internal
improving the BNI image media.
and providing added
value for thecompany
(valuecreation)
Stock Management Conducted stock administration managementin coordination with
BNISekuritasAdministration Agency (PT DatindoEntrycom). Future BNI
SekuritasRegistration Monthly Statements will be conveyed to FSA and IDX
through the FSA and IDX reporting system.
Dividen Payment The Corporate Secretary has coordinated with various parties in connection
with the dividend payment for fiscal year 2016 on April 20, 2017. The
dividend paid amounted toRp2,859,459,907,905 so every 1 (one) share is
entitled to receive dividend of Rp122,533827 per share.
GCG Socialization Conducted GCG socialization including GCG principles, implementation
examples, up to the latest GCG related provisions, at Head Office,
RegionalOffices and vendor gatherings.
External GCG Rating has been made by 3 independent rating agencies, with the
Assessment followingassessment results:
The Indonesian Institute for CorporateGovernance with the result of theMost

Trusted Company Based on CorporateGovernance Perception Index2016
with a score of 88.38.
Indonesian Institute for Corporate Directorship with a “Good” Predicateand a

total score of 88.60 for the assessment of the ASEAN CorporateGovernance
Scorecard.
Ministry of State-Owned Enterprises withCriteria for Superior Performance
Assessment for SOEs with an assessment of Emerging Industry Leader.
4. As a liaison between Optimize Has implemented:
the Issuer or a Public strategiesrelated to BNI the intensification of effective communication with the Rating Agency.
Companyby the capitaland rating BNI rating review activities through rating agencies of S & P, Moody’s, Fitch,
shareholders of the and Pefindo.
Issuer or a Public
Company, FSA and other
stakeholders
Intensify Has intensified effective communication with the public/investors through
effectivecommunication Investor Relations activities, among others through the activities of Analyst
with thepublic/investors Meeting, Public Expose, Domestic and Overseas Non-Deal Road Show,
so asto improve Investor and Analyst Visit, TeleConference, Analyst Gathering, Economic
stakeholdersatisfaction. Outlook, and BNI’s Monthly Report to External.
Intensify effective Held Financial Performance analyst meeting as follows:
communication with 1. Full Year 2016: January 26, 2017
analysts by holding 2. 1Q 2017: April 12, 2017
analyst meetings 3. 2Q 2017: July 12, 2017
4. 3Q 2017: October 12, 2017
Organize Public Expose Held Financial Performance Public Expose, September 2017 onAugust 7,
2017 through Public Expose marathon 2017 organized by PT Bursa Efek
Indonesia.
ANNUAL
REPORT 2018
Function According
to FSA
Implementation of GCG Worked with The Indonesian Institute for Corporate Governance, the
Partnership Program Indonesian Institute for Corporate Directorship, theNational Committee on
with Institutions/ Governance Policy and Board of Commissioners and Board of Directorsof
Agencies Indonesia.
Act as liaison between Conducted company promotions and other information publishing.
the company and Managed communication with SOE Ministry on regular basis. Managed
stakeholders communications and correspondence with investors, capitalmarket analysts,
fund managers, securities firms, regulatory agencies and rating agencies.
Updated system support (Bloomberg, Orient) etc.Held shareholder meetings,

press conferences, conferences, investor meetings/forums, investor/analyst
visits, private meetings with investors(“one-on-one” briefings).Managed
databases of investors, company performance as well as peersand analyst
mailing lists. Liaison between the company and the media, for example
in the preparationof Press Releases. Acted as company Spokesperson.
Minimized negative news regarding BNI’s reputation.
INVESTOR RELATIONS FUNCTION

Investor Relations activities shall be part of the CorporateSecretary function and the main function shall be tosupport the
Corporate Secretary in their efforts tobuild relationships and enhance conducive Investor Relations program intensively,
systematicly and well-planned,by:
1. Being a liaison between the company and its stakeholders by managing communication and correspondence with
investors, stock market analysts, fund managers, securities firms, regulators and rating agencies.
2. Ensuring the transparency of corporate information either financial or non-financial, to convey such information in a
reasonable and proper manner.
3. Maintaining confidentiality of information about the company or the customers and not use theconfidential information
for personal benefit oradvantage of other parties.
4. Holding shareholder meetings, press conferences, conferences, investor meetings/forums, investor/analyst visits, private
meetingswith investors (“one-on-one” briefings).
5. Preparing company performancepublications.
6. Preparing company promotions and other information.
7. Submitting monthly reports (Monthly updates)to internal and external parties regardingmarket developments and the
company’sstock performance.
8. Preparing summarized management reports forthe Annual Report.
9. Providing information on the company’sperformance through digital media (website) to provide easier and wider access.
10. Managing the investor database, the company’s performance as well as peers and analystmailing lists.
Here are the activities of Investor Relations together with the Corporate Secretary in the framework of Implementation
Investor Relations Function.
Investor Relation Acitivity 2018
Conference Call 26
Meeting With Investor 133
Non Deal Roadshow/Conference Local 6
Non Deal Roadshow/Conference Foreign 19

Public Expose 4
Good Corporate
Governance
INTERNAL AUDIT UNIT
BNI’s Internal Control System implementation has been carried out through the separation of functions between Risk Taking
Unit (1st Line of Defense), Risk Control Unit (2nd Line of Defense) and Risk Assurance Unit (3rd Line of Defense).
Acting as the 3rd Line of Defense (Risk Assurance Unit), the Internal Audit Unit (SPI) ensures that internal control at each line of
defense has gone well. The activities carried out by the SPI aim to encourage improvements in the effectiveness and efficiency
of performance, the quality and effectiveness of risk management, and the adequacy and effectiveness of internal controls,
with the scope of covering assurance and consultation. The function of consultation is done informally and formally, among
others, by conducting an independent review of new products launch (according Financial Services Authority provisions) and
special assignments upon request, management and at the initiative of SPI.
To that end, SPI continues to establish improvements in audit methodologies and tools so that the audit is in accordance with
business developments.
In addition, in line with POJK No.18/POJK.03/2014 regarding the Implementation of Integrated Governance for Financial
Conglomerate, the function of the Integrated Internal Audit Unit is to be conducted by an Internal Audit Unit. Associated with
this role, SPI has regularly established communication and collaboration with theSubsidiaries’ Internal Audit Units, through
communication forums, knowledge sharing, integrated audits and reporting, to support the integrated governance for BNI
Financial Conglomerate.
SPI ORGANIZATION STRUCTURE
General Meeting
of Shareholders
Audit Committee President Director
Compliance Director
SPI Head
Audit Office & Business IT Audit Leader, Consumer Regional Audit Head
Banking Head Business & Networking Pemimpin1-2
Audit Wilayah
Audite Group Group Information Area Audit Group

Head Office Technology Audit Kelompok Audit Area
(1-2)
Audit Group Consumer Business & Regional Area Audit Group

Business Banking Networking Audit Group Kelompok Audit Wilayah
(1-17) Planning &
Audit Quality Internal Control
Development
Special Audit & Contol Group KCLN
Employee Cases Group
Processing Group Survelliance Group
External Audit Relations

& Support Group
SPI POSITION IN THE ORGANIZATION STRUCTURE

SPI functions within the organization of BNI shall be under anddirectly responsible to the President Director andcan
communicate with the Board of Commissionersthrough the Audit Committee.The position of SPI in the BNI organization
wasestablished in 2016, in accordance with Decree of Board ofDirectors No KP/430/DIR/R datedNovember 15, 2016. SPI
organization structure shall be conducted by re-grouping to strengthen the auditfunction especially in the Region (Regional
Audit), with the following set-up:
1. Head Office Audit, Business Banking Audit, CaseProcessing Staff.
2. Information Technology Audit, Consumer & NetworkBusiness Audit, Special Audit & Surveillance.
3. Regional Audits (Region 1 Audit and Region 2 Audit), consisting of: Audit Area Groups (2 Groups)and Regional Audit
Groups (17 Groups) dividedbased on geographical area.
ANNUAL
REPORT 2018
HEAD OF SPI PROFILE

Since January 4, 2017, the Internal Audit Unit has been led by Muhammad Gunawan Putra, SE AK, MBA, CA (47years), with the
position of Executive Vice President, based on Decree of Board of Directors No. KP/482/DIR/R 2016. A brief profile of the Head
of SPI as follows:
M GUNAWAN PUTRA
Graduated with a Bachelor’s degree in Accounting in 1995, and obtained his MBA degree in Strategic
Management from Universitas Gadjah Mada in 2009.
He started his career as BNI’s SPI auditor in 1997 and possessed long standing experience in the field
of internal audit, banking operations and risk management. The positions that have been held are SPI
Credit & Network Group Head (October 2007 - September 2010), Deputy SPI Leader (October 2010
- November 2012), Medan Region Head of Network & Services (December 2012 - May 2014), CEO of
Padang Regional Office (June 2014 - December 2015), Risk and Commercial Business Division Leader
(January 2016 - December 2016) and BNI Multifinance Commissioner (June 2016 - December 2016).
In addition, he is active in the stewardship of a professional organization in Internal Audit, holding

position as Secretary General of Banking Internal Auditor Association for 2017 – 2020 period.
HEAD OF SPI APPOINTMENT AND DISMISSAL

The Head of SPI shall be appointed and dismissed and directly responsible to President Director with the approval of Board of
Commissioners and/or the Audit Committee, having been reported to Bank Indonesia/Financial Services Authority.
SPI CHARTER
SPI has an Internal Audit Charter established by the President Director and Board of Commissioners, through Decree of
Boardof Directors No.KP/106/DIR dated11-03-2016. The Internal Audit Charter is prepared using Internal Audit Bank Standard
(SPFAIB) from Bank Indonesia, and FSA Regulation No. 56/POJK.04/2015 dated December 23, 2015 regardingthe Establishment
and Guidelines for Internal AuditCharter, as well as applicable best practices standards.
The Internal Audit Charter contains SPI’s Vision and Mission, Structure and Position, Duties and Responsibilities, Powers, Code
of Conduct, Independence and Objectivity, aim and scope of activities, AuditorRequirements and Development, Audit Risk and
Legal Protection for Head and Auditor, Quality Control Audit Program, SPI Function in Integrated Governance andSPI Relations
with the external auditor.
SPI DUTIES AND RESPONSIBILITIES

In carrying out its functions, SPI tasks and responsibilities shall be to:
1. Develop and implement Audit Plan and Annual Consultation.
2. Report realization of Audit Plan and Annual Consultation to the President Director and Board of Commissioners each
semester/quarter, or agreed period.
3. Examine and assess efficiency and effectiveness in finance, accounting, operations, humanresources, marketing,
information technology, and other activities.
4. Test and evaluate the implementation of internal control and risk management systems in accordance with BNI policy.
5. Provide recommendations for improvements, and information on the activities examined, at all levels of management.
6. Prepare Audit Reports for submission to Board of Directors and Board of Commissionerswith a copy to Director of
Compliance and Enterprise Risk.
7. Provide consulting services to BNI internal parties to provide added value and improvement ofquality control, risk
management and corporate governance to the extent it does not affect theindependence and objectivity of SPI, and
provide adequate resources.
8. Audit requests from Board of Directors and/or Board of Commissioners, or follow-up results of a general audit of an object
or event that is thought to contain indications of irregularities and/or fraud if necessary.
9. Carry out follow-up monitoring of audit results and submit a report on Pending Follow-up Auditto President Director and
Board of Commissioners periodically.
10. Conduct case processing as well as enhance and develop processes and processing functions in BNI cases.
11. Report immediately any audit findings that could affect the survival of a bank to PresidentDirector and Board of
Commissioners.
Good Corporate
Governance
12. Establish written policies and procedures to guide the c. Always using professional judgment in carrying out
internal auditors in performing their tasks. duties in any conditions and situations;
13. Request an annual budget and report to President d. Revealing all known facts.
Director the realization each semester. 3. Confidentiality
14. Establish an Implementation Report and Audit Principles a. Being careful in using and maintaining information
and submit to FSA after being signed by the President obtained in duty implementation;
Director and Board of Commissioners. b. Not using information for the benefit of anyone and/
or in any way that would conflict with the law and/or
SPI AUTHORITIES Company provisions.
SPI authority in carrying out its functions shall be based 4. Competence
onthe internal audit charter, as follows: a. Carrying out duties in accordance with the
1. To access fully, freely and not limited to records, information, knowledge, skills, and experience possessed;
employees, funds, assets, locations/areas, and other BNI b. Carrying out audits in accordance with the Standards
resources, including in the subsidiaries/affiliates /financial for Implementation of the Bank's Internal Audit
services institutions owned by BNI, in realtionship to audit and Function (SPFAIB) and/or other applicable audit
consulting; standards; and
2. To verify, interview, confirm, and other examination c. Improving competence continuously.
techniques, customers or other parties related tothe audit and
consulting; QUALITY DEVELOPMENT STANDARD
3. To communicate directly with Board of Directors, Board of Audits shall be based on Banking Internal Audit Standards (SPFAIB)
Commissioners and/orAudit Committee, as well as members and Corporate Internal Audit Guidelines. In order to improve the
of Board of Directors, Board of Commissionersand/or Audit quality of audits, SPI continuouslydevelops audit methodology
Committee; and enhances its audit programs to comply with the development
4. To conduct regular and incidental meetings with Board of of existingbusiness processes and best practices, including The
Directors, Board of Commissioners and/or Audit Committee; Institute of Internal Auditors (IIA) andthe Information Systems Audit
5. To allocate audit resources, determine audit purpose, scope and Control Association (ISACA).
and plan or schedule, as well as establish the methodology,
technique, devices, and audit approach to performbasic tasks In accordance with SPFAIB, the effectiveness of the SPI functions
that have been assigned; and its compliance with the
6. To request help from other work units, or use the services of applicable standards of performance, periodically at least once
external parties in audit if deemed necessary; every three (3) years, they shall be evaluated.
7. To coordinate and build synergistic relationships with the
units/functions, other assurance (compliance unit and risk In 2018, an evaluation / review was conducted by KPMG
management), in order to obtain comprehensive and optimal Siddharta Advisory on the SPI function for a period of 3 years
audit results. ending on December 31, 2017, which concluded that in general
(Generally Conform) the SPI function had fulfilled the provision
CODE OF ETHICS OF AUDITOR in the Bank's Internal Audit Function Implementation Standard
In carrying out its functions and duties, SPI auditors shall (SPFAIB) is based on Bank Indonesia Regulations, and the audit of
implement and uphold the code of ethics stated in the information technology usage has referred to the Financial Services
Internal Audit Charter, as follows: Authority Risk Management Regulations in the Use of Information
1. Integrity Technology (MRTI).
a. Carrying out the duties honestly, diligently, and
responsibly; SPI RELATIONS WITH EXTERNAL PARTIES
b. Complying with the law and making disclosures in SPI can exchange information and coordinateactivities with
accordance with the laws and regulations and the the external auditors activities, which can be conducted
profession; through periodic meetings, in order to obtain comprehensive
c. Not intentionally/consciously involved in prohibited/ and optimal audit results. Coordination can be conducted to
illegal activities, not taking actions that can damage discuss matters that are consideredimportant to both parties.
SPI’s credibility and internal audit profession; The realization of SPI’s responsibility to external parties shall
d. Supporting goals of BNI and SPI. be as follows:
2. Objectivity
a. Not involved in activities or having a relationship 1. Knowledge Transfer
that will cause a conflict of interest; SPI actively transfer knowledge related to the
b. Not accepting anything that has an impact or is methodology/development in the areas of internal audit both
alleged to have an impact on professional judgment; the Internal Audit Subsidiary as well as to other organizations,
ANNUAL
REPORT 2018
among others, active in the CAE Forum ‘’The Millenialsin Internal Audit:Understanding and Managing the Next Generation of Auditors‘’
andparticipation in the discussion of Indonesian National Working Competency Standardsfor Internal Audit.
2. Active in professional organizations, namely the Association of Bank Internal Auditors(IAIB), IIA Indonesia and the Institute
of Banking Profession Certification (LSPP) and SPICommunication Forum.
3. Implementation of Benchmarking
BNI SPI actively conducts benchmarking with other bank internal audits and is active in
benchmarking forums, namely:
-- Implementation of benchmarking in the role and function of internal audit, organization, development of good practice
internal audit andhuman resource management.
-- Participation in audit methodology benchmaring forum by IAIB (Audit Rating & Reporting and Implementation of Quality
Assurance Improvement Program)
SPI PERSONNEL COMPOSITION

Internal Audit Unit is supported by 723 employees spread across BNI Head Office and operational areas, as illustrated in the
following diagram:
EVP INTERNAL AUDIT

UNIT LEADER
1
AVP INTERNAL AUDIT
UNIT VICE LEADER 4
AVP HEAD OFFICE AUDIT
GROUP LEADER
7
AVP HEAD OFFICE
GROUP LEADER 4
AVP REGIONAL AUDIT
GROUP LEADER 17
AVP MAIN AUDITOR 4
MGR HEAD OFFICE
AUDITOR 65
MGR HEAD OFFICE 17
MGR REGIONAL AUDITOR
59
MGR BRANCH
AUDITOR DEDICATED 3
MGR AUDITOR
DEDICATED 180
AMGR HEAD OFFICE
AUDITOR 65
AMGR HEAD OFFICE 11
AMGR REGION AUDITOR 65
AMGR AUDITOR
DEDICATED
215
ADMINISTRATION ASSISTANT 6
Good Corporate
Governance
SPI PROFESSIONAL CERTIFICATION

SPI is committed to continually improving the competence and knowledge of auditors, through continuing education and
training so that they are able to meet adequate qualifications.
Certification obtained by SPI employees up to 2018 is as follows:
National Certificate
649
377
324
100
66
60
30
4 5 5 5
SMR Lv. 1 SMR Lv. 2 SMR Lv. 3 SMR Lv. 4

CBIA Lv. 1 CBIA Lv. 2 LSPP Kepatuhan CA
Credit Skill OMEGA CITPE ISO 9001-2015
Information: LSPP : Banking Professional Certification CITPE : Certified IT Procurement Expert
SMR : Risk Management Certification Institute
CBIA : Certified Bank Internal Audit CA : Chartered Accountant
International Certificate
11
6
5
3
2 2
1
CIA CBA CISA CFE

CISM CEP-PM CHFI IT IL Foundation R
Keterangan:
CIA : Certified Internal Auditor CISM : Certified Information Security Manager CHFI : Computer Hacking Forensic Investigation
CBA : Certified Behavioral Analyst CEP-PM : Certified E-Business Professional in Project IT IL : Information Technology Infrastructure Library
CISA : Certified Information System Auditor Management
CFE : Certified Fraud Examiner
ANNUAL
REPORT 2018
COMPETENCE DEVELOPMENT OF INTERNAL AUDIT UNIT

The Competence Development of the Internal Audit Unit AUDIT METHOD
has been presented in the sub chapter of Competence SPI developed an Audit and Consulting Plan for 2018, with
Development of Internal Audit Unit in the Company Profile the risk-based approach through the stages of macro risk
Chapter. assessment and micro risk assessment.
BRIEF REPORT ON 2018 INTERNAL AUDIT ACTIVITIES Macro Assessments are carried out on performance indicator
BNI's vision to become a financial institution that excels in and overall BNI risk with the aim of identifying the theme,
service and performance, with BNI's policy direction in line with whichwould become the focus of the audit with orientation
the Corporate Plan, is to focus on being a bank with superior on business process impovement. The selection of the audit
performance by strengthening synergies between units to theme begins withidentifying and reviewing activities related
accelerate business supported by improved service levels. to Board of Directors General Policy (KUD) BNI 2018, BNI Risk
profile in accordance withthe Risk Management Committee
SPI seeks to carry out the internal supervision function and (RMC), input or concern from Board of Directors and Senior
integrate with the SPI of the Subsidiaries, while remaining a Management, conditions/issues that occur according to BNI
professional, independent and objective business partner business development and SPI internal review.
for management to support the realization of BNI's vision.
SPI oversees the acceleration of BNI's business through the In addition, there are also assessments of particular units that
alignment between the SPI strategy and BNI's business strategy, will become the audit focus with the orientation towards
to provide added value in increasing the effectiveness of risk compliance & control assurance. Audit object assessments
management, control and governance processes. shall begin by identifying and assessing the risk level of
the auditee unit through risk level assessment of the units
SPI has compiled and stipulated a 2018 Audit and Consultation according to the risk factors and control elements.
Work Plan that is in line with BNI's main focus. Through the 2018
Audit and Consultation Work Plan, SPI wants to ensure the quality of 2018 AUDIT METHODOLOGY DEVELOPMENT
BNI's business growth which is balanced with the determination of During 2018, several audit improvement and development
strong corporate governance in all operational areas. initiatives have been implemented by SPI as follows:
1. Implementation of the audit management system to
SPI WORK PROGRAM support the activities of dedicated auditors through the
Based on the results of reviews of the company direction in AUDIGI application that accommodates the entire audit
2018, risk assessments, auditpriorities, and availability of SPI cycle up to monitor the follow-up of the results of dedicated
staff, the 2018 audit and consultation plan resulted in 336 auditor review.
thematic audit assignments, IT audits and routine audits, 2. Development of a management system audit application, to
which included: support the audit team’s activities.
1. Thematic Audit on small business credit activities, middle 3. Improving the audit report reporting format, updating
segment credit activities, consumer segment credit the coding of audit findings in the IAMS application to
activities, network & services activities, optimization of encourage recommendations for improvements in the
customer transactions through closed loop transaction, effectiveness of performance, quality of risk management
and effectiveness of HR management, and adequacy of internal controls by the auditee and
2. Mandatory Audit, supervisory control of auditee’s supervisors.
3. Audit Unit including the Audit Division, domestic and 4. Updating the implementation mechanism of the dedicated
overseas branches, regional offices, Small Loan Centres, auditor review.
Medium Loan Centres and Loan Consumer Centres, 5. Evaluation and review of audit programs how to (user
4. IT Activities and Audit Application, manual audit).
5. Consultation either informally or formally through 6. Enhancement audit analytics to improve the surveillance
independent review of new product/activity launches. function in supporting audits.
7. Identification of the database report structure of
The thematic audit results are more comprehensive and are transactions originating from the core banking system and
expected to provide strategic recommendations (touching other Surrounding.
the root cause) to management for BNI business process 8. Development of knowledge sharing media (audit programs,
improvements. guidelines, selected reports & exception reports) through
the SPI database.
In addition, the existence of a dedicated auditor on each delivery 9. Consult with KPMG on the implementation of analytical
channel oriented to Internal Control Review is expected to be an data activities in improving surveillance functions.
early warning tool for irregularities.
Good Corporate
Governance
10. Preparation of Risk and Fraud Awareness through lesson learned socialization to the business unit and the creation of awareness
materials related to the cement industry, steel industry, consumer debtors and maintenance of outlet codes as an effort to create
a culture of control.
2018 AUDIT ACTIVITIES

The total audit coverage reached 94.15% in 2018 with a 100% coverage delivery channel, increasing compared to total audit
coverage in 2017 at 75.07%.
Audit and consultation in 2018 is 368 audit assignments or 109.52% of the annual audit plan target (336 audit assignments),
with details as follows:
2018 Audit Planning
286
20
16
3 3 8
Audit Delivery Channel Audit Divisi

Audit Cabang LN Audit Subsidiaries (Perusahaan Anak)
Audit Mandatory Audit Tematik/Aktivitas IT & Non IT/End to End
2018 Additional audit

21
1 1
Audit Divisi Audit Cabang LN

Audit Aktivitas IT Audit Pendalaman
AUDIT FINDINGS AND FOLLOW-UP ACTIONS

As part of the overall audit process/phase, after audit reporting, audit activities to beundertaken shall be monitoring of auditee
or auditable activities. The monitoring activity shall be an activity to understand and believe the audit result follow-up by both
the auditeeor other related parties. Follow-up results of the audit including the completion of SPIRecommendations and Board
of Directors Dispositions.
ANNUAL
REPORT 2018
SPI data analysis submitted by the auditees determines the status of completion of the audit result follow-up. The follow-up
status of the audit result has grouped into 3 (three), i.e., findings that have not been followed-up, findings that are being
followed-up and findings that have been Followed-up.
Every Quarter, SPI submits the progress on audit result follow up completion in theform of Audit Result Follow-Up Pending
Report to Board of Directors and Board of Commissioners through the Audit Committee.
The following is the follow-up data on the completion of SPI recommendation and the disposition of Board of Directors on the
results of the SPI audit in 2018.
35.928
34.868
97.05%
23.491
19.380 20.167
16.630
86.41%
11.556
9.986
85.81% 85.85%
Jun-17 Des-17 Jun-18 Des-18
Total Settlement Progres/Presentasi Penyelesaian = Progress
In addition to audit result monitoring by SPI, SPI acts as a liason with external parties (FSA, BI, BPK and KAP),SPI also monitors
the follow-up of external audit result. In 2017, follow-up of external audit results arereflected in the following graphs.
Year 2017 Year 2018

Audit
Done In Progress Done In Progress
Bank Indonesia 38 9 47 0
Financial Services Authority (OJK) 1771 57 1295 87
RI Audit Board (BPK RI) 504 64 504 48
Public Accounting Firm (KAP) - - 20 4
SPI PROGRAM AND STRATEGY IN 2019

To support achievement of BNI’s 2019 strategy, SPI has developed initiative strategy inthe SPI 2019 Business Plan, as follows:
1. To conduct audit to safeguard against the emergence of significant business risksthrough the fulfillment of audit coverage
(100%).
2. To improve Business Process through audit activities in accordance with end to end edit approach in accordance with
current critical and risk issues, and IT audit activities in accordance with Major IT Risk andIT Transformation.
3. To conduct mandatory audit in accordance with the provisions of the regulators.
4. To implement value-added services through Consultation/Independent Reviews inaccordance with user demand.
5. To implement internal control review to safeguard against the emergence of criticalrisk to operational outlet activities.
6. To optimize Integrated Internal Audit Work Units in Subsidiaries effectiveness.
7. To improve Audit Result Report Quality.
8. To optimize surveillance function for unusual transaction detection and/orpotential credit shift as an Early Warning
System.
Good Corporate
Governance
9. To improve learning and growth through refinement of Credit Committee comprises of 4 (four) levels, each of which
audit methodologies and tools, improve and support IT has a membership composition and authority limitof its own,
infrastructure, and improve employee competencies. namely:
1. Credit Committee at Board of Directors level
COMMITTEES UNDER THE BOARD OF DIRECTORS 2. Credit Committee at Director level:
a. Sector Director + Director *) + President Director
In carrying out its tasks, Board of Directors has established b. Sector Director + Director *)
committees at the level of Board of Directors,in accordance c. Sector Director
with BNI business needs and regulatory provisions, which 3. 3. Credit Committee at Head Office level:
are expected to assist with operationaleffectiveness and a. a. Head Office 2 (KP-2)
efficiency, including: b. b. Head Office 1 (KP-1)
1. Credit Committee 4. 4. Credit Committee at Regional level:
2. Integrated Risk Management Committee a. Credit Committee Regional Office 2
3. Risk and Capital Management Committee b. Credit Committee Regional Office 1
4. Product Committee c. Medium Credit Committee
5. Performance Management Committee d. Business Marketing Group Credit Committee (RTC)
6. Technology Management Committee Remote
7. Credit Policies and Procedures Committee e. Small Credit Committee 2
8. Human Capital Committee f. Small Credit Committee 1
g. Credit Committee Branch 2
KOMITE KREDIT h. Credit Committee Branch 1
CREDIT COMMITTEE STRUCTURE AND MEMBERSHIP
Credit Committee at Board of Directors Level

Committee
Credit Approval Authority Maximum Credit Necessary Committee Member
Member
Corporate Segment up to BMPK Board of Directors President Director, Vice President Director, Managing
Member Director Corporation, Managing Director Risk Management
Medium Segment up to BMPK Board of Directors President Director, Vice President Director, Managing
Member Director Small Business and Network, Managing Director
Risk Management
Small Segment up to BMPK Board of Directors President Director, Vice President Director, Managing
Member Director Small Business & Network, Managing Director Risk
Management
Overseas Branches up to BMPK Board of Directors President Director, Vice President Director, Managing
Member Director Treasury & International Banking, Managing
Director Risk Management
Bank Financial Institution up to BMPK Board of Directors President Director, Vice President Director, Managing
Member Director Treasury & International Banking, Managing
Director Risk Management
Credit Committee at Board of Director Level
Credit Approval Credit Approval Officer

Maximum Credit
Authority Business Risk
Corporation Segment s.d House Limit President Director Managing Director Risk
Vice President Director Management
Managing Director Corporate Business
s.d Rp750 miliar Vice President Director Managing Director Risk
Managing Director Corporate Business Management
s.d Rp500 miliar Managing Director Corporate Business Managing Director Risk
Management
ANNUAL
REPORT 2018
Credit Approval Credit Approval Officer

Maximum Credit
Authority Business Risk
Segmen Menengah/ s.d House Limit President Director Managing Director Risk
Medium Segment Vice President Director Management
SEVP Medium Enterprises
s.d Rp750 miliar Vice President Director Managing Director Risk
SEVP Medium Enterprises Management
up to Rp500 billion SEVP Medium Enterprises Managing Director Risk
Management
Small Segment up to House Limit President Director Managing Director Risk
Managing Director Small Business & Network
up to Rp750 billion Vice President Director Managing Director Risk
Managing Director Small Business & Network Management
up to Rp500 billion Managing Director Small Business & Network Managing Director Risk
Management
Unorganic Consumer up to House Limit President Director Managing Director Risk
Segment Vice President Director Management
Managing Director Corporate Business
Managing Director Corporate Business Management
up to Rp500 billion Managing Director Corporate Business Managing Director Risk
Management
Organic Consumer up to House Limit President Director Managing Director Risk
Segment Vice President Director Management
Managing Director Retail Banking
Managing Director Retail Banking Management
Rp30 billion up to Rp75 Managing Director Retail Banking Managing Director Risk
billion Management
Overseas Branch Office up to House Limit President Director Managing Director Risk
Managing Director Treasury & International
Banking
up to USD 50 million Vice President Director Managing Director Risk
Managing Director Treasury & International Management
Banking
up to USD 30 million Managing Director Treasury & International Managing Director Risk
Banking Management
Bank Financial Institution up to House Limit Vice President Director Managing Director Risk
Managing Director Treasury & International Management
Banking
up to USD 200 million Managing Director Treasury & International Managing Director Risk
Banking Management
CREDIT COMMITTEE DUTIES AND RESPONSIBILITIES 4. Reject the request and or influence of the parties with an
Credit Committee Job Description is as follows: interest in the credit applicants that provides credit that
1. Approve or reject proposals in accordance with the credit is merely a formality.
limit or types of credit authority established by the Board 5. Carry out their duties, especially in connection with
of Directors. the provision of appropriate credit approval authority
2. Coordinate with the Treasury Division on credit funding based on professional, honest, objective, accurate and
aspects. thorough skills.
3. Be responsible for credit decisions based on financing
feasibility, credit safety considerations, compliance with
lending policies and procedures as well as the provisions
of credit limit.
Good Corporate
Governance
CREDIT COMMITTEE DUTIES 2018
Credit Approval Authority of Corporation Segment

Number of
Credit Committee Maximum Credit
Meeting
Level of Directors Credit Committee > House Limit up to BMPK 5
Level of Directors Credit Committee
• President Director, Vice President Director, Director of Corporate Business, > Rp. 750 billion up to House 63
Director of Risk Management Limit
• Vice President Director, Director of Corporate Business, Director of Risk > Rp. 500 billion up to 750 33
Management billion
• Director of Corporate Business, Director of Risk Management > Rp 400 billion up to 500 31
billion
Total 132
Credit Approval Authority of Middle Segment

Number of
Meeting
Level of Directors Credit Committee > House Limit up to BMPK -
• President Director, Vice President Director, SEVP Medium Enterprises up to House Limit -
• Vice President Director, SEVP Medium Enterprises up to Rp. 750 billion 3
• SEVP Medium Enterprises up to Rp. 500 billion 2
Total 5
Credit Approval Authority of Organic Consumer Segment

Number of
Komite Kredit Maximum Credit
Meeting
President Director, Vice President Director, Director of Retail Banking, Director of Risk RP150 billion up to House 1
Management Limit
Vice President Director, Director of Retail Banking, Director of Risk Management Rp75 billion up to 150 billion 1
Director of Retail Banking, Director of Risk Management Rp30 billion up to 75 billion 12
Total 14
Credit Approval Authority of Overseas Branch Office Segment
Branch Office of Hongkong

Number of
Meeting
Level of Directors Credit Committee -
• President Director, Vice President Director, Director of Treasury & International Banking, up to House Limit 1
Director of Risk Management
• Vice President Director, Director of Treasury & International Banking, Director of Risk up to USD 75 -
Management million
• Director of Treasury & International Banking, Director of Risk Management up to USD 50 -
million
Total 1
ANNUAL
REPORT 2018
Branch Office of Singapore

Number of
Meeting
• President Director, Vice President Director, Director of Treasury & International Banking, up to House Limit -
Director of Risk Management
• Vice President Director, Director of Treasury & International Banking, Director of Risk up to USD 75 1
Management million
• Director of Treasury & International Banking, Director of Risk Management up to USD 50 2
million
Total 3
Branch Office of New York

Number of
Meeting
• President Director, Vice President Director, Director of Treasury & International Banking, Director up to House Limit 1
of Risk Management
Management million
• Director of Treasury & International Banking, Director of Risk Management up to USD 50 -
million
Total 1
Kantor Cabang Tokyo

Number of
Meeting
• President Director, Vice President Director, Director of Treasury & International Banking, Director up to House Limit -
of Risk Management
Management million
• Director of Treasury & International Banking, Director of Risk Management up to USD 50 1
million
Total 1
Credit Approval Authority of Bank Financial Institution Segment

Number of
Meeting
Level of Directors Credit Committee up to BMPK
Vice President Director, Director of Treasury & International Banking, Director of Risk Management up to House Limit 11
Director of Treasury & International Banking, Director of Risk Management up to USD 200 12
million
Total 23
INTEGRATED RISK MANAGEMENT COMMITTEE

BNI as part of the financial services sector that has several subsidiaries incorporated in a Financial Conglomerate also
implements Risk Management in an integrated manner.
Good Corporate
Governance
Integrated Risk Management Committee (KMRT) is a Non Structural Committee formed based on Directors Decree No. KP / 193
/ DIR / R dated May 26, 2015 which has been updated in accordance with the changes in the organization of the Directors of
CFM. Directors Decree No. KP / 384 / DIR / R November 9, 2018.
INTEGRATED RISK MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP

No. INTEGRATED RISK MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP
a. Chairman : Managing Director Risk Management – BNI, as the Director oversees the Bank's Risk Management
function
b. Secretary : Division Head Risk Management - BNI
c. Permanent Member : • Managing Director Finance – BNI
• Managing Director Compliance – BNI
• Internal Control Unit Head – BNI
• Subsidiary Development Unit Head –BNI
• Strategic Planning Division Head – BNI
• Legal Division Head – BNI
• Corporate Communications and Secretariat Division Head – BNI
• Director in charge of Risk Management – BNI Syariah
• Director in charge of Risk Management – BNI Sekuritas
• Director in charge of Risk Management – BNI Life
• Director in charge of Risk Management – BNI Multifinance
• Director in charge of Risk Management – BNI Assets Management
• Division Head in charge of Risk Management – BNI Syariah
• Division Head in charge of Risk Management – BNI Sekuritas
• Division Head in charge of Risk Management – BNI Life
• Division Head in charge of Risk Management – BNI Multifinance
• Division Head in charge of Risk Management – BNI Assets Management
d. Non-permanent Member : BNI or Subsidiary Director and Division /Unit Head associated with the meeting.
INTEGRATED RISK MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES

Duties and Responsibilities of Integrated Risk Management Committee shall be to provide
recommendations to Board of Directors including:
1. Preparation of Integrated Risk Management policy
2. Integrated Risk Management policy repairs or improvements based on evaluation results.conglomerate.
3. Determinantion of methodology and evaluation of integrated risk profile for BNI Financial Conglomerate.
INTEGRATED RISK MANAGEMENT COMMITTEE DUTIES IMPLEMENTATION 2018

During 2018, Integrated Management Risk Committee held 2 (two) meetings with the
following agenda:
No. Date Agenda
1. February 07, • Approval of Integrated Risk Profile Self-Assessment Result, December 31, 2017
2018 • Approval of Calculation of Integrated Minimum Capital Adequacy Requirement (KPMM) Result, December
31, 2017.
• Approval of Integrated Risk Appetite Statement (RAS) Agreement 2018.
2. August 08, 2018 • Approval of the Integrated Risk Profile Self-Assessment Results for June 30, 2018
• Approval of Results of Calculation of Integrated Minimum Capital Adequacy Ratio (KPMM) for June 30, 2018
RISK AND CAPITAL COMMITTEE

Risk and Capital Committee (KRK) is a permanent committee in BNI that has the authority and function:
1. Determination of policies and risk management in all BNI organization units, including managing capital adequacy to
cover risks and support the bank’s business strategy.
2. Determination of policies and management of assets and liabilities.
3. Determination of policies and management of anti fraud strategies in all organization units.
Risk and Capital Committee (KRK) was formed based on the Directors' Decree, most recently amended based on Directors
Decree No. KP / 483 / DIR / R dated December 21, 2016 which has been updated in accordance with the changes in the
organization of the Directors of CFM. Directors Decree No. KP / 384 / DIR / R dated November 9, 2018, chaired by the President
Director and as Vice Chairman is the Vice President Director.
ANNUAL
REPORT 2018
Risk and Capital Committee has 3 (three) sub Committees, namely:

1. Risk Management Sub Committee (RMC)
2. Asset and Liability Sub Committee (ALCO)
3. Anti Fraud Sub Committee
RISK AND CAPITAL COMMITTEE - RISK MANAGEMENT SUB COMMITTEE (KRK-RMC)

Structure and Membership of Risk and Capital Committee - Risk Management Sub-Committee (KRK-RMC)
.No )Membership Composition of Risk and Capital Committee (KRK
I. Chairman : President Director
II. Vice Chairman : Vice President Director
A. Membership Composition of KRK – Risk Management Sub Committee (RMC)
I. Chairman : Managing Director Risk Management
II. Secretary : Division Head Risk Management (concurrently a permanent member)
III. Permanent Member : • Managing Director Compliance
• Managing Director Corporate Banking
• Managing Director Retail Banking
• Managing Director Treasury & International Banking
• Managing Director Information Technology & Operation
• Managing Director Small Business & Network
• Managing Director Finance
• SEVP Medium Enterprises
• SEVP Rescue & Loan Settlement
• Division Head Treasury
• Division Head Corporate Credit Risk
• Division Head Medium & Small Enterprises Credit Risk
• Division Head Consumer Credit Processing and Billing
• Division Head Strategic Planning
• Division Head Compliance
• Division Head Budgeting and Financial Control
• Unit Head Internal Control
• Division Head Legal
• Division Head Corporate Communications & Secretariat
• Division Head Governance Policies
• Unit Head Customer Analysis & Management Portfolio
• Division Head Credit Administration
Non-permanent : Director / SEVP / Division/Unit Head associated to the Meeting materials
Member
Duties and Responsibilities of Risk and Capital Committee - Risk Management Sub Committee (KRK-RMC)
Duties and responsibilities of KRK – RMC are to evaluate and provide recommendations related to Risk Management, which at
least includes:
1. Develop Risk Management Policies and Strategies and their changes.
2. Develop a Risk Management framework and contingency plan to anticipate the occurrence of abnormal conditions.
3. Improve the Risk Management process periodically and incidentally as a result of a change in the external and internal
conditions of the Bank that affect the adequacy of Capital, Bank Risk Profiles, and ineffective implementation of Risk
Management based on the evaluation results.
4. Establish policies and / or business decisions that deviate from normal procedures, such as exceeding significant business
expansion compared to the Bank’s predetermined Business Plan or taking positions / risk exposures that exceed the
prescribed limits.
5. Establish a capital adequacy management policy to protect risks and support the Bank’s business strategy, including
measurement, structure (tier 1 / tier 2), capital allocation and contingency plans.
Duty Implementation of Risk and Capital Committee - Risk Management Sub Committee (KRK-RMC) in 2018
Throughout 2018, KRK – RMC has held 4 (four) meetings with the following agenda:
No Date of Implementation Agenda
1 January 18, 2018 • Assessment Result of BNI Individual Health Index on December 31, 2017
• BNI Risk Profile Individually on December 31, 2017
2 April 18, 2018 • BNI Risk Profile individually on March 31, 2018
Good Corporate
Governance
No Date of Implementation Agenda

3 July 19, 2018 • Assessment Result of BNI Individual Health Index on June 30, 2018.
• BNI Risk Profile individually on June 30, 2018
4 October 17, 2018 • BNI Risk Profile individually on September 30, 2018.
• Review on BNI 2019 Risk Appetite Statement.
RISK AND CAPITAL COMMITTEE – ASSET AND LIABILITY SUB COMMITTEE (ALCO)
Structure and Membership of Risk and Capital Committee – Asset and Liability Sub Committee (ALCO)
Chairman Director of Treasury & International
Secretary Division Head Treasury (concurrently a permanent member)
Permanent Member • Managing Director Compliance & Risk
• Managing Director Corporate Business
• Medium Business Director
• Managing Director Consumer Banking
• Managing Director Planning & Operations
• Managing Director Risk Management
• Managing Director Institutional Relations & Transactional Banking
• SEVP Information Technology
• SEVP Network & Service
• SEVP Digital Banking
• Division Head Bank Risk Management
• Division Head Corporate Credit Risk
• Division Head of Credit Risk Medium & Small Enterprises
• Division Head Processing & Billing Consumer Credit
• Division Head International
• Division Head Corporate & Multinational Business 1
• Division Head Corporate & Multinational Business 2
• Unit Head Syndication
• Division Head SOEs and Government Institutions
• Division Head Medium High End Business
• Division Head Medium Business
• Division Head Small Business
• Unit Head Customer Analysis & Portfolio Management
• Division Head Consumer Product Management
• Division Head Transactional Banking Services
• Division Head Institutional Relations
• Division Head Network Management
• Division Head Wealth Management
Non-Permanent Member SEVP / Division Head / Unit / Units associated with the Meeting materials.
Asset and Liability Sub Committee (ALCO) Duties and Responsibilities

Asset and Liability Sub Committee duties and responsibilities include:
1. Define BNI ALMA goals and objectives and formulate policies and strategies required.
2. Provide instructions and asset management for BNI obligations.
3. Establish and maintain the amount of liquid assets corresponding to liquidity needs and Bank Indonesia requirements.
4. Maintain a funds balance from fund sources.
5. Establish a good fund placement policy for Primary Reserve, Secondary Reserve, Tertiary Reserve and Loan.
6. Analyze the balance sheet structure and review all risks arising from exposure owned by BNI in the form of interest rate
risk, foreign exchange risk and liquidity risk.
7. Evaluate the economic indicators progress and prospects and analyze the impact on the savings and loanposition, foreign
exchange position, interest rates, foreign exchange and BNI profitability.
8. Establish lending rates (base rate) and interest rates for deposits (demand deposits, savings and timedeposits).
Asset and Liability Sub Committee Duties Implementation in 2018

In 2017, the Asset and Liability Sub Committee held Eleven(11) meetings with the following agenda:
No. Date Agenda
1. January 09, 2018 Quota allocation and flow of authority decides on special rates for Demand Deposits and Savings
ANNUAL
REPORT 2018
No. Date Agenda

2. February 07, 2018 The rates for Rupiah Deposit board for all tenors reviewed decreased by 0.25% as of 0.75%
3. March 08, 2018 • Conditions of Market Liquidity and BNI
• Exchange Rate Risk Management
• Interest Rate Risk Management
4. April 26, 2018 Asset & Liability Management
5. May 28, 2018 • Monitoring DPK board rate
• Monitoring credit base rate
6. July 20, 2018 Balance tiering changes and apply USD Deposit board rates
7. August 28, 2018 Quota allocation and flow of authority cut the Giro special rates
8. September 27, 2018 In order to support the Government’s program to stabilize the Rupiah exchange rate and support
the achievement of business units until the end of 2018, the Export Oriented Credit Program was
decided
9. October 25, 2018 • Asset & Liability Development
• Performance monitoring
10. November 28, 2018 Review of Rupiah Deposit board rates
11. December 18, 2018 Monitoring Performance
Anti Fraud Sub-Committee

In accordance with SEBI No. 13/28/DPNP dated December 9, 2011 regarding the Application of
Anti-Fraud Strategy for Banks, as a commitment to improve the effectiveness of the Anti FraudStrategy, BNI formed the Anti
Fraud Committee to foster a culture of anti-fraud awareness at all levels in the organization.
Anti-Fraud Sub-Committee Structure and Membership

Based on Board of Directors’ Decision Letter No. KP/384/DIR/R dated November 9, 2018, with cfm. REN Memo No. REN/2/1489
Dated December 11, 2018, on Changes in Composition of Risk Management and Capital Committee (KRK), the Structure and
Composition of the Anti-Fraud Sub-Committee of Risk and Capital Committee are as follows:
Chairman Managing Director Compliance
Secretary Head of Compliance Division (concurrent as member)
Permanent Members Managing Director Risk Management
Managing Director Retail Banking
Managing Director Small Business and Network
Division Head Bank Management Risk
Division Head Governance Policies
Unit Head Internal Control
Division Head Human Capital Management
Division Head Legal
Division Head Network Management
Division Head Consumer Credit Processing and Billing.
Non-Permanent Members Sector Director/SEVP/Division/Unit Head associated with the meeting
Description of Duties and Responsibilities of the Anti-Fraud Sub Committee of Risk Committee
The Anti-Fraud Sub-Committee Duties and responsibilities include:
1. Identify, evaluate and assign follow-up in event of fraud derived from activities in all BNI work units.
2. Develop a culture and concern for anti-fraud at all levels of the organization.
3. Establish anti-fraud policy and strategy.
4. Monitor the implementation of anti-fraud policy and strategy in BNI and periodically review the impact of policy and
strategy.
In carrying out its duties and responsibilities, The Anti Fraud Sub-Committee is assisted by the Compliance Division and has
the following functions:
1. Managing the implementation of Anti Fraud policy and strategy, in coordination with the units/divisions concerned;
2. Reviewing Anti Fraud strategy SOP;
3. Reporting regularly and incidentally to Internal parties (President Director and Board of Commissioners) and external
(Financial Services Authority) associated with Anti-Fraud Strategy;
4. Acting as reporting and data liaison with Divisions/other Units and external interestedparties regarding Anti-Fraud
Strategy and managing database-related fraud in BNI;
Good Corporate
Governance
5. Monitoring the initiation and implementation of Anti- modules (single sign on).
Fraud Strategy and improvements. g. Conduct more intensive monitoring of areas where
the ATM management is still in the branch and
Anti-Fraud Sub-Committee Duties in 2018 develop standard mitigation for ATMs that have not
The Anti-Fraud Committee (KAF) meeting in 2018 was carried been managed by the vendor.
out with results namely: h. h. Installation of online/live CCTV in high risk
1. Awareness locations.
a. More in-depth Anti-fraud socialization and 3. 3. Actions
awareness in accordance with profiling of fraud a. Implementing Bulk PIN.
perpetrators. b. Optimizing of the use of CMOD reports (exception
b. Spiritual training to all employees. report).
c. Mandatory e-learning Anti Fraud Awarenessby all c. Implementing credit administration organization
employees. structure in branch offices and credit centers
d. Submission of lessons learned from fraud cases. as well as increasing the competence of credit
e. Tips for securely transacting through e-Channel to all administration officers.
BNI customers and card holders. d. Reviewing BNI Development for credit
2. 2. Preventive administration and customer service positions
a. Each account opening customer can be equipped including the issue of authority and its career path.
with a customer's self photo and an ESVS signature e. Affirming of the four eyes principle for application of
which can later be stored on the system and can be credit card applications.
accessed by any frontliner and credit unit. f. Increasingthe use of mobile banking by customers.
b. Changes in parameters/conditions that cause a g. Ensuring that in PKS with BNI Life there is a
dormant account become active and the authority compensation clause for fraud.
to activate dormant accounts, so that activation of h. Confirmingresponsibility/guarantee related to anti-
dormant accounts can be immediately monitored. skimming tools from ATM machine vendors.
c. The addition of a passbook numerator in the iCons i. Trial of debit roaming program and regular force pins
system, so when the passbook is turnover or issued, for BNI employees.
history of the saving book can be immediately
viewed. PRODUCT COMMITTEE
d. Input of Debit Card PIN at PINPAD without swipe The Product Committee (PRC) is policy processes and
cards for debit card replacement transactions monitoring products/activities in BNI to ensure their success
without having to carry a passbook and non-pinpad in creating maximum profit. The Product Committee was
transactions at Teller. established by Decree of Board of Directors No. KP/364/DIR/R
e. Issuance of CS Journal/Supervisor, so CS/Supervisor dated November 9, 2018 KMRT membership composition has
activities can be monitored through CMOD. been changed with cfm.Memo REN No. REN / 2/1397 dated
f. Transaction normalization (authority of transactions November 21, 2018 concerning Changes in Membership of
and loss PINPAD), which will be developed with SSO the Product Committee (PRC).
PRODUCT COMMITTEE STRUCTURE AND MEMBERSHIP

Chairman President Director
Deputy Head Accredited as Permanent Member Vice President Director
Permanent Member • Managing Director Finance
• Managing Director Small Business and Network
• Managing Director Risk Management
• Managing Director Information Technology and Operation
• Managing Director Compliance
• Head of Policy Governance Division
• Head of Budgeting and Finance Control Division
• Head of Network Management Division
• Head of Bank’s Risk Management Division
• Head of Consumer Credit Processing and Collection Division
• Head of Information Technology Solutions and Security Division
• Head of Operations Division
• Head of Compliance Division
Non-Permanent Member Member of Board of Directors who act as Sponsor Director, Chief
Business Risk Officer, Division/Unit Head and Subsidiary Head related to
the topics covered
Secretary Division Head Strategic Planning
ANNUAL
REPORT 2018
Supporting Staff Group • Head of Management and Organization Research Group –Strategic
Planning Division
• Head of Strategic Planning Group – Strategic Planning Division
• Head of Corporate Policy and Guidance System Group – Corporate
Governance Division
• Head of Financial Performance Analysis Group – Budgeting and
Finance Control Division
• Head of Accounting Policy Development Group – Budgeting and
• Head of Corporate Budget Group – Budgeting and Finance Control
Division
• Head of Business Performance Monitoring Group – Budgeting and
• Head of Risk Integration Group – Bank’s Risk Management Division
• Head of Fraud Authorization and Control Group – Consumer Credit
Processing and Collection Division
• Head of Business Partner Group – Information Technology Solutions
and Security Division
• Head of Operational Development Group – Operational Division
• Head of Regulatory and Policy Compliance Group – Compliance
Division
• Head of Legal Study and Development Group – Legal Division
Product Committee Duties and Responsibilities

The duties and responsibilities of Product Committee, include:
1. Establishing major strategy and business development for BNI products/activities.
2. Conducting comprehensive testing and deciding “feasibility” of products/activities especially related to cross-sectoral
alliances/segments and strategic alliances with subsidiaries/other companies outside BNI by inviting the relevant Sector
Director.
3. Monitoring products/activities implemented in BNI and making decisions on the sustainability of products/activities on
the recommendations of Supporting Staff Groups/product owners.
4. Acting as an arbitration institution in issues related to the Performance Management System (PMS) for new products/
activities.
Product Committee Duties Implementation and Frequency of Meetings

In 2018, Product Committee held 4 (four) meetings with agendas as follows:
No. Date Agenda
1. April 19, 2018 Update Progress of Proposed New Products/Activities in Revised RBB 2018-2020.
2. May 18, 2018 SSG Product Committee regarding Proposed New Products and/or Activities in the Revised RBB 2018-2020.
3. October 5, 2018 Discussions related to Implementation of the Product Committee in the Context of RBB Document
Preparation 2019-2021.
4. October 8, 2018 Product Committee Preparation for RBB Document Preparation 2019-2021.
PERFORMANCE MANAGEMENT COMMITTEE

Performance Management Committee (PMC) shall be a permanent committee in BNI as a forum for policymanagement,
budget monitoring and expediting the process of performance management in BNI to ensure alignment of strategic planning,
facilitating the process of setting targets and performance assessment in accordance with Decree of Board of Directors No.
KP/353/DIR/R dated June 21, 2017 regarding Performance Management Committee (PMC).
PERFORMANCE MANAGEMENT COMMITTEE STRUCTURE AND MEMBERSHIP

Deputy Head Accredited as Permanent Vice President Director
Member
Good Corporate
Governance
Permanent Members • All Members of the Board of Directors and SEVP

• Division Head Human Capital Management
• Division Head Internal Control
• Division Head Data Management
• Division Head BUMN & Government Institution
• Division Head Small Business
• Division Head Institutional Relations
• Division Head Treasury
• Division Head E-BankingNon
Non-Permanent Members Division/Unit Head related to the topics covered
Secretary 1 (Target Setting) Division Head Budgeting and Financial Control
Secretary 2 (Strategic Planning) Division Head Strategic Financial Planning
Supporting Staff Group • Division Head Budgeting and Control
• Division Head Human Capital
• Head Internal Control Unit
• Head Data Governance Unit
PERFORMANCE MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES

Performance Management Committee Duties include:
Target Setting
1. Approve and establish an annual schedule and responsible for planning and budgeting.
2. Supervise and monitor the planning and budgeting activities development.
3. Decide CAPEX proposals with certain criteria (business cases).
Strategic Planning
1. Review and ensure alignment between RBB, Corporate Plan and budgets, and recommend adjustmentsas needed.
2. Review and approve recommended targets/budget adjustments (forecasting) and recommend RBB/Corporate Plan changes if
necessary as arbitrator on issues related to performance measurement.
Performance Assessment
1. Review and approve KPI at the sector level.
2. Review and make BNI KPI recommendations
3. Provide recommendations to sectors and divisions during the process of determining and decreasing KPIs and targets.
4. Review the Performance Management process on an ongoing basis/suggest policy initiatives/amendments to improve
efficiency.
5. Provide KPI Business Unit & Functional Unit design insight.
6. Review and decide on PMS scores (Q1, Q2 and Q3)
7. Review the feedback from the Sector Director and provide PM4 Q4 insight score before being cut in the PMC Forum.
Duties Implementation and Meeting Frequency

In 2018, the Performance Management Committee held 3 (three) meetings with the following agenda:
No. Date Agenda

1. February 19, 2018 Finalization of Unit Scores and Q4 Sub Unit2017
2. April 2, 2018 Determination of KPI Functional Unit 2018
3. September 13, 2018 Finalization of Board of Directors KPI Scores Q1 & Q2 2018
ANNUAL
REPORT 2018
TECHNOLOGY MANAGEMENT COMMITTEE

The Technology Management Committee shall be one of permanent committees in BNI which has the authority as an
Information Technology Steering Committee (IT Steering Committee) in providing recommendations to Board of Directors
regarding formulation, determination of policies and strategies to develop BNI information technology. This committee is
formed with the aim of assisting Board of Commissioners and Board of Directors to monitor Information Technology (IT)
activities.
Technology Management Committee was established based on Decree of Board of Directors No. KP/201/DIR/R dated June
14, 2011 regarding the Arrangement of the Technology Management Committee, which was last updated through Memo
Strategic Planning Division No. REN/2/528 dated April 30, 2018 regarding Changes to Committee Membership.
Technology Management Committee Structure and Membership

Chairman Managing Director Information Technology & Operation
Deputy Head Accredited as Permanent Managing Director Small Business & Network
Member
Permanent Members • Managing Director Retail Banking
• Managing Director Finance
• Managing Director Compliance
• Division Head Information Technology Solution and Security
• Division Head Data Management
• Division Head Card Business
• Division Head E-Banking
• Division Head International
• Head E-Channel Unit
• Division Head Operational
• Division Head Risk Management
• Head Internal Control Unit
• Division Head Asset & Procurement Management
• Head Customer Analysis & Portfolio Management Unit
Non-Permanent Members Board of Directors, Head, Division/Unit and Subsidiary’s President (related to the topics
covered)
Secretary Division Head Solution & IT Security
Supporting Staff Group Related Division
TECHNOLOGY MANAGEMENT COMMITTEE DUTIES AND RESPONSIBILITIES

The duties and responsibilities of the Technology Management Committee consist of various fields, namely:
1. IT Policy Formulation
a. Provide recommendations to Board of Directors regarding key IT policies andprocedures, specifically related to
aspects of developing and procuring IT systems, IT and communication network operational activities, information
security, end user computing, e-banking activities, use of IT service providers, and policies and procedures related to
application of risk management to the use of BNI IT.
b. Review and approval of IT budget and information security recommendations.
c. Determine and evaluate IT Governance.
2. IT and Business Strategy Alignment
a. Provide recommendations to Board of Directors regarding the Information Technology Strategic Plan (ITSP) in
accordance with BNI’s strategic business plan, by considering efficiency, effectiveness and roadmap, resources needed,
as well as cost and benefit which will be obtained when the plan is implemented.
b. Evaluate and recommend the suitability of projects approved with the IT Strategic Plan.
c. Establish the priority status of IT projects that are critical and have a significant impact onBNI’s operational activities.
d. Evaluate the suitability of IT with the needs of management information systems that support the management of
BNI’s business activities in the IT sector so that these investments can contribute to the achievement of BNI’s business
objectives.
Good Corporate
Governance
3. IT Risk Management
a. Provide recommendations to Board of Directors regarding the formulation of key IT policies and procedures,
specifically related to aspects of the development and procurement of IT systems, IT and communication network
operational activities, information security, end user computing, e-banking activities, use of IT service providers. As
well as policies and procedures related to the application of risk management to the use of BNI’s IT.
b. Ensure the effectiveness of risk minimization measures for BNI investments in the IT sector so that these investments
can contribute to achieving BNI’s business objectives.
c. Facilitate relations between Divisions/Units to resolve various IT related problems.
4. IT Performance Measurement and Evaluation
a. Conduct analysis and recommendations on the suitability of implementation of IT projects with project charter in a
service level agreement (SLA).
b. Monitor IT performance and improvement efforts.
TECHNOLOGY MANAGEMENT COMMITTEE DUTIES AND FREQUENCIES MEETING

In 2018, Technology Management Committee held 2 meetings with the following agenda:
Date Agenda
June 5, 2018 1. Update IT Project Status 2018.
2. Overseas Branch Office IT Project (Closing Project).
3. Realization of the 2018 CAPEX and Efficiency Program.
4. BNI Cloud Roadmap and Cyber Security.
December 19, 2018 1. IT Projects 2018and Project Plans2019.
2. Upgrade IT Infrastructure.
3. Update ITSO Status 201-2023.
4. IT Project Management Office (PMO) Review.
CREDIT POLICY AND PROCEDURE COMMITTEE

Credit Policy and Procedure Committee (KKP) was established based on the Board of Directors’ Decision Letter No. KP/106/
DIR/R dated April 03, 2014, and its last amendment cfm. Board of Directors’ Decision Letter No. KP/384/DIR/R dated November
9, 2018.
CREDIT POLICY AND PROCEDURE COMMITTEE STRUCTURE AND MEMBERSHIP

Deputy Head Vice President Director
Permanent Members • Director Compliance and Enterprise Risk (concurret as Secretary)
• Director Medium Business
• Director Small Business & Network
• Director Consumer Busines
• Director Financial and Credit Risk
• Division Head Bank Risk Management
• Division Head Internal Control
Non-Permanent Members Division/Unit Head associated with the Meeting material
SUB-COMMITTEE ON CREDIT PROCEDURE (KPP) MEMBERSHIP

Chairman Director Compliance and Enterprise Risk
Members • Vice President Director (specifically related to Corporate Segment material)
• Director Medium Business (specifically related to Medium Segment material)
• Director Small Business & Network (specifically related toSmall Segment material)
• Director Consumer Banking (specifically related to Consumer Banking material)
• Director Financial and Credit Risk (specifically related to Credit Risk and Credit
Administrationmaterial)
• Director Treasury and International (specifically related to Treasury and
InternationalBusiness material)
Secretary Division Head Governance Policies
ANNUAL
REPORT 2018
CREDIT POLICY AND PROCEDURE COMMITTEE DUTIES AND RESPONSIBILITIES

The duties and responsibilities of the Credit Policy and Procedures Committee shall be as follows:
1. Establish Bank Credit Policy (KPB) particularly with regard to formulation of theprecautionary principle in credit subject to
the approval of Board of Commissioners.
2. Establish Treasury and International Business/Financial Institution Policies, especially with regard to the formulation of the
precautionary principle.
3. Supervise so that such KPB can be applied and enforced consequently and consistently and do a review if there are
barriers/obstacles in the implementation of KPB.
4. Conduct periodic review on the maximum period of three 3 (three) years of the KPB and if necessary set changes/
improvements to KPB.
5. Monitor and evaluate:
a. Development and overall quality of credit portfolio.
b. Improve implementation of loan approval authority.
c. Improve granting process, development and quality of loans granted to parties related tothe Bank and certain large
debtors.
d. Improve implementation of BMPK, Good Corporate Governance and Risk Management.
e. Adherance to legislation and other regulations provisions in the implementation of credit provision.
f. Complete problem loans in accordance with established KPB.
g. Bank’s efforts in meeting the adequacy of allowance for credits.
6. Deliver periodic written reports to Board of Commissioners, on the resultsof monitoring the application and
implementation of KPB and the results ofmonitoring and evaluating of matters referred to in point 4 above.
7. Formulate and recommend measures to perfect the implementation of Bank Credit activities.
8. Review the Sub Committee credit procedures decision through Credit Policy andProcedures Committee mechanisms and
procedures.
Sub Committee duties and responsibilities and procedures are as follows:

1. Establish procedures and operational Credit provisions.
2. Establish Lending Model.
Lending Model is operating policies and procedures related to specific credit financing
schemes with the terms and conditions specially adapted to the market segment,
industry or area of interest with regard to prudential banking principles and good corporate governance.
3. Establishing operational procedures and provisions for Treasury and International Business/Financial Institutions
4. Deliver Credit Procedure Sub-Committee’s decision reports periodically to the Credit Policy and Procedures Committee.
DUTIES IMPLEMENTATION AND MEETING FREQUENCYN

In 2018, the Credit Policy and Procedures Committee held 17 (seventeen) meetings
with the following agenda:
No. Date Agenda

1 January 15, 2018 • BNI as an investor in Fixed Income Investment Funds (RDPT).
• BNI as an investor in Money Market Investment Funds (RDPU).
2 February 20, 2018 • Provisions on Granting of Loans to Subsidiaries from Business Groups that Have Become
Corporate Segment Debtors.
• Provisions for Top Up Facility Investment Credit (KI) in Property Business.
3 March 3, 2018 • Determination of Purchase Limit of Corporate Securities in the Interim Period.
• Determination of Purchase Limit for Non Debtor Securities.
4 March 5, 2018 • Provisions for Granting BNI Pension Flexions (BFP) to Retired Candidates:
• Status of Applicant (PT Taspen, PT ASABRI, Active Employees of Retired SOE Institutions)
• Work Period/Pre-retirement Period
• Payment of Salaries and Distribution of Pension Benefits
• Completeness of Administrative Data
• Duration
• Refund
• Criteria for Company/SOE Institutions (Including Groups and Subsidiaries)
Good Corporate
Governance
No. Date Agenda

5 May 15, 2018 • Authority to Decide Corporate Segment Loans for Head Office Levels.
6 May 15, 2018 • Review of Authority Provision to Decide the First Time Credit Disbursement for New/
Additional Debtors that was decided by Head Office Credit Committee in the Middle
Segment.
7 May 24, 2018 • Minimum and Maximum Nominal Provision for BNI Credit Griya Multiguna.
8 May 24, 2018 • Provisions for removing invoices for fines and BDO fees for debtors in the category of loan at
risk in the framework of Phase Out.
9 August 20, 2018 • Provisions on Centralization of Appointment of Independent Appraisers or Public Appraisal
Service Offices (KJPP) by Credit Administration Unit.
10 August 20, 2018 • Granting of Credit Termination Authority to CST Leader.
11 August 21, 2018 • Provisions for the Closing of Small Segment Guarantee/Credit Insurance for Limited R/C KMK.
12 August 21, 2018 • Authority to Decide Restructuring of Non-Performing Loan (NPL) Credit up to IDR10 Billion.
13 August 23, 2018 • Review Provisions on Financing for Work/Projects funded by the State Budget through the
State Treasury and Budget System (SPAN).
14 September 5, 2018 • Improvement of Authority to decide Organic Consumer Loans processed by LNC Units.
• Authority to Decide Organic Consumer Loans above Branch Offices.
15 September 20, 2018 • Provisions for Establishing Authority to Decide the Amount of Fee for Brokers/Property
Agents in the Context of Collateral Sales.
16 November 26, 2018 • Domestic Non-Deliverable Forward (DNFD).
17 November 31, 2018 • Review the provisions of Prime Debtors and Review Financial References per Industrial Sector.
HUMAN CAPITAL COMMITTEE

The Human Capital Committee is a permanent committee in BNI, staffed by all members of the Board of Directors and
several Division Heads, with the following powers:
1. Decide on policies/regulations in the field human resource management related:
a. Planning Officer
b. Recruitment and Selection
c. Training and Competence Development
d. Employee Performance Assessment
e. Career Path and Succession
f. Remuneration
g. Industrial relations
h. Work culture
2. Decide on approval for the mutation/promotion program for the positions of Division Head and Region Head
3. Evaluate the performance of Division Head and Region Head
4. Decide on the approval for administrative sanctions for the positions of Division Head and Region Head
5. Approve the delegation of authority in human resource management
Human Resources Committee is established based on Decree of Board of Directions No. KP/235/DIR/R
dated July 18, 2011 regarding Amendment Human Capital Committee. With the issuance of this Decree, Board of
Directors Decree No. KP/078/DIR/R dated February 9, 2004 regardingHuman Capital Committee and Board of Directors
Decree No. KP/637/DIR/R dated October 5, 2004 regarding the Disciplinary Committee are no longer valid.
ANNUAL
REPORT 2018
HUMAN CAPITAL COMMITTEE STRUCTURE AND MEMBERSHIP

Permanent Members Director who supervises Human Capital Division (Concurrent as Chairman) *)
Director who supervises Compliance Division *)
Non-Permanent Members Sector Director and/or Officials who supervise Division/Unit (if there is no Sector Director)
associatedwith the meeting *)
Secretary Division Head Human Capital (HCT)
*) In the absence of the Director position, then the position is replaced by SEVP or Officer who supervises the Division / Unit associated with the field.
HUMAN CAPITAL COMMITTEE DUTIES AND 2. Ensure the availability of qualified human resources
RESPONSIBILITIES and placing them in the right positions to support
The Human Capital Committee duties and responsibilities are the leadership positions including Division Head and
as follows: Regional Head.
1. Ensure that policies/provisions in the field of human 3. Evaluate the performance of the labor force Division
capital are consistent and aligned with strategic Head.
policyplanning. The human capital policies/provisions 4. Ensure that the delegation of authority in the field of
include Human Capital management, Remuneration human resource management is in accordance with the
System management and Reward and Punishment needs and purposes.
mechanisms for all BNI employees.
TEAMSUNDER THE HUMAN CAPITAL COMMITTEE
Team of Policy Assessment and Formulation for Human Capital Management System
Chairman • Division Head Human Capital (HCT)
Permanent Members • Division Head of Strategic Planning (REN) (Accredited Chairman Substitute)
• Division Head Compliance (KPN)
Non-Permanent Members • Division Head/Unit associated with the meeting *)
Secretary • Group Head in Human Capital Division (HCT) related to the agenda (Not Accredited Member)
Team of Policy Assessment and Formulation for Human b. Recruitment & selection
Capital Management System Duties and c. Training and competence development
Responsibilities include: d. Employee performance assessment
1. Manage the research, assessment and evaluation of e. Career paths and succession
the effectiveness and quality as well as recommend f. Remuneration
proposed changes/improve operational policies and g. Industrial relations
mechanisms for policies related to human capital h. Corporate Culture
management: 2. Managing the proposed delegation of authority in
a. Employee planning human capital management.
Good Corporate
Governance
Team of Mutation ConsiderationManagement

Chairman • Division Head Human Capital (HCT)
Permanent Members • Division Head/Unit who supervises the relevant units (Accredited Chairman Substitute)
• Division Head/Unit/ associated with the meeting
Secretary • Group Head in Human Capital Division (HCT) related to the agenda (Not Accredited Member)
The Duties and Responsibilities of the Team Leader of Transfer Consideration are managing the activities of planning and
searching of candidates based on the pre-determined requirements and recommending the said candidates to be transferred/
promoted as leaders.
Administrative Sanctions Consideration Team

Head Office
Chairman Head of Human Capital (HCT) Division (Concurrently a Member)
Member Head of Compliance Division (KPN)
Head of Legal Division (HUK)
Head of Division/Unit related to the event/case or the proxy.
Secretary Head of Internal Audit Unit (SPI) (Not Concurrently a Member)
Regional Office
Chairman Head of Region (CEO Region)
Permanent Member Vice Regional Head supervising unit where the event/case occurs
Another Vice Regional Head appointed by the Head of Region (CEO Region)
Head of Division/Unit related to the event/case or the proxy.
Secretary Head of Regional Internal Control (Not Concurrently a Member)
Duties and Responsibilities of the Team Leader Transfer Consideration are managing the analysis and assessment of
recommendations for administrative sanctions received from the division processing the case and then recommending them
to the decision maker or imposing decisions of administrative sanctions on employees related to the case according to the
applicable authority matrix.
DUTY IMPLEMENTATION OF HUMAN CAPITAL COMMITTEE

Throughout 2018, the Employee Transfer Consideration Team (TPMTP) scheduled regular meetings for 2 (two) times a
week to discuss the transfer of Branch Manager, Center. Next, the transfer decisions for the position of CEO of GM and CEO
of the Region were conducted through Board of Directors Meetings amounting to 15 (fifteen) meetings. Meanwhile, the
Administrative Sanctions.
ANNUAL
REPORT 2018
EXTERNAL AUDIT FUNCTION
The independent monitoring function of the Bank’s financial The 2018 fiscal year is the third audit year for KAP
aspects is carried out by conducting an External Audit by Purwantono, Sungkoro, and Surja (member of Ernst and
the Public Accounting Firm (KAP). External Auditors who Young).
examine BNI’s financial statements for 2018 fiscal year are
determined through the Annual GMS by considering the Basis of appointment is as follows:
proposal of the Board of Commissioners with due regard to 1. Based on the Financial Services Authority Regulation No.
the recommendations of the Audit Committee. The selection 13/POJK.03/2017 dated March 27, 2017, on the Use of
process is done according to the applicable mechanism of Public Accountant Services and Public Accountant Firm
procurement of goods and services. To ensure independence in Financial Service Activities in Article 16 paragraph 1,
and quality of audit results, the designated External Auditors it is stated that the Party carrying out financial service
shall not have a conflict of interest with the Bank. activities must limit the use of audit services on the
annual historical financial information from the same
IMPLEMENTATION OF EXTERNAL AUDIT FUNCTION AP to as many as 3 (three) reporting fiscal years of audit
period consecutively.
In carrying out operational activities, in addition to internal 2. Based on Copy of Financial Services Authority
auditors and the Financial Services Authority, it is also Regulation No. 32/POJK.03/2016 on Amendment
supervised by external auditors of Bank Indonesia, Audit to Financial Services Authority Regulation No. 6/
Board of the Republic of Indonesia, the Financial Services POJK.03/2015 dated March 31, 2015, on Transparency
Authority, and Public Accountant Firm. and Publication of Financial Statements in conjunction
with the Financial Services Authority Circular Letter No.
APPOINTMENT OF PUBLIC ACCOUNTANT 11/SEOJK.03/2015 on Transparency and Publication of
Conventional Commercial Bank Reports in Article 18
Following up on the resolutions of General Meeting of paragraph 6, it is stated that Banks must include the
Shareholders (“GMS”) for 2017 fiscal year, through the Board name of the Public Accountant Firm that conducts the
of Commissioners’ Letter No. DK/040 dated April 02, 2018, annual financial statements audits and the name of
the Board of Commissioners determined KAP Purwantono, the Public Accountant, partner in charge of the audit
Sungkoro, and Surja (member of Ernst and Young) as the including the opinion given in the announcement of the
external auditor in conducting audit of the Bank’s Financial Quarterly Publication Report for the position of end of
Statements and Other Reports for 2018 fiscal year. December.
3. The appointment process of KAP Purwantono, Sungkoro
and Surja (member of Ernst and Young) as the external
auditor was carried out through Auction mechanism.
Good Corporate
Governance
PUBLIC ACCOUNTANT FIRM, ACCOUNTANT NAME, AND FEE
Here is the list of Public Accountant Firm, accountant name, fee, and KAP license for the last 6 years
Table of Public Accountant Firm, Accountant Name, Fee, and KAP License for the Last 6 Years
Accountant's Name Audit Services Fee (in
Year Public Accountant Firm Period KAP License
(Partner in charge) million Rupiah)*
2018 KAP Purwantono, Sungkoro dan Surja Danil Setiadi Handaja 1 year 8,500,000,000 603/KM.1/2015
(Ernst and Young)
2017 KAP Purwantono, Sungkoro dan Surja Yasir 2 year 7,200,000,000 603/KM.1/2015
(Ernst and Young)
2016 KAP Purwantono, Sungkoro dan Surja Yasir 7,200,000,000 603/KM.1/2015
(Ernst and Young)
2015 KAP Tanudiredja, Wibisana, Rintis & Angelique Daryanto 1 year 8,390,000,000 241/KM.1/2015
Rekan (Pricewaterhouse Coopers)
2014 KAP Tanudiredja, Wibisana & Rekan Haryanto Sahari 3 year 13,215,125,000 151/KM.1/2010
(Pricewaterhouse Coopers)
Information:
*Including External Auditor Fee for Subsidiaries
The audit scopes for KAP Purwantono, Sungkoro and Surja (member of Ernst and Young) for 2018 fiscal year are:
1. Audit of Publication Financial Statements.
2. Audit of Financial Statements of Partnership and Community Development Program.
3. Audit of Financial Statements of Financial Institution Pension Funds.
4. Audit of Investment Report of Financial Institution Pension Fund.
5. Audit of the Implementation of Mutually Agreed Procedures for the Operations of BNI’s Custodian Department.
6. Audit of PSA 62 Report.
7. Review on BNI’s Performance Evaluation Result Report.
8. Management Letter
The fees mentioned in the audit fee table already include the scope of other services as mentioned above.
EXAMINATION RESULT
Results of the Examination conducted by the external auditor are submitted in the form of a Financial Statement Opinion.
From 2011 to 2018, BNI’s Consolidated Financial Statements obtain Fair Opinion. This shows that BNI has presented the
Consolidated Financial Statements accurately and in accordance with the applicable standards and are free from material
misstatements. This shows that BNI has presented the Consolidated Financial Statements accurately and in accordance with
the applicable standards and are free from material misstatements.
AUDIT SERVICES FEE

The audit services fee for the annual Financial Statements, financial statements of BNI’s partnership and community
development program (PKBL), and other audit services for 2018 fiscal year is Rp7,284,000,000.00 (including out of pocket
expense (OPE) and value added tax (VAT)).
ANNUAL
REPORT 2018
OTHER SERVICES PROVIDED BY THE

ACCOUNTANT
Rendered other services accountant in 2018 services the mentoring consultant implementation of IFRS 9/PSAK 71
Rp8.000.000.000,00.
PUBLIC ACCOUNTANT COMPANY PROFILE
KAP Purwantono, Sungkoro & Surja

(Member of Ernst and Young)
Indonesia Stock Exchange Building Tower 2,7 th floor
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190
INDONESIA
Telephone Number: [62] (21) 52895000
Facsimile Number: [62] (21) 52894100
COORDINATION OF EXTERNAL AUDITOR AND AUDIT COMMITTEE
In order to carry out the monitoring function on the results of audit conducted by external auditors, which are Bank Indonesia
(BI)/Financial Services Authority (FSA), the Supreme Audit Agency (BPK), the Financial Transaction Reporting and Analysis
Center (PPATK), and KAP, the Audit Committee has evaluated the follow-up actions taken by the Management on the results of
audit of the said external auditor. Complete coordination can be seen in the description of the Audit Committee Report.
EFFECTIVENESS OF EXTERNAL AUDIT IMPLEMENTATION AND BANK COMPLIANCE WITH PROVISIONS ON

RELATIONSHIP BETWEEN THE BANK, PUBLIC ACCOUNTANT, AND BANK INDONESIA
BNI has carried out an external audit and Bank compliance with the provisions on relationship between the Bank, the Public
Accountant, and Bank Indonesia for the Bank effectively, including the following:
a. As stated in PBI No. 7/50/PBI/2005 on Amendment to PBI No. 3/22/PBI/2001 on Transparency of Bank’s Financial
Conditions, in providing audit assignments on Financial Statements, BNI must appoint a Public Accountant and Public
Accountant Firm that has been registered with Bank Indonesia. With Board of Commissioners Letter No. DK/076 dated July
21, 2016, the Board of Commissioners appointed KAP Purwantono, Sungkoro and Surja (member of Ernst and Young) as
the external auditor to conduct audits of the Bank’s Financial Statements and Other Reports for 2017 fiscal year.
b. Based on the Financial Services Authority Regulation No. 13/POJK.03/2017 dated March 27, 2017, on the Use of Public
Accountant Services and Public Accountant Firm in Financial Service Activities in Article 16 paragraph 1, it is stated that
the Party carrying out financial service activities must limit the use of audit services on the annual historical financial
information from the same AP to as many as 3 (three) reporting fiscal years of audit period consecutively.
c. The appointment of the same Public Accountant and/or Public Accountant Firm by BNI must be based on a work
agreement.
d. The Public Accountant who conducts audits on the Bank’s Annual Financial Statements must conduct the audit in
accordance with the Public Accountant Professional Standards and the work agreement as well as the audit scope. The
Public Accountant and/or Public Accountant Firm must observe the Bank’s confidential provisions as stipulated in Law No.
7 of 1992 on Banking as amended by Law No. 10 of 1998.
e. In the framework of audit preparation and implementation, the Public Accountant can request information from Bank
Indonesia on the condition of the Bank to be audited.
f. Bank Indonesia and/or FSA can request information from the Public Accountant even though the work agreement has
ended.
Good Corporate
Governance
RISK MANAGEMENT
To anticipate the domestic and global economic challenges and increase the risk exposure faced
by BNI, an effective and integrated risk and capital management system is needed, which is
able to support the achievement and growth of sustainable performance while increasing the
competitiveness of the Bank. As one of the Financial Services Institutions that has several subsidiary
companies incorporated in BNI’s Financial Conglomeration, in addition to implementing individual
risk management, BNI also implements integrated risk management.
Some regulations related to the implementation of Bank’s Risk Management are as follows:
1. Risk Management Implementation
a. POJK No. 18/POJK.03/2016 dated March 16, 2016, on Risk Management Implementation for
Commercial Bank.
b. SEOJK No. 34/SEOJK.03/2016 dated September 1, 2016, on Risk Management
Implementation for Commercial Bank
2. Implementation of Consolidated Risk Management with Subsidiaries
a. POJK No. 38/POJK.03/2017 dated July 12, 2017, on Consolidated Risk Management
Implementation for Banks Exercising Control over Subsidiaries.
b. SEOJK No. 43/SEOJK.03/2017 dated July 19, 2017, on Prudential Principles and Report in
the Framework of Implementation of Consolidated Risk Management for Banks Exercising
Control over Subsidiaries.
3. Implementation of Integrated Risk Management for Financial Conglomeration
a. POJK No. 17/POJK.03/2014 dated November 18, 2014, on Implementation of Integrated Risk
Management for Financial Conglomeration.
b. POJK No. 26/POJK.03/2015 dated December 04, 2015, on Integrated Minimum Capital
Adequacy Requirement for Financial Conglomeration
4. Risk Management for Commercial Bank Products and Activities, including:
a. POJK No. 36/POJK.03/2017 dated July 12, 2017, on Prudential Principles in Capital
Participation Activities.
b. POJK No. 38/POJK.03/2016 dated December 01, 2016, on Implementation of Risk
Management in the Use of Information Technology for Commercial Bank.
c. SEOJK No. 12/POJK.03/2018, dated August 6, 2018, on the Implementation of Digital
Banking Services by Commercial Banks
5. Internal Control System.
SEOJK No. 35/SEOJK.03/2017 dated July 07, 2017, on Guidelines for Standards of Internal Control
System for Commercial Banks.
ANNUAL
REPORT 2018
RISK MANAGEMENT ORGANIZATIONAL STRUCTURE

The organization and functions of BNI’s Risk Management and Integrated Risk Management for BNI’s Financial Conglomeration
are prepared and determined as follows:
Audit Committee
Board of Commisioner
Risk Monitoring Committee
Nomination & Remuneration Committee
Director President Director Integrated Governance Committee
Vice President Director
Recomendation Komite Manajemen

Director Director in charge of Risk Risiko Terintegrasi
Management function (Non Struktural)
Integrated Risk
Management Commitee
(Non Stuctural)
Risk Management Unit concurrently
Integrated Risk Management Unit
BNI Financial Financial Services

Conglomerate Member Institutions
1. BNI’s Board of Directors and Board of Commissioners are authorized and responsible for ensuring the implementation of
BNI’s Risk Management individually or in an integrated manner.
2. In carrying out its functions to supervise the implementation of BNI’s Risk Management and Integrated Risk Management,
BNI’s Board of Commissioners in its implementation is assisted by the Risk Monitoring Committee, Audit Committee,
Remuneration Committee, and Integrated Governance Committee.
3. BNI’s Board of Directors who oversees the Risk Management function in addition to carrying out the function of
implementing Risk Management for BNI also implements the Integrated Risk Management function for BNI’s Financial
Conglomeration.
4. In carrying out its functions of implementing effective risk management, the Board of Directors is assisted by Risk
Management sub-committee of the Risk and Capital Committee (KRK-RMC) and the Integrated Risk Management
Committee (KMRT).
5. If necessary, the Director in charge of Risk Management function can discuss Risk Management issues in other committee
meetings at Board of Directors’ level or Board of Directors’ meetings.
6. In implementing BNI’s Risk Management, the Board of Directors is assisted by the Risk Management Work Unit (SKMR)
which also functions as an the Integrated Risk Management Work Unit (SKMRT).
7. The Risk Management Unit is responsible for facilitating and coordinating with risk management units in BNI and all LJK
members of the Financial Conglomeration in managing 8 (eight) types of risks in BNI, which are credit risk, market risk,
liquidity risk, operational risk, legal risk , strategic risk, compliance risk, and reputation risk, and 10 (ten) types of risks in
BNI’s Financial Conglomeration, including intra-group transaction risk and insurance risk.
8. The Risk Management Work Unit in carrying out its functions and authorities and responsibilities is independent to the
Operational Work Unit (risk taking unit) and does not carry out activities related to the Bank’s business.
Good Corporate
Governance
9. In carrying out its functions, the Risk Management Work Unit can escalate issues that occur to Risk Management sub-
committee of the Risk and Capital Committee (KRK-KMR) or the Director in charge of the Risk Management function.
Whereas the Integrated Risk Management Work Unit escalates issues to the Integrated Risk Management Committee or
Director in charge of the Integrated Risk Management function
BANK’S RISK MANAGEMENT DIVISION

Hierarchically, the organization of the Bank’s Risk Management Division (ERM) acting as the Risk Management Work Unit
(SKMR) and the Integrated Risk Management Work Unit (SKMRT) at BNI is under and directly responsible to the Managing
Director Risk Management as the Director in charge of Risk Management function and Integrated Risk Management function.
STRUKTUR DIVISI MANAJEMEN RISIKO BANK
Risk Management
Division
Deputy Leader Deputy Leader

Sector Market Risk & Sector Market Risk
Credit Risk & Credit Risk
Business
Customer Consumer & Market and Operational
Credit & Market Risk Banking Consumer
& Industrial Retail Credit Liquidity Risk Risk Risk & Business
Portfolio risk Management Operational Operational
Ranking Scoring and Development Integration Continuity
management and Liquidity Risk Risk
Modeling Modeling and Policy Group Management
Group Group Management Management
Group Group group Group
Group
Model
Validation Management Management
Management Management Management Management
Management Management of Consumer of Business
of Market of Capital Management of Consumer of
of Credit & of Customer & Retail Banking
and Market Risk of Risk Operational Operational
Portfolio Risk & Industrial Credit & Liquidity Operational
Management Liquidity Risk Integration Risk Risk General
Rankings Scoring & Development Risk
Management Management Management Section
Modeling Management
Information:
The General Function follows the centralization Integrated
of functions of the Head Office's Employee Management Management
Conglomerate
Service of Office of Business Human Model
Risk
The Human Capital function follows the policy Models Continuity Representative
Management
of centralization of the Human Capital functions Management
of Head Office - HC Representative
ANNUAL
REPORT 2018
PROFILE OF RISK MANAGEMENT DIVISION HEAD Since September 2018, the Bank’s Risk Management Division
The head of the Bank’s Risk Management Division is directly has been led by Drs. Aryanto Purwadi, MM.
responsible to the Managing Director Risk Management.
Drs. Aryanto Purwadi, MM

(August 03, 2018 - Present)
Indonesian citizen, 52 years old, obtained Bachelor degree from the Faculty of Biology,
Universitas Jendral Soedirman Purwokerto (1990), and Master’s degree from the
Business School of Bogor Agricultural Institute (2004). Appointed as the Head of the
Bank’s Risk Management Division based on Board of Directors Decision Letter No.
KP/274/DIR/R dated August 3, 2018. Previously, he served as the Head of Subsidiary
Development Division and Head of Strategic Planning Division
DUTIES AND RESPONSIBILITIES OF RISK MANAGEMENT Rating System, Market Risk Management Model, and
DIVISION Operational Risk Tools
As a Risk Management Work Unit (SKMR) and Integrated 2. Integrated Risk Management Work Unit
Risk Management Work Unit (SKMRT), the Bank’s Risk Duties and responsibilities of the Integrated Risk
Management Division has the following functions: Management Work Unit are as follows.
1. Risk Management Work Unit a. Giving input to the Board of Directors of the
Duties and responsibilities of the Risk Management Work Main Entity such as related to the preparation of
Unit are as follows. Integrated Risk Management Policies.
a. Preparing proposal for strategy and bank’s risk b. Monitoring the implementation of Integrated
management policy. Risk Management Policies including developing
b. Monitoring overall risk position (composite), per type the procedures and tools for risk identification,
of risks, and per type of functional activity, as well as measurement, monitoring, and control.
performing stress testing; c. Monitoring Risks in BNI’s Financial Conglomeration
c. Developing and evaluating the accuracy of models based on the assessment result of
used to measure risk. -- The Risk Profile of each Financial Services
d. Reviewing new product and activity proposal from Institution (FSI) in Financial Conglomeration.
risk aspects. -- The integrated Risk Level of each type of risk.
e. Providing recommendations to operational work -- Integrated Risk Profile.
unit (risk taking unit) according to the authority d. Preparing the proposal for determination of Risk
owned. Appetite Statement in an integrated manner.
f. Evaluating the independence and effectiveness of e. Conducting stress testing.
bank’s risk management infrastructure on a regular f. Periodically reviewing to ensure the adequacy of
basis. Integrated Risk Management implementation and
g. Supervising the implementation of risk Risk Management implementation in each FSI of
management, among others, through the members of Financial Conglomeration.
implementation of an integrated risk control system g. Reviewing proposal of new line of business that is
and risk exposure limit determination. strategic in nature and has significant influence to
h. Preparing and submitting risk reports regularly to the exposure of Financial Conglomeration Risk.
the Board of Directors through the Director in charge h. Providing information to the Integrated Risk
of risk management function. Management Committee on matters requiring
i. Independent of the risk taking unit in carrying out follow-up from the evaluation result of the
the risk management monitoring function. The Integrated Risk Management implementation.
supervisory function aims to ensure that the risks i. Providing input to the Integrated Risk Management
and portfolios of the bank are well managed, among Committee for the preparation and refinement of the
others, through the determination of risk parameters Integrated Risk Management policies.
and limits. j. Preparing and submitting the Integrated Risk Profile
j. Responsible for managing 4 (four) main risks, report regularly to the Board of Directors of the Main
which are credit risk, market risk, liquidity risk, and Entity in charge of Integrated Risk Management
operational risk, including measuring credit, market, function and to the Integrated Risk Management
and operational risks, including through the Internal Committee.
Good Corporate
Governance
COMPETENCE DEVELOPMENT IN BANK’S RISK MANAGEMENT SECTOR

The competence development programs participated by members of Bank’s Risk Management Division throughout 2018 are
as follows:
Table of Competence Development of Bank’s Risk Management Division

No Name of Employee Education and Development Name of Organizer Implementation Date
1 Introduction R Programming (Introduction to Machine Learning) Enigma January 2018
2 Writing Report Value Consult January 2018
3 Integrated Digital Marketing C&G Training January 2018
4 Cybersecurity Risk Management E-Learning melalui edx.org February - March 2018
5 Gap Analysis IFRS 9 KPMG 8-9 March 2018
6 Refreshment IFRS9 KPMG 1 March 2018
7 Renewable Energy: Biodiesel Directorate General of EBTKE May 2018
8 Workshop on Introduction to Asset Liability Management Lentera Pro 18 - 20 July 2018
9 Workshop on Preparation for Implementation of Interest Rate Risk in BNV & TRS - BNI 1 July 2018
the Banking Book (IRRBB)
10 Workshop on Early Warning System (EWS) of Financial Conglomeration FSA 27 July 2018
11 IFRS9 KPMG + PKU 1 July 2018
12 Implementation of Risk Culture in Financial Conglomeration from FSA 2 August 2018
Monitoring Aspect
13 Best Practice in Risk Culture Implementation Center For Risk Management 3 August 2018
Studies Indonesia
14 Training for Trainer Jakarta Consulting Group 28-29 August 2018
15 Training & Benchmark of IFRS 9 with Central Bank of the Philippines EY + PKU August 2018
16 Advanced Workshop on Implementation of the Interest Rate Risk in the BNV & ERM - BNI 1 September,2018
Banking Book (IRRBB)
17 Sustainable Energy BNI (in cooperation with 13 September 2018
USAID)
18 Digital Transformation Roadmap Online Course Udemy 15 October 2018
19 Building Cashless Society - Grab Ovo Kudo Study Case QB Consult 28 - 20 October 2018
20 E-Channel The Spearhead of Banking and Financial Industry Asia Anti Fraud 20-21 October 2018
21 Economic Modeling BI Institute October 2018
22 Implementing Sustainable Innovation System PPM Manajemen 31 October - 01
November 2018
23 Aligning Liquidity Risk Management One Point 01 November 2018
24 Asset & Liability Management One Point 01 November 2018
25 Fintech: Digital Financial Innovation in Financial Sector One Point Indonesia 8 - 9 November 2018
26 Fintech Digital Banking Golden Regency Training & 10 - 11 November 2018
Konsulting
27 Happy employee is productive employee QB Consult 9 - 10 November 2018
28 The Annual Indonesia Cyber Security Summit (ICSS) All-Day Indonesia Cyber Security 18 - 19 November 2018
Conference Focused On Investing And Developing The Infant Cyber Forum
Security Industry In Indonesia And The Region.
29 Creative Problem Solving & Decision Making M-Knows Consulting 24 - 25 November 2018
30 Classification in Machine Learning I Algoritma Course November 2018
31 Classification in Machine Learning II Algoritma Course November 2018
32 Creative Thinking & Decision Making M-Knows November 2018
33 Problem Solving M-Knows November 2018
34 Leadership Program M-Knows November 2018
35 Fintech Markplus, Kanaka Training November 2018
ANNUAL
REPORT 2018
No Name of Employee Education and Development Name of Organizer Implementation Date

36 Business Communication and Personal Development Global Strategic Consulting 30 November - 1
December 2018
37 Creative Problem Solving and Decision Making M-Knows 24 - 25 November 2018
38 Selling Yourself Dr. Personality Power 01 - 02 December 2018
39 Capital Market Training Bina Insan Learning Center 13 - 14 December 2018
40 Seminar Of Digital Business Transformation 2018 Xanoco Digital Indonesia 8 December 2018
41 Quantitative Risk Management Under Basel III and Basel IV Indonesian Association of 11 - 12 December 2018
Bachelor of Economics (ISEI)
42 Neural Network & Deep Learning Algoritma Course 1 December 2018
43 Soul of Speaking The Soul of Speaking 13-14 December 2018
Organizer
44 Financial Statement Analysis & Risk Based Bank Rating Bina Insan 13-14 December 2018
45 Certified Risk Management Professional (CRMP) LSPP December 2018
RISK MANAGEMENT CERTIFICATION

Table of Competence Development of BNI’s Risk Management Employees through Risk Management Certification throughout
2018.
Table of Risk Management Certification
Certification Level Position Total Employees
1 Assistant 16
Assistant Manager 887
Manager 77
Assistant Vice President 6
2 Assistant 1
Assistant Manager 55
Manager 212
3 Manager 30
Vice President 4
4 Assistant Vice President 3
Vice President 39
Senior Vice President 4
Executive Vice President 1
5 Vice President -
Senior Vice President -
Executive Vice President -
RISK MANAGEMENT SYSTEM
TARGET AND STRATEGIC INITIATIVES FOR 2018 RISK MANAGEMENT IMPLEMENTATION

Throughout 2018, the Bank’s Risk Management Division set targets and carried out strategic initiatives as follows:
1. Credit Risk
a. Preparing review document of Credit Risk Management Policies and Procedures.
b. Prepare a review of the standard financial ratios per industry for 2018.
c. Prepare a review of the Industry Risk Rating (IRR) in 2018.
d. Prepare a review of Industrial Risk in the Priority Economic Sector.
Good Corporate
Governance
e. Implement an Internal Rating System (IRS) for FI/ Treasury and KCLN.
Banks. f. Prepare quantitative publication reports on Market
f. Review IRS Middle Segment. Risk exposure.
g. Monitor the debtor rating system of Business g. Prepare reports on measurement, monitoring, and
Banking in the corporate and middle segment. analysis, as well as control in the framework of
h. Perform Risk Weighted Assets (RWA) calculations of managing market risk.
Credit Risk using the Standardized method. h. Prepare stress testing reports on exchange rates
i. Prepare quantitative publication reports on Credit and interest rates according to schedule (business
Risk exposure. as usual), monitor and analyze the development of
j. Prepare stress testing credit risk reports and Action incidental stress testing parameters of market risk
Plans. and recovery plan.
k. Develop credit risk measurement (sustainable). i. Prepare a backtesting report on Value at Risk (VaR).
l. l. Prepare a review of the calculation of Premium j. Prepare Risk Weighted Assets (RWA) calculation
Credit Risk (CRP). document on Market Risk using the Standardized
m. Conduct analysis/review of loan portfolios, study method.
of 25 core debtors, Non-Performing Loans (NPL) k. Develop Market Risk model validation.
analysis, and space available loans on a regular basis. l. Analyze Market Risk appraisal/assessment on new/
n. Analyze performance monitoring, review, calibration, existing products, activities, and transactions of the
and development of new scoring and modeling Bank.
for consumer credit products (including Credit m. Compile a review of Market Risk Risk Appetite.
Cards and BNI Griya) and mass retail (including BNI n. Arrange review of parameters and measurement of
Entrepreneurship and KUR). Market Risk Profile.
o. Piloting/full implementation of the application/ o. Evaluate Net Open Position (NOP) calculations.
behavior/collection scorecard for consumer p. Evaluate the calculation of the Interest Rate Risk in
credit and mass retail products (including BNI Banking Book (IRRBB)
Entrepreneurship and KUR) on the loan application q. Compile a review of the calculation of the risk level of
system/scoring engine. forex transactions, derivatives and reverse repo.
p. Develop Impairment Models related to the r. Monitor limits regarding concentration of securities.
application of the latest accounting standards (IFRS
9). 3. Liquidity Risk
q. Validate the Credit Risk models for the Business a. Management of Liquidity Risk of Domestic and
Banking (Medium and Small) Segments and Overseas Branch Offices.
Consumer Segments (consumer and mass retail) for b. Preparing policy documents, procedures,
either the new rating/scoring model or the existing methodologies, and reporting on LCR (Liquidity
model proposed for validation. Coverage Ratio) on BNI only and consolidated.
r. Analyze Credit Risk appraisal/assessment on new/ c. Preparing policy documents, procedures,
existing products, activities, and transactions of the methodologies, and reporting on NSFR (Net Stable
Bank. Funding Ratio) on BNI only and consolidated.
s. Compile a review of Credit Risk Risk Appetite. d. Monitor and analyze cash management per region.
t. Develop a review of parameters, measurement/ e. Prepare quantitative publication reports on Liquidity
methodology of Credit Risk Profile and monitor the Risk exposure.
implementation of concerns regarding improvement f. Prepare reports on measurement, monitoring, and
of Credit Risk. analysis, as well as control in the framework of
managing Liquidity Risk.
2. Market Risk g. Prepare stress testing reports on Liquidity Risk
a. Preparing review document of Market Risk according to schedule (business as usual), monitor
Management Policies and Procedures. and analyze the development of incidental stress
b. Prepare a review and development of Market testing parameters of Liquidity Risk and recovery
Risk Management Policies, Procedures, and plan.
Methodologies, for Treasury portfolios and Overseas h. Analyze Liquidity Risk appraisal/assessment on new/
Branch Offices. existing products, activities, and transactions of the
c. Monitor transactions and limit of significance of Bank.
Securities. i. Compile a review of Liquidity Risk Risk Appetite.
d. Monitor and review Treasury and KCLN budget loss j. Arrange review of parameters and measurement of
limits. Liquidity Risk Profile.
e. Monitor transaction/deal size dealer authority of
ANNUAL
REPORT 2018
4. Operational Risk using the scoring system calculation method.

a. Preparing review of Operational Risk Management f. Mentor the business units related to business
Policies and Procedures. activities.
b. Prepare a review of Business Continuity g. Handle and settle legal cases.
Management (BCM) Policies and Procedures. h. Supervise case handling.
c. Analyze operational risk identification by reviewing i. Analyze Legal Risk appraisal/assessment on new/
risk issues in all organizational units. existing products, activities, and transactions of the
d. Prepare quantitative publication reports on Bank.
Operational Risk exposure. j. Prepare a review of parameters and measurement of
e. Prepare reports related to Operational Risk for Legal Risk Profile.
Internal and External needs.
f. Perform Risk Weighted Assets (RWA) calculations of 6. Reputation Risks
Operational Risk using the Basic Indicator Approach a. Review Reputation Risk Management Policies.
method. b. Submit a letter of answer/response to the mass
g. Prepare the results of Operational Risk Monitoring in media regarding customer complaints/grievances
all organizational units. against BNI.
h. Prepare an Operational Risk Review. c. Maintain BNI’s reputation and image of all
i. Development of Self-Assessment Application and stakeholders.
its implementation in Divisions /Units/Regions/ d. Analyze Reputation Risk appraisal/assessment on
Domestic and Overseas Branches and Centers. new/existing products, activities, and transactions of
j. Prepare the development results of the Loss Event the Bank.
Database (LED) Application and its Implementation e. Prepare a review of parameters and measurement of
in Divisions/Units/Regions/Domestic Branches and Reputation Risk Profile.
Centers. 7. 7. Strategic Risk
k. Prepare the development results of the Key Risk a. Review Strategic Risk Management Policies.
Indicator (KRI) Application and its Implementation in b. Sharpen the long-term strategies and targets in
the Division/Unit. the Corporate Plan 2019-2023 which focuses on
l. l. Procurement of Operational Risk Management developing digital-based businesses.
Solution (ORMS). c. Prepare a short-term plan in the General Policy
m. Evaluation on documents of Business Continuity of the Board of Directors (KUD) by considering
Management (BCM), Risk and Threat Analysis (RTA), the macroeconomic conditions and industrial
and Business Impact Analysis (BIA). competition, as well as competitive assessment of
n. Prepare the results of Monitoring and Evaluation of peers.
BCM implementation in all organizational units. d. Develop a medium-term plan in the Bank’s Business
o. Prepare the results of Monitoring and Evaluation Plan (RBB) by strengthening the alignment of unit
of the Optimization of Data Center (DC) function, strategies in an effort to achieve corporate strategies
Disaster Recovery Center (DRC), and Command and targets.
Center (CC), as well as the determination of Alternate e. Disseminate the strategies and targets set in KUD
Site in all organizational units. and RBB to all Divisions/Units/Regions.
p. Analyze Operational Risk appraisal/assessment on f. Continuously improve the organization, especially by
new/existing products, activities, and transactions of strengthening branch and regional offices, structure
the Bank. the business support functions, and review the
q. Compile a review of Operational Risk Risk Appetite. organizational business processes that are related to
r. Prepare a review of parameters and measurement of digital business models.
Operational Risk Profile. g. Sharpen information and reviews on the economic
s. Complete and update BNI’s Recovery Plan and business conditions of the world, national,
Documents. regional, and the latest business potential of the
subsidiary to broaden the horizons and assist in
5. Legal Risk strategic decision making.
a. Review Legal Risk Management Policies. h. Prepare Review related to BNI’s priority
b. Review Legal Policies. sectors (including Industry Overview, industry
c. Conduct analysis/legal review in the form of giving characteristics, Key Success Factors, and Key Risk
written and oral advice. Factors, reviewed Industry development, BNI’s
d. Carry out legal counseling/training. financing portfolio, and Lesson learned of such
e. Perform legal review of non-standard agreements financing, and Industry Outlook).
Good Corporate
Governance
i. Evaluate and monitor the realization of the BNI’s Risk Management implementation is carried out in
achievement of strategies and targets set in KUD, accordance with the provisions of the regulator, which
RBB, and Business Plan Unit. is by applying the 4 (four) pillars of Risk Management
j. Review and monitor new products and activities implementation as follows:
specifically related to digital products and activities.
k. Analyze Strategic Risk appraisal/assessment on new/ ACTIVE MONITORING OF BOARD OF DIRECTORS AND
existing products, activities, and transactions of the BOARD OF COMMISSIONERS
Bank. Active monitoring of Board of Directors is performed among
l. Prepare a review of parameters and measurement of others by:
Strategic Risk Profile. 1. Preparing risk management policies, strategies, and
framework, including the limit of risks, by considering
8. Compliance Risk the risk appetite and risk tolerance according to BNI’s
a. Review Compliance Risk Management Policies. condition, and measuring the risk impact on the capital
b. Realize the Compliance Culture at every level of adequacy.
organization and business activities of the Bank. 2. Preparing, determining, and updating the procedures
c. Ensure that the Policies, Regulations, Systems, and and tools to identify, measure, monitor, and control risks
Procedures, as well as Business Activities conducted in BNI.
by the Bank are in accordance with the Regulatory 3. Preparing and establishing transaction approval
Requirements and the applicable laws and mechanisms, including those that exceed the limits and
regulations. authority for each level of position.
d. Monitor and maintain the Bank’s compliance with 4. Evaluating and/or updating risk management policies
commitments to Bank Indonesia, Financial Services and strategies.
Authority, and other authorities. 5. Determining BNI’s organizational structure, including
e. Manage the Whistle Blowing System (WBS) and Anti- clear authority and responsibilities at every level of
Fraud Strategy. position related to the risk management implementation.
f. Develop and refine compliance tools/systems and 6. Implementing risk management policies, strategies,
communication media (Compliance Forum). and framework that has been approved by the Board of
g. Implement and evaluate compliance index. Commissioners, and evaluating and providing guidance
h. Analyze Compliance Risk appraisal/assessment on based on reports submitted by the Risk Management
new/existing products, activities, and transactions of Work Unit, including BNI’s Risk Profile Assessment.
the Bank. 7. Ensuring that all of BNI’s material risks and the impact
i. Prepare a review of parameters and measurement of caused by such risks have been addressed.
Compliance Risk Profile. 8. Ensuring the implementation of corrective actions on
issues found by the Internal Audit Work Unit (SKAI).
IMPLEMENTATION OF BNI’S RISK MANAGEMENT 9. Ensuring the adequacy of quantity and quality of
BNI’s Risk Management implementation has the following human resources to support BNI’s risk management
objectives: implementation effectively.
1. Managing risks inherent in BNI’s relatively complex 10. Developing risk management culture in BNI that includes
products, activities, and business activities. risk awareness at all organizational levels.
2. Providing an overview to the Management of possible 11. Ensuring that risk management function has been
losses that may occur in the future. applied independently
3. Improving methods and systematic decision-making Implementation of Board of Directors’ supervisory function
process based on the availability of information. is carried out through forums such as Board of Directors’
4. Maintaining and improving BNI’s Risk Profile assessment in Meetings (Radisi), Meetings of Risk and Capital Committee
either individual, consolidated, or integrated manner as a (KRK), Risk Management Sub-Committee (RMC), Assets &
Financial Conglomeration. Liabilities Sub-Committee (ALCO), Anti Fraud Sub-Committee
5. Managing adequate capital structure to cover risks that may (KAF), Credit Policy Committee (KKP), and Credit Procedure
arise. Committee (KPP).
6. Providing more accurate basis for measuring performance.
7. Creating and maintaining BNI’s strategic position and
reputation.
8. Creating competitive advantage and maintaining
sustainable growth so that it can increase BNI’s shareholder
value.
ANNUAL
REPORT 2018
Active monitoring of Board of Commissioners is performed among others by:

1. Approving BNI’s risk management policies, including risk management strategy and framework determined according to
the risk appetite and risk tolerance.
2. Evaluating risk management policies and strategy.
3. Evaluating the Board of Directors’ responsibilities and giving directions to improve the implementation of BNI’s risk
management policies.
4. Ensuring that risk management policies and process are performed effectively and integrated comprehensively in BNI’s
risk management process
Implementation of Board of Commissioners’ supervisory function is carried out through forums such as Meetings of the Board
of Directors and the Board of Commissioners (Radikom), meetings of Risk Monitoring Committee, Integrated Governance
Committee, and Audit Committee.
In order to implement Risk Management effectively, the implementation is based on the applied Risk Governance. Risk
Governance clearly regulates the roles and responsibilities, the decision making process, the connectivity among Risk
Management functions, and the determination of policies to ensure that the Risk Management is well managed
Risk Governance in BNI
Ensure the adequate implementation of risk management

in line with the Bank’ business characteristics, complexity
Board of and risk profile. The Risk Monitoring Committee assists
Oversight
Comissioners this implementation.
Responsible for the adequate implementation of risk

management in line withthe Bank’ business characteristics,
Oversight & Execution Board of Directors complexity and risk profile.
Assisting the Board of Directors in risk management

policies, development and implementation as well as
escalating issues to the Board of Directors.
Excalation Risk Management Commitee
Implement risk management in accordance with each
respective role:
»» Risk owner (risk taking), managing risks inherent
in the respective business and functions.
»» Risk Control, developing risk management
Implementation & Risk Taking Unit framework, policies, principles, and
Control Mechanism Risk Control Unit methodology.
»» Risk Assurance, performing independent
Risk Assurance Unit assessment of the effectiveness of the
implementation of risk management and
Internal Control internal control.
ADEQUACY OF POLICIES, PROCEDURES, AND LIMIT ESTABLISHMENT

To support the implementation of Risk Management effectively, BNI has developed comprehensive and integrated Risk
Management policies and procedures. BNI already has Risk Management General Policies as the policies that become the
strategic and comprehensive basis of reference in implementing Risk Management. Risk Management Procedures are
procedures that guide the implementation of Risk Management. As the guidelines in implementing Risk Management,
Banks must manage 8 (eight) types of Risks, BNI already has policies and procedures as the basis for managing each Risk. The
detailed provisions of each procedure are regulated in technical instructions. The hierarchy of policy, procedure, and technical
guidelines is illustrated in the following chart:
Good Corporate
Governance
Hierarchy Formulation of Policies the regulator or by using internal method for methods that
have not been specifically determined. To anticipate extreme
conditions, risk measurement in BNI is also complemented by
stress testing for credit risk, market risk, and liquidity risk.
The risk monitoring process is carried out to ensure that

POLICY risks have been managed properly, among others, through
monitoring on mitigation and predetermined risk limits. Risk
monitoring is carried out by either the Operational Work Unit
(risk taking unit) as the risk owner or by the Risk Management
Work Unit as the risk control unit. The monitoring results
POLICY are presented in periodic reports, among others, Loan
Portfolio Review, Market Risk Monitoring and Liquidity
Risk Report, Operational Risk Expense Report, Feedback
of Operational Risk Self Assessment, Internal Risk Report,
TECHNICAL INSTRUCTIONS Risk Profile Assessment, Bank Soundness Level Assessment,
and Calculation of Minimum Capital Requirement (KPMM)
according to the Risk Profile.
The risk control process is carried out primarily to manage

As one of the risk control methods, BNI also already has risks that can disrupt BNI’s business continuity. The risk
Risk limit. The risk limit is a threshold for determining the control strategy carried out by BNI is to reduce risk (risk
intensity level of risk mitigation that will be implemented by mitigation), accept risk (risk acceptance), avoid risk (risk
the management. Determination of BNI’s risk limits includes avoidance), and move risk (risk transfer).
limits per Risk (credit risk, market risk, and liquidity risk), limits
per functional activity or limit as a whole. BNI’s Risk Management Information System was developed
to support the process of identifying, measuring, monitoring,
Risk management policies and procedures as well as Risk and controlling risks, and to ensure the availability of
limits are regularly reviewed with the approval of the Board of accurate, complete, informative, timely, and reliable
Directors through committee meetings or circulation to the information so that it can be used in the framework of
Board of Directors in accordance with the authority level. decision making process by the Management.
ADEQUACY OF PROCESS OF RISK IDENTIFICATION, Several risk management applications have been prepared
MEASUREMENT, MONITORING, AND MANAGEMENT, AS to support the implementation of timely and accurate risk
WELL AS RISK MANAGEMENT INFORMATION SYSTEM. management processes including Credit Risk Management
BNI’s risk management process covers the process of System (CRMS), Internal Rating System, Scoring System,
identifying, measuring, monitoring, and controlling risk Operational Risk Tools (PERISKOP), and market risk
continuously on all material risk factors supported by the Risk management applications.
Management Information System.
BNI has prepared risk management solutions that are in line
The risk identification process is carried out to analyze the with the IT Strategic Plan, such as:
source, the level of possible risks and impacts. Several matters 1. Preparing front end applications for credit risk, market
that are considered in risk identification process are risk, and operational risk
2. Preparing data storage and information system.
1. Identification of all risks is performed regularly. 3. Capital calculation engine
2. Having a method or system to identify risks in all BNI’s
products and business activities. INTERNAL CONTROL SYSTEM
3. Specifically identifying risks to new products and The internal control system in BNI is implemented using the
activities, before the new products/activities are Three Lines of Defense model which consists of:
introduced or implemented
First line of defense, which is carried out by the Operational
The risk measurement process is carried out to determine Work Unit (risk taking unit) as the risk owner who manages
the risk exposure level as a reference in controlling risk. risks against risks inherent in the business and its functions
Risk measurement is carried out quantitatively and/or (day-to-day risk management and control).
qualitatively according to the measurement method set by
ANNUAL
REPORT 2018
Second line of defense or risk control unit, which is carried an Internal Monitoring Unit or as the Internal Audit Work Unit
out by the Bank’s Risk Management Division, the Policy (SKAI). The Risk Assurance unit evaluates independently the
Governance Division, and the Compliance Division that are suitability of the process of implementing Risk Management
tasked to encourage all organizational levels to carry out their and the internal control system with the policies and
functions according to the internal regulations. procedures that are set internally as well as conformity with
regulatory requirements.
Third line of defense or risk assurance unit, in which BNI has
RISK MANAGEMENT STRATEGY
In the implementation of risk management, it is necessary to align the strategies and business objectives with the risk
strategy and risk appetite. The risk strategy and risk appetite is translated into governance, processes, policies and tools, and
methodologies supported by information technology, human resources, and a strong risk culture..
Strategies and Business Objectives Tujuan

Purpose
Alignment
Growth & earning
Target segment,
customer products
Risk Strategy and Risk Appetite
Establish risk tolerance based

on risk capacity that coordinated
Risk Operating Model with business strategy
Risk assessment and

Governance Proses Kebijakan Tool & control mechanisms
Method Inherent risk
Capital allocation risk
Risk based performance
Information Technology
Operational Efficiency
HC & Risk Culture Competence and Integrity

Risk awareness and behavior
Risk management strategies are formulated according to the with Subsidiaries and integrated into BNI’s Financial
overall business strategy by considering the level of risk that Conglomeration.
will be taken (risk appetite) and risk tolerance. The purpose 3. Fulfillment of the required capital adequacy and
of establishing a risk management strategy is to ensure that adequate allocation of resources
risk exposures have been managed in a controlled manner in The risk management strategy is prepared by considering the
accordance with internal policies and procedures as well as following matters:
applicable laws and regulations and other regulations. 1. Economic and industrial developments and their impact
on BNI’s risk exposure.
The risk management strategy consists of several principles, 2. BNI organization, including the adequacy of human
which are: resources and supporting infrastructure.
1. Long-term oriented to ensure the BNI’s business 3. Financial conditions include the ability to generate
continuity. profits, and BNI’s ability to manage risks arising as a result
2. Comprehensive in nature, can control and manage of changes in external and internal factors.
BNI’s risk both individually and on a consolidated basis 4. Mix and diversify the internal portfolio..
Good Corporate
Governance
to overall changes in market conditions, including the

The risk management strategy is formulated according risk of changes in option prices. Market risks include
to the business strategy and shall be able to provide interest rate risk, foreign exchange risk, equity risk,
overall direction in the risk management activities. The risk and commodity risk. As a Bank, BNI is prohibited from
management strategy consists of 4 (four) main components, conducting equity (stock) and commodity transactions.
which are: The implementation of risk management for equity and
1. The risk level to be taken (risk appetite) and risk tolerance commodity risk is applied in the case of consolidating
2. Risk management principles and policies with Subsidiaries.
3. Risk governance 3. Liquidity Risk
4. Types of risk exposure and market conditions Liquidity risk is a risk due to the Bank’s inability to
meet the obligations due from the cash flow source
The type and magnitude of risk exposures are measured of fund and/or from high quality liquid assets that can
using a risk measurement methodology that is in accordance be pledged, without disturbing the Bank’s activity and
with the Regulatory provisions and shall be linked to risk financial condition. BNI’s Liquidity Risk can occur due to
appetite, risk tolerance, predetermined limit, and capital the inability to obtain cash flow source of fund caused
availability and planning. by:
a. Inability to generate cash flows from productive
Governance of risk management strategies assets or from the sale of assets including liquid
1. The Risk Management Strategy becomes one of the assets; and/or
basis (references) in determining the business strategy b. Inability to generate cash flows from fund raising,
as outlined in BNI’s Bank Business Plan (RBB) which is interbank transactions, and loans received.
determined on an annual basis and submitted to the 4. Operational Risk
Regulator. Operational Risk is risk due to inadequacy and/or
2. The risk management strategy is drafted and prepared by malfunction of internal process, human error, system
the Risk Management Work Unit, decided by the Board failure, and/or external incidents affecting the Bank’s
of Directors through the Risk Management Sector of the operations. Operational risk arises among others
Risk and Capital Committee Meeting, as well as approved from internal process, human resources, information
by the Board of Commissioners. technology system and infrastructure, and external
events.
The Risk Management Strategy is communicated by the 5. Legal Risk
Board of Directors to the Divisions/Units/Work Units and is Legal Risk is a risk as a result of lawsuits and/or weakness
regularly reviewed in line with changes in business strategies, of juridical aspect. BNI’s Legal Risk may arise among
by considering the economic conditions, banking business, others from absence of supporting laws and regulations,
changes in regulations by the Regulator and their impact on or weak agreement such as unfulfilled valid terms of a
the Bank’s financial performance. contract and incomplete collateral binding.
6. Reputation Risk
RISK PROFILE AND ITS MANAGEMENT Reputation risk is a risk due to the decreasing level
of stakeholders’ trust caused by negative perception
TYPE OF RISKS towards the Bank. BNI’s Reputation Risk may among
There are at least 10 (ten) types or risks that shall be others arise due to negative media reporting and/
managed, which are: or negative rumor about BNI, and BNI’s ineffective
1. Credit Risk communication strategy.
Credit risk is risk due to the failure of other party to meet 7. Strategic Risk
the obligation to the Bank, including Credit Risk due to Strategic Risk is a risk due to incorrectness in making
debtor’s failure, credit concentration risk, counterparty and/or implementing a strategic decision, as well
credit risk, and settlement risk. Credit risk can derive from as failure in anticipating changes in the business
various bank business activities, such as credit provision, environment. BNI’s strategic risk may occur, among
securities purchases, acceptances, interbank transactions, others, due to determining strategy that is not in line
trade finance transactions, exchange value and derivative with BNI’s vision and mission, a non-comprehensive
transactions, as well as commitment and contingency analysis of strategic environment, and/or inconsistency
obligations, where credit provision is the largest source of a strategic plan between levels. Furthermore, BNI’s
of credit risk. strategic risk may also occur due to failure in anticipating
2. Market Risk changes in business environment, including failure in
Market Risk is a risk in balance sheet and administrative anticipating technological changes, macro economic
account positions including derivative transactions, due changes, dynamics of competition in the market, and
ANNUAL
REPORT 2018
changes of policy by the relevant authorities. concentration of loan exposure in each economic sector in
8. Compliance Risk each segment, and serves as a guideline for business units in
Compliance Risk is a risk due to the bank does not expanding loans. To assess the risk of each type of industry,
comply with and/or does not implement the applicable BNI already has an Industry Risk Rating (IRR) and a Financial
laws and regulations and provisions. BNI’s compliance Ratio Standard that is used as one of the factors in assessing
risk may arise from legal behavior, which is BNI’s the quality of debtors from an industry side.
behavior/activity that deviates or violates the provisions
or laws and regulations, and organizational behavior, BNI uses the Standardized Approach method for calculating
which is BNI’s behavior/activity that deviates or in Risk Weighted Assets (RWA) for Credit Risk in assessing the
contrary to the general standards. adequacy of the Minimum Capital Requirement (KPMM).
9. Inter-Group Risk.
Risk due to the dependence of an entity, either Currently, BNI is also developing an Impairment Model
directly or indirectly, on other entities in one Financial related to the application of the latest accounting standards
Conglomeration in order to fulfill written and unwritten (IFRS 9).
agreement obligations, followed by transfer of funds
and/or not followed by transfer of funds. In order to complement the credit risk measurement system,
10. Insurance Risk. stress testing is carried out by estimating the bank’s potential
Risk due to failure of the insurance company in meeting loss in abnormal market conditions by using certain scenarios
its liability to the policyholders as a result of insufficient to see the sensitivity of BNI’s performance against changes
risk selection process (underwriting), premium in risk factors and to identify factors that have a significant
determination (pricing), use of reinsurance, and/or claim impact on BNI’s portfolio and capital adequacy.
handling.
Stress testing is carried out periodically or can be done at any
BNI’S RISK MANAGEMENT EFFORTS time according to the needs by considering the economic
To manage risk effectively and comprehensively, a risk conditions or according to the needs/requirements of the
management infrastructure is needed that includes regulator.
Governance and Organization (including HR), Policies and
Procedures, Risk Management Process, Measuring Tools and The ERM Division prepares stress testing methodology/
Methods (including Quantification of Risk Models), which model for credit risk by considering the characteristics of
is supported by Information Technology and strong Risk the product or activity and harmonizing it with the rules/
Culture. requirements of the regulator.
The Risk Management process for each risk that has been Credit risk monitoring aims to see and ensure that the
developed and implemented in BNI is as follows: implementation of the entire credit risk management process
is running well and the potential credit risk is still within
Credit Risk the permissible risk limit. Monitoring of credit risk is carried
Credit risk identification is carried out in order to analyze the out through monitoring loan portfolios, which are growth,
sources and possibilities of credit risk to arise and its impacts, quality and concentration of loans, monitoring loan exposure
which are carried out periodically according to the product compared to Loan Exposure Limit, and monitoring the Legal
characteristics and types of activities. Credit risk identification Lending Limit. Credit Risk Control is carried out in order to
is also carried out by preparing Industry Risk analysis in the prevent the occurrence of bigger losses due to Credit Risk
priority economic sector. which is supported by several credit risk management tools
both at the individual and portfolio exposure level.
Credit risk measurement is an integral part and series of the
process of implementing credit risk management and is used Market Risk
as a reference for risk control. Identification, measurement, monitoring, and control of
market risk is carried out by a unit that is independent from
To process the individual exposure of the business banking the business unit. Market Risk Identification is mainly carried
segment, BNI already has a debtor rating model in the form out for each new product or activity.
of an internal rating system, while for consumer segment, The objectives of Market Risk Identification include:
debtor scoring system is used to assist in analyzing the 1. Determining transactions/products exposed to Market
quality of debtors in the credit process. Risk.
2. Grouping the Market Risk based on the existing criteria.
To regulate the composition of portfolio, BNI already has a 3. Facilitating the measurement of Market Risk and its
Loan Exposure Limit (LEL) which serves to limit the risk of control.
Good Corporate
Governance
Periodic Market Risk Measurement is carried out on all Risiko Likuiditas

trading book and banking book portfolios exposed to Market Liquidity Risk Identification is the process of obtaining and
Risk. BNI conducts Risk Market measurement by using analyzing the sources of Liquidity Risk that are inherent in
Standardized Method and Internal Method. Standardized all business activities/transactions/products that can have
Method is used to calculate the Minimum Capital Reserve a financial impact on the Bank. Every activity/product/
Requirement (KPMM) of Market Risk, while daily Market Risk transaction is analyzed and differentiated to ensure that
management uses Internal Method (Value at Risk). every Liquidity Risk has been identified, measured accurately,
managed according to the right method, and well controlled.
The portfolio coverage calculated in KPMM by using Liquidity risk management aims to minimize the possibility
Standardized Method is the trading book portfolio for interest of the Bank’s inability to obtain cash flow source of fund, and
rate risk and the trading book and banking book portfolio for build the strength of the structural liquidity of the bank’s
domestic and overseas branch office’s exchange rate risk. balance sheet in order to support sustainable long-term
growth.
The process of monitoring and reporting Market Risk is
conducted periodically, including: Liquidity Risk Measurement Methods include liquidity ratio,
1. Monitoring and reporting the amount of Market Risk on maturity profile, cash flow projection, stress testing, and
all Bank portfolios exposed to Market Risk. Liquidity Coverage Ratio (LCR). The process of monitoring
2. Monitoring and reporting on compliance with Market and/or reporting Liquidity Risk is conducted periodically,
Risk limit (realization of Market Risk exposures compared including:
to their limits). 1. Monitoring and reporting the amount of Liquidity Risk
3. Recommendation for follow-up on the occurrence of on all Bank activities/products exposed to Liquidity Risk.
exceeding limits and/or the occurrence of abnormal 2. Monitoring and reporting on compliance with Liquidity
market conditions, and/or the occurrence of other Risk limit (realization of Liquidity Risk exposures
conditions that lead to increased Market Risk potential. compared to their limits).
3. Monitoring early warning indicators (internal and
Market Risk Control is carried out in order to prevent the external) to determine the potential for increased
occurrence of bigger losses due to Market Risk through the Liquidity Risk.
establishment of market risk limits in the Treasury Division 4. Recommendation for follow-up on the occurrence of
and Overseas Branch Offices, among others as follows: exceeding limits and/or the occurrence of abnormal
1. Value at Risk Limit (VaR Limit), which is the maximum market conditions, and/or the occurrence of other
potential loss that may occur at any time in the future conditions that lead to increased Liquidity Risk potential.
with certain confidence level.
2. Stress Value at Risk Limit (Stress VaR Limit), which is In managing liquidity, in addition to managing the primary
a measurement of market risk adjusted to abnormal reserve (cash and GWM), BNI holds and maintains secondary
conditions in the market or maximum potential loss reserves to ensure that liquidity is at a safe level. For the
when the market is not normal. reserve of secondary reserve, BNI holds and maintains
3. Budget Loss Limit which is used to limit the realization of tertiary reserve. Determination and monitoring of limits,
loss of business activities. which are Cash Limit of BNI Wide, limit of Secondary Reserve
4. Management Action Trigger (MAT), which is the Limit to Ideal (SR Ideal), Maturity Profile limit, and restriction of
take action against the risk of changes in loss value (early Foreign Exchange Credit based on the Availability of Fund
warning signal). MAT completes the loss limit in the form is conducted periodically by the Bank’s Risk Management
of a certain percentage of the loss limit. Division (ERM) Division. Whereas, the availability of the
5. Limit on securities purchases, which is used to limit the entire reserve is monitored daily, weekly, and monthly by the
concentration of purchases of corporate securities by Treasury Division (TRS) Division and ERM Division.
rating and type of currency of the securities
6. Limit of asset and liability repricing gap (Interest Rate Operational Risk
Risk in Banking Book) to limit the interest rate risk in BNI’s operational risk management consists of 5 (five) main
banking book. continuous processes, which are identification, assessment,
7. Nominal of open position limit, which is the maximum measurement, monitoring, and control.
nominal of open position limit that a dealer can use. 1. Risk Identification
8. Overall NOP internal limit (absolute), which is the The methods used to identify and measure operational
maximum limit of NOP management. risk among others include: Risk Control Self-Assessment
(RCSA), risk mapping, Key Risk Indicators (KRI),
ANNUAL
REPORT 2018
scorecards, event analysis, frequency matrix, quantitative business continuity, and also in line with the Basel II
methodologies, and qualitative methodologies. The document requiring banks to have business continuity
implementation of the methods of identification and management and contingency plans to ensure the bank’s
measurement of operational risk in BNI is summarized ability to keep operating and to limit losses due to disruption
in an application, namely PERISKOP (Operational Risk on their business activities. Beside the provisions of the
Tool). PERISKOP is a tool or device used in managing Regulator and Basel II for Overseas Branch Office, BCM
operational risk including recording loss events, is implemented by fulfilling BCM regulations in the local
compiling follow-up actions, and mitigating them. country.
2. Risk Assessment
Performed by each risk-owner unit through operational Legal Risk
risk self assessment methods, including assessment The legal risk identification process is carried out by analyzing
of impacts, frequency, and causes of risks and their all legal risk sources, which at least carried out on legal risk
solutions. from BNI’s products and business activities, as well as the
3. Risk Measurement new products and business activities through legal risk
In accordance with the Regulatory provisions, the current management control process before they are introduced or
operational risk measurement is the Basic Indicator implemented.
Approach method.
The process of identifying legal risks inherent in the Bank is
4. Risk Monitoring carried out using indicators/parameters of:
Performed by all units as the first line of defense on 1. Litigation Factor
the main risks during ongoing operational activities. 2. Weak Binding Factor
The Bank’s Risk Management Division evaluates and 3. Factor of Absence/Amendment to Laws
gives report/feedback on risk assessments based on self
assessment results as well as realization on operational Legal risk measurement is carried out based on
risk losses that happen that includes: calculations using indicators/parameters in identifying
a. Report feedback for all divisions/units/areas/ legal risks compared to Bank capital. The results of legal
branches. risk measurement are reflected in the Legal Risk Profile.
b. Monthly reports on Operational Risk Expenses Monitoring legal risk is carried out by evaluating the
Monitoring, submitted to the Board of Directors exposure of inherent legal risk, especially of material nature
c. Operational Risk Profile Report or that has impact on BNI’s capital. The monitoring results
which includes evaluation of legal risk exposure are reported
5. Risk Control regularly including the necessary follow-up actions.
The mechanism for operational risk mitigation is reflected The implementation of the legal risk control process is used
in the internal control processes by implementing the by BNI to manage legal risks especially those that could
4 (four) risk mitigation strategies, which are avoiding, endanger BNI’s business continuity. Legal Risk control process
mitigating, transferring, and accepting. The four risk is carried out among others by:
mitigation strategies are stated in the Operational Risk 1. Conducting evaluation/assessment in the form of judicial
mitigation procedures that include procedures of control, reviews in the event of new products or new activities, or
transaction settlement, accounting, asset and custodial changes in/additional features on BNI’s products.
storing, product supply, and fraud prevention. 2. Providing legal advice and/or legal assistance in the
event of Legal Risks in the operational activities.
Business Continuity Management 3. Periodically reviewing standard agreement formats,
Disruptions or disasters caused by nature factors, human in particular credit agreements, in order to ensure
actions, and systems may happen to BNI’s critical business compliance with laws and regulations and other
functions, causing disruptions on BNI’S business activities applicable provisions.
and services. 4. Periodically reviewing contracts and agreements
between BNI and other parties, especially for non-
To anticipate such events, BNI has implemented a Business standard agreements or agreements that have not been
Continuity Management (BCM) in every domestic and standardized in the Company Guidelines.
overseas unit that is expected to be able to minimize 5. Conducting intensive monitoring on legal issues,
operational risk in emergency event or disaster situation. particularly lawsuits based on Act Against the Law
involving the Bank as Defendant or Co-defendant.
The development of this tool is in line with the Regulatory
requirements requiring banks to implement risk control Reputation Risks
process to manage risks that could compromise a bank’s To identify and measure the impact of Reputation Risk, BNI
Good Corporate
Governance
uses several sources of information including mass media Regulatory provisions and applicable laws and regulations,
coverage, Bank websites, and analysis of social networks, as well as to ensure BNI’s compliance with the commitments
customer complaints through customer service ,and made to the Regulators and/or other authorized
customer satisfaction questionnaires. supervisors. Compliance Risk Control is not only carried
out on organizational units in the country but also includes
Monitoring of news management and crisis communication organizational units overseas.
management and monitoring of news media/social media Strategic Risk
opinions/comments is conducted in a coordinated manner Strategic risk identification is carried out to identify strategic
between the Bank’s Risk Management Division and the risk factors inherent in every functional activity that
Corporate Communication and Secretariat Division, while potentially harms BNI for example due to inappropriate
management of complaints/customer grievances is carried policy, less responsive to changes that occur, implementation
out in collaboration with BNI Contact Center (BCC). of policies that are not according to plan, or because the
implementation is not in line with the predefined schedule.
The Corporate Communication and Secretariat (KMP) Division
monitors and reports Reputation Risk that occurs to the Board Risk measurement approach used in measuring Strategic
of Directors both incidentally at the time of the incident and Risk Profile is using 4 (four) parameters, which are: strategy
periodically including the necessary follow-up actions. BNI suitability with the business environment conditions, high-
has developed mechanism in performing effective reputation risk strategies and low-risk strategies, BNI’s business position
risk control measures. In general, reputation risk control is against competitors, and the achievement of Bank’s Business
carried out through 2 (two) activities, which are: Plan (RBB) realization.
6. Prevention of events leading to reputation risk
7. Recovery of the Bank’s reputation after an incident Strategic Planning Division (REN) monitors the realization
arising reputation risk occurs. of Business Plan Strategies for each Division/Unit so that
problems can be identified in implementing strategies and
Compliance Risk work programs in order to be corrected immediately so that
Compliance risk identification is carried out by analyzing the financial targets that have been set can be achieved.
several factors that can increase compliance risk exposures
such as the type and complexity of BNI’s business activities, Inter-Group Risk
including new products and activities, the volume and Risk due to the dependence of an entity, either directly or
materiality of the Bank’s non-compliance with internal indirectly, on other entities in one Financial Conglomeration
policies and procedures as well as the applicable laws and in order to fulfill written and unwritten agreement
regulations and provisions as well as sound business ethics obligations, followed by transfer of funds and/or not followed
and practices. by transfer of funds.
Compliance Risk Measurement is carried out by using Insurance Risk

indicators/parameters such as: Risk due to failure of the insurance company in meeting its
1. Types and significance of violations committed; liability to the policyholders as a result of insufficient risk
2. Frequency of violation (BNI’s compliance track record); selection process (underwriting), premium determination
3. Violation against certain financial transaction provisions. (pricing), use of reinsurance, and/or claim handling.
As part of the compliance risk measurement, the indicators/ BNI’S RISK ASSESSMENT
parameters and the amount of weight and ratio used to Risk Profile Assessment is an assessment of inherent Risk and
measure the compliance risk profile are determined by the Quality of Risk Management Implementation in the Bank’s
Compliance Division with due regard of input from the Board operational activities. Risks that must be assessed consist of
of Directors, the Bank’s Risk Management Division (ERM), 8 (eight) types of risks. In assessing the Risk Profile, the Bank
and other Units as well as Regulatory provisions, if any. must also pay attention to the scope of the application of risk
Compliance Division carries out monitoring and reporting management as regulated by the regulator.
the Compliance Risk that occurs to the Board of Directors
either incidentally at the time Compliance Risk occurs or INHERENT RISK ASSESSMENT
periodically. Inherent Risk Assessment is an assessment of the risks
inherent in the Bank’s business activities, whether they can be
Compliance Risk Control is carried out by conducting actions quantified or not, which has the potential to affect the Bank’s
or measures that are preventive to ensure that policies, financial position.
provisions, systems, and procedures, as well as business
activities carried out by BNI are in accordance with the The characteristics of the Bank’s inherent risk are determined
ANNUAL
REPORT 2018
by internal and external factors, including business strategy, Conservation Buffer, Countercyclical Buffer, and Capital
business characteristics, complexity of products and activities Surcharge for Systemic Banks.
of the Bank, industry in which the Bank conducts business
activities, and macroeconomic conditions. Based on the calculation result of BNI’s capital adequacy
position per December 31, 2018, BNI’s CAR of 18.5% is still
Assessment of inherent Risk is carried out by considering above the mandatory capital requirement of 12.9%, which is
quantitative and qualitative parameters/indicators. a requirement in accordance with the Risk Profile (rank 2) and
Determination of inherent risk level for each type of risk additional buffer capital, which are Conservation Buffers of
refers to the general principles of assessing the Sound Level 1.875%, Countercyclical Buffer of 0%, and Capital Surcharge
of Commercial Bank. Determination of inherent risk level for of 1.125%.
each type of risk is categorized into rank 1 (low), rank 2 (low
to moderate), rank 3 (moderate), rank 4 (moderate to high), In addition, to anticipate Basel III implementation related to
and rank 5 (high). liquidity, BNI has also improved its liquidity risk management
in the form of applying Liquidity Coverage Ratio (LCR)
RISK MANAGEMENT IMPLEMENTATION QUALITY calculations and calculation of Net Stable Funding Ratio
ASSESSMENT (NSFR) which aim to strengthen and improve the quality of
The quality assessment of Risk Management implementation liquidity risk management.
reflects the assessment of the adequacy of Risk control
system that covers all pillars of the implementation of The LCR calculation aims to improve the short-term liquidity
Risk Management as stipulated in the provisions of the resistance of the Bank by maintaining adequate High Quality
Financial Services Authority on the implementation of Risk Liquid Assets (HQLA) to meet liquidity needs over the next 30
Management for Commercial Banks. The implementation days in crisis conditions, while NSFR aims to reduce liquidity
of Bank Risk Management varies greatly according to scale, risk related to funding sources for longer time periods long
complexity, and level of risk that the Bank can tolerate. Thus, by requiring BNI to fund activities with adequate stable
in assessing the Quality of Risk Management Implementation, funding sources in order to mitigate the risk of future funding
it is necessary to consider the characteristics and complexity difficulties.
of the Bank’s business. The quality assessment of Risk
Management implementation is an assessment of 4 (four) Based on the calculation result per December 31, 2018,
interrelated aspects, which are: position, BNI’s LCR was 192% and BNI’s NSFR trial was 134%,
1. Risk governance; both were still above the minimum requirement of 100%.
2. Risk Management framework;
3. Risk Management process, adequacy of human IMPROVEMENT AND REFINEMENT OF RISK MANAGEMENT
resources, and adequacy of management information For future development, BNI has planned several initiatives
systems; and to improve the capability and quality of risk management
4. Adequacy of the Risk control system, by considering the implementation, including:
characteristics and complexity of the Bank’s business.
1. Increased Credit Risk Capability
RISK PROFILE ASSESSMENT RESULT a. Improve risk management and credit processes -
The self-assessment result of BNI’s Risk Profile (Bank only) for Synchronization of Watchlist and IRS Online with the
the position of December 31, 2018, was a score of 2 (Low to Development Project of Internal Rating Based (IRB)
Moderate), with the Inherent Risk Score of Low to Moderate, Model along with the Rating System Structure, which
and Risk Management Implementation Quality (KPMR) is aims as a solution for:
Satisfactory. i. Providing the best results (best return), evaluating
and analyzing strategies, and supporting the
BASEL III IMPLEMENTATION decision-making process by developing risk-based
Referring to Financial Services Authority Regulation No. 11/ pricing, risk-based performance, and portfolio
POJK.03/2016 dated February 02, 2016, on Minimum Capital management.
Requirement (KPMM) for Commercial Banks, as amended by ii. Monitoring (monitoring tools) on the performance
Financial Services Authority Regulation No. 34/POJK.03/206 of corporate, medium, and small debtors.
that the Bank must provide minimum capital in accordance iii. Calculation of CKPN is in accordance with PSAK 71.
with the Risk Profile. The benefits of developing IRB Model for BNI include:
i. Improving BNI’s credit quality.
In addition to the obligation to provide minimum capital in ii. Assisting business units in selecting prospective
accordance with the Risk Profile, the Bank is also required debtors.
to form additional capital as a buffer which includes Capital
Good Corporate
Governance
iii. Becoming an early warning signal in monitoring being developed so that the results obtained are
managed debtors to reduce the provision that expected to be more accurate.
needs to be established.
b. Implementing the Integrated Decision Automated 4. Increased Risk Integration Capability
System (IDEAS) which can be a tool for BNI to move One of the initiatives to improve the Quality of Risk
more flexibly and quickly in capturing dynamic and Management Implementation is through developing
competitive market changes, while still minimizing strong risk culture. Risk culture is a collective form of
risk through the implementation of credit scorecard values, attitudes, and perceptions of each individual
through more comprehensive use of customer data or group in the company regarding risk and its
on all customer life cycles. management. The existence of Risk Culture greatly
influences the effectiveness of risk management
2. Increased Operational Risk Capability implementation and ultimately the achievement of
To meet the regulatory provisions and support better sustainable corporate performance. Matters that will
and more comprehensive operational risk management be conducted are evaluating the risk culture in BNI at
of BNI, a tool/solution is needed that can carry out this time by using survey method, identifying gaps or
the process of identifying, measuring, monitoring, weaknesses based on the survey results, identifying
and controlling operational risk, including Business gaps or weaknesses based on the survey results, and
Continuity Management (BCM). This tools/solutions developing strategies for improvement efforts.
in the form of applications for Operational Risk
Management (ORM) solutions and Business Continuity IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT
Management (BCM) have the capability of: Generally, the regulation scope of the Integrated Risk
a. Risk Control Self-Assessment (RCSA). Management according to the Financial Services Authority
b. Loss Event Database (LED). Regulation No. 17/POJK.03/2014 on Implementation of
c. Key Risk Indicator (KRI). Integrated Risk Management for Financial Conglomeration is
d. Business Continuity Management (BCM). as follows:
1. The Financial Conglomeration (KK) must implement the
The existence of operational risk management tools/solutions Integrated Risk Management.
can provide substantial benefits to BNI as follows: 2. The Financial Conglomeration includes the types of
a. Carry out operational risk management process in all BNI Financial Services Institutions (FSI) as follows:
units in an integrated solution that is expected to be able a. Bank
to improve the Bank’s risk management quality. b. Insurance/Reinsurance Company
b. Have a comprehensive, accurate, and timely operational c. Securities Company
risk database. d. Financing Companies
c. Provide data analysis and reporting on Operational Risk 3. The Financial Conglomeration must have Main Entity. In
Management. the event that the Financial Conglomeration structure
d. Better operational risk management and BCM. consists of parent FSI and subsidiary FSI, the Main Entity
is the parent FSI.
3. Increased Market Risk Capability
In accordance with the regulatory provisions, in 2019 all BNI has formed its Financial Conglomeration Structure, BNI
Banks are required to measure the impact of changes as the holding company is the Main Entity and has 5 (five)
in interest rates on the Banking Book (Interest Rate Risk Financial Services Institutions as members of BNI’s Financial
in The Banking Book/IRRBB). The calculation method is Conglomeration, namely BNI Syariah, BNI Multifinance, BNI
carried out with 2 (two) approaches, namely Net Interest Life, BNI Sekuritas, and BNI Asset Management.
Income (NII) method and Economic Value of Equity
(EVE) method. Banks are required to simulate interest BNI’s Financial Conglomeration Structure was submitted to
rates shock with 6 (six) scenarios according to Basel and the Financial Services Authority cfm. Board of Directors’ Letter
see the impact on the Bank’s profitability and capital. No. Dir/102, dated March 13, 2015, as follows:
By considering the complexity of data, products, and
models used, IRRBB calculation application is currently
ANNUAL
REPORT 2018
BNI’s Financial Conglomeration Structure Diagram

ENTITAS UTAMA
99,99% 75,00% 60,00% 99,90%

Pembiayaan Sekuritas Asuransi Jiwa Perbankan Syariah
99,9%
Asset Management
In implementing the Integrated Risk Management, BNI’s of BNI’s Financial Conglomeration;

Financial Conglomeration has a joint commitment to e. Conducting the Integrated Risk Management
perform duties and responsibilities of each FSI as stated Committee (KMRT) at least 2 (two) times in a year;
in the Integrated Risk Management Pact that has been f. The Board of Directors prepares the Integrated Risk
approved and signed by the President Director and President Management General Policies (KUMRT) and the
Commissioner as well as the entire FSI Members of BNI’s Integrated Capital Policies as well as conducts review
Financial Conglomeration. at least 1 (one) time in 1 (one) year;
g. The Board of Commissioners gives approval
Based on POJK No. 17/POJK.03/2014, Financial of the Integrated Risk Management General
Conglomeration must implement an effective Integrated Risk Policies(KUMRT) and the Integrated Capital Policies
Management that covers the following 4 (four) pillars: as well as conducts evaluation at least 1 (one) time in
1. Monitoring of the Main Entity’s Board of Directors and 1 (one) year;
Board of Commissioners; h. Determining the integrated risk appetite and risk
2. Adequacy of policies, procedures, and limit tolerance in BNI’s Financial Conglomeration.
establishment of the Integrated Risk Management;
3. Adequacy of process of risk identification, measurement, 2. Pillar II: Adequacy of policies, procedures, and limit
monitoring, and control in an integrated manner, and the establishment of the Integrated Risk Management, by:
Integrated Risk Management Information System; a. Preparing and reviewing the Integrated Risk
4. Overall internal control system on the implementation of Management General Policies (KUMRT) and the
Integrated Risk Management. Integrated Capital Management;
b. Preparing the Integrated Risk Management
In implementing the Integrated Risk Management, BNI as the Procedures including Inter-Group Transaction Risk
Main Entity has carried out the following matters: Management Procedures;
1. Pillar I: monitoring of the Main Entity’s Board of Directors c. Preparing the Integrated Risk Profile Assessment
and Board of Commissioners, by:: Procedures;
a. Establishing BNI’s Financial Conglomeration d. Preparing the Integrated Capital Management
Structure; Procedures; and
b. Appointing a Director in charge of Integrated Risk e. Establishing the integrated risk limit and mechanism
Management function; of escalation of limit excess.
c. Establishing the Integrated Risk Management 3. Pillar III: Adequacy of process of risk identification,
Committee and the Integrated Risk Management measurement, monitoring, and control in an integrated
Work Unit; manner, and the Integrated Risk Management
d. Preparing the Integrated Risk Management Pact Information system, by:
which has been signed by the President Director and a. Establishing the Integrated Risk Profile methodology
President Commissioner and the entire FSI Members and assessing every semester and reporting to FSA.
Good Corporate
Governance
b. Establishing the Integrated Mandatory Minimum 2. Risk Identification and assessment

Capital Requirement (KPMM), calculating every 3. Activities of control and separation of functions
semester and reporting to FSA. 4. Accounting, information, and communication systems
c. Determining the integrated risk appetite parameter 5. Monitoring activities and corrective actions for deviation/
and methodology, monitoring every quarter, and weakness
reporting to the Director in charge of the Integrated
Risk Management. CONTROL OBJECTIVES
d. Determining the Integrated Risk Limit parameter
and methodology, monitoring every quarter, and The purposes of Internal Control System in BNI are:
reporting to the Director in charge of the Integrated 1. Compliance with the provisions and laws and regulations
Risk Management. (Compliance Objective).
e. Determining the Leading Risk Indicator (LRI) This is Intended to guarantee that all BNI’s business
assessment parameter and methodology, monitoring activities have been carried out in accordance with the
every month, and reporting to the Director in charge provisions and laws and regulations, either provisions
of the Integrated Risk Management. issued by the government, the Financial Services
f. Conducting the integrated stress testing on volatility Authority, or internal policies and procedures established
of exchange rates and interest rates in BNI’s Financial by BNI.
Conglomeration. 2. The availability of complete, accurate, effective,
g. Developing technology-based Integrated Risk and timely financial and management information
Management Information System. (Information Objective).
This is intended to guarantee the availability of complete,
4. Pillar IV: Overall internal control system on the accurate, effective, and timely reports necessary in order
implementation of Integrated Risk Management, by: to make appropriate and accountable decisions.
a. Disseminating the Integrated Risk Management 3. The effectiveness and efficiency in BNI’s business
to the entire FSI Members of BNI’s Financial activities (Operational Objectives).
Conglomeration on a continuous basis. This is intended to increase the effectiveness and
b. Monitoring the Integrated Risk Management efficiency of the use of assets and other resources in
implementation of the entire FSI Members of BNI’s order to protect BNI from the risk of loss.
Financial Conglomeration. 4. Increasing the effectiveness of risk culture in BNI’s
organization as a whole (Risk Culture Objective).
INTEGRATED RISK PROFILE ASSESSMENT RESULT This is intended to identify weaknesses and assess
The assessment result on the Integrated Risk Profile which deviations early, as well as reassess the reasonableness of
was conducted to 10 (ten) types of Risks for the position the policies and procedures in BNI on an ongoing basis.
of December 31, 2018, was score 2 (Low to Moderate),
with the Inherent Risk Score of Low to Moderate, and Risk CONTROL ENVIRONMENT
Management Implementation Quality (KPMR) Assessment is
Satisfactory. Control environment reflects the overall commitment,
behavior, concern, and steps of the Board of Directors and
INTERNAL CONTROL SYSTEM Board of Commissioners in implementing BNI’s operational
control activities.
An effective Internal Control System (SPI) is an important
component of the Bank’s management and serves as a basis Elements of control environment in BNI include:
for the Bank’s sound and secure operational activities. The 1. Sufficient organizational structure;
Internal Control System implementation is the responsibility 2. BNI’s leadership style and management philosophy;
of all parties involved in the Internal Control System, which is 3. Integrity and ethical values, as well as employees’
stated in the duties and responsibilities of each party. competence;
4. Human Resources policies and procedures;
BNI’s Internal Control System (SPI) refers to Financial Services 5. Attention and direction of BNI’s management and other
Authority Circular Letter No. 35/SEOJK.03/2017 dated July committees, such as Risk Management Committee.
07, 2017, on the Internal Control System Standard Guidelines 6. External factors affecting BNI’s operations and the risk
for Commercial Banks, and has been in line with the COSO management implementation.
framework as well as the Basel Committee - Internal Control
by covering the 5 (five) main interconnected elements in the BNI’s Internal Control System covers:
Bank’s internal control system as follows: 1. Strategic control, aiming at ensuring that each strategy
1. Management supervision and control culture or policy that has been determined is in accordance with
ANNUAL
REPORT 2018
BNI’s objectives, vision and mission. b. External crime;

2. Operations control, aiming at achieving operational c. Employment and occupational safety practices;
efficiency and effectiveness. d. Clients, products, and business practices;
3. Reporting control, aiming at ensuring the quality of each e. Damage to physical assets;
information/reporting produced and used in decision f. Business interruption and system failure; and
making either internally or externally. g. Execution, shipping, and process management.
4. Obedience control, aiming at ensuring the level of
compliance with law, regulations and laws related to 4. Liquidity Risk Assessment.
operations. Liquidity risk assessment is carried out to measure and
monitor the need for sustainable net funding.
RISK ASSESSMENT The liquidity risk assessment process includes:
a. Assessment of liquidity ratios.
The risk assessment (measurement) system is used to b. Assessment of maturity profile.
measure risk exposure as a reference in controlling risk. Risk c. Cash flow projection.
assessment for 8 (eight) types of risks that must be managed d. Stress Testing
by BNI are as follows:
1. Credit Risk Assessment. 5. Legal Risk Assessment.
Credit Risk Assessment is carried out including the Legal risk assessment/measurement can use indicators/
following aspects: parameters in the forms of potential losses arising from
a. Amount, quality, and composition of exposure of litigation, weaknesses in binding, and the absence/
balance sheet and administrative accounts. occurrence of changes in laws/regulations underlying
b. The level of credit risk of debtors/counterparties. the issuance of a product or service.
c. Credit characteristics.
d. Business environment condition. 6. Strategic Risk Assessment.
e. Rating system and scoring system. Strategic risk assessment/measurement can use
f. Stress testing. indicators/parameters in the forms of strategy suitability
with business environment conditions, high-risk
2. Market Risk Assessment. strategies, and low-risk strategies, BNI’s business position
Market risk assessment is carried out on all portfolios of towards competitors, and the achievement of Bank’s
trading book and banking book. Business Plan (RBB) realization.
Market risk assessment on the trading book includes:
a. Measurement of market risk sensitivity - standard 7. Compliance Risk Assessment.
method. Compliance risk assessment/measurement can use
b. Aggregation uses Value at Risk (VaR) - internal model. indicators/parameters in the forms of type, significance,
c. Stress Testing. and frequency of violations against the applicable
provisions and violations against provisions of certain
Market risk assessment on the banking book, among financial transactions.
others, includes:
a. Measurement of interest rate risk on the banking 8. Reputation Risk Assessment..
book. Reputation risk assessment/measurement can use
b. Measurement of exchange rate risk on the banking indicators/parameters in the forms of reputation
book. influence from the owner of BNI and related company,
violation of business ethics, product complexity, and
3. Operational Risk Assessment.. BNI’s business cooperation, frequency and materiality of
One method that can be used to assess operational risk the Bank’s negative reporting, as well as frequency and
in BNI is Self Assessment, which is a series of activities materiality of customer complaints.
carried out by each unit (risk owner) in identifying
operational risk issues in each unit, looking for causes, CONTROL ACTIVITIES
measuring potential losses that may arise, and finding
solution to overcome them. Control activities are carried out to ensure that appropriate
actions have been taken in controlling a risk.
Operational risk is classified into categories and sub
categories to facilitate risk assessment, control, and Control Activities.
reporting for 7 (seven) operational risk events, which are: a. General Control Activities.
a. Internal fraud; Control activities shall involve all employees including
Good Corporate
Governance
the Board of Directors, be planned and carried out to b. Developing market risk measurement models.
ensure that management directives have been carried c. Checking the correctness of market risk
out. Control activities shall be contained in policies and calculations based on the risk reports received.
procedures to ensure that every activity is carried out d. Determining the confidence level used.
effectively and to encourage anticipatory actions against e. Establishing parameters for market risk stress
the risks inherent in each operational activity. testing.
b. Control Activities according to Organizational Functions. f. Proposing model and parameters used in
An effective Internal Control System requires an measuring market risk by the Treasury Division.
establishment of a control structure in accordance with g. Measuring market risk.
the organizational structure, which includes: h. Conducting back testing and stress testing;
1). Top Management Reviews 3). Operational Risk Control.
The Board of Directors actively requests Management and control of operational risk is
presentations and performance reports on a regular carried out through coordination between the Risk
basis, in order to evaluate BNI’s progress towards its Management Work Unit and the Operational Work
intended objectives. Determination of objectives Unit in stages. The roles and supports needed from
shall be in accordance with the risk management the Operational Work Unit are:
policy prepared by considering the risk level to be a. Submitting the risk exposure report periodically/
taken (risk appetite), the level and type of risk that is incidentally to the Risk Management Work Unit
maximally set (risk tolerance), and limit setting. b. Ensuring that risk management is within each
2). Operational Performance Review (Functional Operational Work Unit (risk taking unit/risk
Reviews) owner), therefore, such unit shall be responsible
The review is carried out by the Internal Audit Unit for managing the risks inherent in transactions/
periodically. activities on a daily basis.
3). Information System Control Procedure of Business Continuity Plan (BCP).
This includes verification of the accuracy and Operational risk control also includes procedure
completeness of transactions and authorizations, of Business Continuity Plan (BCP). BCP is a formal
general control and application control. mechanism/plan that is a combination of strategies,
4). Physical Asset Control policies, procedures, and organizations developed
Control activities include securing assets, limiting to ensure the continuity of operations of critical
access to computers and data files. business functions at certain level of services during
5). Documentation, including documentation of a disruption or disaster.
accounting policies, procedures, systems & standards 4). Liquidity Risk Control.
as well as audit processes adequately. Liquidity risk control is carried out by:
c. Control activities according to the type of risk a. Monitoring and taking alternative strategies for
Control activities have been set out in policy and each Secondary Reserve (SR) traffic light, which
procedure documents to identify risks (ie. risks of market, are: Dark Green, Light Green, Light Yellow, Dark
liquidity, credit, operation, legal, compliance, reputation, Yellow, and Red.
and strategic). b. Conducting funding strategies, managing
1). Credit Risk Control.. liquidity position and daily liquidity risk,
a. Credit supervision covers all credit aspects and managing liquidity position and inter-group
all objects of supervision without exception liquidity risk as regulated in the Global Funding
b. Credit internal control Policy, Asset Management Policy, and Asset &
2). Market Risk Control. Liability Management Policy.
For control purposes, the process of identifying and 5). Legal Risk Control.
measuring market risk is carried out by units that are Legal risk control is carried out by ensuring that BNI’s
independent of the business activities, in this matter, agreements with third parties have secured BNI’s
it is carried out by the Risk Management Work Unit: interests.
Legal risk control is carried out by a Work Unit
The authority and responsibilities of the Risk functioning to manage legal risk, among others,
Management Work Unit in controlling market risk are through:
a. Approving and validating the proposed model/ a. Assessment in the form of juridical study, in the
method that can be used in measuring market event of a plan to add/develop new products or
risk. activities.
ANNUAL
REPORT 2018
b. Provision of legal advice and/or legal assistance in the event of legal risks in operational
activities.
c. Reviewing contracts and agreements with other parties periodically.
6). Strategic Risk Control.
Strategic risk control is carried out by:
a. Conducting an effective, independent, and objective review of the strategic policies
outlined, among others, in the form of a review of the implementation and achievement
of performance against the targets set out in the Bank’s Business Plan through meetings of
the Board of Directors and Board of Commissioners (Radikom), Board of Directors Meetings
(Radisi), Sectoral Meetings, and Business Review.
b. Adequate testing and reviewing of the management information systems.
7). Compliance Risk Control.
Compliance risk control is carried out through ex-ante (preventive) actions aimed at:
a. Ensuring that policies, provisions, systems, and procedures, as well as business activities in
BNI are in accordance with the provisions of the Regulators and applicable regulations.
b. Ensuring compliance with the established commitments.
8). Reputation Risk Control.

Reputation risk control is carried out by:
a. Managing, following up, and resolving customer complaints and lawsuits that can
immediately increase reputation risk.
b. Developing a reliable mechanism for effective reputation risk control measures.
INFORMATION AND COMMUNICATION
The information system shall be able to produce reports on business, financial conditions, risk
management implementation, and fulfillment of provisions that support the duty implementation of the
Board of Directors and Board of Commissioners.
Such information includes:

1. Internal and external information obtained and submitted to the Management is related to the
performance of achieving the Bank’s goals.
2. The resulting information is sufficient and timely, therefore, it can carry out its responsibilities
effectively and efficiently
The necessary information system includes:

1. Development and up-grade of information systems, based on information system strategic plans
and associated with the Bank’s overall strategies and achievement of the Bank’s goals.
2. The system used to produce information, both electronic and manual systems, shall meet the
following requirements:
a. Secure;
b. Monitored independently; and
c. Supported by provisions of adequate contingency plan.
When processing information in electronic format, the system used shall have adequate audit trail.
MONITORING ACTIVITIES
Monitoring of BNI’s activities in business units and functional units is carried out through three lines of
defenses, which are:
Good Corporate
Governance
1 st Risk Taking Unit

or 1st Line of Defense 2 nd Risk Control Unit
or 2nd Line of Defense 3 rd Risk Control Unit
or 2nd Line of Defense
Risk Owner, is responsible for the Risk Control, is responsible Risk Assurance, is responsible
risks taken, executed, and the for preparing the Bank's risk for independently assessing the
results (day to day risk management management framework, policies, effectiveness of the risk management
and control) principles, and methodologies implementation and internal control
• Responsible for managing and • Preparing proposals of risk • Conducting independent and
controlling risk inherent on management strategies and periodic internal audit on risk
day-to-day business activities or policies, including risk appetite and management implementation
functions risk limit and internal control
• Identification, measurement, • Developing framework, policies, • Preparing recommendations
mitigation, monitoring, and principles, tools, methodologies, of corrective actions and
reporting of risks inherent in and standards of risk management monitoring the implementation
business activities/functions • Acting as a risk oversight unit, • Reporting the audit results to
in accordance with the risk carrying out aggregation and risk the Audit Committee and key
strategies/policies/parameters reporting in overall stakeholders according to their
set by the 2nd line of defense. • Providing advice or authority
recommendations to the 1st line of
defense in implementing the risk
policies according to the authority
• Escalating important issues/
decisions to the Senior
Management/Board of Directors
and/or the Risk Management Sub
Committee of the Risk and Capital
Committee and/or the Integrated
Risk Management Committee (Risk
Management Committee).
EVALUATION OF INTERNAL CONTROL SYSTEM IMPLEMENTATION
The Corporate Guidelines (PP) of the Internal Control System are evaluated at least 1 (one) time in 1 (one) year or in the event
of significant changes in factors affecting BNI’s business activities. In general, for 2018, the factors influencing changes in PP of
Internal Control System are Regulatory updates, related to:
1. Credit restructuring
2. Implementation of anti-money laundering and prevention of terrorism funding programs in the banking sector.
The self-assessment results of adequacy of Internal Control System of BNI (Bank only) for 2018 are as follows:
Liquidity Operational Strategic Compliance Reputation Composite
BNI Only Credit Risk Market Risk Legal Risk
Risk Risk Risk Risk Risk Risk
Score 2.51 1.93 1.60 2.29 1.50 1.90 1.88 1.55 2.08
The composite score of BNI’s Internal Control System adequacy is 2 (Low to Moderate), which means sufficient. In case there are
still minor weaknesses that need management attention.
COMPLIANCE FUNCTION
BNI is a financial institution that carries out activities based on the principle of trust. In order to grow in a healthy and
sustainable manner, it requires strong foundation of good corporate governance and consistent implementation of prudential
banking principles, one of which is through bank compliance. From the above awareness, BNI has targeted one of the Bank’s
targets in the Bank’s fifth mission, which is “Becoming the Reference for Compliance and Good Corporate Governance
Implementation for the Industry”.
ANNUAL
REPORT 2018
Based on the mission, the Bank, the executor of compliance, not only fulfill compliance with regulations but also as
organization’s needs. Thus, compliance shall be built into an internalized and organized culture
ORGANIZATIONAL STRUCTURE OF COMPILANCE
COMPLIANCE DIVISION
Deputy leader division
Group compliance Group compliance Group anti money Management group

business bank regulation & policy laundering compliance
Management Management of the

Compliance compliance development
central bank Management
regulation & policy the policy &
business field of credit , treasury anti money of Ethics
& international laundering
The General
Management of
The management of
compliance
Compliance analysis reporting & Management
regulation & policy the
management areas field of funds , services anti money Compliance MIS Representatives
& unit functional laundering Human Capital
Management of Cfm SK Dir No. KP/431/DIR/R date d September

governance 28, 2015, update d by Cfm Memo Ren No.
compliance REN/2/271 date d March 02, 2017 and Memo
integrate d REN No. REN/2/948 date d July 27, 2017
In implementing compliance, BNI has a Director who 1. Periodic meeting of the Board of Commissioners and
oversees the compliance function and establishes the Director in charge of Compliance function;
Compliance Division as the executor of compliance 2. Periodic Meetings of Committees under the Board of
function. In addition to this, BNI’s Board of Commissioners Commissioners (Audit Committee, Risk Monitoring
is also involved in carrying out active supervision of the Committee, and/or Integrated Governance Committee)
implementation of bank compliance. with Director in charge of compliance function and/or
Compliance Division;
ACTIVE MONITORTING OF THE BOARD OF 3. The periodically submitted reports include Compliance
COMMISSIONERS ON COMPLIANCE FUNCTION Reports, Reports on implementation of Integrated
The implementation of the Board of Commissioners’ active Governance, Reports related to implementation of Anti
monitoring function and the fulfillment of PBI related to the Money Laundering and Prevention of Terrorism Funding
Implementation of Commercial Bank Compliance Functions (APU-PPT) programs, compliance test Reports on
are carried out by: decisions of Board of Directors’ Meetings, and Reports on
1. Evaluating the implementation of bank compliance implementation of Anti-Fraud Strategies.
function at least 2 (two) times a year.
2. Providing suggestions in order to improve the quality of DIRECTOR IN CHARGE OF COMPLIANCE FUNCTION
implementation of bank’s compliance function. The current Director in charge of compliance function in
BNI is Mr. Endang Hidayatullah as BNI’s Managing Director
BNI’s Board of Commissioners directly or through the Compliance. The appointment and duty implementation
Committee under the Commissioner actively supervises and of the Director in charge of compliance function is carried
provides suggestions for improvements through meeting out based on the applicable provisions, particularly the
facilities or through periodic reports, such as: provisions on the Implementation of Compliance Function,
Good Corporate
Governance
General Provision, Provision of Fit and Proper Test, as well as Services Authority, Bank Indonesia, and other authorized
provisions on the Use of Foreign Workers in Banking Sector, supervisory authorities.
which among others regulate: 8. In addition to the above duties and responsibilities, in
1. Must obtain approval from the Financial Services the framework of implementing integrated compliance
Authority (FSA) before carrying out their duties and function, the Director in charge of compliance
functions in their positions. Based on the Financial function has duties to direct, monitor, and evaluate the
Services Authority Letter No. 13/KDK.03/2018 dated July implementation of Integrated Compliance function
5, 2018, the Financial Services Authority approved the and following-up direction or advice of the Main Entity
appointment of Mr. Endang Hidayatullah as Managing Board of Commissioners or the Integrated Governance
Director Compliance. Committee in order to improve the Integrated
2. Must fulfill independence requirements, which are not Compliance Function.
having financial, management, share ownership, and/or
family relationship to the second degree with members COMPLIANCE UNIT
of Board of Commissioners, Board of Directors, and/or The work unit that carries out the compliance function is
Controlling Shareholders or relationship with the Bank carried out by the Compliance Division. The Compliance
that can affect their ability to act independently. Division is an independent work unit and is directly
3. Must have adequate integrity and knowledge on banking responsible to the Director in charge of compliance function.
provisions and the applicable laws and regulations. Furthermore, Compliance Division is also designated as the
4. Prohibited to be held or use foreign workers. Integrated Compliance Work Unit.
5. Not concurrently serving as the President Director and/or
Vice President Director. INTEGRATED COMPLIANCE WORK UNIT
6. Not in charge of functions: operational business, risk In the framework of implementing POJK No. 18/POJK.03/2014
management that makes decisions on activities of on Implementation of Integrated Governance for Financial
the bank, treasury, financial, accounting, logistics, Conglomeration, BNI’s Compliance Division is assigned
procurement, information technology, and internal audit. as the Integrated Compliance Work Unit and has carried
out monitoring and evaluation of the implementation of
Based on BNI’s organizational structure, BNI’s Compliance compliance function in each Subsidiary (PA) in BNI’s Financial
Director oversees the organization as follows: Conglomeration, which among others include:
a. Compliance Division 1. Aligning the methodology for managing Compliance
b. Legal Division Risk including the implementation of APU and PPT
c. Human Capital Management Division provisions.
d. BNI Corporate University 2. Integrating and harmonizing policies and procedures of
compliance function, including APU and PPT policies and
In general, the duties and responsibilities of the Director in procedures.
charge of compliance function are: 3. Ensuring compliance of PA for the implementation of
1. Formulating strategies to encourage the growth of the internal and external reporting obligations.
Bank’s compliance culture; 4. Developing the Compliance Unit HR in BNI’s Financial
2. Proposing compliance policies or compliance principles Conglomeration.
to be stipulated by the Board of Directors; 5. Ensuring the implementation of Anti-Fraud Strategy in PA
3. Establishing compliance systems and procedures to be within BNI’s Financial Conglomeration.
used to develop the Bank’s internal rules and guidelines;
4. Ensuring that all policies, regulations, systems, and PROFILE OF COMPLIANCE UNIT HEAD
procedures as well as business activities conducted The current Compliance Division Head is Mr. Risang
by the Bank are in accordance with provisions of the Widoyoko. In determining and establishing the Compliance
Financial Services Authority, Bank Indonesia, and the Division Head, the management always pays attention to the
applicable laws and regulations. minimum requirements as follows.
5. Minimizing the Bank’s Compliance Risk. 1. Fulfilling the independence requirements.
6. Taking precautionary measures so that the policies and/ 2. Mastering banking regulations and applicable laws and
or decisions taken by the Bank’s Board of Directors do regulations.
not deviate from the provisions of the Financial Services 3. Not carrying out other tasks outside the compliance
Authority, Bank Indonesia, and the applicable laws and function.
regulations. 4. Having a high commitment to implement and develop a
7. Performing other duties related to Compliance Function, compliance culture.
such as monitoring and maintaining Bank compliance
with commitments made by the Bank to Financial
ANNUAL
REPORT 2018
Risang Widoyoko
(24 April 2018 – Present)
Indonesian citizen, 52 years old. He holds a Bachelor in Economic and Accountant from
the Faculty of Economics, majoring in Accounting, Universitas Gadjah Mada in 1992, and
obtained Masters of Management at the Post-Graduate Faculty of Magister Management
of Universitas Lambung Mangkurat in 2004. Leading the Compliance Division since April
24, 2018 until now. Previously, he served as Head of Policy Governance Division from
May 10, 2017, to April 23, 2018.
DUTIES AND RESPONSIBILITIES OF THE COMPLIANCE on “Implementation of the Principles of Recognizing

WORK UNIT Beneficial Owners from Corporations in the Framework
According to the Board of Directors’ Decision Letter No. of Prevention, Eradication of Money Laundering and
KP/431/DIR/R dated September 28, 2015, the duties and Terrorism Funding Crimes”.
responsibilities of the Compliance Division are broadly 13. National Seminar on “Transparency and Disclosure of the
divided into functions as follows. Financial Services Sector in Indonesia”.
1. Executor of Compliance Function; 14. PPATK Focus Group Discussion with the theme “The Role
2. Executor of Function in charge of the Implementation of of Financial Service Providers in Realizing the Election
APU and PPT Program; of Regional Heads who Are Corruption-Free to Create a
3. Executor of Function in charge of the Implementation of Clean and Accountable Government”.
Anti-Fraud Strategy and Whistleblowing System (WBS); 15. International Governance, Risk Management &
4. Executor of the Integrated Compliance Function. Compliance & Financial Crimes Conference.
16. BNI EAP Mini Seminar on being Productive in Managing
COMPETENCE DEVELOPMENT OF COMPLIANCE WORK Job Pressure.
UNIT 17. Seminar on Warehouse Receipt.
In order to make the Compliance Division as a strategic 18. Seminar on the Development of Corporate Bonds in
partner for every line of organization, the Compliance Indonesia.
employees also continue to improve their competence by 19. Organizing Training of Environmental, Social &
participating in certification/seminar/workshop/training Governance Integration for Banks.
programs, such as: 20. Talk on security and managing data breach.
1. Risk Management Certification. 21. Seminar on Indonesian Conference on Governance and
2. Compliance Certification and APU PPT. Sustainability.
3. Environmental, Social, and Governance Integration 22. Handling Bad Debts in a Legal Perspective and Business
Training for Banks. Risk
4. Training on Talk On Security and Managing Data Breach. 23. Dissemination of Usability and Workshop of API
5. Workshop on e-PAK Application Development Management.
Classification of Middle Segment and Small Segment. 24. BNI’s EAP Seminar (How To Raise Independent Children).
6. Workshop on Provisions for Procurement of Promotional 25. Training on Sustainable Finance.
Media Tools, Advertising Services, and Event Organizer. 26. Workshop on Legal Region (LGR) 2018.
7. Focus Group Discussion on the Role of Financial Service 27. DBS Seminar on “Helping Optimize Payments in the
Providers in Realizing the Election of Regional Heads who digital economy”
Are Corruption-Free to Create a Clean and Accountable 28. Workshop on Cyber Security and Banking Technology.
Government. 29. Training on Building Cashless Society.Training Building
8. Training in Material Debriefing and Compliance Cashless Society.
Competency Test Level 1 & 2.
9. Seminar on SWIFT Business Forum Indonesia. IMPLEMENTATION OF WORK PROGRAMS OF
10. FKDKP Training on “Implementation of Prudential COMPLIANCE UNIT IN 2018
Principles & APU Policies in Banking Business”. In carrying out operational activities with the increasing
11. Implementation of Enhancement Skill For Compliance business complexity, in line with the development of
(ESCO), attended by all RCO with several materials, technology, information, globalization, and financial market
such as: Compliance Review Material, APU PPT integration, the challenges and risk exposures faced are
Implementation, Update on Internal and External increasing, therefore, BNI continues to strive to mitigate
Provisions (AYDA, Simple Claims, Data Cleansing, and the bank’s business activity risks either preventive (ex-
Operational Risk). ante) or curative (ex-post), in line with the regulations
12. Dissemination of Presidential Regulation No. 13 of 2018 stipulated in the Financial Services Authority Regulation
Good Corporate
Governance
No. 46/POJK.03/2017, which is the need for an increase in includes a composite assessment of inherent risk and
compliance role and function. an assessment of the quality of Risk Management
implementation, therefore, it reflects the risk control
In order to encourage the realization of compliance culture system compliance.
in all organizational units, compliance programs have been
prepared and implemented as follows: In a composite manner, BNI’s Compliance Risk Profile
1. Achieving the implementation of compliance culture in 2018 was at level 2 (low to moderate), with details as
at all organizational levels and business activities of the follows:
Bank; a. BNI’s Inherent Risk in 2018 was at level 2 (low to
a. Submission of compliance material through moderate).
quality month days, video conferencing, e-mail b. The Quality of Risk Management Implementation
(BNI Greetings) which includes fraud prevention (KPMR) was at level 2 (satisfactory).
material, frequent omission cases, sanctions/fines
from authorities, audit findings, APU PPT and WBS Improvement efforts are always carried out by the
material. Compliance Division in order to minimize Compliance
b. Submission of Compliance Reminder (CORE) for Risk including:
each period to improve the employees’ compliance a. Identifying, monitoring, and periodically
culture and the implementation of Daily Exercise disseminating the fulfillment of obligations and
Employee Program (DEEP), among others, related to matters prohibited by regulation as preventive
Legal Governance Risk & Compliance (LGRC) material measures.
in online exam media carried out every working day b. Reminding organizational units that become unit in
for all BNI employees. charge of fulfilling obligations periodically/routinely.
c. Intensive supervision and coordination with c. Making corrective actions based on the compliance
other units related to policies, systems, and risk database.
procedures, as well as new operational and technical d. Incorporating sanctions from regulators/supervisors
guidelines, and issues that need to be considered which are one of the sources of compliance risk
among others including the prevention of fraud, in the compliance index, and making compliance
negligence, external sanctions, and formulating index as the Compliance Division’s Key Performance
recommendations and corrective actions that can be Indicators (KPI).
followed up according to the authority of each unit.
d. Gratification Control in BNI’s work environment 3. Ensuring that policies, regulations, systems, and
is in cooperation with the Corruption Eradication procedures as well as business activities conducted
Commission (KPK) in order to improve Good by the Bank are in accordance with provisions of the
Corporate Governance (GCG) and Compliance Financial Services Authority/Bank Indonesia and the
Culture. applicable laws and regulations;
e. The implementation of system application As one of the preventive steps to prevent compliance
development in the form of Compliance Information risks and support healthy and sustainable growth, the
Management System (CIMS) which is an online Compliance Division makes preventive (ex-ante) efforts
information system, database, and monitoring of the by conducting compliance tests to ensure that all internal
compliance review results and implementation of provisions and certain banking activities comply with
APU PPT. the applicable banking regulations. The compliance test
f. Measurement of Compliance Index (CIX) as a activities include:
reference for measuring and ensuring that the a. Compliance test on new and up-dating policies,
implementation of compliance function goes well. systems, and procedures.
2. Managing the compliance risk faced by the Bank; b. Compliance test/review on existing policies, systems,
Compliance risk is a risk arising from a bank not and procedures.
complying with and/or not implementing the c. Compliance test on Board of Directors Meeting
applicable laws and regulations. Based on such matter, decisions.
the Compliance Division is active in minimizing the d. Compliance test on the design of publishing or
compliance risk level. Composite risk profile assessment developing new products/activities.
ANNUAL
REPORT 2018
e. Compliance checklist for fit and proper test for 4. Implementing the Compliance Index (CIX) in PA as a
prospective controlling shareholders, members of means of monitoring the implementation of compliance
Board of Directors, and/or Board of Commissioners. function in PA by using Fraud parameters, Negligence
f. Compliance checklist on the plan for implementing Cases, Sanctions and Regulatory Fines, and Pending
new activities in the form of bancassurance and Findings of External and Internal Audit, from BNI’s each
mutual funds sales agents. PA.
g. Compliance test/Credit Compliance Review (C2R) for 5. Analyzing the Compliance Function Implementation
the proposed Credit Application Tool (PAK). Report submitted by PA to BNI’s Compliance Division
h. Compliance test/Procurement Compliance Review on a quarterly basis on the Implementation of the
(PCR) for the proposed Procurement Document for Company’s Compliance Function with External
Goods and/or Services. Regulations, Implementation of Anti-Fraud Strategies,
i. Compliance test/review on plans for opening and and APU-PPT Implementation.
relocating bank offices (regional offices, branch 6. Meeting each Subsidiary in BNI’s Financial
offices, sub-branch offices, and functional offices). Conglomeration every Quarter with the discussion
4. Ensuring the Bank’s compliance against the agenda to follow-up PA on BNI’s recommendations,
commitments made by the Bank to the Financial to formulate action plans for follow-up actions on
Services Authority/Bank Indonesia or other authorized BNI’s recommendations, and to share issues in the
supervisory authority. Monitoring of commitment to Implementation of Compliance Functions, including
supervisory authority is carried out together with the Anti-Fraud Strategies and APU - PPT.
Internal Audit Unit (SPI).
EVALUATION OF EFFECTIVENESS OF COMPLIANCE
IMPLEMENTATION OF WORK PROGRAMS OF INTEGRATED FUNCTION
COMPLIANCE WORK UNIT IN 2018 In general, the implementation of compliance function has
As a form of implementation of the integrated compliance been carried out properly, with the following explanation:
function, the Compliance Division has carried out the
following matters: Governance Structure
1. Reviewing the adequacy of policies/procedures in PA, 1. Implementation of Compliance Function has been
which are PP draft on Whistle Blowing System - BNI carried out independently and separately from the
Life Insurance, PP draft on Conflict of Interest from BNI operational work unit. Work relationship with other
Sekuritas and BNI Asset Management, Guidelines Book organizational units are as independent partners in
for Whistle Blowing System of BNI Multifinance, and Anti- order to review compliance with operational activities to
Fraud Strategy (SAF Policy) - BNI Life Insurance. ensure that the Bank’s policies, procedures, systems, and
2. Analyzing the latest external provisions that have an business activities are in accordance with the applicable
impact on PA, and submitting to PA for follow-up, external provisions.
among others, POJK No. 18/POJK.07/2018 on Customer 2. The Management has fulfilled the needs of human
Complaint Services in Financial Services Sector, POJK resources qualified as a Compliance Unit, among others,
No. 19/POJK.03/2018 on Amendment to POJK No. 16/ by:
POJK.03/2014 on Asset Quality Assessment of Sharia a. Establishing certain qualifications and competencies
Commercial Banks and Sharia Business Units, POJK for members of the Compliance Unit.
No. 20/POJK.04/2018 on Licensing of Underwriters b. Involving the Compliance Work Unit in various
and Broker-Dealer, POJK No. 59/POJK.03/2017 on trainings, competency certification programs, and
Implementation of Governance in the Provision of seminars.
Remuneration for Sharia Commercial Banks and Sharia
Business Units, and PBI No. 20/6/PBI/2018 on Electronic Governance Process
Money. The Compliance Division as a Compliance Unit has
3. Monitoring monthly business conduct of Subsidiaries implemented the compliance function in accordance
based on regulations, which is carried out by using the with the Financial Services Authority Regulation No.. 46/
self-assessment method and periodic reporting as means POJK.03/2017 on Implementation of Compliance Function for
of monitoring the compliance of Subsidiaries, with the Commercial Banks, which includes:
fulfillment of business conduct parameters. 1. Building a compliance culture in all BNI organizational
Good Corporate
Governance
lines, including through Compliance Awareness Program, employee’s Comprehension Test

through the Daily Exercise Employee Program (DEEP), and implementing Compliance Index
(CIX);
2. The management of Compliance Risk in BNI refers to the Financial Services Authority Regulation
No. 18/POJK.03/2016 and SEOJK No. 34/SEOJK.03/2016 on Implementation of Risk Management
for Commercial Bank.
3. Taking active role in monitoring and maintaining the Bank’s policies, procedures, systems, and
business activities not to deviate from the provisions.
4. Ensuring that the regulator’s inspection results have been followed up in accordance with the
commitments made and have reported the follow-up results to the regulators.
Governance Outcome
As a monitoring of the implementation of compliance function, the Compliance Unit submits
Compliance Reports to the Managing Director Compliance and Company Risk, President Director,
Board of Commissioners, Financial Services Authority, and other related parties including:
1. Compliance Work Plan Report contained in the Bank’s Business Plan to the Financial Services
Authority through the Strategic Planning Division.
2. Quarterly Compliance Function Implementation Report to the Compliance Director, President
Director, and Board of Commissioners, as well as semester report to the Financial Services
Authority.
ANNUAL
REPORT 2018
ANTI MONEY LAUNDERING AND

COUNTER-TERRORIST FINANCING
(APU-PPT)
To prevent the use of the banking system as a means of committing money laundering and terrorism financing, the Bank in
carrying out its activities must apply the prudential principle, in which one of the efforts to implement this principle is that the
Bank must implement the Anti Money Laundering and Prevention of Terrorism Funding Program (APU-PPT) adequately.
ORGANIZATION IN THE IMPLEMENTATION OF APU AND PPT PROGRAMS
In order to support the implementation of APU and PPT programs, the Compliance Division is designated as a Special Work
Unit (UKK), as the unit responsible for the implementation of APU and PPT Programs. The Compliance Division reports and is
directly responsible to the Director in charge of compliance function in BNI (Compliance Director).
Compliance
Director
Division Head
(Compliance Division)
Deputy Division
Head
Anti Money Laundering Banking Compliance

(AML) (CBG)
Policy & Regional

Analysis & Report
Development *Compliance
*Regional Compliance has the function to ensure the APU and PPT implementation in the Regional Offices, Branches and
Centers
Good Corporate
Governance
PROGRAM IN IMPLEMENTING APU AND PPT PROGRAMS c. Conducting examination to ensure the effectiveness
of the implementation of APU and PPT Program by
As an effort to prevent and minimize the use of the Bank as the internal audit work unit.
a means of money laundering and terrorism financing, BNI 3. Information management system.
implements the APU and PPT programs through: To optimize monitoring of transactions in the
1. Active Monitoring of the Board of Directors and Board of implementation of APU and PPT Program, BNI has
Commissioners. an Enterprise Fraud Management (EFM) Information
The active role of the Board of Directors and Board of System technology consisting of modules: Anti Money
Commissioners is indispensable in creating effective Laundering Detection, Sanction List, Filtering & Screening
implementation of the APU and PPT Program, given of Terrorist, PEP Screening Detection and Customer
the role of the Board of Directors and Board of Due Diligence (CDD), Risk Scoring and Suspect Account
Commissioners will influence the achievement level of to Verify (SAV) System, and in addition, BNI has also
the organizational goals in implementing APU and PPT developed Walk In Customer Application System (WIC).
Program. Forms of active monitoring by the Board of
Directors and Board of Commissioners, among others, are The EFM system is used to support more optimum
as follows: implementation of Know Your Customer Principles,
a. The Board of Directors approves the determination especially in detecting/monitoring customer transactions
of the Compliance Division as a Special Work Unit that have a pattern of behavior and patterns of money
(UKK) responsible for implementing APU and PPT laundering transactions. SAV System is to detect
Program; customer transactions with fraud pattern, while WIC
b. Approval of the Board of Directors and Board of Application system is used to maintain WIC profiles.
Commissioners on APU and PPT Policy; 4. Human Resources and Training. .
c. Periodic reports (monthly, quarterly, and semester) BNI conducts ongoing trainings on the implementation
related to the obligation to report and implement of APU and PPT Program for all employees. The training
APU and PPT Program to the Board of Directors and methods are as follows:
Board of Commissioners; a. Training can be done electronically/online base, or
d. Board of Directors’ approval of reports on plan and through face to face;
realization of updating customers’ data; b. Face-to-face training, with approaches as follows:
e. Meetings of the Board of Directors and Board of -- Conducted interactively (such as: workshop),
Commissioners to discuss the implementation of given to employees who receive priority on
APU and PPT Program. a regular basis, with topics tailored to the
participants’ needs.
2. Adequacy and effectiveness of policies and procedures.. -- Conducted in one direction (such as: seminar)
The Compliance Division has prepared APU and PPT given to employees who do not receive priority,
Policies and Procedures which are regularly reviewed/ and carried out in the event of significant
updated/refined according to the applicable provisions. changes in provisions, with topics in the form of
To strengthen the implementation of APU and PPT, each an overview of the implementation of APU and
procedure for banking product and activity also regulates PPT Program.
the procedures for implementing APU and PPT, such as
due diligence procedure for each product or activity. To IMPLEMENTATION OF APU AND PPT PROGRAMS IN
ensure that the implementation of APU and PPT Program SUBSIDIARIES AND OVERSEAS BRANCH OFFICES
is running properly, monitoring is carried out by the
Compliance Division. Implementation of internal control. As a form of responsibility for banks that have an international
Effective internal control system in implementing APU office network, to ensure that the implementation of APU and
and PPT is carried out by: PPT has been running effectively in all office networks, the
a. Having APU and PPT policies and procedures as well Compliance Division also monitors, analyzes, and supervises
as adequate internal monitoring; the implementation of APU and PPT program in:
b. Having clear limits of authority and responsibilities 1. Overseas Subsidiaries
on the work unit related to the implementation of 2. Overseas Branch Office
APU and PPT program, through either the first line
(risk taking units), the second line, or the third line of
defense; and
ANNUAL
REPORT 2018
SIGNIFICANT CASES
Important matters currently faced by the 1. A total of 7 (seven) criminal cases that are still in
company settlement process consist of:
a. 7 (seven) cases of special crimes consisting of 4
The legal cases faced by BNI for the period of 2018 included (four) criminal cases specifically in credit sector and 3
civil cases accompanied by claims for compensation against (three) cases of criminal offenses specifically in non-
the Bank and criminal cases covering cases of special crimes credit sector.
and general crimes. The details are as follows: b. 0 (one) case of general crime in credit and non-credit
sector.
TYPE OF CASES 2. A total of 4 (four) criminal cases that have been settled
(already have permanent legal force) in 2018 consisting
CIVIL CASE of:
Lawsuit Total a. 2 (two) cases of special crimes consisting of 2 (two)
Cases In Settlement Process 241
criminal cases specifically in credit sector and 0 (zero)
cases of criminal offenses specifically in non-credit
Cases Settled (already have permanent legal 75
force) sector.
b. 2 (two) cases of general crimes consisting of 1 (one)
Total 316
general criminal case in credit sector and 1 (one)
1. A total of 241 (two hundred forty-one) civil cases that are general criminal case in non-credit sector.
still in settlement process consisting of:
a. 225 (two hundred twenty-five) civil cases which TAX CASE
are civil claims filed against BNI accompanied by In addition to these civil and criminal cases, in 2018 there
compensation claims, among others concerning were 2 (two) tax case that were still in settlement process,
objections/debtors’ resistance to the execution/ which were:
auction of collateral, third party claims on credit
guarantees, control of guarantees by third parties, 1. A case regarding correction of the 2013 Tax Year of
and lawsuits for charging interest and principal Corporate Income Tax related to the enactment of
loans, as well as claims related to deposits in BNI. Government Regulation No. 77 of 2013 on the Decrease
b. 14 (fourteen) cases of Industrial Relations Disputes of Income Tax for Domestic Taxpayers in the Form of
(PHI). Public Companies. In this case, BNI had filed application
c. 2 (two) State Administration cases (TUN). for Judicial Review (PK) dated March 16, 2018, on Tax
2. The total number of civil cases that have been settled Court Ruling No. PUT-90170/PP/M.IIA/15/2017 dated
(already have permanent legal force) in 2018 amounted December 12, 2017, which rejected the Appeal request
to 75 (seventy-five) cases, with details of 70 (seventy) submitted by BNI. Based on the information on Supreme
cases settled with a verdict that BNI won, while there Court official website, currently there is PK Decision
were 5 (five) other cases that BNI lost but not material in No. 2507 B/PK/PJK/2018 dated October 25, 2018, which
nature. rejected the PK request submitted by BNI. Meanwhile,
BNI has carried out its obligations as referred to in the
CRIMINAL CASE Decision.
Lawsuit Total 2. The case regarding the correction of the 2015 Tax Year
Cases Settled (already have permanent legal 7
of Corporate Income Tax includes, among other things,
the imposition of receivables that obviously cannot be
force) 4
billed as costs. In this case, BNI submitted an Objection
Total 11 Letter to the Director General of Taxes on May 4, 2018.
At present, the case is still under investigation at the
Director General of Taxes and no decision has yet been
made.
Good Corporate
Governance
The materiality case

Cases that have a material impact on the Bank include:
IMPACT/RISK TO ADMINISTRATIVES
NO PARTIES CASE PRINCIPAL CASE VALUE CASE STATUS
THE COMPANY ANCTION
Plaintiff:
Mr. AS
Defendant:
1. PT Bank
At present, the
Negara Lawsuit related to requests
case is still in The Bank has risk in
Indonesia for payment of BNI Bearer
the trial process paying compensation
1 (Persero), Bonds in 1962-1963 to Rp 3.794.418.000.000,- None
at the Central amounting to
Tbk. Plaintiff (Case No. 351/
Jakarta District Rp3,794,418,000,000
2. Minister Pdt.G/2018/PN.Jkt.Pst).
Court
of Finance
of RI
3. Minister of
SOE of RI
There has been

a Decision from
Kuala Kapuas
Plaintiff:
District Court
Mr. RA Claims for compensation
stating that The Bank has
payments related to the
the Plaintiff’s risk in paying
Defendant: transfer of credit collateral by
2 Rp 1.631.713.390.541,6,- Claim cannot compensation None
PT Bank Negara the Bank that is controlled
be accepted. amounting to Rp
Indonesia by the Plaintiff (Case No. 16/
Currently in 1.631.713.390.541,6,-
(Persero), Tbk. Pdt.G/2018/PN.Klk).
the process of
appeal at the
Palangkaraya
Appellate Court.
PT RA is a BNI debtor, in
its progress, without prior The source of credit
approval from BNI, PT RA recovery of debtor,
and Mr. HS (Director of PT PT RA, is currently
RA) submitted a request from the settlement
for the Delay of Payment result of bankruptcy
Reporting Party:
of Debt Obligations (PKPU) assets made by the
PT Bank Negara
in the Commercial Court at Curator, while Mr. HS
Indonesia
the Central Jakarta District Currently still in has been reported
(Persero),
Court. In the PKPU process, the trial process for criminal offense
Tbk.
3 most Creditors including BNI Rp 175.097.985.491,- at the North by BNI to the police None
did not approve the peace Jakarta District and at present the
Reported Party:
proposal offered by PT RA. In Court. said person has
HS (Director of
early 2017, BNI reported Mr. been on trial at
PT RA)
HS to the Police (Bareskrim the North Jakarta
Polri) on allegations of fraud District Court. In
and/or counterfeiting and this case, there is
money laundering in the potential credit risk
form of applying for and and reputation risk
disbursing credit from BNI for BNI.
using fake documents.
ANNUAL
REPORT 2018
IMPACT OF LEGAL ISSUES ON THE COMPANY

BNI’s policies and SOPs are adequate and prudent in protecting BNI’s business interests. Therefore, all the legal cases
mentioned above, both civil and criminal, impose no significant financial impact on BNI. This is reflected in the Legal Risk
Profile during 2018 that remained in Low To Moderate ranking.
LEGAL ISSUES FACED BY THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS

Throughout 2018, none of the members of Board of Directors and Board of Commissioners who were in office had important
civil or criminal law cases related to BNI’s business.
Legal issues currently faced by a subsidiary

Total
Subsidiary Legal Issues
Civil Criminal Claim
PT BANK BNI SYARIAH Matter Carry Over the Previous Year 9 - -
Matter Inkracht in 2018 12 - -
In the Trial Process 14 3 -
PT BNI LIFE Matter Carry Over the Previous Year - - -
INSURANCE
Matter Inkracht in 2018 - - -
In the Trial Process 1 2 -
PT BANK BNI Matter Carry Over the Previous Year - - -
SEKURITAS
Matter Inkracht in 2018 - - -
In the Trial Process - - -
PT BANK BNI Matter Carry Over the Previous Year 1 - -
MULTIFINANCE
Matter Inkracht in 2018 1 - -
In the Trial Process 1 - -
MATERIAL CASES FACED BY SUBSIDIARIES
IMPACT/RISK TO
NO PARTIES Subsidiaries CASE PRINCIPAL CASE VALUE CASE STATUS
THE COMPANY
1 Plaintiff: BNI Life Plaintiff is the heir of M. Thoib who Material : Mojokerto Compensation
Tanti Widyana Insurance is a BNI Life Insurance customer with Rp. 275.000.000,- District Court, payment at claim
(heir of M BLPM policy number 9172009817 East Java value
Thoib) and has been a customer since June Immaterial:
27, 2017, who filed a death claim Rp. 500.000.000,-
Defendant: by the heir, but was rejected due
PT BNI Life to the health data mismatched and
Insurance dishonesty in filling SPAJ form.
2 Reporting BNI Life Euis Sri Kartina is a Bancassurance Rp 50.000.000,- Investigation by Potential of BNI
Party: Insurance Specialist marketer based on Sukabumi Police Life’s Reputation
PT BNI Life the Agency Agreement 001355. Risk in Sukabumi
Insurance PK.BL.BAS/BAS/1214 and has an
agent license certificate issued
Reported Party: by the Indonesian Life Insurance
BAS BNI Life Association (AAJI) with license
Sukabumi number 14329959 and code number
BAS 5576 certified agent since
Jurisdiction : December 20, 2014, to December
Police Station of 20, 2018.
Sukabumi City
BAS has embezzled customer
Report No.: premium funds
LP/B/69/
II/2017/JBR/RES
SMi KOTA dated
February 10,
2018
Good Corporate
Governance
IMPACT/RISK TO
NO PARTIES Subsidiaries CASE PRINCIPAL CASE VALUE CASE STATUS
THE COMPANY
3 Reporting BNI Life ASM BNI Life Kupang has committed Rp 100.000.000,- The process Compensation
Party: Insurance fraud, ASM did not hand over of detaining payment to
PT BNI Life premiums deposited by customers suspect at customers
Insurance to BNI Life. Kupang Police
Station, East Potential of BNI
Reported Party: Nusa Tenggara Life’s Reputation
ASM BNI Life Risk in Kupang
Kupang
Jurisdiction:
Police Station of
Kupang City
Report No.:
LP/B/763/
VIII/2018/SPKT
Resor Kupang
Kota dated
August 30, 2018
4 Plaintiff: BNI Plaintiff is a worker of PT SSL. Claim value: Legal Process Difficulty in
Worker of PT Multifinance Defendant: Unable to complete Rp3,000,000,000 at Commercial extracting
Surya Sukmana obligations against labor wages for Court in BNIMF’s
Leather +/- 1 year, therefore, the plaintiff files Surabaya machinery which
bankruptcy against the defendant. is currently still
Defendant: inside the factory
PT Surya area because the
Sukmana labor demands
Leather cannot be met
yet.
EFFORTS TO MINIMIZE LEGAL RISKS

BNI always works on an ongoing basis to keep minimizing the legal risk to the Bank in conducting its business activities as
reflected in its activities which are broadly divided into 3 (three) stages as follows:
1. Pra-Transaction
a. Provide legal studies and legal assistance through an assessment of plans for developing new products and activities,
to protect BNI’s interests, especially from the legal risk aspect. This is also a fulfillment of regulatory provisions that
require legal analysis of each new product development and activity plan.
b. Implement Legal Risk Awareness program consistently as one of the efforts to prevent legal risk that is conveyed
through either direct visit to the operations unit or through BNI’s digital learning facilities in order to prevent fraud
and support the predetermined business target achievements.
c. Organize Legal Blast in the form of submitting legal material that can be accessed anywhere by all BNI employees
on the BNI Corporate University website (www.bnicorpu.co.id) and completed with notification via a short message
service (SMS) blast (simultaneously and in bulk) This is intended to minimize the potential risk of business units in
conducting their business.
d. Organize Training or Sharing Session related to the latest legal issues including managing data breaches, the
emergence of blockchain in the financial system, etc. Speakers at the Training or Sharing Session held by the Legal
Division include legal experts, lawyers (practitioners), law enforcement institutions such as the Indonesian Police
Criminal Investigation Agency, the Supreme Court, and the Prosecutor’s Office of the Republic of Indonesia.
e. Involve the Legal Division employees in various certifications or training programs in collaboration with BNI
Corporate University and other external training institutions. The forms of training or certification provided include
Risk Management Certification, Special Education for Advocate Professionals (PKPA), Education for Curators and
Administrators, Professional Education for Capital Market Legal Consultants, Education for Legal Auditors, Financial
Analysis for Lawyers, Microsoft Powerpoint for Business, Special Education for Procurement Lawyers (PKPP), and other
legal trainings in order to create professional and competent corporate lawyers.
ANNUAL
REPORT 2018
f. Conduct training to each employee of the Legal Regulations on transparency of Bank’s Product
Division tailored to the competence assessment Information and Use of Customer’s Personal Data.
result, competence profile, employee’s needs, b. The Bank’s product information transparency is
and business development, aiming at increasing applied by stating information in writing through
employee’s core competence, personal competence, the Services Guide Book/starter kit, brochures/
and leadership competence in order to support BNI’s leaflets, Provisions for Opening Account that shall
business. be read and signed by the customer at the time of
opening an account, or through other means such
2. Transaction as BNI website, as well as announcements posted/
a. Provide advice or legal studies on a transaction and distributed in BNI’s Branch offices. In addition to
operational activity, in accordance with the needs written information, Bank Officers will explain the
of the Division/Unit of the Regional/Branch/Center product information to customers at the time of
Offices. offering the Bank’s products/services.
b. Improve the quality of legal advice or legal studies c. Furthermore, the consumer banking information
at the Legal Work Unit in BNI, in order to support products will be delivered transparently through
the smooth running of business/transaction and print media, electronic media, and billboards
operational activities of all Divisions/Units of including internet media.
Regional/Branch/Center Offices in BNI, which is d. Through various means which are easily accessible
carried out through supervision of legal advice to all by customers, the Bank has delivered information in
Legal Work Units. the event of any changes in the terms and conditions
3. Post Transaction of the Bank’s products for customer use. The Bank
a. Implement the Legal Review Agreement Program also has a 24-hour product information service via
which is conducted routinely every 3 (three) months BNI Call 1500046.
aiming at optimizing the legal risk management
through the process of risk identification, risk 2. Related to the use of customers’ personal data by the
analysis, risk evaluation, and risk monitoring to Bank, it is already set forth in the Terms and Conditions in
measure legal risk that may arise from an agreement. Account Opening forms given by the Bank to customers
b. Coordinate case handling routinely with all Legal at the time of account opening.
Work Units at all BNI Regional Offices as a form of
monitoring or case supervision throughout the Legal
Work Unit. TRANSPARENCY IN CUSTOMER COMPLAINT PROCEDURES
AND CUSTOMER DISPUTE SETTLEMENT
DISCLOSURE OF IMPORTANT MATTERS
In line with the implementation of GCG principles, the Bank One Stop Solution via BNI Call 1500046
considers it necessary to disclose the following matters:
In line with one of BNI’s missions to provide excellent services
TRANSPARENCY OF BANK’S FINANCIAL AND NON- and value-added solutions to all customers, and as the
FINANCIAL CONDITION preferred partner, BNI Call 1500046 continues to strive to
The Bank’s has applied transparency in its financial and provide the best service to BNI’s customers.
non-financial conditions to stakeholders in the Quarterly
Publication of Financial Statements and has reported them The commitment of BNI Call 1500046 to continuously
to Bank Indonesia or stakeholders in accordance with the improve service quality for BNI customers is realized
applicable provisions. The preparation and presentation through standardization of processes and services quality by
of financial statements refer to the procedures, types, and obtaining ISO 9001:2015 Certification at the end of 2016.
scopes as stipulated in Bank Indonesia regulations on
Transparency of Bank’s Financial Condition. The statements Through BNI Call 1500046 service, customers easily obtain
are prepared in a timely, complete, whole, up-to-date, and information, conduct transactions, and obtain solutions to
accurate manner based on Bank Indonesia Regulations any problems, either for banking or credit card services.
and Bank Indonesia Circular Letters on Product Information
Transparency BNI Call 1500046 service can be used by BNI customers
1. In connection with Bank’s product information 24 hours a day and 7 days a week, either by using either
transparency: Interactive Voice Response (IVR) feature or directly with BNI
a. The Bank has applied transparency in the Bank’s Call Officers.
product information according to Bank Indonesia
Good Corporate
Governance
BNI customers are given easy access to BNI Call 1500046 services, through:
SERVICE PROCEDURE AND SETTLEMENT OF BNI CUSTOMERS COMPLAINTS
BNI Contact Center, as one of BNI’s front lines in providing services to BNI customers, continues to strive to provide the best
service, including the settlement of every customer complaint for both banking and credit card services.
BNI customers are given the convenience of accessing complaints services with a variety of media choices both through oral
and written.
BNI CUSTOMER COMPLAINT

SUBMISSION MEDIA
ORAL Nasabah menghubungi Nasabah mendatangi

BNI Call 1500046 BNI Cabang terdekat
Nasabah mengunjungi Nasabah mengirimkan Nasabah mendatangi

WRITTEN www.bni.co.id pada email ke bnicall@bni. BNI Cabang terdekat
menu Hubungi Kami co.id atau faksimiili
(021)25541203
ANNUAL
REPORT 2018
Solution to resolve customer complaints delivered verbally is given within a maximum of 5 (five) business days*) and written
complaints is given within a maximum of 20 (twenty) business days. In the event that supporting documents are needed
for customer complaints submitted verbally, BNI will ask the customer to submit the complaint in writing. Under certain
conditions, the fulfillment of documents and settlement of complaints can be extended within the next 20 (twenty) business
days according to POJK No. 1/POJK.07/2013 and updated through POJK No. 18/POJK.07/2018*) on Consumer Complaint
Services in Financial Services Sector. An extension of time to settle a complaint is notified in writing to the customer.
According to FSA Circular Letter (SE OJK) No. 2/SEOJK.07/2014 and updated through FSA Circular Letter (SE OJK) No. 17/
SEOJK.07/2018, BNI will provide information on settlement of customer complaints through telephone, e-mail, mail, or short
messages (SMS).
In the event that the customers feel that the solution provided by BNI does not meet their expectations, then the customers
can continue the process of resolving complaints through the Alternative Dispute Resolution Institution included in the List of
Alternative Dispute Settlement Institutions established by the Financial Services Authority.
Good Corporate
Governance
REMUNERAtion c. Already have an ex-post review conducted by the

The employee remuneration strategy is determined based Compliance Unit and Internal Audit Unit.
on the principles of supply and demand, BNI’s remuneration d. Provision of funds to related parties shall obtain approval
position compared to the market, and by considering from the Board of Commissioners.
employee talent classification. The component of employee e. Approval for provision of large exposure is requested
remuneration consists of permanent remuneration which is to the management and for a certain amount shall be
differentiated based on position weight and person value. consulted with the Board of Commissioners.
While variable remuneration is given based on performance f. SPI checks the credit center based on a risk assessment
that is associated with the achievement of bank performance, to ensure the adequacy of risk management and that
unit performance, and the employee concerned. The unit internal control is included in the credit granting process.
performance is reflected in the classification of business units,
regions, subsidiaries, and branch offices located abroad. In applying the provision of funds by the Bank to related
parties or the provision of large exposure:
The remuneration policy consultant uses Willis Towers 1. The management pays attention to the provision of
Watson consultant services to organize salary surveys every large amounts of credit, among others, which involves
year. The survey results are used as a reference for employee providing funds to debtors through an Internal Rating
remuneration. System (corporate, commercial, and small business),
Loan Portfolio Management, Loan Exposure Limit (per
HIGHEST AND LOWEST EMPLOYEE SALARY RATIO segment, per economic sector, and per region), LLL (for
Salary is an employee matter who is accepted and expressed BNI’s internal through Internal House Limit), and Country
in the form of money as a reward from the company or Exposure Limit.
employer to employees who are determined and paid 2. The capital amount and CAR ratio are always reported to
according to a work agreement, arrangement, or laws and the Management and all units are guided in carrying out
regulations. the Bank’s business activities especially those concerning
1. Employee’s highest and lowest salary ratio: 45:1 the provision of funds.
2. Board of Director’s highest and lowest salary ratio: 1.1:1
3. Board of Commissioners’ highest and lowest salary ratio: Submission of reports to BI has been carried out in accordance
1.1:1 with the applicable regulations. The amount of funds provided
4. Board of Director’s highest salary and employee’s highest to related parties can be seen in the table below:
salary ratio: 1.8:1 Total
Provision of Fund Nominal Rp
PROVISION OF FUNDS TO RELATED PARTY AND Debtor
million
PROVISION OF LARGE EXPOSURE To Related Parties 150 5,379,164
BNI has policies and procedures on Legal Lending Limit (LLL),
To Debtors 161,385,418
provision of credit to Related Parties with the Bank, and has a Individual 3 20,642,926
policy that regulates credit limits per industrial sector, including Group 17 140,742,492
the monitoring and settlement. Periodically, BNI conducts
meetings of the Credit Procedure Committee and Credit Policy EMPLOYEE AND/OR MANAGEMENT STOCK ALLOCATION
Committee as well as Board of Directors’ Meetings to discuss PROGRAM
matters relating to policies, procedures, and operational Referring to the Financial Services Authority (FSA)
implementation in credit sector. Regulation No. 02/POJK.04/2013 dated August 23, 2013, on
Repurchase of Shares Issued by Issuers or Public Companies
To ensure that the provision of funds to related parties and in in Significantly Fluctuating Market Conditions and Circular
large exposure are already in accordance with the principle of Letter of SEOJK No. 5/SEOJK.04/2017 on Revocation of SEOJK
prudence, BNI has already had adequate internal control systems No. 22/SEOJK.04/2015 on Other Conditions as a Market
as follows: Condition Significantly Fluctuating in the Implementation of
a. Already have policies and procedures in the process of Repurchasing. Shares Issued by Issuers or Public Companies,
granting credit. BNI conducts repurchasing of the Company’s shares that have
b. Already have ex-ante review on the process of granting new been issued and listed on the Indonesian Stock Exchange
and additional credit with a nominal of > Rp5 billion in the (Buy Back). BNI has appointed PT BNI Securities as a securities
form of Credit Compliance Review (C2R) for the proposed institution conducting repurchases of the Company’s shares
Credit Application Tool (PAK) carried out by the Compliance with a period of share purchases in the market in less than 3
Unit and in the process of procurement of goods and months from November 2, 2015, to December 28, 2015.
services with a nominal value of ≥ Rp1 billion in the form of
Procurement Compliance Review (PCR).
ANNUAL
REPORT 2018
The number of shares that have been repurchased was

0.807% of the issued and fully paid capital or a total of Based on the Ministry of SOE Letter No. S-574/MBU/
150,537,500 shares. The value of the repurchase of the D5-06/2018 dated June 5, 2018, it basically conveys the
Company’s shares was Rp749,979,275,500.00 (maximum 750 determination of 10% Long-Term Incentive (LTI) from the
billion Rupiah), thus, the average price of Shares Buyback was Tantiem of Board of Directors and Board of Commissioners for
Rp4,982.00 per share. the 2017 Fiscal Year. LTI is given in the form of shares whose
values are deferred for three years or until the end of the term
For the implementation of the repurchase of the Company’s of office.
shares, the Company conducted an Information Disclosure on
October 30, 2015.
This provision is exempted for Independent Commissioner,
Considering item 4 letter a number 3 Regulation No. XI.B.2 where LTI is given in cash in which the payment is deferred
in conjunction with Article 9 of the Financial Services for three years or until the end of the term of office.
Authority Regulation No. 2/POJK.04/2013, the repurchased
shares can be transferred/used for the implementation of EMPLOYEE STOCK BONUS PROGRAM
Employee Stock Option Plan or Employee Stock Purchase Employee stock bonus program is a bonus program in the
Plan. In connection with this matter, the Company conducted form of Bank shares given to employees who meet certain
Information Disclosure on May 12, 2016, which in essence criteria and requirements as stipulated in the Program
states that the Company will carry out the transfer of C Series Implementation Guidelines.
shares resulting from share repurchases through the Share
Ownership Program for Management and Employees of the The purpose of this employee stock bonus program is as
Company in the form of Stock Bonuses (hereinafter referred follows:
to as the “Stock Bonus Program”). 1. A form of employee retention in the long-term.
2. Efforts to motivate employees to provide the best
The Stock Bonus Program is prepared as part of remuneration performance.
in accordance with Minister of State-Owned Enterprises 3. Efforts to increase employees’ sense of belonging
Regulation No. Per-04/MBU/2014 on Guidelines for towards the Bank.
Determining Income of Board of Directors, Board of
Commissioners, and Supervisory Board of State-Owned Phase I allocation was carried out in 2016 and phase II
Enterprises, in the form of long-term awards in which the allocation was carried out in 2017. Employees who are
repurchased shares are allocated to: entitled to become participants in the Stock Bonus Program
1. Employees as a bonus for achieving the company’s are permanent employees as of October 30, 2015 (in the
performance, and matter, Information Disclosure date).
2. Members of the Board of Directors and Board of
Commissioners as part of tantiem for the relevant fiscal The end of vesting period phase I is distinguished based on
year. the level of position, with details as follows:
Supervision of the Stock Bonus Program will be carried out by
the Company’s Board of Directors and will be reported at the 1. ASST to the bottom, the vesting period ended on January
Company’s soonest General Meeting of Shareholders on such 31, 2017.
program implementation. 2. AMGR’s vesting period ended on April 30, 2017.
3. MGR to the top, vesting period was on July 31, 2017.
Allocation of stock bonus to members of the Board of
Directors and Board of Commissioners in accordance with Whereas the end of vesting period phase II is distinguished
Minister of State-Owned Enterprises Regulation No. Per-04/ based on the level of position, with details as follows:
MBU/2014 on Guidelines for Determining Income of Board 1. ASST to the bottom, the vesting period ended on January
of Directors, Board of Commissioners, and Supervisory 31, 2018.
Board of State-Owned Enterprises is carried out after the 2. AMGR’s vesting period ended on April 30, 2018.
Company has obtained approval from the General Meeting of 3. MGR to the top, vesting period was on July 31, 2018.
Shareholders/Minister of SOE.
The level of position that becomes the basis for calculating
Based on the Minutes of the Company’s Annual GMS No. vesting periods phase I and phase II are employee’s level of
8 dated March 10, 2016, the allocation of stock bonus to position as per December 31, 2015.
members of the Company’s Board of Directors and Board of Employees who are declared eligible for vesting will receive
Commissioners is carried out after obtaining approval from notification via email or other communication media which
Minister of SOE. includes confirmation of the stock bonus that becomes their
Good Corporate
Governance
rights on the vesting date. The requirements for vesting are on clear and transparent provisions and procedures.
set as follows: 4. Transparent: all provisions and information on
1. Not in the process of a case and/or the impact of Procurement of Goods and/or Services, including
sanctions referring to the applicable Bank Employment technical requirements for procurement administration,
Regulations; evaluation procedures, evaluation results, determination
2. Not terminating the work relationship voluntarily; or of prospective Providers of Goods and/or Services,
3. Not terminating the work relationship because of are open to participants of Providers of Goods and/or
performance (low performance). Services that meet the requirements.
5. Fair and Reasonable: providing equal treatment for all
TRANSACTIONS CONTAINING CONFLICT OF INTERESTS prospective Providers of Goods and/or Services that
AND/OR AFFILIATION TRANSACTIONS meet the requirements.
In 2018, BNI did not make any Transactions Containing 6. Accountable: shall achieve goals and be accountable so
Conflict of Interest and/or Affiliation Transactions. as to keep away from potential abuse and irregularities.
PROCUREMENT OF GOODS AND/OR BASIC METHODS FOR PROCUREMENT OF GOODS AND/OR

SERVICES
PRINCIPLES SERVICES AND ETHICS OF PROCUREMENT OF 1. Open Auction/General Selection, which is procurement
GOODS AND/OR SERVICES that is announced widely through mass media with
1. Efficient: the procurement of goods and/or services shall prospective participants at least 3 (three) participants.
be endeavored to obtain optimal and best results fast by 2. Direct Election/Direct Selection, which is procurement
using minimum funds and capabilities in a reasonable of goods and/or services offered to a limited number
manner and not only based on the lowest price. of parties with prospective participants at least 2 (two)
2. Effective: the procurement of goods and/or services participants.
shall be in accordance with pre-determined needs and 3. Direct Appointment, which is procurement of goods
provide maximum benefit in accordance with the targets and/or services carried out directly by appointing one
set. provider of goods and/or services by observing the terms
3. Competitive: procurement of goods and/or services of Direct Appointment.
shall be open to Providers of Goods and/or Services 4. Direct Purchase, which is purchase of goods available in
that meet the requirements and carried out through fair the market.
competition among Providers of Goods and/or Services
that are equal and meet certain conditions/criteria based
PROCEDURE FOR PROCUREMENT OF GOODS
IN THE PROCUREMENT PROCESS
BNI implements the following stages of the procurement of goods and or services:
Preparation Procurement Pelaksanaan
Initiation needs and Method of procurement Achievement

budget
Method of opening
Principle permits Monitoring
offer
Application of Method of Inspection and

procurement assessment handover
Procurement documents Winner Payment
Test of compliance
ANNUAL
REPORT 2018
PROCESS OF PROCUREMENT OF GOODS AND/OR SERVICES
The process of procurement of goods and/or services consists of:

Auctions, for procurement of goods and/or services with value above Rp1 billion.
Groove the bidding process
Announcement This technical offer
winner
Registration Evaluation
test of compliance
DRTU Delivery of
)Participants or more 3( offer price
warrant contract
working
Meeting Price evaluation
Direct Election, for procurement of goods and/or services with value of more than Rp100 million to Rp1 billion.
The direct election
DRTU
evaluation winner
)Participants at least 2(
Delivery of
meeting test of compliance
offer price
This technical Warrant Contract

offer Price evaluation Working
Direct Appointment, for procurement of goods and/or services with value of up to Rp100 million, or under certain criteria.
The process of directly nominate
DRTU
evaluation winner
(1 Participants)
meeting Delivery of
test of compliance
offer price
This technical Warrant Contract

offer Price evaluation Working
Direct Purchases are conducted for procurement value of up to Rp25 million by direct purchase at the store or seller.
Good Corporate
Governance
Procurement through the Electronic Procurement (e-Proc)

Application as one of the means to support BNI’s strategy is transformed into digital banking in the framework of facing
business competition, increasing stakeholders’ satisfaction, and GCG principles. Since 2017, BNI has used the Electronic
Procurement (e-Proc) Application to carry out the procurement of goods and services, in the form of Procurement Management
and Vendor Management modules.
The use of e-Proc Application can reduce administrative and operational costs that shall be incurred either by BNI or vendors.
Moreover, through the new module of Contract Management, prospective vendors who have not registered as BNI partners can
directly register online through the website https://e-proc.bni.co.id. By having such module, vendors are more qualified and the
procurement process is monitored better and more transparent.
Alur Proses Pengadaan Melalui Aplikasi Electronic Procurement (e-Proc)
Procurement Contract
Vendor Management
Management Management
Procurement Decision
Contract Drafting
Partners Registration and Compliance Test
Process, Work Order
Process
Partner Classification Evaluation Process Job and Payment

and Qualification Auction and Aanwijzing Implementation
Announcement
and Registration
Partner Associate Procurement of
Participants: Auctions, Asset Registration
and Evaluation List
Direct Elections,
Direct Appointment
Plans for Implementing ISO 9001: 2015 in Vendor Management sector

To improve the quality of vendor management according to international standards and to support efficiency, in this case,
suppressing poor quality, increasing productivity and operational effectiveness, since 2018 BNI has initiated the certification of
ISO 9001: 2015 of Quality Management System in Vendor Management sector. By having the certification, it can improve the
quality of products and service performance of the company which eventually will lead to increased stakeholder satisfaction.
BNI Tower Pejompongan

BNI Tower is the new Icon owned by BNI with the concept of Green Building (Gold), located on Jl. Pejompongan Raya Jakarta,
consisting of 2 towers, which are the Office Tower with 31 floors and the Podium Tower with 6 floors. To support the work-life
balance needs of BNI employees, BNI Tower is equipped with facilities such as BNI Digicafe food court, outdoor field, rooftop
garden, social room, daycare, nursery room, gym center, helipad, ballroom, and representative mosque.
ANNUAL
REPORT 2018
BNI Tower Pejompongan

BNI Tower is the new Icon owned by BNI with the concept of Green Building (Gold), located on Jl. Pejompongan Raya Jakarta,
consisting of 2 towers, which are the Office Tower with 31 floors and the Podium Tower with 6 floors. The concept of Green
Building (Gold) is expected to use energy more efficiently. The efficiency of electrical energy is 25.33%, water use is 30.99%,
and size of green area is 40.74%.
To support the work-life balance needs of BNI employees, BNI Tower is equipped with facilities such as BNI Digicafe food court,
outdoor field, rooftop garden, social room, daycare, nursery room, gym center, helipad, ballroom, and representative mosque
New Icon MENARA BNI Pejompongan
Mosque Ballroom
Roofgarden sports field Foodcourt BNI Digicafe
Good Corporate
Governance
Online Transportation Portal System

To improve control costs, drive efficiency, support the Go Green program, and in line with the #bnitudigital management
program, BNI has improved the transportation services to meet the needs of its employees’ official travel from the old pattern
of Transportation Management System (TMS) to the era of transportation digitalization by using the Online Transportation
Portal System. Evaluation of the Online Transportation Portal System is considered to be more comfortable, easier for
employees, cashless transactions, and proven to be able to reduce costs significantly.
BNI Record Center (BRC) CIKUPA

BNI filing has BNI Record Center (BRC)
Cikupa, which is one of the largest archival
units in Indonesia, with an area of 3.4 Ha
and a building of 1.3 Ha and has a storage
capacity of 337,200 boxes. BRC Cikupa
is the first banking archive in Indonesia
that has received an A (Excellent) Filing
Accreditation from the National Archives
of the Republic of Indonesia (ANRI), 2 times
won the second place in the Best National
Archival Unit Competition organized by
ANRI for SOE category. BRC Cikupa has been
visited by Archivists from KITLV Leiden, the
Netherlands. These have made BRC Cikupa,
for several times, to be the objective of the
study to emulate institutions/bodies from
both the government and the private sector. BNI Record Center
To improve the quality of BNI’s archival management in accordance with international standards and to support operational
efficiency and effectiveness at BRC Cikupa, currently BRC Cikupa is preparing to obtain ISO 30301: 2011 Standardization
System Management for Records (SMR) certification. By implementing ISO 30301: 2011 in 2019, it is expected that BNI
becomes the first company in Indonesia to receive ISO 30301: 2011 certification in the archiving sector.
PROVISION OF FUNDS FOR POLITICAL ACTIVITIES

BNI has a policy that prohibits BNI Persons from becoming members and/or donors of Political Parties. During 2018, there was
no funding for political activities.
PROVISION OF FUNDS FOR SOCIAL ACTIVITIES

Costs incurred in Community Development activities during 2018 are as follows:
Description Nominal (Rp)

Natural Disaster Victim Aid Rp3.5 Billion
Education and/or Training Assistance Rp31.0 Billion
Health Improvement Assistance Rp7.5 Billion
Public Facilities and Infrastructures Construction Aid Rp11.1 Billion
Worship Facilities Assistance Rp17.1 Billion
Natural Preservation Assistance Rp2.0 Billion
Natural Preservation Assistance Rp13.8 Billion
Total Rp86 Billion
ANNUAL
REPORT 2018
ACCESS TO COMPANY’S
INFORMATION AND DATA
Access to Company Information and data related to corporate actions can be accessed through the Company’s official website
on http://bni.co.id/. Parties who need further information related to corporate action or Company data can contact via
telephone at 021-5728387, Fax at 6221-5728053 or email to: investor.relations@bni.co.id.
PRESS CONFERENCE
The press conference carried out by BNI during 2018 were as follows:
No. Date Event Place Title of Press Conference

1 08 January 2018 President Jokowi Visit to BNI City Jakarta Completing Airport Train Facilities - BNI Opened 1 Outlet
Station & 4 ATMs, Received Naming Right
2 08 January 2018 President Jokowi Visit to BNI City Jakarta BNI City Station Comes with Various Modern Facilities
Station
3 09 January 2018 Dissemination of Food Security Madiun Acceleration of KUR Distribution
Programs BNI Synergizes with the Ministry of Agriculture and the
Indonesian National Army, Succeeding the Food Security
Programs
4 11 January 2018 Signing of Cooperation Agreement Sentani BNI Fulfills AirNav Property Needs in Papua
with Air Nav Related to BNI Property
Use
5 12 January 2018 BNI Taplus Men's and Women's Team Jakarta 2018 Proleague, Jakarta BNI Taplus Prepares the Best
Launching Team to Become Champions
6 18 January 2018 Java Jazz Press Conference 1 Jakarta BNI Invites Jazz Lovers to Perform Updated Transactions
7 19 January 2018 Board of Directors’ Visit to BNI Tual Tual Visiting Inland Indonesia, BNI Helps Build Business
Training Centers and Mosques
8 21 January 2018 Passport Making and Extension Jakarta Passport Payment Services, BNI Becomes the Bank to
Services at the National Monument Serve Most Online PNBP Deposits
9 26 January 2018 2016 BNI Performance Exposure in Jakarta BNI’s Net Profit Grows 25.1%
2016
10 26 January 2018 Launching yap! Jakarta BNI Launches YAP!
11 29 January 2018 Anticipation of Demonstration to Jakarta Restoring Performance, BNI Writes-off Trikomsel Books
Write-off Trikomsel Books
12 31 January 2018 The signing of BNI's Memorandum of BNI Becomes Single Partner of UM PTKIN 2018
Understanding as Single Partner of
UM PTKIN 2018
13 02 February 2018 Simponi Trial in London London The Ministry of Finance Successfully Tests Simponi at BNI
London
14 5 February 2018 The signing of the Cooperation Gianyar Supporting PERISAI Agents, BNI Becomes a Bank for
Agreement (PKS) with BPJS TK Managing BPJS Employment Contributions
15 06 February 2018 Signing of 2018 CLA Jakarta BNI Management & Trade Union Agree to New CLA
16 08 February 2018 Journalist Training at National Press Padang Commemorating National Press Day, BNI Invites 100
Day Journalists to Practice Entrepreneurship
17 09 February 2018 BNI's Visit to Way Jepara Way Jepara Visiting Way Jepara, BNI Increases the Quality of CTKI and
TKI
18 12 February 2018 Symbolic Transfer of BNI VA Debit Jakarta BNI Distributes 3000 VA Debit Cards at the 2018 Asian
Cards to the Indonesian Asian Games Games Test Event
Organizing Committee (INASGOC)
19 13 February 2018 11th Annual Best Deal & Solution Kuala Lumpur Serving 125 of the Best BNI Remittance Currencies in
Awards Southeast Asia
Good Corporate
Governance

20 15 February 2018 Java Jazz On The Move Jakarta Presenting Java Jazz on The Move, BNI Introduces yap!
New Payment Tool at BNI Java Jazz Festival 2018
21 16 February 2018 BNI Travel Experience Jakarta BNI Cooperates with 4 Airlines to Hold Travel Experience
22 21 February 2018 BNI's Free Home town Trip Teaser Jakarta BNI Ready to Hold FREE Home town Trip with SOE 2018
23 21 February 2018 Signing of Master CLA of the Use of Jakarta Cooperation of BNI - Ministry of Finance of the Republic
Government Credit Cards between of Indonesia, BNI Corporate Card Becomes Government
BNI and HIMBARA with the Indonesian Official Paying Tool, Has Reached 700 Users
Ministry of Finance
24 21 February 2018 BNI’s Chinese New Year Celebration Jakarta BNI Invites Loyal Customers & Debtors to Celebrate
Chinese New Year 2569
25 21 February 2018 Distribution of PIP and KIK Funds Agats BNI Distributes PIP Funds to the Inland Area of Papua
26 22 February 2018 Dissemination of New KUR Interest Jakarta Kemenko and BNI Promote KUR New Interest Rates
27 25 February 2018 Lake Sunter Festival Jakarta yap! Becoming a Payment Tool at the Lake Sunter Festival
28 28 February 2018 CLA between BNI and BPJS TK Jakarta BPJS Employment Collaborates with BNI to Increase
Participation
29 28 February 2018 Java Jazz Press Conference 2 Jakarta BNI Java Jazz International Festival 2018 Jakarta “Unity in
Diversity”
30 28 February 2018 Auction of Goods of the Vice President Jakarta Supporting the Event of Personal Collection Auction
of Republic of Indonesia of the Vice President of the Republic of Indonesia, BNI
Becomes Auction Guarantee Bank
31 02 March 2018 Launching TapCash Elek Yo Band Jakarta BNI Issues TapCash Elek Yo Band Edition
32 02 March 2018 Java Jazz 2018 Jakarta Easy Transactions at BNI Java Jazz Festival 2018
International Jakarta with yap!
33 03 March 2018 Submission of Mock Up BNI Garuda Jakarta BNI and GARUDA Appreciation of Glenn Fredly, Tompi,
Credit Card and Sandhy Sondoro,
BNI GARUDA Credit Card Loyal Customers
34 03 March 2018 Java Jazz 2018 Jakarta Enlivening BNI Java Jazz Festival 2018, BNI Subsidiaries
Presented the Latest Product
35 03 March 2018 Java Jazz 2018 Jakarta BNI Cooperates with 15,000 Traders to Use Yap!
36 03 March 2018 Java Jazz 2018 Jakarta Starting Late March, BNI Debit Cards Can Be Used for
E-commerce Transactions
37 04 March 2018 Launching of BNI Cinta, Chat Banking, Jakarta BNI Launched Cinta, BNI Chat Banking
at Java Jazz 2018
38 05 March 2018 Java Jazz 2018 Jakarta Jakarta International BNI Java Jazz Festival 2018,
Convenient to Transact with BNI
39 09 March 2018 Harvest of Corn Jakarta Social Forestry, KUR BNI Reaches 1,700 Farmers in East
Java
40 11 March 2018 Launching of BNI Mobile Remittance Jakarta BNI Launches Mobile Remittance Application, Remittance
Services with the Cheapest Rates in Singapore
41 13 March 2018 Cooperation Agreement (PKS) Jakarta Optimizing KUR Distribution to MSME, BNI Cooperates
between BNI and Go-Jek with GO-PAY
42 13 March 2018 BNI Becomes IMF Partner Jakarta Being a Partner, BNI Fulfills Financial Service Needs on
Voyage to Indonesia Art Exhibition and IMF - World Bank
Group Annual Meeting 2018
43 13 March 2018 Tax Award Jakarta Complying with Paying Taxes, BNI is Appreciated by the
Minister of Finance
44 20 March 2018 GMS 2018 Jakarta Annual GMS, BNI Distributes Rp4.77 Trillion Dividend to
Shareholders
45 21 March 2018 Launching of SOE Health Cards Jakarta BNI Supports Pertamedika-IHC in Optimizing Health
Services through SOE Health Cards
46 21 March 2018 Kebumen Cash Labor Intensive Kebumen BNI’s Cash Labor Intensive was Tested in 3 Provinces
47 23 March 2018 Signing of MoU and PKS between BNI Jakarta KemKum HAM Cooperates with BNI, Using BNI Corporate
and KemKum HAM Card for Official Payments
ANNUAL
REPORT 2018

48 27 March 2018 BNI UI Half Marathon Press Conference Jakarta BNI UI HALF MARATHON 2018 ‘THE BEST HALF
MARATHON INSIDE CAMPUS IN INDONESIA’
49 28 March 2018 MoU between BNI and BPJS Kesehatan Jakarta BPJS Kesehatan Collaborates with BNI in the Fee
Installment Arrears Program
50 29 March 2018 Inauguration of Ngawi - Kertosono Madiun BNI Finances Ngawi - Kertosono Toll Roads for Rp580
Toll Roads Billion
51 29 March 2018 PR Indonesia Awards 2018 Surabaya BNI Wins As 2018 PR Indonesia Awards General
Champion
52 29 March 2018 Launching BNI Fleksi Education Surabaya BNI Cooperates with ITS, Publishes Education Credit
53 29 March 2018 Absorption of Mojokerto Grain Mojokerto Stabilizing Prices, BNI Supports Sergab Program
54 03 April 2018 Media Reception Covering the 2018 Jakarta Counting Down to 2018 Asian Games, BNI Invited Media
Asian Games to Learn More about Indonesian Banking
55 03 April 2018 Cataract Surgery Jakarta BNI Helps Hundreds of Less-Fortunate People to HAVE
Cataract Surgery in Morotai
56 06 April 2018 Signing of MoU and PKS between BNI Yogyakarta BNI & UGM Strengthen Cooperation, Expanding Banking
and UGM Services
57 06 April 2018 Absorption of Banyuwangi Grain Banyuwangi BNI Sergab46 Absorbs 700 Tons of Grain of East Java
Farmers
58 15 April 2018 Indonesia Creative Product Festival Kuala Lumpur BNI Brings Fostered Partners to Kuala Lumpur
(ICPF) 2018
59 18 April 2018 MoU between BNI and Directorate Jakarta Supporting Digital Services of the Directorate General of
General of Taxes Taxes, BNI Develops NPWP Smart Cards
60 19 April 2018 Mou Between BNI and Go-Pay Jakarta Expanding Cooperation, BNI Embed yap! on GOJEK
Application
61 23 April 2018 Analyst Meeting Q1 Jakarta BNI Recorded Net Profit of Rp3.66 Trillion in Q1 2018
62 24 April 2018 Energy Ranges School Campaign 2018 Jakarta Supporting the Energy Rangers School Campaign 2018
Program, BNI Provides BNI Taplus Anak
63 25 April 2018 INACRAFT Jakarta BNI To Digital Enlivens INACRAFT 2018
64 26 April 2018 Signing of PKS between BNI, PI, and Jakarta BNI, PI, and PTPN 3 Synergize in Fulfilling Fertilizer Needs
PTPN 3
65 27 April 2018 Launching of GPN Debit Card at Jakarta BNI-GPN Debit Card Present at Inacraft 2018
INACRAFT
66 02 May 2018 2018 National Education Day Jakarta Celebrating 2018 National Education Day, BNI Invites
25,250 Students for Field Trip, Getting to Know the Bank
Closer
67 05 May 2018 Media Workshop and Gathering Bogor Increasing Transaction Security, BNI Applies 3D Secure
68 07 May 2018 Mou Between BNI and PELNI Jakarta BNI Supports Online Transactions, Ship Ticket Payments
and Top Up PELNI Agents
69 08 May 2018 Mou Between BNI and the Ministry of Jakarta The Ministry of Communication and Information
Communication and Information Cooperates with BNI to Hold 100 Smart City Movement
2018
70 08 May 2018 BNI Customer Award Jakarta BNI Awarded the Best Customers
71 09 May 2018 BNI Heli Service Jakarta BNI Emerald Customer Privileges
Now BNI Customers Can Enjoy BNI Heli Service
72 09 May 2018 Distribution of KUR Rokan Hilir BNI Expands KUR Distribution of Replanting Palm Oil to
Riau
73 11 May 2018 Memorandum of Understanding Jakarta Taking Advantage of Blockchain Technology, BNI
(MoU) between BNI and PT Adamobile Increases Trade Finance and Remittance Business
Solutions Networks
74 13 May 2018 Asian Games Parade Jakarta BNI Enlivens the 2018 Asian Games Parade
75 14 May 2018 Realization of KUR Mojokerto BNI Expands KUR Distribution of Sugar Cane Farmers to
Mojokerto
76 14 May 2018 PKS between BNI and PGN Jakarta Supporting PGN's Business, BNI Provides BNI Garuda
Credit Cards and Banking Services
Good Corporate
Governance

77 16 May 2018 SOE Minister Work Visit to Garut Garut BNI Supports Grain Absorption Program in Garut
78 17 May 2018 Distribution of Staple Food Packages Pamekasan BNI Presents 6,000 Staple Food Packages for PMI Families
79 17 May 2018 Awarding BNI Jakarta BNI Named As The Best #1 SOE Bank
80 21 May 2018 Absorption of Garut Grain Garut Acceleration of KUR, BNI Synergizes Grain Absorption and
Agricultural Entrepreneurship Program in Garut
81 21 May 2018 BNI's Free Home town Trip and Break- Jakarta Organizing BNI Digimudik 2018, BNI Opens Participant
fasting Gathering with Journalists Registration Online
82 25 May 2018 CLA between BNI and AP Kargo Jakarta BNI & Angkasa Pura Kargo Expand Collaboration, Various
Implementation of Cashless Transactions is Multiplied
83 25 May 2018 Cheap Market Cilacap Cilacap Appreciation of Money Senders, BNI Spreads 6,000 Staple
Food Packages
84 27 May 2018 Eid 2018 Promo Jakarta Amazing Eid, BNI Offers Complete Promo
85 28 May 2018 Media Update and Break-fasting Jakarta Approaching Lebaran, Necessities Increases by 5%, BNI is
Gathering with Media Editors Ready to Meet Cash Requests
86 28 May 2018 PKS between BNI and PT PAM Digital Balikpapan Collaboration of BNI and PAM Digital Technology,
Teknologi Applying yap! on Transactions at the Mall
87 05 June 2018 PK between BNI and Bappenas Staff Jakarta Tested at Bappenas, BNI Offers Housing Financing for
State Civil Apparatus
88 06 June 2018 BNI Cheap Market Karawang BNI Holds Cheap Markets, Proceeds from Sales are for
Building Irrigation Sanitation and Toilet Facilities
89 07 June 2018 MoU of BNI and Railink Jakarta Enhancing the Use of Electronic Money, BNI & Railink
Work on Airport Train Users
90 08 June 2018 Home town Trip Together with Jakarta Cooperating with BNI, Employees of Ministry of Law and
Ministry of Law and Human Rights Human Rights of the Republic of Indonesia Goes to their
Home town
91 08 June 2018 Home town Trip Together with BNI BNI Holds Digimudik 2018, Inviting Santri and Reciters of
Al-Quran to Go to their Home town
92 08 June 2018 Home town Trip Together with BNI Jakarta Enlivens the Free Home town Trip Together with SOE
2018, BNI Synergizes with Garuda and KAI in Transporting
1,250 People to Go to their Home town
93 22 June 2018 Inauguration of Gempol - Pasuruan Jakarta BNI Credit Makes Results, Gempol - Pasuruan Section 2
Section 2 Toll Roads Toll Road Operates
94 22 June 2018 Dissemination of MSME Final Income Surabaya Post-Tariff Decrease, BNI is Ready to Receive MSME Tax
Tax (PPh) Payments
95 27 June 2018 BNI’s Limited Operations During 2018 Jakarta BNI’s Operations are Limited During 2018 Regional
Regional Elections Elections
96 28 June 2018 Provision of Payment Media for 2018 Jakarta BNI Provides Payment Media for 2018 Asian Games
Asian Games
97 29 June 2018 Deville BNI Jakarta Prior to Asian Games, BNI's 72nd Anniversary Colored by
the People's Sports Competition
98 29 June 2018 PKS between BNI and the Indonesian Jakarta Cooperating with BNI, the Indonesian Navy Distributes
Navy Soldiers’ Salaries in a Cashless manner
99 29 June 2018 PKS between BNI and ITS Jakarta BNI & ITS Alumni Association Issue Member Cards with
Insurance
100 01 July 2018 Absorption of Banyuwangi Coffee Banyuwangi BNI & PTPN XII Strengthens Support for Coffee Farmers
1,500 East Java Farmers Receive BNI Credit
101 04 July 2018 Karawang Labor Intensive Karawang Celebrating 72nd Anniversary, BNI Invites the
Communities to Join Cash Labor Intensive
102 05 July 2018 Celebrating BNI's 72nd Anniversary Jakarta Digital Transforming at the Age of 72, BNI Grows Beyond
Banking Functions
103 05 July 2018 Celebrating BNI's 72nd Anniversary Jakarta Celebrating 72nd Anniversary, Enjoy Various 72 Themed
Promos from BNI
104 06 July 2018 Launching of e-Logbook Card Jakarta Dissemination of GNNT, BNI Invites AKAP Drivers to Make
Cashless Transactions
ANNUAL
REPORT 2018

105 08 July 2018 Family Gathering of BNI Anniversary Jakarta Being 72 years old, BNI Enters a New Round of Banking
106 08 July 2018 Family Gathering of BNI Anniversary Jakarta The Highlight of BNI's 72nd anniversary Celebration, BNI
Offers a Variety of Promos
107 08 July 2018 Family Gathering of BNI Anniversary Jakarta BNI Optimizes the Use of yap! to Donate on the Highlight
of BNI's 72nd Anniversary Series
108 11 July 2018 BNI UI Half Marathon Depok Getting Ready to Join BNI UI Half Marathon 2018 through
Various Activities during Race Pack Collection
109 15 July 2018 BNI UI Half Marathon Jakarta BNI Provides Promo During BNI UI Half Marathon 2018
110 17 July 2018 Additional Credit Agreement for Jakarta BNI Also Finances the First Toll Road in North Sulawesi
Working Capital Credit (KMK) facility
for Land Acquisition Funds
111 18 July 2018 Analyst Meeting H1 Jakarta Second Quarter 2018, BNI Credit Grows 11.1%
112 18 July 2018 Launching Virtual Account Debit Yogyakarta Supporting the 2018 Asian Games, BNI Launches Virtual
Combo Card Account Debit Combo Card
113 19 July 2018 Torch Relay Yogyakarta Yogyakarta BNI Total Support for the 2018 Asian Games, Starting the
Torch Carnival from the Zero Point of Yogyakarta
114 20 July 2018 Syndication Credit Agreement Jakarta BNI Supports Kunciran-Serpong Toll Road Project
115 20 July 2018 PK between BNI and PT Banshu Jakarta Encouraging Indonesian Exports, BNI Distributes Yen-
Electric Indonesia Denominated Loans
116 23 July 2018 Press conference Kiostix Jakarta Buy Tickets for Asian Games, Kiostix & BNI Give Promo to
Millennials, Earn Up to 72% Discount with yap!
117 24 July 2018 PK Signing Jakarta BNI Disburses Loans for Pulp & Paper Companies in
America
118 25 July 2018 Signing of PKS between BNI, Jasindo, Jakarta In Semester I 2018, BNI 2018 KUR Distribution Has
and PTPN XII Reached 70% of the Target
119 26 July 2018 Torch Relay Papua Raja Ampat 2018 Asian Games, BNI Realizes Torch Carnival in Raja
Ampat, Familiarizing yap! In Papua
120 28 July 2018 Festival Indonesia Tokyo Dayak Woven Fabrics Have Stopped By in Japan
121 31 July 2018 PK between BNI and Jasamarga for Jakarta BNI Also Pays for Cikampek II Overpass Toll Road Project
Cikampek Overpass
122 01 August 2018 Launching of the Smart Office of the Jakarta Ministry of Village PDTT Cooperates with BNI to Create
Ministry of Village Smart Office
123 02 August 2018 PKS between BNI and GME Seoul BNI Cooperates with Global Money Express Korea, Now
Remittances from Korea are 70% Cheaper
124 07 August 2018 Launching IPC Smart Card Jakarta Supporting IPC, BNI Distributes Port Service Financing
and IPC Smart Card
125 09 August 2018 CSR for Earthquake Victims Mataram Assisting Lombok Earthquake Victims, BNI & BNI Life Build
Public Health & Kitchen Posts
126 09 August 2018 Launch of SIMPAKI Application Yogyakarta Collaboration between DJKI and BNI, Payment of
Intellectual Property Now Can Be Online
127 11 August 2018 7 BNI Missions Jakarta BNI Holds 2018 7 Missions Competition
128 12 August 2018 The Highlight of Energy Ranges Jakarta BNI Provides Taplus Anak for Outstanding Child Athletes
School Campaign 2018
129 13 August 2018 MoU and PKS between BNI and ASDP Jakarta Buying Ferry Tickets Is Easier to Use BNI
130 14 August 2018 Addendum of PKO BNI and 39 Other Jakarta BNI FLPP Distribution Continues
Banks
131 14 August 2018 KUR Distribution of Salt Kupang Starting in NTT, BNI Pioneers the KUR Distribution for Salt
Farmers
132 15 August 2018 Signing of MoU between BNI and Jakarta Kimia Farma Pharmacy Now Becomes BNI’s Agen46
Kimia Farma
Good Corporate
Governance

133 15 August 2018 Signing of MoU between BNI and Jakarta Total Baggage Solution of Angkasa Pura Logistics is Now
Angkasa Pura Logistik Cashless with BNI
134 15 August 2018 Signing of MoU between BNI and Jakarta Building Drinking Water Facilities in Lampung, BNI and IIF
SPAM Disburse Rp550 Billion
135 16 August 2018 PKS Signing between BNI and AP Jakarta Angkasa Pura Logistics is Now Cashless with BNI
136 20 August 2018 Delivery of appreciation to Jakarta Status of Waste Bank, Agen46 BNI Has 22,000 Small
environmental activists who Customers
participated in the Let's Save
Movement
137 21 August 2018 Closing of Asian Games Jakarta Recalling the 2018 Asian Games with Bank Products
138 30 August 2018 Preparation of 35th UN-ICW Press Jakarta About 1,200 Female Leaders Will Visit Yogyakarta,
Conference and Indonesian Women's BNI Becomes the Main Supporter
National Meeting
139 30 August 2018 Financing Distribution in Hong Kong Hong Kong BNI Distributes Credit in Hong Kong,
Supporting Export-Oriented Companies
140 30 August 2018 The Asian Banker Excellence in Retail Jakarta BNI Digitalization Is Recognized by The Asian Banker,
Financial Service Awards Received Product and Service Remittance of the Year
2018
141 04 September 2018 National Customer Day Jakarta Customer Day, BNI’s Board of Directors Greets the
2018 Millennials on Campus
142 6 September 2018 Symbolic delivery of TASA aid Jakarta National Children's Day, BNI Becomes Distributor for
Aid for Neglected Children 2018 that will Reach 70,000
Children
143 07 September Cool Japan Travel Fair (CJTF) 2018 Jakarta Cooperating with BNI, HIS Offers Special Prices to Japan
2018
144 09 September The 2018 IMF-World Bank Annual Jakarta This is the Strength of BNI in Supporting the IMF - World
2018 Meeting Bank Annual Meeting,
BNI Serves Main Campus in Full
145 10 September BNI’s Press Conference and Trip Logic Jakarta Strengthening Services in Logistics Sector,
2018 BNI & Triplogic Build Digital Transaction System
146 15 September PK signing between BNI and Golden Jakarta Boosting Exports, BNI Funds Sritex Subsidiaries in
2018 Mountain Textile & Trading Pte Ltd Singapore
147 17 September BNI and ITB Press Conference Jakarta Succeeding Last Year, BNI & ITB Held Another Ultra
2018 Marathon Competition
148 26 September Signing of the mass credit contract Banjarmasin Boosting a Million Houses Program, BNI Holds 1,046 Mass
2018 for Housing Loan (KPR) of BNI FLPP Credit Agreements
Sejahtera
149 30 September Signing of PKS between BNI and KAI Bandung Synergy of BNI and KAI, Integration of BNI Payment
2018 Services in KAI Access Applications
150 01 October 2018 BNI’s aid for Palu Jakarta Emergency Response Palu,
Part of BNI Branch Offices Begin to Operate
151 03 October 2018 IBD Expo Surabaya Enliven the IBDExpo 2018, BNI Promotes Digital
Ecoservices
152 04 October 2018 BNI IMF Press Conference Jakarta IMF - World Bank Group Annual Meeting 2018, BNI
Launches Virtual Account Debit and BNIVast Application
153 12 October 2018 BNI’s aid for Palu Jakarta Helping Disaster Victims, BNI Invites Psychologists to Give
First Psychological Aid Post-Disaster
154 12 October 2018 BNI ITB Half Marathon Jakarta BNI ITB Ultra Marathon, Minister of Youth and
Sports Released Runners from the BNI Office Lobby,
Campaigning for Financial Literacy while Doing Sports
155 14 October 2018 UI Grand Reunion Depok Homecoming Day of University of Indonesia, BNI & UI
Develop UI Connect Application
156 18 October 2018 Expose of BNI's Performance Q3 2018 Jakarta Third Quarter of 2018, BNI Recorded Net Profit of Rp11.4
Trillion, Driven by Credit Growth of 15.6%
157 18 October 2018 Banking Education Tourism Jakarta BNI Solves MURI Records, Invites 3,500 Students to Learn
Banking Simultaneously
ANNUAL
REPORT 2018

158 18 October 2018 National Children's Day 2018 North 2018 National Children's Day, BNI Becomes a Distributor
Lombok 67,754 Child Social Savings
159 23 October 2018 BNI’s aid for Sembalun Sembalun NTB Disaster Emergency Response, SOE Realized 1,500
Shelter
160 30 October 2018 ‘Let’s Save with Trash’ Movement Jakarta FSA Cooperates with BNI to Bring Out the Waste Savings
Movement
161 31 October 2018 Cooperation Agreement on Fostering Jakarta BNI - DGT Holds Training in 3 Sedot Cities of 450 MSME
MSME through SOE Creative Home Entrepreneurs
(RKB) program
162 31 October 2018 I’m Different I’m Indonesia - Music Jakarta Commemorating Youth Pledge, Youth is Introduced to
Diversity BNI Griya Gue
163 01 November Pangandaran MSME Training Pangandaran Trained in Out of the Box Business, Priangan MSME Are
2018 Encouraged to Upgrade their Classes
164 02 November Building Strategic Partnership To Los Angeles Strengthening Indonesia's Exports, BNI Embraces
2018 Boost Indonesia’s Export Business Partners in the United States
165 07 November Press Conference of Indonesian Master Jakarta BNI Becomes the Main Sponsor of Indonesian Prestigious
2018 Golf Tournament
166 07 November Signing of the Promo Program Jakarta BNI Supports the Cashless Program at Pertamina Gas
2018 between BNI and Pertamina Stations, Various Promos are Ready to Pamper the
Customers
167 13 November ‘I am a Young Merchant’ Program Tegal BNI Pioneered "I am a Young Merchant" Encouraging
2018 Vocational School Students to have Business Spirit
168 13 November Inauguration of Village-Owned Malang Supporting the Financial Services Authority Program,
2018 Enterprise Center Village-Owned Enterprise Fostered by BNI Becomes
Village-Owned Enterprise Center
169 16 November Cooperation between BNI New York New York Supporting US Trade and Investment in Indonesia, BNI’s
2018 and the Consulate General of the New York Branch Trade Finance Grows 25%
Republic of Indonesia (KJRI) of New
York
170 15 November Signing of Memorandum of Jakarta E-Samsat Phase II is Opened, BNI Expands Services to 16
2018 Understanding (MoU) of the National Provinces
Online Samsat Phase II
171 28 November Movement to Guard the Planting Aceh Besar BNI Initiates the OKMAR 2018/2019 Planting Season
2018 Season October 2018 - March 2019 Guarding Movement
172 28 November Inauguration of Sragen - Ngawi Sragen Sragen - Ngawi Segment of Solo-Ngawi Toll Roads
2018 Segment of Solo-Ngawi Toll Roads Officially Operates
173 30 November Launching of Proleague Team Jakarta BNI 46 Volleyball Team Is Formed, Ready to Hunt
2018 Champion Title
174 03 December The Crazy Toys Sale Jakarta Before Christmas & New Year, BNI & Toys Kingdom Holds
2018 The Crazy Toys Sale
175 05 December Movement to Guard the Planting Jember Movement of 25,000 Farmers,
2018 Season October 2018 - March 2019 BNI & Ministry Guard the Planting Season 2018/2019
176 11 December Pro-Am BNI Indonesian Masters Jakarta BNI Achieves the Indonesian Pro-Am Tournament Masters
2018 2018
177 12 December Movement to Guard the Planting Barito Kuala Guarding the Planting Season 2018/2019
2018 Season October 2018 - March 2019 BNI & Ministry Now Work on Borneo Land
178 12 December Santa Claus is Coming to RKB Jakarta Before Christmas, BNI Distributes 10,000 Gifts
2018
179 13 December Movement to Guard the Planting Malang Starting in Malang, KUR BNI Achieves Farmer Drying
2018 Season October 2018 - March 2019 Center
Joining the Movement to Guard the Planting Season,
Darmin Goes Down to the Rice Field
180 17 December Movement to Guard the Planting Purwokerto Milenial SOE, farmers are concerned the movement of the
2018 Season October 2018 - March 2019 growing season banyumas touch
Good Corporate
Governance

180 18 December Kemenkumham Mother's Day Jakarta BNI Produces PKH and PMI Purna Graduation
2018 Celebration
181 19 December Movement to Guard the Planting Deli Serdang Continuing the Planting Season Guarding Movement of
2018 Season October 2018 - March 2019 OKMAR 2018/2019,
BNI Works on Deli Serdang
182 20 December Media Workshop "End of Year Service” Jakarta 71 BNI Outlets Operate On Christmas Holidays 2018
2018
183 20 December SOE Shares Love Ambon SOE Shares Love,
2018 500 Orphans Are Invited to Rejoice in Welcoming
Christmas
184 21 December FLPP Signing Jakarta Surpassing the 2018 FLPP Target,
2018 BNI Will Distribute Subsidized Mortgages for 10 Thousand
Houses in 2019
185 26 December Signing BNI with Angkasa Pura I Jakarta Collaboration of BNI & Angkasa Pura I,
2018 Pay Bills Is Now More Orderly with H2H System
186 26 December Grand Launching of Galunggung Train Bandung Bandung - Tasikmalaya Railroad Is Back Active, BNI Gives
2018 Promo
BULETIN 3. Come on, fill out the Employee Social Media Mapping
BNI has an internal magazine called Sinergi, which Survey and get online shopping vouchers.
throughout 2018 issued 6 (six) editions with the following 4. Based on BNI’s Annual GMS resolutions on March 20,
themes: 2018, there was a change in the composition of the
Company’s Board of Directors & Board of Commissioners.
Theme Edition Complete info https://goo.gl/GUKwN8
5. Legal Aspects of Domestic Funds & Activities:
Optimizing BNI’s Digital Business Model in Millennial 104
Era 6. Opening & Disbursing Savings Accounts. Info: http://
Digital Transformation from Entertainment Stage 105
bnicorpu.co.id/>Digital Learning> E-Book> Law> Legal
Blast
BNI’s Sergab Program Prospers the Farmers 106
7. Legal Aspects of Domestic Funds & Activities:
Getting More Innovative in the Digital Era 107 8. Opening & Disbursing Savings Accounts. Info: http://
BNI Escorts 2018 Asian Games 108 bnicorpu.co.id/>Digital Learning>E-Book>Hukum>Legal
BNI Pioneer of Non-Cash Movement 109 Blast
9. Let’s submit your logo proposal for BNI’s 72nd
Internal communication tools in the forms of BNI Greetings Anniversary! Win cash prizes & attractive gadgets worth
email and sms, consisting of: millions of rupiah. Complete information in BNI Forum
1. bankwide and high-level corporate information 10. Let’s celebrate! BNI 72nd Anniversary DeFile at 15.00 WIB
submitted by the Board of Directors to all employees on BNI’s KP yard. Show your creativity and support your
(Newsletter). contingent. Info bit.ly/DeFileHUTke72BNI
2. bankwide and more technical corporate information 11. For Muslim, Subuh Prayer during Family Gathering can
delivered by KMP Division to all employees (Corporate be held at Al-I’tishom Mosque and Baitussalam Mosque
Info). (Arthaloka)
3. technical information related to HR which shall 12. Based on BNI’s Annual GMS resolutions on March 20,
be delivered immediately by the HR Division to all 2018, there was a change in the composition of the
employees (HR messages). Company’s Board of Directors & Board of Commissioners.
4. other bankwide information but not related to Complete info https://goo.gl/GUKwN8
marketing, products, or services (BNI Column). 13. BNI, together with Universitas Indonesia and Universitas
Indonesia Alumni Association, will soon hold Half
Throughout 2018, the number of BNI Greeting SMS was Marathon BNI-UI 2018. Complete info https://goo.gl/
239 (two hundred thirty-nine) times. The list of topics of BNI xjW6nU
Greetings email/SMS is as follows.. 14. BNI recorded profit at Rp11.44T in Q3 2018. Complete
1. 22 Years BNI Life contributes to the nation! youtu.be/ information on e-Sinergi46 (Android http://bit.ly/
PhFzjJFE-Mc & youtu.be/i0nDfG8E9_0 AndroidSinergi & iOS http://bit.ly/BNIsinergi46 )
2. Activate your UnikQu in Yap! for more fun transaction 15. Register yourself to join BNI’s #7missions! Follow the
experience. Download on Google Play or click http://bit. excitement and win a total prize of 50 million rupiah.
ly/yapaja. Complete info click www.yap.id Complete info click bit.ly/BNI7MissionsRules
ANNUAL
REPORT 2018
16. Get a special BNI employee program at the BNI http://bit.ly/esinergi46yearendquiz

Multifinance exhibition in collaboration with Nissan & 32. BNI’s Net Income in First Semester 2018 grew by 16%
Datsun on 21-23 Feb 2018 starting at 09.00 at the South (yoy) or reached Rp13.62 trillion. Let’s continue to
Parking Lot of BNI improve performance in 2018. Read the complete info at
17. BNI’s Board of Commissioners & Board of Directors wish Sinergi 46. Download it on Android bit.ly/AndroidSinergi
you a Happy Eid Mubarak 1439H Please accept our & iOS bit.ly/BNIsinergi46
sincere apology. Full victory begins with full change 33. BNI’s 2017 net income reached Rp13.62 trillion or up
#BNItuDigital 20.1% (yoy). Let’s continue to improve performance in
18. Download and activate SOE Buddy application! Read the 2018. Complete info in BNI Forum
manual guidelines. Click the following link to access SOE 34. Sinergi46 Magazine is now transforming into Digital.
Buddy guidelines http://bit.ly/sobatbumnpanduan Download on a smartphone & follow the Quiz.
19. Employee Journalism! You see it, you report it. Send news Android bit.ly/AndroidSinergi & iOS bit.ly/BNIsinergi46
about BNI & earn money for every news posted. Info #BNItuDigital
http://bit.ly/journalism4employee 35. Management Greets “Wise in Using Social Media”
20. Today, Tuesday, March 20, 2018, BNI holds the Annual has aired via Youtube Livestream https://youtu.be/I-
General Meeting of Shareholders at Shangri-La Hotel bDQjeiDto or check IG Bio @Quickpose if the link does
Ballroom. Info https://goo.gl/LrZUGz not work
21. Follow e-synergy46 Year End Quiz! Win 2 Samsung Gear & 36. Benefits of your BNI Learning Wallet in 2018, immediately
30 Savings of Rp500 thousand. Complete info click http:// click and access bnicorpu.co.id/BLW. Let’s learn according
bit.ly/esinergi46yearendquiz to your choice right now!
22. Follow the excitement of Watching World Cup Together 37. Want to get Top Up Taplus, turbo civic car, Honda Scoopy,
of Uruguay vs France on Friday, July 6, 2018, in BNI’s KP and other prizes from BNI Life? The trick is easy, click on
Parking Area starting at 16:30. Get various interesting bit.ly/2EFyt4r & bit.ly/2CYt86N. T&C apply
doorpizes! 38. Welcoming BNI’s 72nd Anniversary. Get 72% provision
23. Take part in the dissemination of Beyond Banking discount & free adm. fee for BNI Griya applications
program & understand BNI CorPlan. Watch the specifically for employees of BNI and Subsidiaries.
livestreaming at http://bit.ly/bnitransformationlive or Contact the nearest BNI Branch.
check the link in e-synergy46 39. Watch the Management Greets “Wise in Using Social
24. Follow Stress Test Yap! Friday (23/2) at 9:00 to 10:00, Media” with competent speakers. Youtube Livestream
transact your Yap! at https://bit.ly/2CAfHW8 .millions of https://youtu.be/tCqAVPFjISo this afternoon at 3:30 p.m.
rupiahs & Samsung A8 awaits. Info on BNIForum 40. Celebrate BNI Family Gathering during BNI’s 72nd
25. Want to study but don’t have friends? Just study with Anniversary. Take your family to enjoy various attractions.
LeVA. Download BNI Call app from Playstore/App store & Full info bit.ly/famgathBNI
follow LeVA guidelines at BNIForum. 41. Celebrate BNI KKB Bazaar of Nusantara Creation Wonders!
26. Don’t forget to register your attendance at a ceremony Get various attractive offers on 16-18 April 2018 at 25th fl.
of Pancasila Birth Day, June 1, 2018, at 07.00 WIB at the of BNI Headquarters. Info bit.ly/bnimenyapa-kkb
Head Office through check-in of e-Attendance! 42. Your participation as BNI Expert to make Chatbot Q&A
27. Especially for BNI employees, CASHBACK for Paying becomes an added value. Our Q&A submission extends
Telkom & PLN bills up to 100%!! Register for Auto debit to 31 Aug 2018. Email bnicorpu@bni.co.id
Immediately in the nearest Branch for November 2018 43. Want an online shopping voucher? Complete the
Period. T & C at BNI Forum Employee’s Social Media Mapping Survey. Click https://
28. Special for BNI Employees. Come show your Heroes’ Day goo.gl/gijWQe survey period of 16-26 March 2018
Spirit with many BNI SMS Banking transactions & get a 44. All BNI personnel, take advantage of digital Leadership
prize of Rp200,000. Period of 9-16 Nov 18. T & C at BNI learning opportunities (for all levels and talent classes),
Forum by accessing BNI Smarter.
29. Especially for you! Change your BNI Credit Card shopping 45. During the Eid holiday, BNI opened Limited Operational
transactions to installments of 0% for 3 & 6 months (min Outlet. Click the following link to see a list of Limited
Rp2.5 million) & 12 months (min Rp5 million). Transaction Operational Outlets bit.ly/outletterbatasbni
period of 15 Mar - 15 Apr 18. Call BNI Call 1500046. T&C 46. Check out the article “The Right Way to Avoid Fake
apply. News in Social Media” at e-Sinergi46! Download on
30. Submit Your logo proposal for BNI’s 72nd Anniversary! Android http://bit.ly/AndroidSinergi & iOS http://bit.ly/
Win cash prizes & attractive gadgets worth millions of BNIsinergi46
rupiah. Complete information in BNI Forum 47. Check out the article “The Right Way to Avoid Fake
31. The e-synergy46 Year End Quiz will end on Dec 31, 2018! News in Social Media” at e-Sinergi46! Download on
Answer all questions (4 questions) & win the prize. Info: Android http://bit.ly/ AndroidSinergi & iOS http://bit.ly/
Good Corporate
Governance
BNIsinergi46 54. BNI’s Digital Transformation has brought BNI to be an

48. Promote Earth Hour 2018 by turning off your lights & institution that offers fast, flexible, & mobile services.
electronic equipment on Saturday 24/3/2018 at 20:30 Let’s continue to improve performance. BNI Anniversary!
to 21:30 local time. Love the earth for our children and Serving the Country, the Nation’s Pride
grandchildren. 55. Increase your person value by learning & sharing and
49. Find answers to legal issues that often appear in KC Mega recording the realization through bnicorpu.co.id from
Kuningan. Info http.//bnicorpu.co.id/> Digital Learning> your gadget. Learn on, Share on!
E-Book > Hukum > Legal Blast
50. Find answers to legal issues that often appear in KC TRANSPARENCY OF REPORT SUBMISSION
Margonda. Complete info http://bnicorpu.co.id/ One form to implement GCG principles, in this case the
51. Law related to opening of non-individual checking principles of Transparency and Accountability, is the
accounts. Complete info bnicorpu.co.id > Digital Learning Information Openness in the form of transparency in
> E-book > Hukum > Legal Blast submitting reports carried out by BNI to all stakeholders,
52. The latest Motor and Car Test Drive only at BNI either shareholders, regulators, or the wide community. The
Multifinance - Suzuki Expo, 3-4 & 7-8 May at the parking following is a list of Information Disclosures conducted by
lot of BNI’s Head Office BNI during 2018 either by website, or regulator and mail
53. Let’s Visit the Largest SOE Exhibition in Indonesia | IBD electronic reporting systems.
EXPO 2018 (@ibdexpo) in Grand City, Surabaya 3-6
October 2018, starting at 10:00 - 20:00 WIB.
To Website Access
No. Information Date Reference
IDX FSA IDX SPE BNI
1 Information on Termination and 2 January 2018 Financial Services √ √ √
Appointment of Independent Authority Regulation
Member of BNI’s Audit Committee No. 55/POJK.03/2015 on
Implementation of Governance
for Commercial Bank
Financial Services
Authority Regulation
No. 55/POJK.04/2015 on
Establishment and Work
Guidelines of Audit Committee.
2 Report on Information or Material 2 January 2018 v √ Financial Services Authority √ √ v
Fact: Information on Additional Regulation No. 31/
Capital Participation in the Bank’s POJK.04/2015 on Disclosure of
Subsidiary: PT Bank BNI Syariah Information or Material Fact by
Issuers or Public Companies
3 Monthly Report of Securities 08 January 2018 v √ Regulation No. I-E, Attachment √ √ -
Holders Register of PT Bank Negara to Board of Directors’ Decision
Indonesia (Persero) Tbk Position of of PT Bursa Efek Jakarta No.
December 2017 Kep-306/BEJ/07-2004 on
Obligations for Submitting
Information
Financial Services Authority
Regulation No. 31/
POJK.04/2015 on Disclosure of
Information or Material Fact by
4 Submission of Data on Foreign 08 January 2018 - √ Letter of the Chairperson of - √ -
Currency Debt/Liabilities of PT Bank Bapepam No. S-30/PM.2/2013
Negara Indonesia (Persero) Tbk dated 7 February 2013 and
Position of December 2017 No. S-124/PM.23/2013 dated
27 February 2013 related to
the request of data of Debt/
Liabilities in the form of Foreign
Currency.
5 List of the Top 10 Shareholders 08 January 2018 - √ Financial Services Authority - - -
(Local and Foreign) Position of Regulation No. 27/
December 2017 POJK.03/2016 on Fit and Proper
Test for Main Entity of Financial
Services Institutions.
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
6 Realization Report on the Use of 15 January 2018 v √ Financial Services Authority
Proceeds from the Public Offering of Regulation No. 30/
PT Bank Negara Indonesia (Persero) POJK.04/2015 on Report of
Tbk. Actual Use of Proceeds from
the Public Offering.
7 Report on Information or Material 17 January 2018 v √ Financial Services Authority √ √ v
Fact: The Company organized a Regulation No. 31/
Performance Analyst Meeting in POJK.04/2015 on Disclosure of
December 2017 (audited) Information or Material Fact by
8 Publication Financial Statements 18 January 2018 v √ Financial Services Authority √ √ √
Position of December 2017 Regulation No. 32/
(audited) POJK.03/2016 on Amendment
to FSA Regulation No. 6/
POJK.03/2015 on Transparency
and Publication of Bank
Reports
FSA Regulation No. 31/
9 Consolidated Financial Statements 18 January 2018 v √ Financial Services Authority
Position of December 2017 Regulation No. 32/
(audited) POJK.03/2016 on Amendment
Reports
10 Plan of Annual GMS of PT Bank 30 January 2018 - √ Financial Services Authority - - -
Negara Indonesia (Persero) Tbk. Regulation No. 32/
POJK.04/2014 in conjunction
with Financial Services
Authority Regulation No. 10/
POJK.04/2017 on Planning and
Organizing General Meeting
of Shareholders of Public
Companies
11 Amendment to the Implementation 5 February 2018 - √ Financial Services Authority - - -
Date of the Annual GMS of PT Bank Regulation No. 32/
Negara Indonesia (Persero) Tbk POJK.04/2014 in conjunction
Companies
12 Monthly Report of Securities 7 February 2018 v √ Regulation No. I-E, Attachment √ √ -
January 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
13 Submission of Data on Foreign 7 February 2018 - √ Letter of the Chairperson of - √ -
Position of January 2018 No. S-124/PM.23/2013 dated
Currency.
Good Corporate
Governance
To Website Access
IDX FSA IDX SPE BNI
14 Announcement of Annual GMS of 9 February 2018 v √ Financial Services Authority - - -
PT Bank Negara Indonesia (Persero) Regulation No. 32/
Tbk POJK.04/2014 in conjunction
Companies
15 Publication of the Annual GMS 9 February 2018 v √ Financial Services Authority √ √ v
Announcement of PT Bank Negara Regulation No. 32/
Indonesia (Persero) Tbk POJK.04/2014 in conjunction
Companies
16 Self-Assessment of Integrated 13 February 2018 - √ Financial Services
Governance of Financial Authority Regulation
Conglomeration of PT Bank Negara No. 18/POJK.03/2014 on
Indonesia (Persero) Tbk Period of Implementation of Integrated
December 2017 Governance for Financial
Conglomeration
Circular Letter of Financial
Services Authority No.
15/SEOJK.03/2015 on
Implementation of Integrated
Governance for Financial
Conglomeration
17 Notice of Annual GMS of 2017 Fiscal 26 February 2018 √ √ Financial Services Authority - - -
Year of PT Bank Negara Indonesia Regulation No. 32/
(Persero) Tbk POJK.04/2014 in conjunction
Companies
18 Publication of the Annual GMS 26 February 2018 v √ Financial Services Authority √ √ v
Notice of 2017 Fiscal Year of PT Bank Regulation No. 32/
Negara Indonesia (Persero) Tbk POJK.04/2014 in conjunction
Companies
19 Annual Report of 2017 Fiscal Year of 26 February 2018 v √ Financial Services Authority √ √ v
Tbk POJK.04/2016 on Annual
Report of Issuers or Public
Companies
20 Clarification and Explanation 26 February 2018 v √ Regulation No. I-E on
(News from Bisnis.com with the Obligations to Disclose
title "State-Owned Banks Ready to Information
Publish Convertible Bonds of Rp6.5
Trillion")
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
21 Monthly Report of Securities 06 March 2018 v √ Regulation No. I-E, Attachment √ √ -
February 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
22 Submission of Data on Foreign 06 March 2018 - √ Letter of the Chairperson of - √ -
Position of February 2018 No. S-124/PM.23/2013 dated
Currency.
23 Revised Information on the Annual 9 March 2018 Decision of Board of Directors
GMS Notice of 2017 Fiscal Year of of the Indonesian Central
PT Bank Negara Indonesia (Persero) Securities Depository (PT
Tbk Kustodian Sentral Efek
Indonesia) No. KEP-0013/DIR/
KSEI/0612
Regulation No. 32/
Companies
24 Publication of Revised Information 9 March 2018 v √ Financial Services Authority √ √ v
on the Annual GMS Notice of Regulation No. 32/
2017 Fiscal Year of PT Bank Negara POJK.04/2014 in conjunction
Indonesia (Persero) Tbk with Financial Services
Companies
25 Report of Effective Date on 20 March 2018 Financial Services Authority
Appointment of President Regulation No. 27/
Commissioner/Independent POJK.03/2016 on Fit and Proper
Commissioner of PT Bank Negara Test for Main Entity of Financial
Indonesia (Persero) Tbk Services Institutions.
26 Submission of Annual GMS Material 20 March 2018 v √ Financial Services Authority v √ v
from PT Bank Negara Indonesia Regulation No. 32/
(Persero) Tbk for the Recovery Plan POJK.04/2014 in conjunction
Agenda with Financial Services
Companies
27 Submission of Explanation of 21 March 2018 Regulation No. I-E on
Follow-Up on BNI Pensioner Obligations to Disclose
Complaints Information
Good Corporate
Governance
To Website Access
IDX FSA IDX SPE BNI
28 Schedule of BNI’s Final Cash 22 March 2018 √ v Financial Services Authority √ √ √
Dividend Distribution Regulation No. 31/
Regulation No. II A on
Securities Trading, Attachment
to the Decision Letter of the
Board of Directors of PT Bursa
Efek Indonesia No. Kep-00023/
BEI/03-2015
Regulation No. 32/
Companies
29 Summary of the Annual GMS 22 March 2018 v √ Financial Services Authority v v -
Minutes of 2017 Fiscal Year of PT Regulation No. 32/
Bank Negara Indonesia (Persero) POJK.04/2014 in conjunction
Tbk with Financial Services
Companies
30 Publication of Summary of the 22 March 2018 v √ Financial Services Authority √ √ √
Annual GMS Minutes of 2017 Fiscal Regulation No. 32/
Year of PT Bank Negara Indonesia POJK.04/2014 in conjunction
(Persero) Tbk with Financial Services
Companies
31 Submission of Deed of Minutes of 29 March 2018 √ Financial Services Authority √
Annual GMS for 2017 Fiscal Year of Regulation No. 32/
PT Bank Negara Indonesia (Persero) POJK.04/2014 in conjunction
Tbk with Financial Services
Companies
32 Submission of Data on Foreign 5 April 2018 - √ Letter of the Chairperson of - √ -
Position of March 2018 No. S-124/PM.23/2013 dated
Currency.
33 Monthly Report of Securities 5 April 2018 v √ Regulation No. I-E, Attachment √ √ -
March 2018 Kep-306/BEJ/07-2004 on
Information
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
34 List of the Top 10 Shareholders 5 April 2018 - √ Financial Services Authority - - -
March 2018 POJK.03/2016 on Fit and Proper
35 Submission of Information of BNI’s 6 April 2018 - √ Financial Services - - -
Temporary Substitute Compliance Authority Regulation
Director No. 46/POJK.03/2017 on
Implementation of Compliance
Function of Commercial Banks
36 Annual Report of 2017 Fiscal Year of 9 April 2018 - √ Financial Services Authority - - -
Tbk to institutions and FSA (Bank POJK.03/2016 on Amendment
Indonesia) to FSA Regulation No. 6/
Reports
37 Submission of Monitoring Results 19 April 2018 v v Regulation No. IX.C.11, Decision
of Rating for BNI Phase I Sustainable of Chairman of Bapepam-LK
Bonds I Year 2017 No. Kep-712/BL/2012 dated
December 26, 2012, on Rating
of Debt Securities
38 Report on Information or Material 23 April 2018 v √ Financial Services Authority √ √ v
Performance Analyst Meeting in POJK.04/2015 on Disclosure of
March 2018 (unaudited) Information or Material Fact by
37 Consolidated Financial Statements 24 April 2018 √ v Financial Services Authority √ √ -
Position of March 2018 (unaudited) Regulation No. 32/
of PT Bank Negara Indonesia POJK.03/2016 on Amendment
(Persero) Tbk to FSA Regulation No. 6/
Reports
Regulation No. I-E, Attachment
to Decision of Board of
Directors of PT Bursa Efek
Jakarta No. Kep-306/BEJ/07-
2004 dated July 19, 2004, on
the Obligations to Disclose
Information
38 Published Financial Statements 24 April 2018 √ v Financial Services Authority √ √ √
Position of March 2018 (unaudited) Regulation No. 32/
of PT Bank Negara Indonesia POJK.03/2016 on Amendment
(Persero) Tbk to FSA Regulation No. 6/
Reports
to Decision of Board of
Directors of PT Bursa Efek
Jakarta No. Kep-306/BEJ/07-
2004 dated July 19, 2004, on
the Obligations to Disclose
Information
Good Corporate
Governance
To Website Access
IDX FSA IDX SPE BNI
39 Monthly Report of Securities 8 May 2018 v √ Regulation No. I-E, Attachment √ √ -
April 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
40 Submission of Data on Foreign 8 May 2018 - √ Letter of the Chairperson of - √ -
Position of April 2018 No. S-124/PM.23/2013 dated
Currency.
41 Information on Membership of 30 May 2018 - √ Financial Services - - v
Foreign Audit Committee of PT Bank Authority Regulation
Negara Indonesia (Persero) Tbk No. 55/POJK.03/2015 on
Implementation of Governance
for Commercial Bank
FSA Regulation No.
55/POJK.04/2015 on
Establishment and Work
Guidelines of Audit Committee.
42 Monthly Report of Securities 7 June 2018 v √ Regulation No. I-E, Attachment √ √ -
May 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
43 Submission of Data on Foreign 7 June 2018 - √ Letter of the Chairperson of - √ -
Position of May 2018 No. S-124/PM.23/2013 dated
Currency.
44 Submission of Data on Foreign 5 July 2018 - √ Letter of the Chairperson of - √ -
Position of June 2018 No. S-124/PM.23/2013 dated
Currency.
45 Monthly Report of Securities 5 July 2018 v √ Regulation No. I-E, Attachment √ √ -
June 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
46 List of the Top 10 Shareholders 5 July 2018 - √ Financial Services Authority - - -
(Local and Foreign) Position of June Regulation No. 27/
2018 POJK.03/2016 on Fit and Proper
47 Report on Information or Material 18 July 2018 v √ Financial Services Authority √ √ √
Performance Analyst Meeting in POJK.03/2016 on Amendment
June 2018 (unaudited) to FSA Regulation No. 6/
Reports
48 Consolidated Financial Statements 19 July 2018 v √ Regulation No. X.K.2, √ √ -
Position of June 2018 (unaudited) of Attachment to Decision of
PT Bank Negara Indonesia (Persero) Chairman of Bapepam-LK No.
Tbk Kep-346/BL/2011 dated July
5, 2011, on the Submission of
Periodic Financial Statements
of Issuers of Public Companies
Regulation No. 32/
POJK.03/2016 on Amendment
Reports
to Board of Directors’ Decision
of PT Bursa Efek Jakarta No.
Kep-306/BEJ/07-2004 on
Information
49 Publication Financial Statements 19 July 2018 v √ Regulation No. X.K.2, √ √ v
Position of June 2018 (unaudited) of Attachment to Decision of
PT Bank Negara Indonesia (Persero) Chairman of Bapepam-LK No.
Tbk Kep-346/BL/2011 dated July
Regulation No. 32/
Reports
Kep-306/BEJ/07-2004 on
Information
50 Submission of Information on 3 August 2018 v √ Financial Services Authority √ √ -
Changes in the Composition of Regulation No. 11/
Share Ownership of the Board POJK.04/2017 on the Report of
of Directors of PT Bank Negara Ownership or Any Changes in
Indonesia (Persero) Tbk Share Ownership of the Public
Company
Good Corporate
Governance
To Website Access
IDX FSA IDX SPE BNI
51 Monthly Report of Securities 6 August 2018 v √ Regulation No. I-E, Attachment √ √ -
July 2018 Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
52 Submission of Data on Foreign 6 August 2018 - √ Letter of the Chairperson of - √ -
Position of July 2018 No. S-124/PM.23/2013 dated
Currency.
53 Information on BNI's Public Expose 9 August 2018 √ - Stock Exchange Regulation No. - - -
Plan I-E on Obligations to Disclose
Information
54 Issuance of BNI 2018 Subordinated 10 August 2018 √ √ √ √ √
I Medium Term Notes (MTN) worth
Rp100,000,000,000 (one hundred
billion rupiah)
55 Submission of Public Expose 21 August 2018 √ - Stock Exchange Regulation No. v - -

Material I-E on Obligations to Disclose
Information
56 Submission of BNI’s Public Expose 31 August 2018 √ - Regulation No. I-E, Attachment √ - -
Report to Board of Directors’ Decision
Kep-306/BEJ/07-2004 on
Information
57 Monthly Report of Securities 6 September 2018 v √ Regulation No. I-E, Attachment √ √ -
Holders Register Position of August to Board of Directors’ Decision
2018 of PT Bursa Efek Jakarta No.
Kep-306/BEJ/07-2004 on
Obligations
58 Submission of Data on Foreign 6 September 2018 - √ Letter of the Chairperson of - √ -
Currency Debt/Liabilities Position of Bapepam No. S-30/PM.2/2013
August 2018 dated 7 February 2013 and
No. S-124/PM.23/2013 dated
Currency.
59 Monthly Report of Securities 4 October 2018 v √ Regulation No. I-E, Attachment √ √ -
Holders Register Position of to Board of Directors’ Decision
September 2018 of PT Bursa Efek Jakarta No.
Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
60 List of the Top 10 Shareholders 4 October 2018 - √ Financial Services Authority - - -
September 2018 POJK.03/2016 on Fit and Proper
61 Submission of Data on Foreign 4 October 2018 - √ Letter of the Chairperson of - √ -
September 2018 dated 7 February 2013 and
No. S-124/PM.23/2013 dated
Currency.
Regulation No. 31/
62 The Company organized a 18 October 2018 √ √ Financial Services Authority √ √ √

Performance Analyst Meeting in Regulation No. 32/
September 2018 (unaudited) POJK.03/2016 on Amendment
to Financial Services Authority
Regulation No. 6/POJK.03/2015
on Transparency and
Publication of Bank Reports
Regulation No. 31/
63 Consolidated Financial Statements 19 October 2018 √ √ Regulation No. X.K.2, √

Position of September 2018 Attachment to Decision of
(unaudited) of PT Bank Negara Chairman of Bapepam-LK No.
Indonesia (Persero) Tbk Kep-346/BL/2011 dated July
Regulation No. 32/
on Transparency and
Kep-306/BEJ/07-2004 on
Information
Good Corporate
Governance
To Website Access
IDX FSA IDX SPE BNI
64 Publication Financial Statements 19 October 2018 √ √ Regulation No. X.K.2, √ √ √
Position of September 2018 Attachment to Decision of
(unaudited) of PT Bank Negara Chairman of Bapepam-LK No.
Indonesia (Persero) Tbk Kep-346/BL/2011 dated July
Regulation No. 32/
on Transparency and
Kep-306/BEJ/07-2004 on
Information
65 Monthly Report of Securities 5 November 2018 V √ Regulation No. I-E, Attachment √ √ -
Holders Register Position of October to Board of Directors’ Decision
2018 of PT Bursa Efek Jakarta No.
Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
66 Submission of Data on Foreign 6 November 2018 - √ Letter of the Chairperson of - √ -
October 2018 dated 7 February 2013 and
No. S-124/PM.23/2013 dated
27 February 2013 related
to request of data of Debt/
Currency
Regulation No. 31/
67 Monthly Report of Securities 5 December 2018 V √ Regulation No. I-E, Attachment √ √ -
Holders Register Position of to Board of Directors’ Decision
November 2018 of PT Bursa Efek Jakarta No.
Kep-306/BEJ/07-2004 on
Information
Regulation No. 31/
ANNUAL
REPORT 2018
To Website Access
IDX FSA IDX SPE BNI
68 Submission of Data on Foreign 5 December 2018 - √ Letter of the Chairperson of - √ -
November 2018 dated 7 February 2013 and
No. S-124/PM.23/2013 dated
27 February 2013 related
to request of data of Debt/
Currency
Regulation No. 31/
ANTI-CORRUPTION POLICIES
BNI already has anti-corruption guidelines contained in its various policies including the Code of Conduct, Gratification
Guidelines, and Whistleblowing System. These guidelines have been well implemented and their effectiveness is evaluated
every year. An explanation of the anti-corruption mechanism is presented as follows.
Good Corporate
Governance
CODE OF CONDUCT
BNI always strives to conduct business in accordance with

the GCG principles. To achieve this, BNI already has a Code
of Conduct called BNI’s Code of Conduct. BNI’s Code of Until now, Code of Conduct material is still quite relevant to
Conduct is an ethical guideline that becomes the principle BNI’s situation and conditions as well as the development of
and basis that guides relationships between BNI Persons banking regulations in Indonesia.
and stakeholders in doing business. The Code of Conduct
contains a system of values, business ethics, work ethics, COMPLIANCE WITH CODE OF CONDUCT
commitment, and enforcement of company regulations The Code of Conduct is one form of BNI’s commitments to
in conducting business and other activities, as well as comply with the legal provisions and the highest ethical
interactions with the stakeholders. BNI’s Code of Conduct standards wherever BNI conducts its business/operational
has been implemented since December 1, 2010, which was a activities. The management of the Company in addition to
revitalization result of the previous Code of Conduct (2001). complying with the applicable laws and regulations shall
BNI’s Code of Conduct must be obeyed and carried out by all also uphold norms and ethical values. The Code of Conduct
BNI Personnel (Board of Commissioners, Board of Directors, applies to all employees of the Company from the Board
BNI Employees) which is marked by affixing signatures by of Commissioners, Board of Directors, and all employees.
all BNI Personnel in the BNI’s Statement of Attitude as a All of the BNI’s employees have an awareness to carry out
manifestation of commitment in implementing BNI’s Code of good ethics which will enhance and strengthen the Bank’s
Conduct. reputation.
PRINCIPLES OF CODE OF CONDUCT DISSEMINATION OF CODE OF CONDUCT

BNI’s Code of Conduct consists of 14 items which in principle In order to disseminate and internalize the values of BNI’s
require all BNI Personnel to: Code of Conduct, a pocket book of BNI’ Code of Conduct
1. Act Professionally, by prioritizing the work culture values has been published and distributed to all BNI Personnel.
of Principle 46. Furthermore, periodic dissemination of the Code of Conduct
2. Become a role model and remind each other, among is carried out through internal seminars/BNI dissemination,
subordinates, superiors, colleagues, and business BNI’s internal media (Sinergi Magazine and BNI Forum
partners to implement BNI’s Code of Conduct. website) which can be accessed by all of BNI’s employees,
3. Maintain good relationship between fellow employees sharing sessions at the quality month held every month in
of BNI. each of BNI’s organizational units, training of GCG and Code
4. Maintain bank’s confidentiality and confidentiality of of Conduct for BNI’s employees either new or old employees,
position. and coaching by supervisors. Violations of BNI’s Code of
5. Maintain job security. Conduct will be subject to strict sanctions in accordance with
6. Protect health, natural resources, and the environment. company regulations and policies that apply in BNI.
7. Carrying out recording, reporting, and work
administration properly, honestly, and accurately. EFFORT TO IMPLEMENT AND ENFORCE THE CODE OF
8. Prevent conflicts of interest that can harm BNI’s interests. CONDUCT
9. Not to give or receive gifts in any forms, either directly The implementation and enforcement of the Code of
or indirectly from any parties, related to our duties and Conduct as part of GCG implementation is always carried
responsibilities. out through awareness and internalization programs. BNI
10. Act as a Resource Person, as long as it is in the interests is committed to develop and implement GCG principles in
of BNI. every activity of the Company at all levels or organizational
11. Not to become a member and donor of Political Parties. structures from the bottom level to the top management.
12. Not to disclose incorrect information about BNI. Therefore, the existence of the Code of Conduct is a
13. Not to use BNI’s assets for personal gain. behavioral reference for the Board of Commissioners, Board
14. Not to abuse BNI’s Corporate Identity, for personal gain. of Directors and workers as part of efforts to achieve the
Company’s Vision and Mission. Enforcement of the Code of
ANNUAL
REPORT 2018
Conduct is carried out by regular monitoring of compliance Monitoring of the implementation of BNI’s Code of Conduct is
with the Code of Conduct and providing facilities for carried out by the Corporate Communication and Secretariat
complaints of violations of the Code of Conduct which are Division in the GCG Monitoring Group, whose function is
regulated separately in the mechanism of Whistleblowing to monitor the implementation of the Code of Conduct.
System. Every BNI personnel can report irregularities of such However, monitoring of the implementation of Code of
Code of Conduct and the identity of the reporter will be Conduct is also carried out by the Compliance Division to
protected. All reports must be accompanied by accurate data ensure the fulfillment of compliance with and obligations of
and/or evidence so that violations can be further processed. BNI’s Code of Conduct, as well as the enforcement process of
Every violation of the Code of Conduct will be subject to compliance on violation cases against BNI’s Code of Conduct.
sanctions in accordance with the applicable regulations and
the imposition of such sanctions is not discriminatory. TYPE OF SANCTIONS FOR VIOLATION OF CODE OF
CONDUCT
BNI personnel at any level if clearly proven to have violated
MONITORING ON THE IMPLEMENTATION OF BNI’S BNI’s Code of Conduct will be subject to sanctions in
CODE OF CONDUCT accordance with the regulations contained in the applicable
policies and provisions.
The sanctions are as follows:

Principle Sanctions Types of Violations
Warning Letter (SP) Violations of conduct and order in the work environment
Reprimand Letter (STE) Violations of conduct and order in the work environment
Violations of procedure/obligation system
Final Warning Letter (STK) Violations of procedure/obligation system
Severe violations that do not fulfill the elements of fraud/cheating/fictitious/engineering and/or
gratifications
Demotion Violation of Procedure/Obligation System containing elements of heavy violation intent that does not
fulfill the elements of fraud/cheating/fictitious/engineering and/or gratifications
Termination of Employment Violations of Procedure/Obligation System that contains an element of intention and causes harm
Severe violations that do not fulfill the elements of fraud/cheating/fictitious/engineering and/or
gratifications
• Integrity
TOTAL VIOLATIONS OF CODE OF CONDUCT • Customer Oriented
The number of code of conduct violations can be seen in the • Continuous Improvement
number of complaints and follow-up in the Whistleblowing
System. 6 BNI Personnel Principal Behavioral Values:
• Improve Competency and Give the Best Result
CORPORATE CULTURE • Honest, Sincere, and Willing
NI’s Corporate Culture is identified by “PRINSIP 46”, which is a • Discipline, Consistent, and Responsible
behavior guidance for BNI’s personnel, consisting of: • Give the Best Service through Synergic Partnership
4 Work Culture Values: • Always Perform Improvement
• Professionalism • Creative and Innovative
Each of BNI’s Work Cultural Values has a Principal Behavior, which acts as a reference for all BNI Personnel, with the 6 BNI
Personnel Principal Behavioral Values as follows:
4 Nilai Budaya Kerja BNI 6 Nilai Perilaku Utama Insan BNI
Professionalism Increase the competency and give best results
Integrity Honest, Sincere, and Willing
Discipline, Consistent, and Responsible
Customer Oriented Give the Best Service through Synergic Partnership
Continuous Improvement Always Perform Improvement
Creative and Innovative
Good Corporate
Governance
GRATIFICATION POLICY
One way to implement Good Corporate Governance and Code of Conduct in BNI is by applying Gratification Control. As the initial
step in implementing Gratification Control program, the “Gratification Control Commitment” was signed by the President Director,
witnessed by the Chairman of the Corruption Eradication Commission (KPK Chairman) on October 17, 2016, and attended by the
Board of Commissioners, the Board of Directors, Top Management, as well as Customers, Debtors, and the Notary.
In order to follow up the “Gratification Control Commitment”, a Gratification Control Unit (UPG) was established under the
Compliance Division. The Company Guidelines of Gratification Control have been prepared and can be accessed by the entire BNI
personnel through BNI e-PP. The Company Guidelines (PP) on Gratification Control add the BNI Guidelines related to the gratification
provisions, which were previously only stipulated in BNI’s Code of Conduct.
MANAGEMENT OF GRATIFICATION CONTROL

Since the signing of Gratification Commitment, BNI has implemented Gratification Control in its operational activities. The
Gratification Receipt Report reported to UPG will subsequently be forwarded to KPK through Online Gratification (GOL)
application. The Compliance Division has also provided verbal and written consultations on questions from the Division/Unit
related to Gratification.
At the beginning of each year, all BNI employees sign the Employee Integrity Pact, in which one of the points is as follows:
“Not giving, promising, and/or receiving any forms of compensation to or from fund customers or debtor customers, vendors,
partners, business partners, and/or other parties both external and internal.”
In an effort to digitize paperless gratification reporting, since December 2018, BNI employees can report gratification through
the Compliance Information Management System (CIMS) portal at www.cims.bni.co.id. Instructions for implementation and
technical instructions related to the reporting can be accessed through BNI ePP or BNI Forum.
DISSEMINATION OF GRATIFICATION POLICY

The dissemination related to Gratification has been carried out, through the screening of articles or other information related
to Gratification on bni.co.id website, print media, and BNI internal media, including BNI Forum.
The activities carried out by UPG during 2018 are as follows:

1. Adding the article on integrity (gratification clause) in BNI cooperation agreement with third parties (Cooperation
Agreement & Credit Agreement). There is a Whistleblowing System clause in all of the agreements mentioned above, as
a means of reporting for external parties if there are any BNI personnel who violate the gratification control commitment
through channels such as website, e-mail, SMS, letters, and telephone (Hotline).
2. Disseminating the Procedure for Accepting Gratification that Must Be Received during Eid Al-Fitr to all Divisions/Units
through KPN Memo No. KPN/6/0923 dated June 7, 2018, and BNI Forum.
3. Providing compliance opinions related to the status of facilities/goods received by BNI from third parties.
4. Disseminating the gratification control in the form of infographics through Whatsapp Group facilities to the Division and
Regional leaders on June 8, 2018.
5. Disseminating the gratification control through Compliance Reminder (CORE) sent via e-mail facility of BNI Greetings on
June 28, 2018.
ANNUAL
REPORT 2018
6. Disseminating the Gratification Control through material and questions on Daily Exercise Employee Program (DEEP46). All
BNI employees must answer questions related to Gratification Control.
7. The gratification video material has already completed and has been aired through electronic media at BNI head office. All
employees can access the video through BNI Corpu from each BNI employee’s smartphone.
8. Submitting posters to all Divisions/Units and All Regional Offices/Branch Offices/Sub-Branch Offices/Cash Offices.
Good Corporate
Governance
GRATIFICATION REPORT IN 2018

Report on gratification receipt submitted by the reporter ( BNI Employee) to the Compliance Division, which is then forwarded
to KPK through Online Gratification (GOL) application. The report on gratification receipt submitted by the Reporting Party
has been forwarded to the Corruption Eradication Commission (KPK) with an average reporting period no later than 3 (three)
business days from the 30 (thirty) business days deadline
ANNUAL
REPORT 2018
WHISTLEBLOWING SYSTEM
In order to increase effectiveness of GCG implementation, the Bank’s management is committed to

running the Bank professionally based on the corporate conduct in accordance with the Code of Ethics
and the work culture, in order to achieve good corporate governance. Therefore, the Bank has built a
Whistleblowing System (WBS).
EXISTENCE AND OBJECTIVES OF WHISTLEBLOWING SYSTEM

The implementation of Whistleblowing System (WBS) with the name of “WBS to CEO” is one of the
mechanisms for early detection of the occurrence of a violation in BNI that can lead to financial losses
including matters that can damage BNI’s image. WBS management is carried out in collaboration with an
external party, Deloitte. Thus, WBS is a commitment to create a clean work environment, with integrity, in
the form of active participation by BNI personnel to report violations occurring within BNI’s environment.
MANAGEMENT OF WHISTLEBLOWING SYSTEM

The party in charge of WBS in BNI is the President Director, assisted by the Managing Director
Compliance and Corporate Risk. In performing duties as WBS party in charge, the President Director
assigns the Head of Compliance and Corporate Risk Division to manage WBS. WBS manager is the
person in charge of WBS implementation in BNI, and is responsible to the President Director, through
the Managing Director Compliance and Corporate Risk. In carrying out the functions, WBS manager is
assisted by BNI’s WBS officers who have the competence and integrity to perform daily WBS activities.
The appointment/designation of BNI’s WBS officers is conducted by President Director and/or Managing
Director Compliance and Corporate Risk based on proposals from the WBS manager.
Duties and Authority of WBS management are as follows:

1. WBS Manager duties
a. Managing WBS implementation.
b. Coordinating the follow-up handling on reports submitted through WBS.
c. Coordinating the provision of protection against the Whistleblower with relevant units, either inside
and outside the Head Office.
d. Monitoring the settlement of report that comes through WBS.
e. Evaluating and improving the effectiveness of BNI’s WBS
2. WBS Manager authority:
a. Providing suggestions to WBS Party in Charge related to the follow-up of report handling.
b. Establishing follow-up on reports, particularly reports that need WBS Manager’s authority for follow-
up decisions
c. Providing suggestions to WBS Party in Charge related to protection requests from the Whistleblower.
d. Performing other actions necessary in order to implement WBS.
SUBMISSION OF VIOLATION REPORT

Violations can be reported through WBS using the following channels:
Telephone : 021-57853377
Email : bni-transparan@tipoffs.com.sg
Letter : BNI Transparan PO BOX 2646/JKP 10026
Website : http://bni-transparan.tipoffs.com.sg
SMS : Nomor (081-1970-1946)
Good Corporate
Governance
COMPLAINT MANAGEMENT
The handling of complaint reporting through WBS includes:
1. The WBS consulting team prepares a disclosure report along with the follow-up recommendations based on the
violations reports received, then uploads it into the e-room, which is specifically prepared for BNI, no later than 1
(one) working day after the report is received. The WBS consulting team will send an e-mail to BNI’s WBS Manager
and/or appointed BNI’s WBS officer as well as other e-room members regarding the new disclosure report that has
been entered into e-room. BNI’s WBS officers are expected to provide feedback on the follow-up within an allotted
time.
2. The time period to provide feedback on the follow-up disclosure report is as follows
a. The first response: no later than 15 (fifteen) business days after the disclosure report entered into the e-room.
b. Follow-up response: every end of the month following the first response
3. To maintain independency, in the event that there is a violation report mentioning a name or involving one of the
e-room members, then such e-room member cannot access the e-room.
PROTECTION FOR WHISTLEBLOWER

The main protection to the whistleblower is protection to confidentiality of the identity and report submitted by the
whistleblower. Protection to the Whistleblower can be adjusted to the threats/actions received. Such protection is
carried out with due regard to the principle of confidentiality and related provisions applicable in BNI. This Protection
also applies to parties conducting the investigation, among others, the Internal Controls/SPI and parties providing
information related to the violation reports.
TYPES OF VIOLATIONS THAT CAN BE REPORTED

Violation reports submitted through the WBS are as follows :
1. Fraud
Fraud, which is a dishonest act or guile including, fraud, extortion, forgery, concealment, or destruction of
documents/reports or using falsified documents, conducted by a person/group of people that pose a potential loss
or real loss to the ban.
2. Violation of regulations/laws
Conducting violation actions/deeds that carry a sanction under the laws applicable internally and externally..
3. Conflict of Interest
A situation where members of the Board of Directors, members of the Board of Commissioners, committee
members, permanent/temporary/outsourcing employees (BNI Personnel), through their position, office or
authority in BNI, have a personal interest that may affect the duties mandated by BNI objectively, therefore, causing
a conflict between personal and/or group and/or family interests with BNI’s economic interests.
4. Bribery/gratification
Receiving anything in any form, regardless of the number value from other parties related to the position/
authority/responsibility in BNI.
5. Unethical behavior
Deeds or actions committed by BNI personnel that cannot be justified, or be ethically accepted, or are in violation
of BNI’s Code of Conduct.
ANNUAL
REPORT 2018
FLOWCHART OF VIOLATION REPORTING SUBMISSION

WBS
No LANGKAH KERJA Whistleblower Consultant Compliance SPI
Team
The reporter makes a report of alleged violations through

1.
WBS channel.
Report from the reporter is received by WBS consultant

2.
team.
The WBS Consultant Team analyzes whether the report is No
included in WBS object or not (if it is not included in WBS
3.
object, the report will be forwarded to BNI’s WBS Officer,
who will then forward it to the concerned unit).
Yes
If it is a WBS object, the WBS consultant team will input it to
4
e-room.
The WBS Consultant Team sends a notification email to the

5 WBS Manager and BNI’s WBS Officer regarding the new
report in e-room.
BNI’s WBS officer carries out preliminary study/analysis of
the incoming report and can contact the related unit, the
6 WBS Consultant Team, or the Reporter (full disclosure) to
collect additional supporting information and data (if any
and if possible).
BNI’s WBS officers requests a decision from the authority to

7
follow up the WBS report.
Decision from the authority through the WBS officer to

8
follow up/not follow up on the report.
WBS officers updates the e-room upon the decision

9
authorized on such report.
If the authorized decision is to follow up, the WBS Officer

10
will forward it to SPI to conduct research.
SPI reports the progress of research carried out to WBS

11
Officer.
WBS officer updates the research development from SPI to

12
e-room.
DISSEMINATION OF WHISTLEBLOWING SYSTEM

WBS dissemination is carried out on an ongoing basis among others by conducting training for new employees, dissemination
by video, posters, sms blast to all employees, and through the role of the Central Workers Union (SP) to help disseminate to all
employees in Branches/Centers.
BNI will continue to strive to improve the understanding and concern of the employees to report violations through the WBS so that
they can create a work environment that is clean and has integrity. Related to this matter, the following steps have been optimized:
1. Delivering WBS completion progress through BNI forum;
2. Delivering WBS material through in-class training to prospective employees of Officer Development Program (ODP) and Assistant
Development Program (ADP);
3. Installing WBS posters in each unit;
4. Disseminating WBS through BBM blast to all employees, internal media/magazines, WBS videos;
5. Expanding reporters by involving external parties;
6. Adding reporting media channels;
7. Disseminating to external parties through dissemination tools in units, BNI website, inclusion of WBS information on agreements with
third parties;
Good Corporate
Governance
NUMBER OF COMPLAINTS 47.31% of the total WBS reports.

Throughout 2018, the violation reports received through the 2. Website, a total of 19 (nineteen) reports or 20.43% of the
WBS were 93 (ninety three) reports. Such violation reports total WBS reports.
are followed up by an investigation process carried out by 3. Hotlines, as many as 12 (twelve) reports or 12.90% of the
the Auditor in charge of the unit where the alleged violations total WBS reports.
occurred. . 4. Short Message Service (SMS) of 9 (nine) reports or 9.68%
Sarana pelaporan yang digunakan dalam melaporkan WBS of the total WBS reports.
adalah sebagai berikut: 5. Through Mail for as many as 9 (nine) reports or 9.68% of
1. Email as many as 44 (forty four) reports or equal to the total WBS reports.
SANCTIONS/FOLLOW UP OF COMPLAINTS IN 2018

Based on the investigation results, the follow-up development of WBS report is as follows:
Total Complaints and Follow Up

In Settlement
No Types of Violations Total Proven Not Proven
Process
1 Violation of law/regulation 20 2 7 11
2 Unethical behavior 13 1 4 8
3 Fraud 14 3 8 3
4 Bribe/gratification 2 1 1 -
5 Conflict of Interest 2 - 1 1
6 Laporan Out Of Scope* 42 - - 42

Total 93 7 21 65
Information:
*out of WBS scope
Based on SPI investigation result against WBS report, there were 21 reports proven. The follow-up on the Reported that was proven was the each 4 reports for
Counseling and Transfer, Termination sanction of 3 reports, and Warning Letter and Written Warning each 1 report. Furthermore, there were 3 reports under further
investigation by SPI and 5 reports under the process of imposing administrative sanctions
INTERNAL FRAUD and operational activities that affect the Bank’s financial
condition. The number of internal fraud can be seen in the
Internal Fraud means fraud/irregularities conducted by the following table:
administrator, permanent and non-permanent employees
(honorer and outsourcing) related to the Bank’s work process
Number of Cases- Conducted By
Internal Fraud in 1 Management Permanent Employee Outsourcing Employees
Year
Current
Previous Year Previous Year Current Year Previous Year Current Year
Year
(2017) (2017) (2018) (2017) (2018)
(2018)
Total fraud - - 15 Fraud 7 Fraud 2 Fraud 1 Fraud
Settled - - 15 Fraud 4 Fraud 2 Fraud 1 Fraud

Under the Bank's
internal settlement - - - 3 Fraud - -
process
Settlement has not
- - - - - -
been sought
Has been followed-up
- - 2 Fraud - - -
through legal process
Information: Irregularities/fraud cases with loss above Rp100 million
ANNUAL
REPORT 2018
INTEGRATED GOVERNANCE IMPLEMENTATION The following is the implementation of Good Corporate

Governance at BNI as the Main Entity in BNI’s Financial
As an implementation transparency form of Integrated Conglomeration.
Governance in BNI’s Financial Conglomeration, and as
a follow-up to the provisions contained in the Financial SELF-ASSESSMENT REPORT OF THE IMPLEMENTATION OF
Services Authority Regulation No. 18/POJK.03/18 dated INTEGRATED GOVERNANCE THROUGHOUT 2018
November 18, 2014, on Implementation of Integrated
Governance for Financial Conglomeration in conjunction Financial Services Authority Regulation No. 18/POJK.03/2014
with Financial Services Authority Circular Letter No. 15/ dated November 18, 2014 on Implementation of Integrated
SEOJK.03/2015 dated May 25, 2015, on Implementation of for Financial Conglomeration in conjunction with Circular
Integrated Governance for Financial Conglomeration, the Letter of Financial Services Authority No. 15/SEOJK.03/2015
implementation of Integrated Governance for BNI Financial dated May 25, 2015 on Implementation of Integrated
Conglomeration in 2017 consisting of: Governance for Financial Conglomeration, among others,
1. Self Assessment Report of Implementation of Integrated requires the Financial Conglomeration to prepare Self-
Governance throughout 2017. Assessment report of Integrated Governance periodically
2. BNI’s Financial Conglomeration Structure. (June and December) to the Financial Services Authority,
3. Share ownership structure in BNI’s Financial which shall be submitted no later than the 15th of the second
Conglomeration, position until December 2017. month after the end of the related reporting month (August
4. BNI’s Financial Conglomeration Management Structure 15 and February 15).
5. Basic Principles of Integrated Governance of BNI’s
Financial Conglomeration. Self-Assessment on the implementation of Integrated
6. Intra-Group Transaction Policy in BNI’s Financial Governance principles in BNI’s Financial Conglomeration shall
Conglomeration. at least be embodied and focused in 7 (seven) assessment
7. Report of Good Corporate Governance Implementation factors of Integrated Governance implementation consisting
at BNI as the Main Entity in BNI’s Financial of:
Conglomeration
Assessment Factor
No. Assessment Factor
1 Board of Directors of Main Entity
2 Board of Commissioners of Main Entity
3 Integrated Governance Committee
4 Integrated Compliance Work Unit
5 Integrated Internal Audit Work Unit
6 Integrated Risk Management Implementation
7 Integrated Governance Guidelines
The Self-Assessment is categorized into 5 (five) ranks with the explanation of each ranks is as follows:
Rating Definition
1 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally very good.
This is reflected on the very adequate fulfillment of the implementation of the Integrated Governance principles. In the
event that there are any weaknesses on the implementation of the Integrated Governance, generally such weaknesses are
insignificant and can be rectified immediately by the Main Entity and/or FSI.
2 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally good.
This is reflected on the adequate fulfillment of the implementation of the Integrated Governance principles. In the event
that there are any weaknesses on the implementation of the Integrated Governance, generally such weaknesses are less
insignificant and can be rectified by normal actions of the Main Entity and/or FSI.
3 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally fair. This
is reflected on the moderately adequate fulfillment of the implementation of the Integrated Governance principles. In
the event that there are any weaknesses on the implementation of the Integrated Governance principles, generally such
weaknesses are relatively significant and need sufficient attention from the Main Entity and/or FSI.
Good Corporate
Governance
Rating Definition
4 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally less than
good. This is reflected on the rather inadequate fulfillment of the implementation of the Integrated Governance principles.
There is weakness in the implementation of Integrated Governance, generally such weakness is significant and needs overall
improvement by the Main Entity and/or FSI.
5 The Financial Conglomeration is considered to have implemented the Integrated Governance, which is generally not
good. This is reflected from the inadequate fulfillment of the implementation of Integrated Governance principles. There is
weakness in the implementation of Integrated Governance, generally such weakness is very significant and difficult to be
rectified by the Main Entity and/or FSI.
For the year 2018, BNI’s financial conglomeration prepared a self-assessment related to the implementation of Governance in
BNI’s Financial Conglomeration as follows:
Self-Assessment on Implementation of Integrated Governance

Self-Assessment result on Integrated Governance Implementation
Ratings
Definition of Ratings
June 2018 December 2018
2 2 The Financial Conglomeration is considered to have implemented the Integrated Governance, which
is generally good. This is reflected on the adequate fulfillment of the implementation of the Integrated
Governance principles. In the event that there are any weaknesses on the implementation of the
Integrated Governance, generally such weaknesses are rather insignificant and can be rectified by
normal actions of the Main Entity and/or FSI.
Based on the Self Assessment results on the 7 (seven) assessment factors of the Implementation of Integrated Governance for
the period of December 2018, we can conclude as follows:
1. Board of Directors of Main Entity
a. In the Integrated Governance structure, all members of BNI’s Board of Directors have met the qualifications set by the
applicable laws and regulations.
b. In the Integrated Governance process, the duties and responsibilities of BNI’s Board of Directors related to the
Integrated Governance process have been carried out and followed up in accordance with the direction of BNI’s Board
of Commissioners.
c. BNI’s Board of Directors has followed up on the input from BNI’s Board of Commissioners on the evaluation of the
Integrated Governance Guidelines, as well as has ensured that both internal and external audit findings have been
properly followed up.
2. Board of Commissioners of Main Entity
a. In the Integrated Governance structure, all members of BNI’s Board of Commissioners have met the qualifications set
by the applicable laws and regulations.
b. In the Integrated Governance process, the duties and responsibilities of BNI’s Board of Commissioners related to the
Integrated Governance process have provided input to BNI’s Board of Directors in the framework of improving the
Integrated Governance Guidelines.
c. BNI’s Board of Commissioners has provided input and direction as well as evaluation on audit findings from both
internal and external party for proper follow up by BNI’s Board of Directors.
3. Integrated Governance Committee
a. The Integrated Governance Committee has been established according to the applicable provisions.
b. In the period of July - December 2018, the Integrated Governance Committee held 2 (two) meetings in order to
provide input related to implementation of Governance in BNI’s Financial Conglomeration
4. Integrated Compliance Work Unit
a. The Compliance Division as an Integrated Compliance Work Unit is independent in nature in accordance with the
b. In order to improve the integrated compliance function, the Compliance Division coordinates with all work units in
each FSI.
c. The Compliance Division has monitored, evaluated, and constantly updated the Company’s Guidelines in accordance
with the applicable provisions to ensure the implementation of compliance function in each FSI runs well.
5. Integrated Internal Audit Work Unit
a. The Internal Audit Unit as an Integrated Internal Audit Work Unit is independent in nature in accordance with the
ANNUAL
REPORT 2018
b. Periodically, the Internal Audit Unit has submitted the audit results and follow-up to the President Director and BNI’s
Board of Commissioners with a copy to the Compliance Director.
c. The Internal Audit Unit has evaluated the implementation of the integrated internal audit function in each FSI
6. Integrated Risk Management Implementation
a. The Bank’s Risk Management Division as an Integrated Risk Management Work Unit is independent in nature in
accordance with the applicable provisions.
b. The Bank’s Risk Management Division has established and updated the Policy and stipulated risk limits that apply to all
FSI.
c. The Integrated Risk Management implementation has accommodated 4 (four) pillars of Risk Management
implementation in accordance with Financial Services Authority regulations
7. Integrated Governance Guidelines
a. The Integrated Governance Guidelines of BNI’s Financial Conglomeration have been prepared and implemented in
accordance with Financial Services Authority Regulation No. 18/POJK/POJK.03/2014
The Integrated Governance Guidelines of BNI’s Financial Conglomeration have been communicated to all FSI in BNI’s
Financial Conglomeration and will be evaluated according to the applicable provisions.
BNI’S FINANCIAL CONGLOMERATION STRUCTURE
Through Board of Directors’ Letter No. DIR/102 dated March 13, 2015, BNI’s Financial Conglomeration has reported the
structure of BNI’s Financial Conglomeration as follows:
ENTITAS UTAMA
99,98% 75,00% 60,00% 99,94%

Pembiayaan Sekuritas Asuransi Jiwa Perbankan Syariah
99,9%
Asset Management
BNI’s Financial Conglomeration has met the administrative requirements and has been recorded in the administrative
supervision of Financial Services Authority cfm. FSA Letter No. S-48/PB.313/2015 dated April 15, 2015. Furthermore, BNI’s
Financial Conglomeration has also an Integrated Governance Committee (TKT) as follows:
Chairman : Bapak Revrisond Baswir (BNI)

Members :
• Bapak Joni Swastanto (BNI)
• Bapak Rizqullah (BNI Syariah)
• Bapak Hasanudin (DPS BNI Syariah )
• Bapak Utang Ranuwijaya (BNI Life)
• Bapak Parikesit Suprapto (BNI Life)
• Bapak Eddy Siswanto (BNI Asset Management)
• Bapak Suhendry Hafni (BNI Sekuritas)
Good Corporate
Governance
•
Ibu Rosa Lima Dwi Mutiari (BNI 2. PT BNI Life Insurance
Multifinance)
• Ibu Setyowati (Pihak Independen
Komite TKT)
As guidelines, BNI has also had Integrated Governance
Guidelines, which are prepared and reviewed in accordance
with the provisions of applicable laws and regulations. These
guidelines can be accessed via www.bni.co.id
The Integrated Governance Guidelines have been updated PT Bank Negara Indonesia
Sumitomo Life Insurance
(Persero) Tbk
recently through Board of Directors’ Decision Letter No.
60,0% 40,0%
DIR/796 dated December 12, 2018, and Decision Letter of
Board of Commissioners No. DK/140 dated December 13,
2018. YDDS YKPI
0,0% 0,0%
SHARE OWNERSHIP STRUCTURE IN BNI’S FINANCIAL
CONGLOMERATION
Keterangan:
* Yayasan Danar Dhana Swadharma
PT Bank Negara Indonesia (Persero) Tbk, is as the Main Entity ** BNI’s Employees Welfare Foundation
of BNI’s Financial Conglomeration.
3. PT BNI Sekuritas
Pemerintah RI Masyarakat
60% 40%
PT Bank Negara Indonesia SBI Financial Services,
(Persero) Tbk Co. Ltd
75,00% 25,0%
Share Ownership Structure of Financial Services Institution in
BNI’s Financial Conglomeration is as follows:
1. PT BNI Syariah
4. PT BNI Multifinance
PT Bank Negara Indonesia

(Persero) Tbk PT BNI Life Insurance
99,94% 0,0599%
PT Bank Negara Indonesia
(Persero) Tbk Kopkar BNI Multifinance
99,99% 0,01%
ANNUAL
REPORT 2018
5. PT BNI Aset Management PT BNI Syariah

Board of Commissioners’ Structure
Name Position
Fero Poerbonegoro President Commissioner
Rizqullah Independent Commissioner
Max Niode Independent Commissioner
Imam Budi Sarjito*) Commissioner
*) Effective after obtaining Decision of Fit and Proper Test from the Financial
Services Authority
PT BNI Sekuritas Kopkar BNI Sekuritas
99,90% 0,10% Board of Directors’ Structure

Name Position
Abdullah Firman Wibowo President Director
Dhias Widhiyati Managing Director Business
MANAGEMENT STRUCTURE OF BNI’S FINANCIAL
CONGLOMERATION Wahyu Avianto Managing Director Finance &
Operation
Iwan Abdi *) Managing Director Retail
PT Bank Negara Indonesia (Persero) Tbk Business & Network
Tribuana Tunggadewi Managing Director Compliance
Name Position & Risk
Ari Kuncoro Independent/President *)Effective after obtaining Decision of Fit and Proper Test from the Financial
Commissioner Services Authority
Wahyu Kuncoro Vice President Commissioner
Structure of Sharia Supervisory Board
Pataniari Siahaan Independent Commissioner
Name Position
Revrisond Baswir Independent Commissioner
K.H. Ma'ruf Amin Chairman
Bistok Simbolon Commissioner
Hasanudin Member
Joni Swastanto Commissioner
Ahmad Fikri Asegaf Independent Commissioner
Marwanto Harjowiryono Commissioner PT BNI Life Insurance
Sigit Widyawan Independent Commissioner
Name Position
Board of Directors’ Structure Parkesit Suprapto President Commissioner/
Name Position Independent Commissioner
Achmad Baiquni President Director Darwin Suzandi Commissioner
Herry Sidharta Vice President Director Kazuhiko Arai Commissioner
Putrama Wahju Setyawan Managing Director Medium Husain Abdullah Independent Commissioner
Business Henry Cratein Suryanaga Independent Commissioner
Rico Rizal Budidarmo Managing Director Treasury
and International Banking
Board of Directors’ Structure
Name Position
Anggoro Eko Cahyo Managing Director Finance
Shadiq Akasya President Director
Adi Sulistyowati Managing Director Institutional
Relations Eben Eser Nainggolan Managing Director Finance
Bob Tyasika Ananta Managing Director Planning Naruyoshi Kuwata Managing Director
and Operational Bancassurance
Catur Budiharto Managing Director Small Hidenobu Ito Managing Director Risk
Business and Network Management
Endang Hidayatullah Managing Director Compliance Intan Sari Abdams Katoppo *) Managing Director Marketing
Dadang Setiabudi Managing Director Information *) Resigned on November 1, 2018
Technology & Operations
Tambok P. Setyawati Managing Director Retail
Banking
Good Corporate
Governance
Struktur Dewan Pengawas In line with such matter, the basic principles of Integrated
Name Position Governance of BNI’s Financial Conglomeration are as follows:
K.H Ma’ruf Amin Chairman
1. Implementation of Integrated Governance of BNI’s
Financial Conglomeration aims to create superior
Agus Haryadi Member
performance and to add economic value for shareholders
Utang Ranuwijaya Member and other stakeholders, as well as to ensure that the
operations of BNI’s Financial Conglomeration are in
PT BNI Sekuritas accordance with the applicable laws and regulations,
Board of Commissioners’ Structure business ethics, as well as the principles of Good
Nama Position Corporate Governance.
- President Commissioner
2. Referring to the provisions of the applicable laws and
regulations, a Subsidiary is a separate legal entity from
Ryosuke Hayashi Commissioner
BNI, therefore it has its own duties and responsibilities in
Suhendry Hafni Independent Commissioner the management of the company.
Struktur Direksi 3. A subsidiary is an independent legal entity in
Nama Position accordance with the provisions of the applicable
Adiyasa Suhadibroto President Director
laws and regulations, which in its management,
BNI is the Controlling Shareholder in BNI’s Financial
Reza Benito Zahar Managing Director Business
Conglomeration.
Geger N. Maulana Managing Director Operations 4. The Subsidiary’s Governance Principles in these
guidelines apply to the Subsidiary to the extent that
PT BNI Multifinance they are not regulated differently according to the
Board of Commissioners’ Structure applicable laws and regulations. The Subsidiary’s Articles
Nama Position of Association that are not yet in accordance with this
Rosa Lima Dwi Mutiari President Commissioner/
Guidelines must be adjusted
Retno Murwani Commissioner INTRA-GROUP TRANSACTION POLICIES IN BNI’S
FINANCIAL CONGLOMERATION
Board of Directors’ Structure Intra-group financial transactions in BNI’s Financial
Nama Position Conglomeration shall be made based on sufficient cost and
Fajar Agustianto Director of Finance & Operation
benefit analysis, have clear underlying, meet the applicable
accounting standards, and not contradict to the applicable
Linda Saragih Director of Business
laws and regulations.
PT BNI Aset Manajemen
Board of Commissioners’ Structure DEFINITION OF INTER-GROUP TRANSACTION RISK
Nama Position The ownership relationship and/or control in various financial
Eddy Siswanto President Commissioner,
services sectors will affect the business continuity of the
concurrently as Independent Financial Services Institution (FSI) caused by risk exposures
Commissioner that arise directly or indirectly from the business activities
Neny Asriani Commissioner of entities incorporated in a Financial Conglomeration.
Therefore, the Financial Services Authority (FSA) has issued a
Board of Directors’ Structure number of regulations on Risk Management implementation
Nama Position in an integrated manner in conglomeration in the financial
Reita Farianti President Director
services industry, with one of them is the obligation of
the Financial Conglomeration to manage the inter-group
Putut Endro Andanawarih Managing Director Investment
Research & Technology transaction risk.
Donny Susatio Adjie Managing Director Business
The inter-group transaction risk is the risk due to the
dependence of an entity, either directly or indirectly, on other
BASIC PRINCIPLES OF INTEGRATED GOVERNANCE OF BNI’S entities in one Financial Conglomeration in order to fulfill
FINANCIAL CONGLOMERATION written and unwritten agreement obligations, followed by
In order to support the business and operations of BNI’s Financial transfer of funds and/or not followed by transfer of funds.
Conglomeration, it is necessary to have the basic principles
of Integrated Governance as referred to the GCG Roadmap
published by FSA and the ASEAN Corporate Governance
Scorecard as the reference for GCG implementation.
ANNUAL
REPORT 2018
RISK MANAGEMENT OBJECTIVES OF INTER-GROUP ADEQUACY OF PROCESS OF RISK IDENTIFICATION,

TRANSACTION MEASUREMENT, MONITORING, AND MANAGEMENT,
The implementation of inter-group transaction Risk AS WELL AS MANAGEMENT INFORMATION SYSTEM OF
Management in BNI’s Financial Conglomeration aims to: INTER-GROUP TRANSACTION RISK
1. Manage and supervise the inter-group transaction risk In implementing the inter-group transaction risk
of the Financial Conglomeration based on prudential management, BNI as the Main Entity processes the risk
principles. identification, measurement, monitoring, and control of
2. Ensuring that the integrated risk management process all material Risk Factors in an integrated manner, and is
can minimize the possibility of negative impacts caused supported by an adequate inter-group transaction risk
by the dependence of an FSI both directly and indirectly management information system that.
on other FSIs in a Financial Conglomeration, as well as 1. Identifikasi Risiko Transaksi Intra-grup
the negative impacts on the business conditions of BNI’s The risk identification of inter-group transaction
Financial Conglomeration as a whole. is carried out by analyzing the types of products
and/or transactions among FSI in BNI’s Financial
RISK MANAGEMENT PRINCIPLES OF INTER-GROUP Conglomeration, which can lead to inter-group
TRANSACTIONS transaction risk in BNI’s Financial Conglomeration.
As the main entity in implementing the Risk Management of 2. Measurement of Inter-Group Transaction Risk
inter-group transactions in BNI’s Financial Conglomeration, The inter-group transaction risk measurement aims to
BNI has to carry out several matters, which include: obtain the rating level of the inter-group transaction risk
1. Having sufficient risk management process for inter- of the Financial Conglomeration. Matters that need to be
group transactions for the Financial Conglomeration as a done by BNI as the main entity in measuring the risk of
whole. inter-group transactions are preparing the methodology
2. Monitoring inter-group transactions in the Financial for measuring inter-group transaction risk and evaluating
Conglomeration and compiling reports periodically. the suitability of assumptions, data sources, and
3. Encouraging public disclosures related to inter-group procedures used to measure the inter-group transaction
transactions. risk.
4. Considering the impact of inter-group transactions 3. Monitoring of Inter-Group Transaction Risk
on the performance of FSI members of the Financial Monitoring the inter-group transaction risk is carried
Conglomeration directly or on BNI’s Financial out by evaluating the material exposures of inter-group
Conglomeration as a whole. transaction risk or that have an impact on the capital
condition of the Financial Conglomeration, as well as
TYPES OF TRANSACTION THAT MAY CAUSE INTER-GROUP improving the process and scope of reporting, including
TRANSACTION RISK in the event of changes in business activities, products,
Types of transactions that can lead to the inter-group transactions and factors of material risks. To assess the
transaction risk in BNI’s Financial Conglomeration, including material inter-group financial relationship among FSIs
but not limited to the following matters: in BNI’s Financial Conglomeration, it is measured based
1. Cross ownership of FSI in Financial Conglomeration. on BNI’s financial transaction value with FSI members of
2. Centralized management of short-term liquidity in the BNI’s Financial Conglomeration, as well as among FSIs in
Financial Conglomeration. BNI’s Financial Conglomeration.
3. Guarantees, loans, and commitments given or obtained 4. Management of Inter-Group Transaction Risk
by an FSI from other FSI in the Financial Conglomeration. In order to carry out risk control, BNI as the Main Entity
4. Exposure to controlling Shareholders, including loan ensures that BNI’s Financial Conglomeration has a
exposures and off-balance sheets such as guarantees and method of controlling the inter-group transaction
commitments. risk that could endanger the business continuity of
5. Purchase or sale of assets from one FSI to another FSI in the Financial Conglomeration. Control of inter-group
the Financial Conglomeration. transaction risk at BNI’s Financial Conglomeration is
6. Transfer of risk through reinsurance. carried out with due observance of:
7. Transaction to transfer the risk exposure of third parties a. The composition of inherent risk parameters in
among FSI in the Financial Conglomeration. inter-group transactions in the integrated risk profile
assessment;
b. The fulfillment of the Arm’s Length transactions
related to inter-group transactions;
Good Corporate
Governance
c. The availability and completeness of inter-group transaction documentation; and

d. The fulfillment of legal/regulator provisions that apply to every inter-group transaction.
5. Management Information System of Inter-Group Transaction Risk
The inter-group transaction risk management information system includes:
a. Report on inter-group transaction risk profile which is part of an integrated risk profile report;
b. Inter-group transaction report, which contains:
-- Recapitulation of transactions with related parties
-- Important agreements with related parties
BNI as the Main Entity prepares and submits the inter-group transaction risk profile report as part
of the integrated risk profile report and inter-group transaction report to the Financial Services
Authority every semester for the reporting positions for June and December.
GOOD CORPORATE GOVERNANCE IMPLEMENTATION REPORT AT BNI AS THE MAIN ENTITY IN BNI’S
FINANCIAL CONGLOMERATION.
In accordance with Financial Services Authority Regulation No. 55/POJK.03/2016 on Governance
Implementation for Commercial Bank in conjunction with Financial Services Authority Regulation No. 4/
POJK.03/2016 on Sound Level Assessment of Commercial Banks, it is required, among others, for each
Bank to conduct self-assessment of the implementation of Good Corporate Governance (GCG) principles
at least every semester for the position of end of June and December.
ANNUAL
REPORT 2018
INFORMATION ON MAIN AND

BNI is a State-Owned Enterprise, in which the biggest share 2. The right to propose candidate members of the Board
ownership is held by the State of the Republic of Indonesia. of Directors and candidate members of the Board of
The State of the Republic of Indonesia has one sheet of Commissioners.
Dwiwarna A Series Share. Share ownership held by the State 3. The right to propose GMS agenda.
of the Republic of Indonesia is 60%. Therefore, there is no 4. The right to request and access company data and
individual main and controlling shareholder. documents in which the mechanism to use such rights
is in accordance with the provisions in the Articles
of Association and laws and regulations. Detailed
information on Main and Controlling Shareholders can
State of be seen in the Shareholders Composition section in this
Annual Report.
Republic of Indonesia
EQUAL TREATMENT TO ALL SHAREHOLDERS
PT Bank Negara Indonesia, All Shareholders, including Minority Shareholders and

(Persero) Tbk Foreign Shareholders, shall be treated equally and given the
same opportunity to obtain information about the Bank.
The Bank actively discloses timely and accurate information
on all material aspects of the Bank, including financial
Dwiwarna A Series Shares grant the shareholders privileges situation, performance, ownership, and Bank’s governance
that are not owned by other shareholders, which are: (List of Information Disclosure 2018 has been disclosed in
1. The right to approve in GMS on the following matters: the previous table). The shareholder rights are protected as
a. Approval for amendment to the Articles of stipulated in the Capital Market provisions. The stakeholders
Association; rights shall be recognized in accordance with the applicable
b. Approval for changes to Equity; laws and regulations, and active cooperation between the
c. Approval for Appointment and Dismissal of bank and the stakeholders shall be developed in a joint
members of Board of Directors and Board of effort of creating wealth, jobs, and the Bank’s sustainability.
Commissioners;
d. Approval for merger, consolidation, acquisition, IMPLEMENTATION OF ASPECTS AND CORPORATE
split, and dissolution; GOVERNANCE PRINCIPLES IN ACCORDANCE WITH
e. Approval for remuneration of members of Board of PROVISIONS OF THE FINANCIAL SERVICES AUTHORITY
Directors and Board of Commissioners;
f. Approval for asset transfer based on Articles of Guidelines of Governance covers 5 (five) aspects, 8 (eight)
Association that requires GMS approval; principles, and 25 (twenty-five) recommendations of
g. Approval for participation and reduction of implementation of aspects and principles of good corporate
the percentage of equity participation in other governance. Recommendation of implementation of
companies based on the Articles of Association that aspects and good corporate governance principles in the
requires GMS approval; Governance Guidelines is the standard of implementation
h. Approval for the use of profits; of aspects and good corporate governance principles that
i. Approval for investment and long-term financing shall be applied by the Bank to implement the governance
that is not operations in nature based on the Articles principles. Description of the implementation can be seen as
of Association that requires GMS approval; follows.
Good Corporate
Governance
Explanation of the
No Principle Recommendation FSA Recommendation Explanation
Implementation in BNI
I Aspect 1: Relationship between the Public Company and Shareholders in Guaranteeing the Shareholders'
Rights;
Principle 1 Public Company has ways Every issued share with voting rights has Procedure for Voting in decision
Increase the Value or technical procedures one vote (one share one vote). Shareholders making of an agenda item of BNI’s
of Convening GMS of voting, either open can use their votes when making decision, GMS is performed by close voting,
or close, prioritizing especially in making decision by voting. which is by using voting card or
independence and However, decision making mechanism by electronic voting.
interest of shareholders. voting, either open or close, has not been
regulated in details. Procedures and mechanisms to
calculate quorum, question and
Public Companies are recommended answer, and decision making in
to have procedure of voting in making meetings have been stipulated
decision on one GMS agenda. The voting in GMS Conduct that refers to
procedure must maintain independence POJK No. 32/POJK.04/2014 as
or freedom of the shareholders. As an lastly amended by POJK No. 10/
example, in open voting, it is done by POJK.04/2017.
raising hands following the instruction of
selection offered by GMS Chair. Whereas in Information: Comply
closed voting, it is done for decision that
needs confidentiality or upon request of
the shareholders by using voting card or
electronic voting.
All members of Board Attendance of all members of Directors BNI’s Annual GMS dated March
of Directors and and members of Board of Commissioners 20, 2018, was attended by 10 (ten)
members of Board of of Public Company is so that each member members of Board of Directors
Commissioners of the of Directors and members of Board of and 8 (eight) members of Board of
Public Company attend Commissioners can notice, explain, and Commissioners.
the Annual GMS. answer directly on every problem occurred
or questioned asked by the shareholders Information: Comply
related to GMS agenda.
Summary of GMS Public Company must make the summary The summary of Annual GMS
Resolution is available on of GMS resolution in Indonesian and foreign minutes has been announced in
the Company's Website language (at least in English) and announce no later than 2 (two) business days
for at least 1 (one) year. it in 2 (two) business days after GMS is after GMS is held, either on the
convened to public, in which one way is Company Website or print media,
through the Company's Website. as well as through electronic
reporting system IDXnet and FSA
The availability of the summary of GMS e-reporting, which was on March
minutes on Public Company's Website gives 22, 2018.
opportunity to shareholders who cannot
attend to obtain important information in Information: Comply
GMS easily and fast. Therefore, provision on
the minimum period of availability of the
summary of GMS resolution on the Website
is intended to give adequate time for
shareholders to obtain the information.
ANNUAL
REPORT 2018
Explanation of the
Principle 2 Public Company has a The existence of communication between The communication policy with
Increasing the communication policy Public Company and Shareholders or shareholders or investors is
Communication with shareholders or investors is intended to enable the contained in the Investor Relations
Quality of the Public investors. Shareholders or investors to gain clearer company guidelines No. IN/41/
Company and understanding of publicly available KMP/001 dated January 26, 2015,
Shareholders or information, such as periodic reports, which includes investor relations
Investors. information disclosure, business and activity policies such as analyst
performance conditions and prospects, meetings, preparation of annual
and the implementation of corporate reports, investor meetings, public
governance. In addition, Shareholders or expose, and roadshows.
investors may also submit feedback and
opinions to public company’s management. Such policies may include
strategies, programs, and
Communication policy with the time lines of communication,
Shareholders or investors indicates as well as guidelines that
the commitment of public company in support the Shareholders or
communicating with the shareholders investors to participate in such
or investors. Such policies may include communications.
strategies, programs, and time lines of
communication, as well as guidelines that Communication policy with the
support the Shareholders or investors to Shareholders or investors indicates
participate in such communications. that BNI as a public company is
committed in communicating
with the shareholders or investors.
Information: Comply
Public Company discloses The disclosure of communication policy Disclosure of communication

the communication is a form of transparency of public policy and communication agenda
policy of the Public company's commitment in giving equality with shareholders or investors has
Company with to all Shareholders or investors for the been uploaded to the Website
shareholders or investors implementation of communication. under Investor Relations section.
on the website. The disclosure of such information
also aims to increase participation and Information: Comply
role of Shareholders or investors in the
implementation of public company’s
communication program.
II Aspect 2: Functions and Roles of the Board of Commissioners;
Principle 3 The determination The number of members of the Board of The number of members of
Strengthen of the number of Commissioners may affect the effectiveness Board of Commissioners in BNI
Membership and members of the Board of the execution of duties of the Board as of December 31, 2018, was 9
Composition of Commissioners must of Commissioners. The determination (nine) members, by observing
of the Board of consider the condition of of number of members of the Board of the diversity of composition, this
Commissioners the Public Company. Commissioners of a public company number is considered sufficient
must refer to the applicable laws and and in accordance with BNI’s
regulations, which is at least 2 (two) condition as well as adjusted
persons based on the provisions of FSA to provisions of POJK No. 33/
Regulation on the Board of Directors and POJK.04/2014.
Board of Commissioners of Issuers or Public
Companies. In addition, it is also necessary Information: Comply
to consider the conditions of the public
company including, among others, the
characteristics, capacities, measures, and the
achievement of objectives and fulfillment of
different business needs among the public
companies. However, the large number of
members of the Board of Commissioners
will potentially disrupt the effectiveness
of the implementation of the Board of
Commissioners’ functions.
Good Corporate
Governance
Explanation of the
The determination of The composition of Board of Commissioners The current Board of
composition of the is a combination of characteristics either as Commissioners’ composition
Board of Commissioners organ of the Board of Commissioners or as has satisfied the diversity
considers the range of members of the Board of Commissioners element, which is a combination
expertise, knowledge, individually, according to the needs of of independence, expertise/
and experience required. the Public Company. These characteristics education, work experience, age
are reflected in determining expertise, and gender, by considering BNI’s
knowledge, and experience required in needs and complexity.
implementing supervisory and advisory
duties by the Board of Commissioners of This has been disclosed in the
a Public Company. The composition that Sub Chapter of Diversity in the
has been attentive to the needs of a Public Composition of the Board of
Company is a positive thing, particularly Commissioners in this Governance
related to decision making in regard Report.
of implementing supervisory function
conducted by considering various wider Information: Comply
aspects.
4 Principle 4 The Board of The Board of Commissioners' self- Self assessment policy to assess
Increasing Commissioners has a assessment policy is a guideline used as the performance of the Board of
the Quality of self assessment policy to a form of accountability for the Board of Commissioners is based on the
Implementation assess the performance Commissioners performance assessment achievement of the work program
of Duties and of the Board of in a collegial manner. Self assessment is of the Board of Commissioners
Responsibilities Commissioners. conducted by each member to assess the in accordance with the Board
of the Board of performance of the Board of Commissioners of Commissioners' Work Plan
Commissioners in a collegial manner, rather than assessing and Budget (RKA) and through
the individual performance of each member GCG Self Assessment which
of the Board of Commissioners. With this includes indicators of duties and
self assessment, it is expected that each responsibilities of the Board of
member of the Board of Commissioners can Commissioners.
contribute to the performance improve of
the Board of Commissioners on an ongoing
basis.
The policy may include the assessment

activities undertaken along with their
purposes and objectives, time of
execution periodically, and benchmarks Self assessment policy to assess
or assessment criteria used in accordance the performance of the Board of
with the recommendations given by the Commissioners is based on the
nomination and remuneration function achievement of the work program
of public company, in which the functions of the Board of Commissioners
are required in the FSA Regulation on the in accordance with the Work
Nomination and Remuneration Committee Plan and Budget (RKA) of the
of Issuers or Public Companies. Board of Commissioners which
is described through advisory
indicators of performance,
strengthening executive functions,
and monitoring compliance.
While the assessment contained
in GCG Self Assessment is divided
into 3 (three) benchmarks,
which are Governance
Structure, Governance Process,
and Governance Outcome.
Governance Structure consists
of 14 (fourteen) indicators,
Governance Process consists of
17 (seventeen) indicators, and
Governance Outcome consists of 6
(six) indicators.
Information: Comply
ANNUAL
REPORT 2018
Explanation of the
The self assessment The disclosure of self assessment Disclosure of Self Assessment
policy to assess the policy on Board of Commissioners policy on Board of Commissioners
performance of the performance is conducted not only to performance is contained in
Board of Commissioners fulfill the transparency aspect as a form of the RKA submitted through
is disclosed through the responsibility for the duty performance, the Annual Report of Public
Annual Report of Public but also to provide confidence, especially Company, while the GCG Self
Company. to the Shareholders or investors on efforts Assessment results on the duties
that are necessary to improve the Board and responsibilities of the Board of
of Commissioners performance. With such Commissioners are submitted to
disclosure, the Shareholders or investors the regulator.
understand the mechanism of check
and balance on Board of Commissioners Information: Comply
performance.
The Board of The resignation policy of members of The Board of Commissioners'
Commissioners has policy Board of Commissioners involved in resignation policy is contained in
related to resignation financial crime is a policy that can improve the Articles of Association, Article
of members of Board stakeholders' trust on the public company 14 paragraph 16 c, which states
of Commissioners if to maintain the company’s integrity. This that dismissal of members of
involved in financial policy is required to assist in smooth Board of Commissioners, among
crime. legal process and to ensure that the legal others, if involved in actions that
process does not interfere with the business harm the Company and/or the
activities. In addition, in terms of morality, State, Article 14 paragraph 18,
this policy establishes an ethical culture which states that the decision
within the public company’s environment. to terminate is taken after the
Such policies may be covered by guidelines person concerned is given the
or code of conduct applicable to the Board opportunity to defend him/
of Commissioners. herself in the GMS, and Article
14 paragraph 26 f, which states
Furthermore, what is meant by engaging that the position of a member of
in financial crime is the status of the Board of Commissioners by itself
convicted against the member of the Board ends if he/she no longer meets
of Commissioners from the authorized the requirements as a member of
party. The financial crimes referred are Board of Commissioners based
such as manipulation and various forms of on the Articles of Association and
embezzlement in financial services activities laws and regulations.
and the money laundering criminal act
as referred to in Law No. 8 of 2010 on Information: Comply
Prevention and Eradication of the Criminal
Act of Money Laundering.
The Board of Based on the provisions of FSA Regulations One of the organs of Board of
Commissioners or on the Nomination and Remuneration Commissioners is the Nomination
Committees performing Committee of Issuers or Public Companies, and Remuneration Committee
the Nomination and the committee in charge of nomination (currently all members are
Remuneration functions function has the duty to formulate policies Commissioners) that carries
prepares a succession and criteria required in the nomination out the nomination functions,
policy in the nomination process of candidate members of Board including assisting the Board
process of members of of Directors. One of the policies that can of Commissioners in evaluating
Directors. support the nomination process as referred performance of members of Board
to is the succession policy of members of of Directors and/or members of
Board of Directors. The policy on succession Board of Commissioners based
is aimed to maintain the continuity of on benchmark prepared as
regeneration process or leadership cadre in evaluation criteria, by referring
the company in order to maintain business to SOE Regulation No. Per-02/
sustainability and long-term goals of the MBU/02/2015.
company.
Information: Comply
Good Corporate
Governance
Explanation of the
III. Aspect 3: Functions and Roles of the Board of Directors
Principle 5 The determination of the As the organ of the company authorized in The number and capacity of
Strengthening number of members of company's management, the determination members of Board of Directors
Membership and the Directors considers of the number of Directors greatly affects are based on POJK Regulation No.
Composition of the the condition of Public the performance of Public Company. Thus, 33/POJK.04/2014. The number of
Board of Directors Company, and the the determination of number of members Board of Directors as of December
effectiveness of decision of Board of Directors must be made 31, 2018, was 11 (eleven)
making. through careful consideration and must members.
be subject to the provisions of applicable
laws and regulations, which according to In order to make decision
the FSA Regulation on Board of Directors effectively, decision making in
and Board of Commissioners of Issuers or Board of Directors’ Meetings is
Public Companies, at least there must be 2 taken by deliberation to reach
(two) persons. In addition, determining the consensus.
number of Board of Directors shall be based
on the need to achieve public company’s Information: Comply
goals and objectives and adjusted to the
public company’s conditions, including
the characteristics, capacity, and size of the
public company and how to make effective
Board of Directors’ decision.
The determination of Similar to the Board of Commissioners, The current BNI’s Board of
composition of Board of the diversity of composition of Board of Commissioners composition
Directors considers range Directors is a combination of characteristics has satisfied the diversity
of expertise, knowledge, required in terms of the Board of element, which is a combination
and experience required. Directors as organ and as members of of independence, expertise/
Board of Directors individually, according education, work experience, age
to the needs of the Public Company. and gender, by considering BNI’s
Such combination was determined by needs and complexity. This has
considering the expertise, knowledge, and been disclosed in the Sub Chapter
experience in accordance with the duties of Diversity in the Composition
and functions of the Directors in achieving of the Board of Directors in this
the Company’s objectives. Therefore, the Governance Report.
consideration of the combination of such
characteristics will have an impact in the Information: Comply
accuracy of the nomination process and
the individual appointment of members of
the Directors or the Directors in a collegial
manner.
ANNUAL
REPORT 2018
Explanation of the
Members of Board of The Financial Statement is management BNI’s Financial Statements consist
Directors in charge of accountability report on the management of a consolidated statement
accounting or finance of resources owned by Public Company, of financial position and a
have the skills and/or which must be prepared and presented in statement of profit and loss and
knowledge in accounting. accordance with the Generally Accepted other comprehensive income, a
Financial Accounting Standards in Indonesia statement of changes in equity
as well as the related FSA Regulations, and a consolidated statement of
such as the laws and regulations in Capital cash flows and an overview of
Market sector governing the presentation significant accounting policies and
and disclosure of Public Company's other explanatory information.
Financial Statements. Based on the Management is responsible for the
laws and regulations in Capital Market preparation and fair presentation
sector governing the Board of Directors' of the Consolidated Financial
responsibilities to the Financial Statements, Statements in accordance with
the Board of Directors are jointly and Indonesian GAAP as stated in the
severally liable for the Financial Statements, Board of Directors' Statement of
signed by the President Director and Responsibility for Consolidated
members of Board of Directors in charge of Financial Statements and
accounting or finance sector. Subsidiaries.
Thus, the disclosure and preparation of Whereas in the presentation of

financial information presented in the BNI’s Financial Statements there
financial statement will largely depend is a Board of Directors’ Statement
on Directors’ expertise and/or knowledge, on the Responsibility for
especially the members of the Directors Consolidated Financial Statements
who are in charge of accounting or finance and Subsidiaries which contains
sector. The qualification of expertise and/ that the Board of Directors is
or knowledge in accounting sector which at responsible for the preparation
least shall be possessed by such member of and presentation of BNI’s
Board of Directors can provide confidence Consolidated Financial Statements
in the preparation of Financial Statements, and Subsidiaries, that has been
so that the Financial Statements can be prepared in accordance with SAK
relied upon by the stakeholders as the basis and all information in the Financial
of economic decision making related to the Statements has been published
said Public Company. Such expertise and/or completely and correctly, by not
knowledge may be proven by educational removing material information or
background, training certification, and/or facts. In addition, the appointed
related work experience. Public Accountant Firm (KAP) is
a Firm that has competence and
professionals in the field. All of
these shows the full commitment
from the Board of Directors so that
the Financial Statements can be
relied on by stakeholders.
The current BNI’s Managing

Director Finance has expertise,
knowledge, and capabilities in
the field of accounting/finance,
this can be proven through the
formal and informal education
taken either inside or outside
the country. Previous experience
as Managing Director Risk and
Compliance at other banks also
supports the Managing Director's
expertise, this is certainly an
added value for the said Director
and BNI.
Information: Comply
Good Corporate
Governance
Explanation of the
6 Principle 6 The Board of Directors Similar to the Board of Commissioners, The Board of Directors'
Increasing has a self assessment the Board of Directors’ self-assessment performance assessment policy is
the Quality of policy to assess the policy is a guideline used as a form of contained in the Guiding Principle
Implementation performance of Board of accountability for Board of Directors’ of Key Performance Indicator (KPI)
of Duties and Directors. performance collectively. Self assessment of BOD.
Responsibilities is performed by each member of the
of the Board of Board of Directors to assess the Board of The Board of Directors’
Directors. Directors' performance collectively rather performance assessment consists
than assessing the individual performance of several KPIs which are measured
of each member of the Board of Directors. collegially on all Directors and are
With this self assessment, it is expected both quantitative and qualitative.
that each member of Board of Directors
can contribute to improve the Board of The policy includes assessment
Directors’ performance on an ongoing basis. activities carried out on several
factors, which are market
Such policy may include the assessment capitalization, profits, market
activities taken along with their purposes share, and leadership. The
and objectives, the periodic execution time, Remuneration and Nomination
and benchmarks or assessment criteria used Committee has evaluated
in accordance with the recommendations and prepared and provided
given by the nomination and remuneration recommendations to the Board of
function of the Public Company, in which Commissioners on the nomination
the formation of such functions is required and remuneration system/policy
in the FSA Regulation on Nomination and for Commissioners, Directors,
Remuneration Committee of Issuers or executive officers, and employees
Public Companies. as a whole.
Information: Comply
The self assessment The disclosure of self assessment policy Each year, the Board of Directors
policy to assess the on Board of Directors’ performance Performance Assessment has
performance of the is conducted not only to meet the been disclosed in the Annual
Directors is disclosed transparency aspect as a form of Report which can be accessed
through the annual accountability for the performance of by shareholders/investors and
report of Public their duties, but also to provide important other stakeholders through BNI
Company. information on the improvement efforts website so that the information is
of Public Company’s management. Such very useful to provide confidence
information is very useful to give confidence to shareholders or investors
to the Shareholders or investors that that there is certainty that
there is a certainty that the company is the company is continuously
continuously managed to a better direction. managed to a better direction.
With such disclosure, the Shareholders or
investors may know the check and balance Information: Comply
mechanism on the Board of Directors’
performance.
ANNUAL
REPORT 2018
Explanation of the
The Board of Directors The resignation policy of members of Board The Bank will react actively in
has policy related to of Directors involved in financial crime is the event of a financial crime
resignation of members a policy that can improve stakeholders' as stipulated in the Articles of
of Board of Directors trust on Public Company to maintain the Association, Article 11 paragraph
if involved in financial Company's integrity. This policy is required 13 in conjunction with Article 11
crime. to assist in smooth legal process and to paragraph 14 d, which states that
ensure that the legal process does not member of Board of Directors
interfere with the business activities. In can be dismissed at any time
addition, in terms of morality, this policy due to reasons, among others,
will build an ethical culture within the if involved in actions that harm
Public Company’s environment. Such policy the Company and/or the State,
may be covered in the Guidelines or Code Article 11 paragraph 15, which
of Conduct applicable to the Board of states that the decision to dismiss
Directors. is taken after the said person is
given the opportunity to defend
Furthermore, what is meant by engaged in him/herself in the GMS, and Article
financial crime constitutes the convicted 11 paragraph 24 f, which states
status of the member of the Directors from that the position of a member of
the competent authority. The financial Board of Directors by itself ends
crimes referred include manipulation if he/she no longer meets the
and various forms of embezzlement in requirements as a member of
financial services’ activities and the money Board of Directors based on the
laundering criminal act as referred to in Articles of Association and laws
Law No. 8 of 2010 on the Prevention and and regulations.
Eradication of the Criminal Act of Money
Laundering. In addition, the Articles of
Association also state that
members of Board of Directors
may be temporarily dismissed by
the Board of Commissioners by
stating the reason if the relevant
person acts in violation of the
Articles of Association or there
are indications of damaging
the Company or neglecting
obligations or urgent reasons for
the Company.
The Bank already has BNI’s

Anti-Money Laundering and
Countering Financing of Terrorism
(AML & CFT) Policy Statement in
order to enforce Law No. 8 of 2010
on Prevention and Eradication
of the Criminal Act of Money
Laundering.
IV. Aspect 4: Stakeholders Participation
Principle 7 The Public Company has A person having inside information is BNI already has a Policy related
Increasing a policy to prevent the prohibited from engaging in a Securities to insider information to prevent
the Corporate occurrence of insider transaction by using insider information insider trading. This policy is
Governance trading. as referred to in Capital Market Law. Public contained in Online Company
Aspect through Company can minimize this insider trading Guidelines (e-PP).
Stakeholders through prevention policies, for example
Participation by strictly separating the confidential data Information: Comply
and/or information from public ones, and
dividing the duties and responsibilities for
the management of such information in a
proportionate and efficient manner.
Good Corporate
Governance
Explanation of the
Public Company has anti- Anti-corruption policy is useful for ensuring In order to comply with SE BI No.
corruption and anti-fraud that the Public Company’s business 13/28/DPNP dated December 9,
policies. activities are conducted legally, prudently, 2011, on the Implementation of
and in accordance with the principles of Anti-Fraud Strategies to grow the
good governance. This policy may be part of Anti-Fraud Committee to foster
the code of ethics, or on a separated form. Anti-Fraud culture and concern
at all organizational levels. The
This policy may include programs and policies and principles of “no Fraud
procedures taken in handling corrupt for our bank” are implemented
practices, kickbacks, fraud, bribery, and/ through Anti-Fraud Strategy
or gratification in Public Company. The Implementation. To measure the
policy scope must illustrate the prevention achievement of a compliance
of Public Company against all corrupt culture, the Compliance Division
practices, either giving to or receiving from has developed a tool called
other parties. Compliance index (CIX). While the
anti-corruption policy has been
regulated in the code of ethics,
Guidelines for Gratification, and
Whistleblowing System of BNI that
can be accessed by all employees
and stakeholders through BNI
website.
Information: Comply
Public Company has a Policies on selection of suppliers or The Company has a supplier or
policy on selection and vendors are useful to ensure that the Public vendor selection and capacity
improvement of supplier Company acquire the necessary goods or building policy as outlined in
or vendor capabilities. services at competitive prices with good the form of Procurement Online
quality. While the policy on increasing the Company Guidelines (e-PP). The
ability of suppliers or vendors is useful to policy also regulates Procurement
ensure that the supply chain runs efficiently Procedures including the method
and effectively. The ability of suppliers and process flow.
or vendors to supply/meet the goods or
services required by the Bank will affect the The policy is always applied
quality of Bank’s output. in the procurement process
of goods and/or services and
The implementation of these policies becomes a guideline by all
can ensure continuity of supplies, both in employees. Providers of goods
terms of quantity and quality required by and/or services needed by BNI
Public Company. The scope of this policy must be registered in the manual
includes criteria in the selection of suppliers system or in the e-Procurement
or vendors, transparent procurement application system. Notification of
mechanisms, efforts to improve the ability winners of procurement of goods
of suppliers or vendors, and the fulfillment and/or services is carried out
of rights related to suppliers or vendors. transparently.
Information: Comply
ANNUAL
REPORT 2018
Explanation of the
Public Company has a Policies on fulfillment of creditor rights Policies related to creditors'
policy on the fulfillment are used as a guideline to provide lending rights have been stated in the
of creditors' rights. to creditors. The purpose of the policy is agreement in the event that BNI
to maintain the fulfillment of rights and enters into an Agreement with
maintain the creditor trust in the Public Creditors. In the agreement,
Company. The policy includes consideration the rights and obligations of
in making agreements, as well as follow- the parties have been stated,
ups in fulfilling the Public Company's related to the creditor's rights, for
obligations to creditors. example in providing information
in a transparent, accurate, and
timely manner both at the time of
request and use of loans, keeping
the financial ratio (Current Ratio,
DeR, Debt to Service Ratio) with
a ratio agreed with the creditor,
submitting an annual audited
financial statements for the period
agreed upon with the Creditors,
and so on.
Information: Comply
Public Company has A well-structured whistleblowing system Whistleblowing System (WBS)

whistleblowing system policy will provide assurance of protection Management in BNI under the
policies. to the witnesses or reporters for an name of “WBS to CEO. WBS is a
indication of breach by an employee or commitment to create a clean
public company's management. The work environment, with integrity,
implementation of such system policy will in the form of active participation
impact the establishment of good corporate by BNI personnel to report
governance culture. The whistleblowing violations occurring within BNI’s
system policy includes among others types environment. Violation report
of violations that can be reported through through WBS can be submitted
whistleblowing system, methods to file a by telephone, e-mail, letter, or
complaint, safeguards and confidentiality of website.
the complainant, complaint handling, party
managing complaints, and the results of the Information: Comply
handling and complaints follow-up.
The Public Company has Long-term incentives are incentives The policy of providing long-
a long term incentive based on the achievement of long-term term incentives to the Board of
policy to the Directors performance. Long-term incentive plans Directors and employees has been
and employees. have a rationale that the long-term stated in a separate Long Term
performance of the company is reflected Incentive Guidelines, for 2016,
by the growth in the share value or other 2017, and 2018, and for Employees
long-term targets of the bank. Long-term it is contained in the Stock Bonus
incentives are useful in order to maintain Guidelines.
loyalty and motivate the Board of Directors
and employees to boost performance or The total provision of Long
productivity that will impact on improving Term Incentive (LTI) for the
the company's performance over the long Board of Directors and Board
term. of Commissioners amounting
This long-term incentive policy is a to Rp192,912,000,000, - has
commitment of the Public Company to been approved at the Board
encourage the implementation of long- of Commissioners' Meeting on
term incentives to the Board of Directors September 26, 2018.
and Employees on terms, procedures, and
forms tailored to the long-term objectives of This incentive policy is BNI's
Public Company. Such policies may include, commitment that is tailored to
among others: the intent and objectives the Bank's Long-term goals and
of providing long-term incentives, terms provisions of laws and regulations.
and procedures in giving incentives, and
the conditions and risks that the Public Information: Comply
Company shall pay attention to in providing
incentives. Such policies may also be
included in the existing remuneration policy
of the Public Company.
Good Corporate
Governance
Explanation of the
V Aspect 5: Information Disclosure
Principle 8 The Public Company The use of information technology can be In addition to the Website, BNI
Increasing has utilized the use of useful as a medium to disclose information. also utilizes other information
Implementation information technology The information disclosure is conducted technology platforms, such as
of Information more broadly than the not only to the information disclosure as email, twitter, and instagram
Disclosure website as a media for regulated in the laws and regulations, but as means of communication
information disclosure. also to other information related to the and information disclosure.
Public Company that is deemed necessary The information disclosure
for the Shareholder or investors. By utilizing is conducted not only to the
information technology widely, it is information disclosure as
expected that in addition to the Website, regulated in the laws and
the Bank can improve the effectiveness of regulations, but also to other
disseminating corporate information. information related to the
Public Company that is deemed
Nevertheless, the utilization of information necessary for the Shareholder or
technology taken still pay attention to investors.
company’s benefits and costs.
Information: Comply
The Annual Report of The laws and regulations in Capital Market The ultimate beneficial owner
the Public Company sector governing the submission of Public in the Public Company's share
discloses the ultimate Company's Annual Report has specified ownership of at least 5% (five
beneficial owner of the obligation of information disclosure percent) has been disclosed in
Company's ownership of on Shareholders having 5% (five percent) the Annual Report, Sub Chapter
at least 5% (five percent) of shares or more of the Public Company, of List of Shareholders and Sub
of shares, in addition to as well as the obligation to disclose Chapter of Share Ownership of
the disclosure of ultimate information about the main and controlling Board of Directors and Board of
beneficial owner in the Shareholders of the Public Company, Commissioners.
ownership of Public whether directly or indirectly, to the
Company shares through ultimate beneficial owner in the ownership Information: Comply
Major Shareholders and of such shares. The Corporate Guidelines
Controllers. disclose the ultimate beneficial owner of
the Public Company's ownership of at least
5% (five percent) of shares, in addition to
the disclosure of ultimate beneficial owner
in the ownership of shares through Major
Shareholders and Controllers.
ANNUAL
REPORT 2018
INFORMATION ON MAIN AND

IMPLEMENTATION OF ASEAN CORPORATE GOVERNANCE SCORECARD
“Yes” or
Company
No. Questions “No” or Score ACGS Information
Information
“N/A”
PRINCIPLE A: Rights of Shareholders
A.1 Shareholders' Basic Rights
A.1.1 Does the company pay (interim Yes 1 Yes, Based on the GMS notes published on the stock exchange, the
and final/annual) dividends in information is obtained that for the fiscal year ending on December
an equitable and timely manner; 31, 2017, the company announced the dividend payment date on April
that is, all shareholders are 20, 2018, in the Summary of Minutes of the AGMS dated March 22,
treated equally and paid within 2018, according to the Recommendation of the Indonesian Corporate
30 days after being (i) declared Governance Roadmap and POJK No . 32/POJK.04/2014 as lastly
for interim dividends and (ii) amended by POJK No. 10/POJK.04/2017. Therefore, the time period of
approved by shareholders at maximum 30 days is complied.
annual general meeting (AGM)
for final dividends? In case the Evidence:
company has offered Scrip http://www.bni.co.id/portals/1/bni/perusahaan/docs/BBNI-
dividend, did the company paid RINGKASAN%20RISALAH%20RUPST%202018.pdf
the dividend within 60 days?
A.2 Participation Rights in Resolutions related to the Company’s Underlying Changes
Do shareholders have the right to participate in:
A.2.1 Amendments to the company's Yes 1 Yes, as included in Article 28 of the Bank’s Articles of Association
constitution? Yes, as included in
http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/
BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf
A.2.2 The authorization of additional Yes 1 Yes, as included in Article 4 paragraph 6 of the Bank’s Articles of
shares? Association
Yes, as included in
A.2.3 The transfer of all or substantially Yes 1 Yes, as included in
all assets, which in effect results Yes, as included in Article 12 paragraph 7 of the Bank’s Articles of
in the sale of the company? Association
A.3 Rights to Effectively Participate and Use Votes in the GMS and Rights to Obtain Information on the Applicable Regulations in the
GMS (Including the Voting Procedures)
A.3.1 Do shareholders have the Yes 1 Yes, as included in
opportunity, evidenced Yes, as included in the Summary of Minutes of Annual GMS for the 2017
by an agenda items, to Fiscal Year
approve remuneration (fees, http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
allowances, benefit-in-kind OF%20MINUTES%20OF%20AGM%202018.pdf
and other emoluments) or any
increases in remuneration for
the non-executive directors/
commissioners?
A.3.2 Does the company provide Yes 1 Yes, as included in
non-controlling shareholders Yes, as included in the Bank’s Articles of Association
a right to nominate candidates http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/
for board of directors/ BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf
commissioners?
A.3.3 Does the company allow Yes 1 Yes, as included in
shareholders to elect directors/ Yes, as included in Article 5 paragraph 4 letter (c) of the Bank’s Articles
commissioners individually? of Association
A.3.4 Does the company disclose the Yes 1 Yes, as included in the Annual GMS Conduct Book for the 2017 Fiscal
voting procedures used before Year
the start of the meeting? http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20
Tata%20Tertib.pdf
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
A.3.5 Do the minutes of the most Yes 1 Yes, as included in the Minutes of Annual GMS for the 2017 Fiscal Year
recent AGM record that the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/
shareholders were given the Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20
opportunity to ask questions 37%2020%20Maret%202018.pdf
and the questions raised by
shareholders and answer given
recorded?
A.3.6 Does the company disclose Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017
the voting results including Fiscal Year
approving, dissenting, and http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
abstaining votes for all OF%20MINUTES%20OF%20AGM%202018.pdf
resolutions/each agenda item
for most recent AGM?
A.3.7 Does the company disclose Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017
the list of board members who Fiscal Year
attended the most recent AGM? http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
OF%20MINUTES%20OF%20AGM%202018.pdf
A.3.8 Does the company disclose that Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017
all board members and the CEO Fiscal Year
(if he is not a board member) http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
attend the most recent AGM? OF%20MINUTES%20OF%20AGM%202018.pdf
A.3.9 Does the company allow for Yes 1 Yes, as included in the Annual GMS Conduct Book for the 2017 Fiscal
voting in absentia? Year
http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20
Tata%20Tertib.pdf
A.3.10 Did the company vote by poll (as Yes 1 Yes, as included in the Summary of Minutes of Annual GMS for the 2017
opposed to by show of hands) Fiscal Year
for all resolutions at the most http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
recent AGM? OF%20MINUTES%20OF%20AGM%202018.pdf
A.3.11 Does the company disclose that No 0 The Bank appoints an independent party, which is BNI Securities
it has appointed an independent Administration Bureau, PT Datindo Entrycom, to carry out the
party (scrutinizers/inspectors) to calculation process and/or validation of voting at the Annual GMS of the
count and/or validate the votes 2017 Fiscal Year and has been published in the Minutes of the Annual
at the AGM? GMS for the 2017 Fiscal Year.
A.3.12 Does the company make No 0 The Bank has fulfilled the compliance of submission of Summary
publicly available by the next of Minutes of GMS in accordance with FSA Regulation No. 32/
working day the result of POJK.04/2014 as lastly amended by FSA Regulation No. 10/
the votes taken during the POJK.04/2017
most recent AGM/EGM for all
resolutions?
A.3.13 Do companies provide at least Yes 1 Yes, published at the time of GMS Notice
21 days notice for all AGMs and http://bni.co.id/portals/1/BNI/Perusahaan/Docs/Rev6a_
EGMs? Pemanggilan%20RUPS_26%20Februari%202018_Investor%20Jakpost.
pdf
A.3.14 Does the company provide Yes 1 Yes, the Explanation is stated in the Minutes of GMS
the rationale and explanation http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/
for each agenda which require Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20
shareholders’ approval in the 37%2020%20Maret%202018.pdf
notice of AGMS/circulars and/
or the accompanying statement?
A.3.15 Does the company give the Yes 1 Yes, the opportunity is stated in the GMS Announcement
opportunity for shareholder to http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/BBNI%20-%20
place item/s on the agenda of ANNOUNCEMENT%20-%20TJP.pdf
AGM?
A.4 Markets for Corporate Control shall be functional in an efficient and transparent way
A.4.1 In cases of mergers, acquisitions Yes 1 Throughout 2018, there were no material transactions specifically
and/or takeovers, does the board related to mergers, acquisitions, and/or takeovers.
of directors/commissioners of
the offeree company appoint an
independent party to evaluate
the fairness of the transaction
price?
A.5 Implementation of Shareholders Ownership Rights, Including Institutional Investors Facilitated by the Company
A.5.1 Does the company publicly Yes 1 The Bank has revealed practices in encouraging shareholders to attend
disclose policy/practice to the GMS or to be involved in the Company.
encourage shareholders This is stated in the Annual GMS Conduct Book March 20, 2018
including institutional http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20
shareholders to attend Tata%20Tertib.pdf
the general meetings or
engagement with the company?
ANNUAL
REPORT 2018
“Yes” or
Company
Information
“N/A”
PRINCIPLE B: EQUITABLE TREATMENT OF SHAREHOLDERS
B.1 Share Ownership and Voting Rights
B.1.1 Do the company's ordinary or Yes 1 Yes, each share has 1 (one) vote in decision making. This is regulated in
common shares have one vote the Annual GMS Conduct Book March 20, 2018
for one share? http://bni.co.id/portals/1/BNI/Perusahaan/Docs/ENG%20-%20Buku%20
Tata%20Tertib.pdf
B.1.2 Where the company has more Yes 1 Yes, the Bank discloses voting rights for each classification in BNI’s
than one class of shares, does Annual Report for the 2017 Fiscal Year page 769 which has been
the company publicize the published on the Bank's website.
voting rights attached to each http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
class of shares (e.g. through the bni-ar-2017-eng.pdf
company website / reports/ the
stock exchange/ the regulator's
website)?
B.2 AGMS Notice
B.2.1 Does each resolution in the most No 0 -
recent AGM deal with only one
item, i.e., there is no bundling
of several items into the same
resolution?
B.2.2 Are the company's notice of Yes 1 Yes, the Bank has translated the Notice of Annual GMS March 20,
the most recent AGMS/circulars 2018, into English at the Jakarta Post newspaper and published
fully translated into English and simultaneously with the Notice of Annual GMS March 20, 2018, in
published on the same date as Indonesian Language at Bisnis Indonesia newspaper.
the local-language version? http://bni.co.id/portals/1/BNI/Perusahaan/Docs/Rev6a_
Pemanggilan%20RUPS_26%20Februari%202018_Investor%20Jakpost.
pdf
Does the notice of AGMS/circulars have the following details:
B.2.3 Are the profiles of directors/ No 0 SOE Minister Regulation No. PER-02/MBU/02/2015 and No. PER-03/
commissioners (at least age, MBU/02/2015 on the Requirements, Procedures for Appointment and
qualification, date of first Dismissal of Members of the Board of Commissioners/Board of Directors
appointment, experience, and of State-Owned Enterprises regulating that Public SOE, the curriculum
directorships in other listed vitae of candidate members of the Board of Commissioners/Board
companies) in seeking election/ of Directors who will be proposed for appointment at the GMS must
re-election included? be available and announced at the time of the GMS before making
decision on the appointment of the relevant person as member of the
Board of Commissioners/Board of Directors.
Considering that the Bank is a Public SOE, therefore, the Bank is subject
to this provision.
B.2.4 Are the auditors seeking No 0 -
appointment/re-appointment
clearly identified?
B.2.5 Were the proxy documents Yes 1 Summary of Minutes of Annual GMS March 20, 2018
made easily available? http://bni.co.id/portals/1/BNI/Perusahaan/Docs/BBNI_SUMMARRY%20
OF%20MINUTES%20OF%20AGM%202018.pdf
B.3 Insider trading and abusive self-dealing (misuse of power) must be prohibited.
B.3.1 Does the company have Yes 1 Yes, as included in the Bank's Sustainability Report page 431,
policies and/or rules prohibiting the explanation section on the principle of Improving Corporate
directors/commissioners Governance Aspects through Stakeholder Participation
and employees to benefit http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-Keberlanjutan-
from knowledge which is Tahun-2017.pdf
not generally available to the
market?
B.3.2 Are the directors and No 0 The Bank always complies with the requirements for ownership
commissioners required to reporting or any changes in share ownership by the Board of Directors
report their dealings in company and members of the Board of Commissioners as referred to in FSA
shares within 3 business days? Regulation No. 11/POJK.04/2017
B.4 Related Party Transactions Carried Out by the Board of Commissioners & Board of Directors
B.4.1 Does the company have a Yes 1 Guideline and Work Conduct of the Board of Directors 2018
policy requiring directors/ http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/
commissioners to disclose their Pedoman%20dan%20Tata%20Tertib%20Kerja%20Direksi%202018.pdf
interest in transactions and any
other conflicts of interest? Guideline and Work Conduct of the Board of Commissioners
http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/the%20board%20
manual%20for%20the%20board%20of%20commissioners.pdf
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
B.4.2 Does the company have a Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
policy requiring a committee 716
of independent directors/ http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
commissioners to review bni-ar-2017-ind.pdf
material/significant RPTs to
determine whether they are
in the best interests of the
company?
B.4.3 Does the company have a Yes 1 Yes, as included in Article 13 paragraph 22 of the Bank’s Articles of
policy requiring board members Association
(directors/commissioners) to http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/GCG/
abstain from participating BBNI%20-%20ARTICLES%20OF%20ASSOCIATION%202018.pdf
in the board discussion on a
particular agenda when they are
conflicted?
B.4.4 Does the company have policies No 0 -
on loans to directors and
commissioners either forbidding
this practice or ensuring that
they are being conducted at
arm's length basis and at market
rates?
B.5 Protection for minority shareholders from abusive actions
B.5.1 Does the company disclose that No 0 -
RPTs are conducted in such a
way to ensure that they are fair
and at arms' length?
B.5.2 In case of related party Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
transactions requiring 719
shareholders approval, is the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
decision made by disinterested bni-ar-2017-ind.pdf
shareholders?
PRINCIPLE C: ROLE OF STAKEHOLDERS
C.1 Stakeholders Rights stipulated by Law or by mutual agreement shall be respected
C.1.1 The existence and scope of the Yes 1 Has been published in the Annual Report of the 2017 Fiscal Year page
company's efforts to address 368 on BNI Contact Center
customers' welfare? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
C.1.2 Supplier/contractor selection Yes 1 Yes, as included in the Procurement Auction section on the Company's
procedures? website
http://bni.co.id/id-id/beranda/berita/lelangpengadaan
C.1.3 The company's efforts to Yes 1 Yes, as included in the Bank's Sustainability Report page 62
ensure that its value chain is http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-Keberlanjutan-
environmentally friendly or Tahun-2017.pdf
is consistent with promoting
sustainable development?
C.1.4 The company's efforts to interact Yes 1 Yes, as included in the Bank's Sustainability Report page 83
with the communities in which http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-Keberlanjutan-
they operate? Tahun-2017.pdf
C.1.5 Describes the company's Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
anti-corruption programs and Year page 432
procedures? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
C.1.6 Describes how creditors' rights Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
are safeguarded? Year page 432
http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
C.1.7 Does the company have Yes 1 Yes, the Bank reports in the Sustainability Report, which is separated
a separate report/section from the Bank’s Annual Report
that discusses its efforts on http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/Laporan-Keberlanjutan-
environment/economy and Tahun-2017.pdf
social issues?
C.2 Stakeholders shall have the opportunity to receive effective compensation for violations of their rights
C.2.1 Does the company provide Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
contact details via the Year page 419
company's website or Annual http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
Report which stakeholders (e.g. bni-ar-2017-ind.pdf
customers, suppliers, general
public etc.) can use to voice their
concerns and/or complaints for
possible violation of their rights?
ANNUAL
REPORT 2018
“Yes” or
Company
Information
“N/A”
C.3 Performance improvement mechanisms for employee participation shall be possible to develop
C.3.1 Does the company explicitly Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
disclose the health, safety, and Year page 392
welfare policy for its employees? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
C.3.2 Does the company explicitly Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
disclose the policies and Year page 129
practices on training and http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
development programs for its bni-ar-2017-ind.pdf
employees?
C.3.3 Does the company have Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
a reward/compensation Year page 389
policy that accounts for the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
performance of the company bni-ar-2017-ind.pdf
beyond short-term financial
measures?
C.4 Stakeholders, including individual employees and their representative bodies, shall be able to freely communicate their concerns to
the board for practices that are unlawful and unethical and their rights to do this shall be protected
C.4.1 Does the company have a Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
whistleblowing policy which Year page 747
includes procedures for http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
complaints by employees bni-ar-2017-ind.pdf
concerning alleged illegal
(including corruption) and
unethical behavior and
provide contact details via the
company’s website or annual
report?
C.4.2 Does the company have a Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
policy or procedures to protect 707
an employee/person who http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
reveals alleged illegal/unethical bni-ar-2017-ind.pdf
behavior from retaliation?
D.1 Transparency of Ownership Structure
D.1.1 Does the information on Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
shareholdings reveal the identity Year page 138
of beneficial owners, holding 5% http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
shareholding or more? bni-ar-2017-ind.pdf
D.1.2 Does the company disclose the Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
direct and indirect (deemed) Year page 137
shareholdings of major and/or http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
substantial shareholders? bni-ar-2017-ind.pdf
shareholdings of directors http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
(commissioners)? bni-ar-2017-ind.pdf
shareholdings of senior http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
management? bni-ar-2017-ind.pdf
D.1.5 Does the company disclose Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
details of the subsidiaries, Year page 340
associates, joint ventures and http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
special purpose enterprises/ bni-ar-2017-ind.pdf
vehicles (SPEs)/ (SPVs)?
D.2 Annual Report Quality
D.2.1 Corporate objectives Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
Year page 102
bni-ar-2017-ind.pdf
D.2.2 Financial performance indicators Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
Year page 47
bni-ar-2017-ind.pdf
D.2.3 Non-financial performance Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
indicators Year page 69
bni-ar-2017-ind.pdf
D.2.4 Dividend policy No 0 -
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
D.2.5 Biographical details (at least Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
age, qualifications, date of Year pages 106 and 114
first appointment, relevant http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
experience, and any other bni-ar-2017-ind.pdf
directorships of listed
companies) of directors/
commissioners
D.2.6 Attendance details of each Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
director/commissioner in Year pages 507 and 550
respect of meetings held http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
D.2.7 Total remuneration of each No 0 D.2.7 is related to disclosure of remuneration of each member of
member of the board of the Board of Commissioners. No information was found on the
directors/commissioners remuneration of members of the Board of Commissioners
D.2.8 Does the Annual Report contain Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
a statement confirming the Year page 412
company's full compliance http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
with the code of corporate bni-ar-2017-ind.pdf
governance?
D.3 Disclosure on Special Relationship Transaction
D.3.1 Does the company disclose its Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
policy covering the review and Year page 304
approval of material/significant http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
RPTs? bni-ar-2017-ind.pdf
name of the related party and Year page 304
relationship for each material/ http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
significant RPT? bni-ar-2017-ind.pdf
D.4 Disclosure of Transactions of Company Shares Conducted by Members of the Board of Directors or Board of Commissioners
D.4.1 Does the company disclose Yes 1 Yes, has been included in the Bank's Financial Statements in Notes to
trading in the company's shares Financial Statements number 34.
by insiders?
D.5 External Auditor and Auditor Report
D.5.1 Are audit fees and non-audit Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
fees disclosed? Year page 661
bni-ar-2017-ind.pdf
D.5.2 Does the non-audit fees exceed No 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
the audit fees? Year page 662
bni-ar-2017-ind.pdf
D.6 Corporate Communication Media
Does the company use the following modes of communication?
D.6.1 Quarterly reporting Yes 1 Yes, has been published on the Bank’s website
http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi
D.6.2 Company website Yes 1 Yes, the Bank has a website with the following address:
http://bni.co.id/id-id/
D.6.3 Analyst's briefing Yes 1 Yes, has been published on the Bank’s website
D.6.4 Media briefings /press Yes 1 Yes, has been published on the Bank’s website
conferences http://bni.co.id/id-id/beranda/berita/siaranpers
D.7 Submission of Information on Financial Statements or Annual Reports On Time
D.7.1 Are the audited annual financial Yes 1 Yes, the Consolidated Financial Statements of the Bank and Subsidiaries
report/statement released dated December 31, 2017, were published on January 18, 2018
within 120 days from the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
financial year end? LaporanKeuanganAuditan-2017.pdf
D.7.2 Is the annual report released Yes 1 Yes, the Bank’s Annual Report for the 2017 Fiscal Year was published on
within 120 days from the February 26, 2018
financial year end? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
D.7.3 Is the true and fairness/fair Yes 1 Yes, was published in the Consolidated Financial Statements of the Bank
representation of the annual and Subsidiaries dated December 31, 2018, page 2
financial statement/reports http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
affirmed by the board of LaporanKeuanganAuditan-2017.pdf
directors/commissioners and/
or the relevant officers of the
company?
ANNUAL
REPORT 2018
“Yes” or
Company
Information
“N/A”
D.8 The Existence of a Company Website in Disclosing Information about the Company to the Public
Does the company have a website disclosing up-to-date information on the following :
D.8.1 Financial statements/reports Yes 1 Yes
(current and prior years) http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
LaporanKeuanganAuditan-2017.pdf
D.8.2 Materials provided in briefings Yes 1 Yes
to analysts and media http://bni.co.id/id-id/perusahaan/hubunganinvestor/laporanpresentasi
D.8.3 Downloadable annual report Yes 1 Yes
D.8.4 Notice of AGM and/or EGM Yes 1 Yes
http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/BBNI%20-%20
PENGUMUMAN%20-%20INV.DAILY.pdf
D.8.5 Minutes of AGM and/or EGM No 0 http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/
Docs/2018/Akta%20Berita%20Acara%20RUPS%20BNI%20No%20
37%2020%20Maret%202018.pdf
D.8.6 Company's constitution Yes 1 http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/
(company's by-laws, GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf
memorandum and articles of
association)
D.9 Investor Relations
D.9.1 Does the company disclose the Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
contact details (e.g. telephone, 87 and the Bank’s website
fax, and email) of the officer http://bni.co.id/id-id/perusahaan/hubunganinvestor/kontakinvestor/
responsible for investor kontakinformasi
relations?
PRINCIPLE E: RESPONSIBILITIES OF THE BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS
E.1 Duties and Responsibilities of the Board of Directors and Board of Commissioners
The Board of Commissioners' Responsibilities and CG Policy shall be clearly stated by the company:
E.1.1 Does the company disclose its Yes 1 Yes, the Guidelines and Work Conduct of the Board of Directors and
corporate governance policy / Board of Commissioners have been published on the Bank's website
board charter? http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib
E.1.2 Are the types of decisions Yes 1 Yes, has been published in the Bank's Articles of Association.
requiring board of directors/ http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/
commissioners' approval GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf
disclosed?
E.1.3 Are the roles and responsibilities Yes 1 Yes, has been published in the Guidelines and Work Conduct of the
of the board of directors/ Board of Directors and Board of Commissioners and the Bank's Articles
commissioners clearly stated? of Association.
http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib
http://bni.co.id/Portals/1/BNI/Perusahaan/TataKelola/Docs/
GCG/072018_resize_AD%20BNI%202018%20(dan%20AHU).pdf
Company Vision and Mission:
E.1.4 Does the company have an Yes 1 Yes, has been published on the Bank’s website and in the Bank's Annual
updated vision and mission Report for the 2017 Fiscal Year page 102
statement? http://bni.co.id/id-id/perusahaan/tentangbni/visimisi
bni-ar-2017-ind.pdf
E.1.5 Does the board of directors play Yes 1 Yes, has been published in the Bank's Annual Report for the 2017 Fiscal
a leading role in the process Year page 48
of developing and reviewing http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
the company’s strategy at least bni-ar-2017-ind.pdf
annually?
E.1.6 Does the board of directors have Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
a process to review, monitor and Year page 48
oversee the implementation of http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
the corporate strategy? bni-ar-2017-ind.pdf
E.2 Board of Commissioners’ Structure
Code of Ethics or Code of Conduct:

E.2.1 Are the details of the code of Yes 1 Yes, regulated in the Guidelines and Work Conduct of the Board of
ethics or conduct disclosed? Directors and Board of Commissioners published on the Bank's website
http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib
E.2.2 Are all directors/commissioners, Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
senior management and Year page 743
employees are required to http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
comply with the code? bni-ar-2017-ind.pdf
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
E.2.3 Does the company have a Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
process to implements and Year page 743
monitors compliance with the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
code of ethics or conduct? bni-ar-2017-ind.pdf
Structure and Composition of
Board of Commissioners:
E.2.4 Do independent directors/ Yes 1 In 2017, the number of Independent Commissioners was 4 out of a total
commissioners make up at least of 8 members of the Board of Commissioners of the Company, and has
50% of the board of directors/ been published in the Bank's Annual Report for the 2017 Fiscal Year
commissioners? page 106
E.2.5 Does the company have a Yes 1 Yes, has been regulated in the Guidelines and Work Conduct of the
term limit of nine years or less Board of Directors/Board of Commissioners in the Term of Office of
or 2 terms of five years each Board of Directors/Board of Commissioners
for its independent directors/ http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib
commissioners?
E.2.6 Has the company set a limit Yes 1 Yes, has been regulated in the Guidelines and Work Conduct of the
of five board seats that an Board of Directors/Board of Commissioners in the Term of Office of
individual independent/non- Board of Directors/Board of Commissioners
executive director/commissioner http://bni.co.id/id-id/perusahaan/tatakelola/pedomandantatatertib
may hold simultaneously?
E.2.7 Does the company have any No 1 -
executive directors who serve on
more than two boards of listed
companies outside the group?
Nomination Committee:
E.2.8 Does the company have a Yes 1 Yes, the Bank has a Nomination and Remuneration Committee
Nominating Committee (NC)? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.9 Does the Nominating No 0 E.2.9 requires the Bank's Nomination Committee to consist of a majority
Committee comprise of a of independent commissioners. The assessment result indicates that
majority of independent the Bank's Independent Commissioner is no more than 50%, but exactly
directors/commissioners? 50%. This is included in the Bank's Annual Report for the 2017 Fiscal
Year.
E.2.10 Is the chairman of the Yes 1 Yes, the Chair of the Bank's Nomination and Remuneration Committee
Nominating Committee is Mr. Ahmad Fikri Assegaf, who is an Independent Commissioner of the
an independent director/ Bank
commissioner? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.11 Does the company disclose the Yes 1 Yes, the Bank’s Nomination and Remuneration Committee Charter can
terms of reference/ governance be accessed on the Bank's website
structure/charter of the http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam_komite_
Nominating Committee? nominasi_dan_remunerasi_2017.pdf
E.2.12 Is the meeting attendance of Yes 1 Yes, the Agenda and Attendance of the Bank's Nomination and
the Nominating Committee Remuneration Committee Meeting is published in the Bank's Annual
disclosed and if so, did the Report for the 2017 Fiscal Year page 593. Throughout 2017, KNR
Nominating Committee meet at conducted 12 (twelve) meetings.
least twice during the year? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
Remuneration Committee/Compensation Committee:
E.2.13 Does the company have a Yes 1 Yes, the Bank has a Nomination and Remuneration Committee
Remuneration Committee? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.14 Does the Remuneration No 0 E.2.14 has a connection with point E.2.9 which requires the Bank's
Committee comprise of a Remuneration Committee to consist of a majority of Independent
majority of independent Commissioners. The assessment result indicates that the Bank's
directors/commissioners? Independent Commissioner is no more than 50%, but exactly 50%. This
is included in the Bank's Annual Report for the 2017 Fiscal Year.
E.2.15 Is the chairman of the Yes 1 Yes, the Chair of the Bank's Nomination and Remuneration Committee
Remuneration Committee is Mr. Ahmad Fikri Assegaf, who is an Independent Commissioner of the
an independent director/ Bank
commissioner? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.16 Does the company disclose the Yes 1 Yes, the Bank’s Nomination and Remuneration Committee Charter can
terms of reference/ governance be accessed on the Bank's website
structure/charter of the http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam_komite_
Remuneration Committee? nominasi_dan_remunerasi_2017.pdf
E.2.17 Is the meeting attendance of Yes 1 Yes, the Agenda and Attendance of the Bank's Nomination and
the Remuneration Committee Remuneration Committee Meeting are published in the Bank's Annual
disclosed and if so, did the Report for the 2017 Fiscal Year page 593. Throughout 2017, KNR
Nominating Committee meet at conducted 12 (twelve) meetings.
least twice during the year? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
ANNUAL
REPORT 2018
“Yes” or
Company
Information
“N/A”
Audit Committee:
E.2.18 Does the company have an Yes 1 Yes, the Bank has an Audit Committee
Audit Committee? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.19 Does the Audit Committee Yes 1 Chairman and member of the Bank’s Audit Committee are Independent
comprise entirely of Commissioners and Independent Party. Membership of the Bank’s Audit
non-executive directors/ Committee is published on the Bank’s website.
commissioners with a majority http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
of independent directors/
commissioners?
E.2.20 Is the chairman of the Audit Yes 1 Yes, the Chair of the Bank's Audit Committee is Mr. Pataniari Siahaan,
Committee an independent who is an Independent Commissioner of the Bank
director/commissioner? http://bni.co.id/id-id/perusahaan/tatakelola/komitedewankomisaris
E.2.21 Does the company disclose the Yes 1 Yes, the Audit Committee Charter and Code of Ethics have been
terms of reference/governance published on the Company's website
structure/charter of the Audit http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/piagam%20komite%20
Committee? audit.pdf
http://bni.co.id/Portals/1/BNI/Perusahaan/Docs/kode%20etik%20
komite%20audit.pdf
E.2.22 Does at least one of the No 0 -
independent directors/
commissioners of the committee
have accounting expertise
(accounting qualification or
experience)?
E.2.23 Is the meeting attendance of the Yes 1 Yes, the Agenda and Attendance of the Audit Committee Meeting is
audit committee disclosed and, published in the Bank's Annual Report for the 2017 Fiscal Year page 580.
if so, did the Audit Committee Throughout 2017, the Audit Committee held 8 (eight) meetings.
meet at least four times during http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
the year? bni-ar-2017-ind.pdf
E.2.24 Does the Audit Committee No 0 E.2.24 requires the Bank's Audit Committee to have a primary
have primary responsibility responsibility for recommending the appointment and dismissal of
for recommendation on the the External Auditor. If only one of these responsibilities is held by the
appointment, and removal of Bank's Audit Committee, the Bank is still considered not meeting the
the external auditor? corporate governance practices of this point. The assessment results
indicate that the Bank's Audit Committee only has one of the two
responsibilities.
E.3 The Board of Commissioners’ Process
Board of Commissioners’ Meetings and Attendances

E.3.1 Are the board of directors No 0 -
meetings scheduled before the
start of financial year?
E.3.2 Does the board of directors/ Yes 1 Yes. Throughout 2017, there were 29 (twenty nine) Board of
commissioners meet at least six Commissioners meetings, 11 (eleven) joint meetings of the Board
times per year? of Commissioners and Board of Directors, and 56 (fifty six) Board of
Directors' meetings.
This is published in the Bank's Annual Report pages 494, 503, 529
bni-ar-2017-ind.pdf
E.3.3 Has each of the directors/ No 0 -
commissioners attended at least
75% of all the board meetings
held during the year?
E.3.4 Does the company require a No 0 -
minimum quorum of at least 2/3
for board decisions?
E.3.5 Did the non-executive directors/ Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
commissioners of the company Year page 529
meet separately at least once http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
during the year without any bni-ar-2017-ind.pdf
executives present?
Information Access:
E.3.6 Are board papers for board No 0 -
of directors/commissioners
meetings provided to the board
at least five business days in
advance of the board meeting?
E.3.7 Does the company secretary Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
play a significant role in 622
supporting the board in http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
discharging its responsibilities? bni-ar-2017-ind.pdf
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
E.3.8 Is the company secretary Yes 1 Yes, the competence development of Corporate Secretary in the field
trained in legal, accountancy or has been published in the Bank's Annual Report for the 2017 Fiscal Year
company secretarial practices? page 621
bni-ar-2017-ind.pdf
Appointment and Re-appointment of members of the Board of Commissioners:
E.3.9 Does the company disclose the Yes 1 Yes. The criteria for members of the Board of Commissioners have been
criteria used in selecting new published in the Bank’s Annual Report for the 2017 Fiscal Year page 474,
directors/commissioners? and the Criteria for the Board of Directors have been published in the
Bank's Annual Report page 517
bni-ar-2017-ind.pdf
E.3.10 Does the company disclose the Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
process followed in appointing 454
new directors/commissioners? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
E.3.11 Are all the directors/ Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
commissioners subject to re- 454
election at least once every http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
three years? bni-ar-2017-ind.pdf
Regarding Remuneration:
E.3.12 Does the company disclose its No 0 -
remuneration (fees, allowances,
benefit-in-kind and other
emoluments) policy (i.e. the use
of short term and long term
incentives and performance
measures) for its executive
directors and CEO?
E.3.13 Is there disclosure of the fee No 0 -
structure for non-executive
directors/commissioners?
E.3.14 Do the shareholders or the Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
Board of Directors approve the 452
remuneration of the executive http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
directors and/or the senior bni-ar-2017-ind.pdf
executives?
E.3.15 Does the company have No 0 -
measurable standards to
align the performance-based
remuneration of the executive
with long term interests of the
company, such as claw back
provision and deferred bonuses?
Internal Audit:
E.3.16 Does the company have a Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
separate internal audit function? 628
bni-ar-2017-ind.pdf
E.3.17 Is the head of internal audit Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
identified or, if outsourced, is 630
the name of the external firm http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
disclosed? bni-ar-2017-ind.pdf
E.3.18 Does the appointment and Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
removal of the internal auditor 630
require the approval of the Audit http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
Committee? bni-ar-2017-ind.pdf
Risk Oversight:
E.3.19 Does the company establish Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
a sound internal control 663
procedures/risk management http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
framework and periodically bni-ar-2017-ind.pdf
review the effectiveness of that
framework?
E.3.20 Does the Annual Report disclose Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
that the board of directors/ 687
commissioners has conducted a http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
review of the company's material bni-ar-2017-ind.pdf
controls (including operational,
financial and compliance
controls) and risk management
systems?
ANNUAL
REPORT 2018
“Yes” or
Company
Information
“N/A”
E.3.21 Does the company disclose the Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
key risks to which the company 58
is materially exposed to (i.e. http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
financial, operational including bni-ar-2017-ind.pdf
IT, environmental, social,
economic)?
E.3.22 Does the Annual Report / Yes 1 Yes, has been published in the Bank's Annual Report of the 2017 Fiscal
Annual CG Report contain a Year pages 48-49, 58-59, and 75-76
statement from the board of http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
directors/commissioners or bni-ar-2017-ind.pdf
Audit Committee commenting
on the adequacy of the
company’s internal controls/risk
management systems?
E.4 Individual in the Composition of the Board of Commissioners
Company's President Commissioner:

E.4.1 Do different persons assume the Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
roles of chairman and CEO? 114
bni-ar-2017-ind.pdf
E.4.2 Is the chairman an independent Yes 1 Yes, as included in the Bank's Annual Report page 114
director/commissioner? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
E.4.3 Is any of the directors a former No 1 -
CEO of the company in the past
2 years?
E.4.4 Are the role and responsibilities No 0 Point E.4.4 requires the disclosure of specific duties and responsibilities
of the chairman disclosed? of the President Commissioner. BBNI does not provide special exposure
for this information.
Expertise and Competence of the Board of Commissioners:
E.4.5 If the Chairman is not N/A 0 *there is Not Applicable (N/A) at this point. The N/A answer is not
independent, has the Board calculated into the final assessment point.
appointed a Lead/Senior
Independent Director and has
his/her role been defined?
E.4.6 Does at least one non-executive Yes 1 Yes, as included in the Profile of Board of Directors and Board of
director/commissioner have Commissioners section of the Bank's Annual Report of the 2017 Fiscal
prior working experience in the Year page 114
major sector that the company is http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
operating in? bni-ar-2017-ind.pdf
E.5 Board of Commissioners Performance
Training/Development of the Board of Commissioners:

E.5.1 Does the company have Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year
orientation programs for new pages 507 and 561
directors/commissioners? http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
bni-ar-2017-ind.pdf
E.5.2 Does the company have a policy Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
that encourages directors/ 166
commissioners to attend on- http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
going or continuous professional bni-ar-2017-ind.pdf
education programs?
Appointment and Performance Assessment of the President Director:
E.5.3 Does the company disclose Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
how the board of directors/ 596
commissioners plans for the http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
succession of the CEO/Managing bni-ar-2017-ind.pdf
Director/President and key
management?
E.5.4 Does the board of directors/ Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
commissioners conduct an 442
annual performance assessment http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
of the CEO/Managing Director/ bni-ar-2017-ind.pdf
President?
Board of Commissioners Performance Assessment:
E.5.5 Did the company conduct an Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
annual performance assessment 442
of the board of directors/ http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
commissioners and disclose the bni-ar-2017-ind.pdf
criteria and process followed for
the assessment?
Good Corporate
Governance
“Yes” or
Company
Information
“N/A”
E.5.6 Did the company conduct an No 0 -
annual performance assessment
of the individual directors/
commissioners and disclose the
criteria and process followed for
the assessment?
E.5.7 Did the company conduct an Yes 1 Yes, as included in the Bank's Annual Report of the 2017 Fiscal Year page
annual performance assessment 50
of the board committees and http://bni.co.id/Portals/1/BNI/Perusahaan/HubunganInvestor/Docs/
disclose the criteria and process bni-ar-2017-ind.pdf
followed for the assessment?
3.6. BONUS AND PENALTY
Assessment Bonus for the Bank’s GCG Practices
BBNI receives bonus for the following assessment items:

(B) C.1.1: +2 points. This point requires BBNI to adopt an international
framework related to reporting of the Bank's sustainability. Based on the
Sustainability Report, BBNI has adopted a framework for sustainability.
(B) D.1.1: +3 points. This point requires the Company to issue audited
Financial Statements within 60 days after the end of the financial
year. The assessment results indicate that the Bank issued the audited
Financial Statements on January 18, 2018, which is still within 60 days
after the end of the Bank's fiscal year.
(B) E.5.1: +2 points. This item requires the Board of Commissioners
to describe the governance process on Information Technology (IT)
including disruption, cyber security, disaster recovery, in order to ensure
that key risks have been identified, managed, and reported to the
Board of Commissioners. The assessment results indicate that there is a
disclosure of this matter in the Bank's Annual Report.
(B) E.6.1: +2 points. This item requires the Bank to have a separate
Risk Committee. The assessment results indicate that the Bank has a
separate Risk Committee as shown in the Bank's Annual Report.
The total bonus points obtained by the Bank are 9 (nine) points.
Penalty for Corporate GCG BBNI is penalized for one of the following assessment items:
Practices (P) E.4.2: -2 points. This point contains the disclosure of whether the
Independent Commissioner accepts options, shares, or bonuses.
The assessment results indicate that the Independent Commissioner
accepts one of the three said matters as shown in the Bank's Annual
Report.
The total penalty points received by the Bank are minus 2 (two) points.
Therefore, the total score for Bonus and Penalty Components (Rating
Level 2) received by the Bank is 7 points.
ANNUAL
REPORT 2018
CORPORATE
SOCIAL RESPONSIBILITY
682 SOCIAL RESPONSIBILITY GOVERNANCE
687 CORPORATE SOCIAL RESPONSIBILITY RELATED TO HUMAN RIGHTS
689 CORPORATE SOCIAL RESPONSIBILITY RELATED TO FAIR OPERATIONS
690 SOCIAL RESPONSIBILITY IMPLEMENTATION
BASED ON SUSTAINABLE FINANCE CONCEPT
692 CORPORATE SOCIAL RESPONSIBILITY APPLICATION BASIC
693 CORPORATE SOCIAL RESPONSIBILITY MANAGEMENT STRUCTURE
694 CORPORATE SOCIAL RESPONSIBILITY RELATED TO THE ENVIRONMENT
699 CORPORATE SOCIAL RESPONSIBILITY RELATED TO EMPLOYMENT, OCCUPATIONAL HEALTH AND SAFETY
702 CORPORATE SOCIAL RESPONSIBILITY RELATED TO SOCIAL COMMUNITY DEVELOPMENT
709 CORPORATE SOCIAL RESPONSIBILITY RELATED TO CONSUMERS
ANNUAL
REPORT 2018
SOCIAL RESPONSIBILITY GOVERNANCE
BNI’s commitment to implementing social responsibility is reflected in BNI’s mission number 4 (four), which is “To
Increase Awareness and Responsibility to the Local Community and Environment” and number 5 (five), namely
“To Become a Role Model for Compliance to Good Corporate Governance”. To achieve this mission, several BNI
corporate social responsibility policies have been established, including:
1. Company Guidelines for Credit Business Banking for Corporate Segment Buku I for analysis of customer credit
risk that regulates the requirements of EIA or PROFER.
2. Guidelines for Community Development (BL) and Corporate Social Responsibility (CSR) No. IN/134/KMP/001
dated March 23, 2018.
3. Company Guidelines for Community Development Management No. IN/341/KMP/001 dated July 17, 2017.
4. Company Guidelines for an Environmentally Friendly Lifestyle No. IN/418/KMP/001 dated September 12, 2017.
These guidelines are used as the basis for implementing BNI’s social responsibility. The process starts with planning
as is outlined in the Annual Work Plan and its implementation is regularly evaluated and reported to the relevant
stakeholders.
In addition, starting in 2018, BNI is preparing a Sustainable Financial Action Plan (SFAP) as BNI’s commitment to
implementing sustainable finance as outlined in the Board of Directors’ Decree No. KP/412/DIR/R dated December
4, 2018. The SFAP will become a reference for BNI in implementing sustainable finance from 2019 to 2023 and will
be reported to OJK every year.
The responsibility for implementing social responsibility governance is currently in the Corporate Communication
and Secretariat Division (KMP). This division is directly responsible to the President Director.
BNI realizes social responsibility covers all impacts from its business activities on all stakeholders. Therefore, BNI
has a due diligence method for recognizing the social, economic and environmental impact on the company’s
activities. The due diligence mechanism includes:
1. Surveys of employee and customer satisfaction.

2. Analysis of the social responsibility activities effectiveness on the community.
3. Assistance from consultants who are experts in their fields.
4. Increased competence related to sustainable finance from WWF Indonesia, USAID ICED II, and other parties.
5. Corporate Business Banking Credit Buku I Segment Guidelines for customer credit risk analysis.
6. The KMP Division evaluates the effectiveness of environmentally friendly lifestyles.
Important stakeholders affected by the company’s activities have been identified by BNI. Important stakeholders
and work programs for handling socio-economic and environmental issues to increase stakeholder engagement
are as follows:
Corporate
Stakeholders Discussion Topics BNI Approach and Response Frequency of Approach
Customer (Economic 1. Security of banking • Call Center services • Any time

Relations) transactions • Customer Satisfaction • Once every two years
2. Small and Medium Surveys • Any time
Business Loans • Website & Frontline • At least once a year
3. Banking facilities and easy Information
access • Agen46 Gatherings
4. Information on banking
products and services that
are clear and transparent
Investor / Shareholder • Financial and non financial Performance Reporting Every Quarter
(Economic Relations, performance Organizing a GMS
Ownership and Legal • Investment for an
Relations) Environmentally friendly
company
Employees (Legal & Legal • Employee rights • Internal media (portal), • Any time
stakeholders who help achieve • Equal opportunities telephone hotline and • Once a year
company goals) • Career development email
• A valuable and enjoyable • Employee Satisfaction
work experience Survey
Labor Union (Legal) Employee Rights Discussion on Collective Labor Every two years
Remuneration & benefits Agreement
Government & OJK (LJK Legal • Compliance with Report on compliance & At least once a year
and Interest) regulations and legislation notification to Bank Indonesia
• Environmental & social risk Basel II Accord-Basel
analysis in granting credit Committee for compliance
• Anti Bribery and Corruption reporting on sharia aspects in
(ABC), Anti-Money the Sharia Board
Laundering (AML) and Anti National Establishment of
Terrorism Agen46, provision of disability
• Green banking ATMs
• Inclusive banking RKAB Preparation and
• Sustainable finance Sustainability Report
Supplier (economic & legal Mutually fair & transparent and Seminars & policy socialization When needed
relations) beneficial relationships with
suppliers of goods and services
in the procurement processes
Business Organization (Legal & Financial performance National and regional meetings Once every four years
Industrial Interest) Investment in environmentally & activities
friendly companies International Conferences
Non-financial performance
Operational activities
Business development
direction
Community Organizations / Environmental impact & Strategic cooperation in At least once a year
NGOs (Social relations, social performance social care BNI community
licenses & social responsibility Implemented & planned CSR development partnership
as well as proximity to programs programs reporting
companies) Opportunities to collaborate in
CSR programs
Information on company
activities
ANNUAL
REPORT 2018
Stakeholders Discussions Topics BNI Approach and Response Frequency of Approach
Media (Social relations, Social Financial & non financial Press conferences When needed
license) performance Media Gatherings Every three months
Environmental impact &
performance
CSR Program implemented
& planned Opportunities to
collaborate in the CSR Program
BNI has also identified important social, economic and environmental issues related to the
impact of company activities in order to manage these important issues in order to have a
positive impact on shareholders and other stakeholders. Important social, economic and
environmental issues are as follows:
Sustainability Issues Relevance to material topics based on GRI Standard
Economic aspects
Financing to environmentally and socially sound industries Product Portfolio (FSSD)
Sustainable financial portfolio Economic performance (201), product portfolio (FSSSD)
Social Aspects
Financial inclusion
Local community (413)
Financial literacy
Customer service
Customer data security Customer privacy (418)
Digitization
Capacity building
Education and training (404)
Employee career path
Employee welfare Employment (401)
GCG Anti-corruption and fraud Anticorruption (205)
Selection of socially minded partners Supplier social assessment (414)
Environmental aspects
Energy efficiency Energy (302)
Paper saving Waste (306)
Selection of partners in the environment Supplier environmental assessment (308)
Colors shows issues with high scores
Corporate
Influence on stakeholder assessments and decisions
Significant economic, environmental and social impacts
Financing to industries that have Anti-Corruption and Fraud GCG

environmental and social insight
Capacity building Energy Efficiency
Financial Inclusion Paper Saving
Financial Literacy Employee Career Level
Portfolio Keuangan Keberlanjutan Employee welfare

Financial Portfolio Sustainability
Customer service Selection of partners who are

environmentally sound
Keamanan Data Pelanggan Selection of partners who are socially

minded
Digitization
Sustainability issues with high value
ANNUAL
REPORT 2018
BNI is committed to carrying out corporate social responsibility both in terms of obligations and exceeding obligations. Details
of these activities are as follows:
Social responsibility activities that are an obligation included:
Activities Regulation Basis
Partnerships and Community SOE Ministry Regulation No. PER-09/MBU/07/2015 concerning the State-Owned Enterprises’
Development Programs Partnership Program and Community Development Program.
Employment • Law No. 4 of 1997 and PP No. 43 of 1998 concerning the obligation to employ people with
disabilities.
• Director General of Industrial Relations Development and Workers’ Social Security Decree
No. KEP.023/PHIJSK-PK/PKB/II/2018 dated February 7, 2018 concerning Collective Labor
Agreement between PT Bank Negara Indonesia (Persero) Tbk. with PT Bank Negara Indonesia
(Persero) Tbk Workers’ Union.
Work Safety Law No. 1/1970 and No. 23/1992 concerning Occupational Health and Safety.
Customer Protection • POJK No. 1/POJK.03/2013 concerning Financial Services Sector Consumer Protection
• POJK No. 1/POJK.07/2013 concerning Transparency of Bank Product Information and Use of
Customer’s Personal Data.
Anti-Corruption Program Law No. 20 of 2001, an Amendment to Law Number 31 of 1999 concerning Eradication of
Corruption
Responsibility activities that exceeded obligations included:
1. Environmentally Friendly Lifestyle.

2. Business Banking loans to Buku I Corporate Segment for analysis of customer credit risk with respect to EIA or PROPER
requirements.
3. Other employment activities including the provision of Day Care, Gym Center, Open Working Space Concept, and
Breastfeeding Rooms.
4. Other work safety programs including the use of environmentally friendly and earthquake resistant buildings.
5. Career opportunities in the regions through the Regional Officer Development Program (ODP).
6. BNI employee learning through digital learning (BNI smarter) that can be accessed via a smartphone
7. Use of solar cells in BNI BSD Plaza with a capacity of 2200 watts
8. Becoming a member of international organization (UNEP-FI), and national organizations (IBCSD, AKKI, ASPI, HIMBARA,
PERBANAS, FKKP)
9. Having a Corporate Mission related to aspects of ESG, namely Mission No. 4 “To Increase Awareness and Responsibility
to the Local Community and Environment” and No. 5 ““To Become a Role Model for Compliance to Good Corporate
Governance”.
10. Having BNI Sustainability Pillars (BNI for Indonesia, BNI for Customers, BNI for Employees, BNI for communities, and BNI for
the Environment)
11. Having 19 Disability ATM units
12. Employing 23 people with disabilities
During 2018, BNI costs for the Partnership Program amounted to Rp104.49 billion and for the Community Development
Program amounted to Rp115.44 billion.
Corporate
CORPORATE SOCIAL RESPONSIBILITY RELATED TO

HUMAN RIGHTS
POLICY i. After working for more than 10 (ten) years, 18

(eighteen) working days leave.
BNI is committed to complying with all Human Rights legal ii. After working between 5 (five) years up to 10
provisions and principles. This is stated in the Collective (ten) years, 15 (fifteen) working days leave.
Labor Agreement (PKB) between BNI and its Employees. The iii. Up to 5 (five) years working, 12 (twelve) working
scope of social responsibility related to human rights includes days leave.
guarantees of freedom of association, freedom of worship, • Newly appointed employees as permanent employees,
and others. In addition, BNI also has a complaint mechanism annual leave is first given after a working period of
for complaints about employees through the Human Capital at least 6 (six) months continuously from the date of
(HCT) division. appointment and is given proportionally.
• mployees who stop working are given leave days and
TARGET ACTIVITIES annual travel expenses proportionally.
• Employees on Annual Leave are given an Annual Travel
The mutually agreed human rights principles have become Bonus of 1 (one) time Total Cash.
targets that BNI has to apply properly. Thus, providing a safe • Paying attention to the interests of the Company or the
and comfortable working environment for all BNI employees. Employee, annual leave can be taken in several parts, one
of which must at least 5 (five) working days.
ACTIVITIES • If a holiday determined by the Government and a holiday
recognized by the Company falls during employee leave,
Corporate social responsibility related to human rights then that day will not be counted as part of employee
activities include: leave.
• The right to annual leave must be carried out in the year
TRADE UNION GUARANTEES concerned, and if deemed necessary, deferral can be
made for a maximum of 6 (six) months after the end of
BNI recognizes that Trade Unions are legitimate the leave period.
representatives for its members, both individually and • For Officers stationed outside their home base or place of
collectively in the field of employment. birth, receive additional time / days over their due rights
for leave, if they return to their home base or place of
BNI always deliberates with the Trade Unions when birth, under the following provisions:
establishing employment policies related to work conditions a. Additional time / days is calculated based on the
and workers / employee welfare. length of trip taken at most 6 (six) calendar days to
go to and return to their assignment.
WORKING TIME b. Given 1 (one) time each year.
c. For AVP position and below.
BNI when conducting activities outside work hours and d. Travel time is more than 24 (twenty four) hours by
outside overtime hours pays attention to the Work Life land or sea travel.
Balance which is further regulated in the Staffing Guidelines. e. Provisions for implementing annual leave are further
regulated in the Staffing Guidelines.
ANNUAL LEAVE
MENSTRUATION, CHILDBIRTH AND MISCARRIAGE LEAVE
Annual leave activities carry the following provisions:
• Employees are granted annual leave with the following BNI highly respects the human rights of its female
conditions: employees,. and has implemented a policy for menstruation,
a. Managers and above have the right to 18 working childbirth and miscarriage leave with the following
days leave. conditions:
b. Assistant Managers and below: • Female employees who suffer pain during menstruation
ANNUAL
REPORT 2018
are not required to work on the first and second days of supervisor and as far as possible attaching valid proof
menstruation, and the employee can take menstruation documents.
leave that must be proven with a doctor’s certificate. BNI juga memberikan hak untuk Ijin keperluan lain:
• Women who give birth have the right to receive 3
(three) calendar months maternity leave while receiving • Employee marriages are granted 3 (three) working days;
wages / salaries, and this is taken 1½ (one half ) months • Marriages involving a child registered with the Company,
before and 1½ (one half ) months after giving birth in then the employee is given 2 (two) working days;
accordance with the obstetrician / midwife certificate • Birth of a child from a wife registered with the Company
submitted by the employees. or a wife who has a miscarriage is given 2 (two) working
• Maternity leave does not reduce the right to annual leave days;
and major leave. • Baptism of children registered with the Company is given
• Female employees who are pregnant and experience 2 (two) working days;
miscarriages and / or abortions on medical grounds, • The circumcision of a child registered with the Company
receive leave in accordance with a certificate from the is given 2 (two) working days;
obstetrician / midwife who treats them, for 1½ (one • Welcoming children registered with the Company for
half ) calendar months after the miscarriage / abortion Hindus is given 1 (one) working day;
or in accordance with the letter from the obstetrician / • Death of a Direct Family member is given 2 (two) working
midwife who cared for them, while still receiving Wages days;
/ Salaries. • Death of an employees relative is given 1 (one) working
day;
FULFILLING RELIGIOUS RIGHTS • Death of an employee’s sibling is given 1 (one) working
day.
Fulfilling religious activities is a very basic human right.
Therefore, BNI has policies to cover these rights as follows: For disasters or incidents, such as fire, flood, natural disasters
• BNI provides sufficient time to employees to perform that cause serious damage to the dwelling place, and the
worship required by their religion or beliefs. employee cannot reach their place of work, then they may be
• At the request of an employee, BNI grants permission granted a permit for a maximum of 3 (three) working days,
to perform religious journeys based on their religious except for force majeure regional or national disasters that
teachings once during their time in BNI for the time are regulated separately.
required without reducing the employee’s rights.
• Provisions to perform religious journeys are further IMPACT
regulated in the Manpower Guidelines.
By providing a safe and comfortable work environment, the
level of employee engagement reached 87.75%, an increase
ABSENCE FROM WORK PERMISSION of 4.92% from the previous year. In addition, the employee
turnover rate was 4.76%, lower than the national banking
Employees have the right to be absent and still receive industry average.
wages / salaries without reducing their leave allowance,
by submitting a written application letter to their direct
Corporate
CORPORATE SOCIAL RESPONSIBILITY RELATED TO

FAIR OPERATIONS
POLICY
GRATIFICATION
Corporate social responsibility policies related to fair
operations is outlined in several policies, especially the To achieve good corporate governance, BNI has established
anti-corruption policies that include preventing conflicts of Gratification control policies in its operational activities.
interest, gratification, and the application of a whistleblowing BNI has formed a Gratuity Control Unit in the Compliance
system and code of conduct. Division. At the beginning of each year all BNI employees
sign an Employee Integrity Pact, which one points stating:
TARGET ACTIVITIES “Not giving, promising and / or receiving any form of
compensation to or from funding or borrowing customers,
BNI targets that all social responsibility policies related to fair vendors, partners, work partners and / or other parties both
operations are implemented properly. external and internal. “
ACTIVITIES WHISTLEBLOWING SYSTEM
PREVENTING CONFLICT OF INTEREST BNI has a Whistleblowing System (WBS) as part of its good
corporate governance. BNI is committed to running the
A conflict of interest is a condition whereby the economic company professionally based on company behavior in
interests of companies clash with personal economic accordance with the code of ethics and work culture so as to
interests. BNI personnel are prohibited from carrying out increase the corporate governance effectiveness.
actions that can cause conflicts of interest that can harm BNI’s The mechanism for early detection of violations that could
interests. lead to financial losses, including matters that could damage
the BNI’s image, is through a Whistleblowing System (WBS)
PROHIBITION OF GIVING, RECEIVING GIFTS OR called “WBS to CEO”. WBS management is carried out in
SOUVENIRS collaboration with an external party, Deloitte. The WBS is
a commitment to create a clean work environment with
BNI employees are prohibited from: integrity, and is in the form of active participation by BNI
a. Receiving rewards directly or indirectly in any form from employees who report violations that occur within the BNI
any party related to their duties and responsibilities. environment.
b. Collecting illegal payments in any form when carrying
out their duties for personal, group or other party IMPACT
interests.
c. Giving, promising or offering gifts directly or indirectly The impact of the social responsibility activities related to
in any form to civil servants or state administrators in fair operations is the creation of healthy business activities,
private that are relevant to transactions with BNI. was to significantly improve the operational and financial
d. Giving gifts, receptions or other facilities to work performance in 2018.
partners, colleagues, and customers according to the
prohibitions stipulated in the applicable legal provisions.
ANNUAL
REPORT 2018
SOCIAL RESPONSIBILITY IMPLEMENTATION

BASED ON SUSTAINABLE FINANCE CONCEPT
The implementation of Corporate Social

Responsibility (CSR) is not just a fulfillment
of regulations, but is also the company’s
responsibility to stakeholders. For this reason,
CSR policies refer to, and are in line with BNI’s
Mission and the Environment, Social and
Governance (ESG) aspects.
Corporate
In order to realize sustainable development and drive the BNI creates value for its five key stakeholders by applying
national economy that prioritizes the alignment of economic, sustainability pillars, both internally and externally. The values
social and environmental aspects, OJK issues provisions are manifested in the following forms:
to encourage economic, social and ecological values in 1. BNI For Indonesia: BNI’s activity to support sustainable
every policy making and business decision, through POJK development in Indonesia, through environmental
No.51/POJK.03/2017 dated July 18, 2017 concerning the conservation, social welfare improvements, and
Implementation of Sustainable Finance for Financial Services community economic empowerment, especially for BNI
Institutions, Issuers and Public Companies. partners.
2. BNI for Customers: BNI applies the concept of
POJK Regulation No. 51/POJK03/2017 July 27, 2017 responsible investment. We are fully aware that our
concerning the Implementation of Sustainable Finance investments must be managed with full responsibility.
for Financial Services Institutions, Issuers and Public For this reason, BNI has established mutually beneficial
Companies (“POJK Sustainable Finance”) stipulates that partnerships, while still paying attention to economic,
the implementation of sustainable finance for groups of social, and environmental aspects through the
Commercial Banks is based on Business Activities (BUKU) 3, application of good governance.
BUKU 4 and Banks Foreigners came into effect on January 1, 3. BNI for Employees: BNI’s commitment to providing a
2019. POJK Sustainable Finance was issued to support the proud workplace, capable of encouraging all employees
Sustainable Finance Roadmap prepared by the OJK and to to improve their performance and potential.
support the implementation of the Sustainable Development 4. BNI for the Community: As a State-Owned Enterprise
Goals (SDGs) through the financial industry and financial (SOE), and in accordance with the Company’s Mission,
institutions. BNI plays a role in social responsibility (CSR) that
empowers people and improves their lives.
BNI’s first action in implementing POJK 51 Sustainable 5. BNI for the Environment: We implemented the ‘BNI
Finance is the establishment of a Task Force Team to compile Go Green’ program to participate in environmental
the 2019 BNI Sustainable Financial Action Plan (RAKB). The conservation, and to create a love the environment
Task Force Team’s output is the RAKB document submitted to movement.
the OJK together with the submission of the Bank Business
Plan (RBB).
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ANNUAL
REPORT 2018

APPLICATION BASIC
The implementation of Corporate Social Responsibility (CSR) is not just a fulfillment of regulations, but is also the company’s
responsibility to stakeholders. For this reason, CSR policies refer to, and are in line with BNI’s Mission and the Environment,
Social and Governance (ESG) aspects. As well as referencing the Company’s Mission, BNI’s CSR program is guided by the
following regulations:
1. 2007 Law No. 40 concerning Limited Liability Companies.
2. Republic of Indonesia SOE Ministery Regulation No. PER-09/MBU/07/2015, dated July 3, 2015 concerning the SOE
Partnership Program and Community Development Program, revoking the Republic of Indonesia SOE Ministery
Regulation No. PER-07/MBU/05/2015 dated May 22, 2015, which was amended by Republic of Indonesia SOE Ministery
Regulation No. PER-03/MBU/12/2016, dated December 16, 2016 concerning Amendment to Republic of Indonesia
SOE Ministery Regulation No. PER-09/MBU/07/2015 dated July 3, 2015 concerning the SOE Partnership Program and
Community Development Program that was subsequently amended by the Republic of Indonesia SOE Ministery
Regulation No. PER-02/MBU/7/2017 dated July 5, 2017 concerning the Second Amendment to the Republic of Indonesia
SOE Ministery Regulation No. PER-09/MBU/07/2015 dated July 3, 2015 concerning the SOE Partnership Program and
Community Development Program. This SOE Ministerial Regulation was applied in 2017.
3. The Extraordinary General Meeting of Shareholders of PT Bank Negara Indonesia (Persero) Tbk (BNI EGMS) dated
November 9, 2015 determining that SOE Ministery Regulation No. PER-09/MBU/07/2015 July 3, 2015 will take effect in
2016.
4. Financial Services Authority Regulation Number 51/POJK.03/2017 dated July 18, 2017 concerning the Implementation of
Sustainable Finance for Financial Service Institutions, Issuers and Public Companies.
Corporate

MANAGEMENT STRUCTURE
Corporate social responsibility management related to social activities, especially for the Community Development Program, is
the task of the Corporate Communications and Secretariat Division, who is directly responsible to the President Director, while
the implementation of the Partnership Program since 2018 is the task of the Small Business 2 Division.
KMP Division’s Social Responsibility Management Structure
President Director
Corporate Secretary and

Communication Division
Corporate Communication and GCG Deputy Division Head Division

Investor Relations
CSR Deputy Division Head and Bureau of Directors
External Internal
Kelompok
Communication Communication Development Group
Komunikasi Internal
Group Group
Community Research Development and

Development Compliance Reporting Management
Management
Community and CSR Development

Programs Development Management
Small Business 2 Division Social Responsibility Management Structure
Small Business
Division Head
Small Business
Division Deputy Head
Organic Support
Group Head
Partnership
Credit Manager
ANNUAL
REPORT 2018

RELATED TO THE ENVIRONMENT
POLICY BNI’s eco-friendly lifestyle is generally divided into 4 (four)

main categories, namely:
The Financial Services Authority Regulation Number 51/ 1. Natural resource efficiency, being the behavior related to
POJK.03/2017 encouraged national banks, issuers and the use of resources efficiently and responsibly.
public companies to participate in Sustainable Finance 2. Environmental pollution prevention, being the
that prioritizes the alignment of Profit, People and Planet. mindset and behavior that prioritizes environmental
Especially for banks, their expected role is project financing sustainability.
policies that pay attention to the Social and Environmental 3. Non-carbon behavior, being the habit of preventing
aspects. the release of carbon emissions into the atmosphere,
aimed at reducing global warming and climate change.
Based on the Community Development (BL) and Corporate This behavior includes prioritizing the use of digital
Social Responsibility (CSR) guidelines in BNI’s Instruction technology, especially with regard to support for paper
No: IN/576/KMP/001 that became effective on October 17, waste reductions and energy saving.
2018, and replaced the Temporary Company Guidelines No. 4. Environment-friendly collegial relationships, being
IN/134/KMP/001 dated March 23, 2018, good environmental the orientation of friendship activities in the work
management and protection has become the Company’s environment to support environmental sustainability
commitment in carrying out its business. This has been efforts.
realized by making the Environment one of the main pillars in
the Company’s CSR activities. For the Company, conducting In addition, in terms of lending, BNI strictly adheres to the
environmental CSR activities is an obligation that is non- prevailing internal regulations of avoiding granting loans
negotiable. This is based on the Company’s awareness that to projects or businesses that could significantly endanger
the Environment is the main source of life. the environment. To fulfill this commitment, BNI currently
has Corporate Lending Guidelines for the Corporate
In an effort to create proper environmental management Banking Book I segment for customer credit risk analysis, as
and protection, BNI has compiled Eco-Friendly Lifestyle a reference for applying sustainable finance. The guideline
Guidelines for all BNI people, based on the 2009 Law No. 32 regulates loan requirements, one being that BNI requires an
concerning Environmental Protection and Management, a Environmental Management Effort (UKL / UPL) document and
Law that regulates the obligation for industries to protect / or Environmental Impact Analysis (AMDAL).
nature and the environment. In addition, these guidelines are
based on Republic of Indonesia’s Presidential Regulation No.
61 of 2011 concerning the National Action Plan for Reducing
Greenhouse Gas Emissions (Nap GHG).
The Company Guidelines are directions for changing lifestyles

to become eco-friendly, including daily work attitudes,
thoughts, and actions, by prioritizing behavior-oriented
patterns to maintain environmental and social sustainability
in BNI, both internally and externally.
Corporate
TARGET ACTIVITIES
The CSR target activities, related to the environment, were the effective implementation of
the Company’s Eco-Friendly Lifestyle Guidelines, and the Corporate Lending Guidelines for the
Corporate Banking Book I segment. The company also targeted the preparation of the 2019 BNI
Sustainable Financial Action Plan (RAKB).
ACTIVITIES

SOCIAL AND ENVIRONMENTAL LENDING ACTIVITIES
In its lending activities, so far BNI has implemented its Green Banking program. The Green
Banking concept covers financial institution activities that always prioritizes environmental
sustainability when running its business practices.BNI encourages its corporate borrowers in
the palm oil industry to implement environmentally friendly palm oil plantation management
practices. This is BNI’s support for Indonesia’s commitment to developing a sustainable palm
oil industry, as well as to prevent financial risks arising that may have an impact on social and
environmental aspects.
To mitigate any risks related to financing oil palm plantations, in 2018 BNI conducted a study
related to the environmental requirements, the social aspects of oil palm financing, and
included mapping the plantation areas to avoid overlapping with surrounding communities
and conservation areas. BNI also pays attention to borrowers’ historical legal violations, and if
any violations are found, BNI will verify with the relevant parties to minimize any lending to
borrowers who have violated regulations.
Green Loan Financing Portfolio
Maximum Credit Portfolio (Trillion Rupiah) 2018 2017 2016
Corporate Green Financing 83.382 57.646 21.570

Corporate Loans 219.532 188.026 174.073
Total BNI Loans (excluding comsumer loans) 359.552 314.764 286.087
Percentage Ratio 2018 2017 2016
Corporate / Corporate Loans Green Financing 37,98% 30,66% 12,39%

Corporate / Total Loans Green Financing 23,19% 18,31% 7,54%
BNI’s palm oil borrowers are required to be registered or certified with the Roundtable of
Sustainable Palm Oil (RSPO), or Indonesia Sustainable Palm Oil (ISPO). This requirement applies
to all corporate borrowers. Since 2017, BNI has been calculating the number of private corporate
oil palm borrowers.
ANNUAL
REPORT 2018
ENERGY AND WATER MANAGEMENT ACTIVITIES circulate through the mail application. Also, electronic
applications have replaced printed documents for employee
For energy and water management, the Company is leave requests, permits, lateness, attendance reports, etc., and
committed to conservation. BNI’s efforts to saving water and these also reduce the use of paper in all BNI operations.
energy in all work units in Indonesia includes the following:
1. Earth Hour 2018 was observed in all overseas and LET’S SAVE WASTE MOVEMENT ACTIVITIES
domestic Work Units. The Earth Hour program is a
global campaign initiated by World Wide Fun for Nature BNI implemented a financial inclusion program with a
(WWF), and invites individuals, communities, business business model that synergizes financial literacy in its
practitioners and governments throughout the world partnership business governance. One being the synergy
to take care of the climate changes caused by human of community-based waste management with BNI Pandai,
activities. One form of action is to turn off lights and BNI Simpanan Pelajar, and Agen46 technology services. This
electronic equipment for 1 hour, and this is done every synergy increases environmental awareness in the BNI supply
3rd Saturday throughout year. EH took place, for the chain.
first time in 2007 in Sydney, Australia and in Indonesia
in 2009. As BNI’s 4th mission statement is “to increase Through the “Let’s Save With Waste” Program, BNI provides
awareness and responsibility for the environment and waste bank administration systems that are connected to the
the community”, BNI has actively participated in EH Agent 46 banking system. Transaction recording, previously
since 2010 to help reduce the impact of climate change done manually, is now recorded in the BNI banking system
through energy-saving campaigns. BNI’s EH activities in real time. This system replaced the manual records that
include turning off lights and electrical equipment that were more susceptible to human error, and also promotes
are not needed in all branch offices in Indonesia and accountability of waste banks in front of each of their
overseas, except those related to ATMs and banking customers.
operational systems.
2. Energy savings by replacing conventional lamps with Residents who collect waste can bring it to the Agen46
LED type lamps with lower wattage, longer lifetime and Waste Bank where it is weighed and converted into a rupiah
higher light intensity; value, which is then deposited directly into the customer’s
3. Limiting business travel and replacing it with BNI Pandai and BNI Simpanan Pelajar account. In addition
teleconferences; to waste saving transactions, Agen46 also handles other
4. Periodic vehicle maintenance and repairs to optimize transaction services, such as electricity vouchers, telephone,
engine performance, making them more efficient and BPJS payments for their customers. By the end of 2018,
in energy use, and with emissions that meet quality the “Let’s Save With Waste” program had been implemented
standards. throughout the Jakarta region, with over 250 schools, 150
5. Constructing new BNI buildings with a green concept waste banks, and 159,622 customers in the West and East
by turning off lights outside working hours, and Jakarta areas.
disseminating green behavior or Green Attitude.
QUANTITATIVE IMPACT
PAPERLESS BANKING ACTIVITIES THROUGH E-OFFICE
QUANTITATIVE IMPACT OF SOCIAL AND ENVIRONMENTAL
BNI”s environmentally friendly paper reduction strategy LENDING ACTIVITIES
adopts a paperless office concept. This concept minimizes
the use of paper by replacing printed and correspondence The Company’s contribution includes environmentally
documents into a digital format. friendly business practices, through socially and
environmentally sound lending programs. This was evidenced
The paperless office concept has been adopted through the by the certified RSPO and/or ISPO 41 borrowers increasing
BNI Forum as the bank’s operational communication media, from 13 in 2017 to 32 in 2018.
with ePP as a digital company regulation repository, and an
e-office platform innovation for BNI’s internal correspondence
and employee attendance. As the digital era increases, BNI’s
mailing applications for internal notes, memos, attachments,
and disposition messages are distributed digitally to
recipients
The mailing applications has been applied in all BNI Divisions
/ Units and Regions, from the Directors to all employees.
Currently, over 100,000 documents and 600,000 dispositions
Corporate
QUANTITATIVE IMPACT OF ENERGY AND WATER SAVING ACTIVITIES
As a result of the Earth Hour program, BNI’s savings in electricity consumption in 2018 in all its offices, including BNI’s Head
Office, branch outlets and credit centers throughout Indonesia, as well as five overseas branches, amounted to 8.001.259 KWh.
This energy savings was carried out without disrupting service to customers as all ATM machines still functioned.
QUANTITATIVE IMPACT OF PAPERLESS BANKING ACTIVITIES THROUGH E-OFFICE
To reduce the cost of document printing and delivery, as well as to speed up the company’s processes, BNI has developed
BNI e-PP. This technology prepares systematic policies, and guidelines for SOP preparation and updating that are presented
online for conducting business activities and banking operations. Since its implementation in 2018, BNI managed to record
savings of Rp24.84 billion covering all employees. In addition, paper savings for customer transactions has also been enhanced
through e-billing. Up to 2018, e-billing has reduced paper costs by Rp71,703.12 million through the use of 322,821 2 in 1 billing
envelopes.
QUANTITATIVE IMPACT OF LET’S SAVE WASTE MOVEMENT ACTIVITIES
The let’s save with waste movement program is aimed at increasing public awareness for the surrounding environment so
as to reduce waste. This activity also increases the community’s knowledge and skills regarding financial inclusion, and helps
improve financial well-being.
The savings table go with rubbish

Year Region NOA (Number of Account) Tonnage Omzet BSI Description
2017 West Jakarta 4,622 395 Ton 1,5 billion

2018 West Jakarta 33,578 1,457 Ton 3,5 billion
East Jakarta - 608 Ton 1,3 billion Not yet activated
North Jakarta 111,378 - - Socialization started at the end of 2018
As well as the number of acquisitions above, the Let’s Save With Trash Program was included in the BNI RAKB with the title
“FIRST MOVER” and during 2018 received two awards from OJK in the category:
1. The best innovation
2. Amount of accounts opens
Looking at the big picture, it is hoped that in the future this program will help regional offices and branches acquire larger
numbers of accounts and Agen 46.
ANNUAL
REPORT 2018
ENVIRONMENTAL CERTIFICATION
GREEN BUILDING CERTIFICATION
BNI’s concern for environmental sustainability can be seen in its green buildings, which are designed to be environmentally
friendly and energy efficient, and include Plaza BNI BSD which has received platinum certification from the Green Building
Council Indonesia (GBCI), and Tower BNI Pejompongan, which is currently in the process of obtaining gold certification.
In an attempt by BNI to realize certified green buildings, it has involved several employees in the green building expert
certification programs organized by the Green Building Council Indonesia (GBCI), both for Greenship Associate (GA) and
Greenship Professional (GP). Currently there are 14 (fourteen) BNI employees from Procurement and Fixed Asset (PFA) and
Network Management (NM) who have received Greenship certification.
ENVIRONMENT COMPLAINTS MECHANISM
To realize its concern for the environment in the operational areas, BNI’s Corporate Communication and Secretariat Division
has a complaint mechanism to manage Corporate complaints, especially those related to the environment that involve BNI
borrowers. In 2018, there was one (1) complaint that was followed up.
Corporate

RELATED TO EMPLOYMENT,
OCCUPATIONAL HEALTH AND SAFETY
Human resources are BNI assets for carrying out its activities EMPLOYMENT
and services for all customers and partners. As a State-Owned
Enterprise (SOE), and a public company, it strives to comply EMPLOYMENT ACTIVITIES
with all applicable laws and regulations, especially those in
the fields of employment, Health and Safety. In addition, BNI FRIENDLY WORKING ENVIRONMENT FOR WOMEN
also pays high attention and commitment in terms of gender BNI guarantees that all employees will always be treated
equality and employment opportunities, job training to equally irrespective of gender, and this is prioritized in its
improve employee professionalism, commensurate reward human resource management policy.
systems, and healthy and safe working conditions for all BNI
employees. The majority of employees are women making up 52% of the
total workforce, and BNI has launched a program specifically
POLICY aimed at female employees. The program includes Women ‘s
Day that aims to increase women’s health quality awareness
BNI provides opportunities, facilities and infrastructure for through seminars, health checks and HPV vaccinations. For
employees to meet their potential, while the employees mothers daycare is also provided where they can entrust
also play an active role in improving their performance and their children during work time, and breast-feeding rooms for
competencies. BNI conducts its Human capital management nursing mothers, and also a Nursery Room to provide space
through increasing engagement on a number of aspects for babies or toddlers at BNI’s head office.
based on Human Capital Architecture (HC Architecture).
WORK OPPORTUNITIES FOR PEOPLE WITH DISABILITIES
TARGET ACTIVITIES To proved equality of rights and employment opportunities
for people with disabilities, and to improve their welfare,
As a Company asset, the focus has always been on the Government has issued a number of regulations related
Employment, Occupational Health and Safety for all to disabilities, including the 1997 Law No. 4 concerning the
employees, and BNI has continuously created safe and obligation to employ people with disabilities, and PP No. 43
comfortable working environments to support performance in 1998. To comply with these regulations, BNI has opened
improvement achievements. To that end, BNI is committed up employment opportunities for people with disabilities.
to creating a healthy work environment, free from injury, Until 2018, there were 23 employees with disabilities.
where operational activities are conducted in accordance In the coming years, the Company plans to increase the
with applicable rules. Employees are also facilitated with employment opportunities for people with disabilities in line
several activities that are expected to generate awareness with its preparation of supporting facilities for employees
and motivation in maintaining their health, so that each with special needs.
employee can increase their productivity.
ANNUAL
REPORT 2018
Equality work PENSION PROGRAM

Human resource management policy in BNI ensure that BNI provided employees with a Pension Fund Health
all employees be treated without considering gender Fund Program (DKMP). This DKMP program forms of
equal. Human resources management in BNI has based, moral obligation to ensure that employees continue to
competence BNI so as to ensure that all employees get receive health facilities after retirement by preparing
equivalent opportunities for career development. BNI them now, while they are still active employees.
corporate university in central grant each care of its
employees opportunities to learn and gain knowledge of In addition, BNI also conducts training specifically aimed
applied who , as well as give occasion to grow through at employees entering the pre-retirement period, aimed
performance was good and that give contribution for at preparing them with health, finance, and psychology
the attainment of the performance of the business of a material.
bank. The competence of the entire program conducted
by BNI corporate university determined by the Banks IMPACT OF EMPLOYMENT ACTIVITIES
and employees with regard to gender equality and equal
opportunity for all organization level. The 2018 Employment activities impact is reflected in the
employee turnover rate and the employee engagement
FREEDOM OF ASSOCIATION as follows.
Creating harmonious industrial relations with the Trade
Unions, as the employees’ representatives, has always EMPLOYEE TURNOVER RATE
been Bank top priority. The employee unions are actively The turnover rate in 2018 was 4.76%, which is considered
involved in the process of preparing human resource a healthy turnover, and is still below the national banking
management policies through co-creation activities. In industry turnover average.
addition, there are also partnership forum activities as a
means for employees to express their aspirations to the EMPLOYEE ENGAGEMENT
company. During 2018, 33 partnership forum meetings For BNI, employees are an important priority for
were held. improving its business performance, and so to gain
feedback, and to understand the work environment
REMUNERATION conditions, employee satisfaction surveys are conducted.
The Company’s remuneration system policy is guided Based on the 2018 employee engagement survey, the
by the concept For More Benefit We Go, and in line with level of employee engagement was 88%, up 5.17%
this concept, BNI has launched a flexible benefit program compared 82.83% to 2017. Based on an engagement
as one of its benefit-giving programs. In addition, survey conducted by AON Hewitt, the engagement
BNI always ensures that its remuneration system is in results for BNI employees were above the Global average
accordance with applicable regulations, and also strives of 83% and Indonesia’s average of 76%.
to provide competitive remuneration in accordance with
the industry rates. The ratio of the highest and lowest
salaries during 2018 were as follows:
Highest and Lowest Salary Ratio

Description Rasio
Highest and lowest employee salaries 40.9:1

Highest and lowest Director salary 1.2:1
Highest and lowest Commissioner Salary 1,1:1
Highest Director salary and highest 2.4:1
employee salary
Corporate
EMPLOYEE HEALTH To create a decent workplace, the Company has gradually

changed and adjusted the working environment to
EMPLOYEE HEALTH FACILITIES ACTIVITIES become more ergonomic and comfortable for employees.
These changes included, providing daycare facilities in the
BNI very concerned about its employees’ welfare and workplace to entrust their children during working hours,
health, so provides its employees and their family members and for mothers who are breastfeeding, special rooms and
with comprehensive health facilities, including BPJS, BPJS storage are provided. For maintaining fitness, a Gym Center is
Employment and other private insurance. The health policy is provided with complete equipment and varied sports classes.
intended to ensure that employees’ health remains prime, so To encourage comfort in the workspace, BNI is moving
as to bring a positive impact on employees and their families towards a structuring concept of an open working space.
as individuals, which ultimately is expected to have an impact This concept emphasizes open workspaces that facilitate
on improved productivity. collaboration between employees, and are currently being
used in Plaza BNI, Graha BNI and Menara BNI.
QUANTITATIVE IMPACT OF EMPLOYEE HEALTH FACILITIES
ACTIVITIES MPACT OF EMPLOYEE WORK SAFETY ACTIVITIES
All health facilities provided by the Company to its employees In 2018, the Company did not record any zero accidents in its
impacts employee productivity levels, or Earnings per operational activities at its Head Office or Branch / Regional
Employee (EPE). The productivity level achieved in 2018 was Offices, showing that the work safety efforts made have been
Rp529 million/employee, an increase of 13% compared to effective.
2017. In line with the target achievement, the human capital
allocation realized is considered capable of maintaining BNI’s EMPLOYMENT COMPLAINTS MECHANISM
productivity level to remain competitive in achieving its
optimal targets. To realize its concern for its employees, the Company has a
complaints mechanism, handled by the Human Capital (HCT)
EMPLOYEE SAFETY Division. The employee complaint handling mechanism is as
follows:
EMPLOYEE WORK SAFETY ACTIVITIES 1. Employees deliver complaints to their immediate
Superiors for settlement by consensus.
BNI always pays attention to providing a safe working 2. If a solution cannot be reached, complaints can be
environment for all employees. This has been realized passed to a higher level.
through earthquake resistant building construction, alarm 3. If it still cannot be resolved, employees can submit
systems and standardized fire extinguishers. These facilities complaints to the Trade Union Management for joint
have undertaken a building safety audit. discussions at the different levels.
4. All employees, their superiors and the Trade Union will
To ensure the effectiveness of the work safety, the Company look for solutions to avoid industrial disputes.
has equipped all of its operational offices with work safety
devices such as Fire Extinguishers, Smoke Detectors, Diesel
Pumps, and Emergency Ladders.
In addition, the Company has a fire situation/evacuation plan,

fire safety operational procedures in the employee rooms,
and on every floor of the building, so that all employees
are well educated. In terms of worker safety learning, the
Company has sent employees for training “AK3U Coaching
and Certification of Public Occupational Health and Safety”
held by BPJS Health in collaboration with PT Surveyor
Indonesia (Persero) and the Republic of Indonesia Ministry of
Manpower and Transmigration.
ANNUAL
REPORT 2018

RELATED TO SOCIAL COMMUNITY
DEVELOPMENT
POLICY
CSR related to social and community responsibility for SOE companies is conducted through the
Partnership and Community Development Programs (PKBL).
The PKBL is regulated by Ministry of SOEs Regulations, including:
No. PER-08/MBU/2013 dated September 10, 2013 concerning the State-Owned Enterprise
Partnership Program with Small Business and Community Development Program;
No. PER-09/MBU/07/2015 dated July 3, 2015 concerning BUMN Partnership Program with Small
Business and Community Development Program;
No. PER-03/MBU/12/2016 dated December 16, 2016 concerning Amendments to No. PER-09/
MBU/07/2015; and
No. PER-02/MBU/7/2017 dated July 5, 2017 concerning the Second Amendment to No. PER-09/
MBU/07/2015.
TARGET ACTIVITIES
As an SOE with the obligation to conduct programs in the form of partnerships with the community,
as well as community development to improve the welfare of the Indonesian people, Bank
endeavors to empower the community and to encourage populist economic growth through the
distribution of grants and soft loans.
The PKBL program is conducted in a planned, precise, transparent and sustainable manner so that
BNI plays a role in improving the quality of life for the Indonesian people, as well as their equitable
development, through the expansion of employment opportunities and business opportunities.
In 2018 BNI activities were divided into 2 (two) main programs, including:
1. BNI Initiation, being activities based on BNI’s thematic initiations associated with SDGs and
Nawacita. BNI initiation activities are also based on proposals from stakeholders.
2. National Support, being activities based on government initiatives, as the main stakeholder.
These two main programs are called BNI Berbagi and BNI GoGreen and had a 2018 distribution
target of Rp125 billion.
Corporate
ACTIVITIES
POST DISASTER ASSISTANCE ACTIVITIES BNI’s KUR distribution for Social Forestry to 3,170 recipients
amounted to Rp18.8 billion.
HUNTARA
HUNTARA are temporary shelters used to transit refugees The KUR distribution in East Java has demonstrated its
from tents to permanent housing and relocation to success, especially in LMDH Wono Lestari in Lumajang, East
completed settlements. BNI acted as a development Java, where the recipients have successfully in developed
coordinator for 700 HUNTARA units for victims of the Lombok businesses related to cow’s milk, banana, honey, gum resin,
earthquake and 400 units for earthquake victims in Sigi, and processing milk into high-value products.
Central Sulawesi.
Tabel bantuan Perhutanan Sosial Tahun 2018
RUKANTARA Location Cost (Million Form of Assistance
RUKANTARA are temporary learning classrooms for Rupiah)
elementary and middle school students affected by the
Malang 46,000,000 perajang porang Mechine
earthquake in Palu. BNI built 18 (eighteen) RUKANTARA units,
including 4 (four) units in Sigi Regency, 10 units in Palu City Bojonegoro 88,450,000 Tractor, Machine Corn Sheller
and 4 (four) units in Donggala Regency. Tuban 334,895,000 Water Pump Machine, Tractor,
Library
COMMUNITY EMPOWERMENT ACTIVITIES Bandung 132,000,000 Sheller Coffee Machine
Indramayu 125,749,550 Water Pump Machine, a Net
SOCIAL FORESTRY and Arat Knit
Social Forestry aims to prosper communities in areas around Cianjur 30,900,000 Chainsaw, a Lawn Mower, a
forests whilst still preserving the function of the forests. Hoe
This program will provide benefits to the surrounding Palembang 125,000,000 Hand Tractor
communities so that they can receive a better and more Lumajang 496,000,000 Comhouse Communal, PKT
definite additional income. It includes certainty regarding Roadwork
the location of arable land and the period of rights to work, Total 1,378,994,550
farmers’ access to KUR funding sources from banks, market
certainty or uptake of production, intensive guidance from VILLAGE BUSINESS ENTERPRISES (BUMDES)
the relevant Departments and banks, the opportunity to get As a demonstration of BNI’s ongoing service to remote
saprotan subsidies, and ownership of more economical land areas, BNI provides assistance to Village-Owned Enterprises
management areas (2 hectares per person). (BUMDes) in rural areas. The assistance provides cooperative
pilot business stimulus, with BUMDes as a referral agent and
After receiving the decree, the status of the farmers became for KUR collection, with the BUMDes conducting banking
clearer, and highlighted those farmers that deserved access product service activities through the Agen46 for the village
to cheap capital from banks. For this reason, BNI pays special communities.
attention to channeling KUR.
In addition, BNI has also conducted Tax Payer training for 125
In addition to providing a total of Rp1.6 billion as BUMDes in Bali on January 22-23, 2018, with other training
forestry community capital through its KUR and Kartu including:
Tani programs, BNI also provides tractors, corn shellers, 1. Training for agricultural business development insight
cultivators, water pumps, drilled wells, drainage repairs and and derivatives processing in Mesuji and Garut.
road strengthening. BNI is also strengthening community 2. Training BUMDes in processed product for export in 250
institutions by establishing BUMDES and business units to BUMDes in Surabaya.
support the social forestry programs successful cultivation. 3. Training on the use of waste in 350 BUMDes in Madiun,
Malang and the surrounding areas.
Between April 2017 until the end of 2018, BNI carried out 4. Creating a BUMDes Institute together with 300 BUMDes
this program in Probolinggo, Madiun, Tuban, Tulungagung, from West Sumatra at BNI Corporate University.
Malang, Bojonegoro, Jember, Bandung and Palembang.
To date, BNI has assisted 8,998 BUMDes with 4,278 BUMDes
In addition to the Social Forestry in Sumatra and West Java, being piloted by BNI. In 2019, the BUMDes mentoring and
BNI is also active in East Java, where as of December 31, 2018, training target has been set to reach 15,000 BUMDes.
ANNUAL
REPORT 2018
INFRASTRUCTURE DEVELOPMENT
SDuring 2018, BNI assisted in community infrastructure development, in an in-kind or pro-bono manner. With this
infrastructure, it is expected that community access to economic activities will be more open, and will improve public health
levels, resulting in improved community welfare. On the other hand, infrastructure development can also have a negative
impact if the community cannot use it productively and cannot maintain its existence. Likewise, if there are groups of people
who have not received assistance, social jealousy is very possible. To overcome these negative impacts, BNI conducts social
mapping first, before providing assistance to the community.
Infrastructure Development Assistance in 2018

Uraian Sifat Bantuan Wilayah Nominal
(ribuan rupiah)
Bridge Assistance - Desa Sidorejo in Klaten pro-bono Central Java 163,844

Bridge Assistance - Mandrajaya in Sukabumi pro-bono West Java 834,141
Bridge Assistance - SDN Inauga in Timika pro-bono Papua 10,094
Bridge construction - Desa Tanjung Agung di Lubuklinggau pro-bono South Sumatra 319,068
Bridge construction - Desa Lam Kling di Aceh Besar pro-bono Nanggroe Aceh D. 793,427
Bridge construction - SD Al Hidayah di Jember pro-bono East Java 100,000
Bridge construction - Desa Srikandang di Jepara pro-bono Central Java 286,366
Bridge construction - Dusun Kunir, Banyuwangi pro-bono East Java 100,000
Bridge construction - Desa Kebon Kopi, lebak pro-bono Banten 162,624
Bridge construction - Desa Genaharjo di Tuban pro-bono East Java 417,664
Bridge construction - Uepai Kabupaten Konawe pro-bono Southeast Sulawesi 398,400
Bridge construction - Gombengsari pro-bono East Java 84,125
TOTAL 3.669.752
Corporate
PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES (PKBL)
PARTNERSHIP PROGRAM
Since 2018, the Small Business Division has carried out the BNI Partnership Program. This program is channeled in the form of
soft loans to assisted partners and only charges administrative services at 3% per year from the loan limit. It is channeled in the
form of:
1. Working capital loans to enable the purchase of fixed assets to increase production and sales;
2. Special loans to finance the funding requirements for assisted partners business activities, in the form of additional and
short-term loans to fulfill orders from business partners of the assisted partners;
3. Guidance Expenses:
a. To finance education, training, apprenticeships, marketing, promotions, and other matters relating to increasing the
assisted partners productivity as well as for studies / research related to the Partnership Program;
b. Guidance expenses are grants, up to a maximum of 20% of the Partnership Program funds disbursed in the current
year;
c. Guidance expenses can only be disbursed to or for the benefit of the assisted partners.
BNI assisted partners are micro entrepreneurs who are not familiar with banking technicalities due of limited access to banking
loans. Micro businesses are engaged in various formal and non-formal economic sectors, but have a strategic role to play in the
real sector economy, and it has been proven that the micro segment is relatively more resilient in times of economic crisis. BNI
assisted partners are expected to increase their business activities, business capital, entrepreneurial spirit, access to banking,
business administration, product quality and marketing reach.
The BNI Partnership Program distribution in 2018 is shown below:
Based on Economic Sector

Economic Sector Distribution Realization Total Partners
Industri Pengolahan 1,520,000,000.00 49

Jasa-jasa Dunia Usaha 492,000,000.00 13
Jasa-jasa Sosial Masyarakat 936,000,000.00 22
Listrik, Gas, & Air 30,000,000.00 1
Perdagangan, Restoran, & Hotel 8,110,000,000.00 256
Pertambangan 1,950,000,000.00 27
Pertanian, Perburuan, & Sarana Pertanian 91,452,059,347.00 1,271
Grand Total 104,490,059,347.00 1,639
ANNUAL
REPORT 2018
Based on BNI Regional Office

No Region Target (million Distribution (million Proportion of Target
rupiah) rupiah) %
1 Region 1. Medan 7,500 2,142 28.56%

2 Region 2. Padang 7,500 50 0.67%
3 Region 3. Palembang 10,500 6,158 58.65%
4 Region 4. Bandung 7,500 2,610 34.80%

5 Region 5. Semarang 7,500 1,985 26.47%
6 Region 6. Surabaya 12,000 10,848 90.40%
7 Region 7. Makassar 7,500 46 0.61%
8 Region 8. Denpasar 7,500 665 8.87%
9 Region 9. Banjarmasin 7,500 205 2.73%
10 Region 10. Jakarta Senayan 1,000 675 67.50%
11 Region 11. Manado 2,500 25 1.00%
12 Region 12. Jakarta Kota 1,000 1,280 128.00%
14 Region 14. Jakarta Bsd 1,000 1,075 107.50%
15 Region 15. Jakarta Kemayoran 1,000 1,185 118.50%
16 Region 16. Papua 1,000 - 0.00%

17 Region 17. Yogyakarta 5,000 305 6.10%
18 Region.18. Malang 12,500 75,236 601.88%
Grand Total 100,000 104,490 104.49%
Corporate
Another Partnership Program is as a development agent that EDUCATION AND / OR TRAINING

helps the Government through its social assistance agents The Education and Training activities included assistance
(Bansos). The program includes: Family Hope Program (PKH), school computers through Yayasan Ardhya Garini in Jakarta,
Non-Cash Food Aid (BPNT). the construction of Pesantren Modern Internasional Dea
Malela in Sumbawa, the Capacity Building Program for
Bansos Agent Performance Indonesian Migrant Workers in Hong Kong, Singapore and
Description PKH BPNT Malaysia, the UMKM Training Programs at SOE Creative
Houses throughout Indonesia, the construction or repair of
educational facilities including school buildings, libraries or
Number of Beneficiary Groups (people) 4.226.542 6.385.666
reading parks.
Number of Cities / Regencies 469 107
Number of Distributor Branches 200 108 HEALTH IMPROVEMENT
The Health Improvement activities included ambulance
The Bansos Agency’s performance has an impact on assistance for hospitals in Banten, DKI Jakarta, East Java,
increasing financial literacy. West Java, Central Java, Lampung, North Sulawesi, North
Sumatra, West Sumatra, South Sumatra, and Bali, cataract
Realization of the Partnership Program Fund as of December 2018 eye surgery in Morotai, Cikarang and Bali, and free treatment
programs in Lombok, Palu and DKI Jakarta.
Rp104.49
billion
PUBLIC INFRASTRUCTURE AND DEVELOPMENT
The Public Infrastructure and Development activities
included assistance with agricultural facilities in Lampung,
Rp71 Lumajang, Indramayu, and Bali, help with clean water and
billion toilet facilities in Tangerang, Surabaya, Muaro Jambi, Serang,
Rp58 Cibinong, Pacitan and Buol. Bridge construction in Banten,
billion East Java, Central Java, West Java, Aceh, South Sumatra, West
Sumatra and Southeast Sulawesi, and market development
in Central and East Java, concrete roads in Ogan Baru, Musi
Rawas, Banyuwangi, Palembang, Jepara, Merauke and
others.
WORSHIPPING FACILITIES
The Worship Facilities activities included the construction/
repair of worship facilities for all religious communities in a
number of regions in Indonesia, and providing Korans for
Islamic Boarding Schools in Jakarta, Tasikmalaya and Garut.
2016 2017 2018
ENVIRONMENTAL CONSERVATION
The environmental conservation activities included
COMMUNITY DEVELOPMENT PROGRAM providing garbage bins and garbage collection vehicles
The Corporate Communication and Secretariat Division, in Bandung, Kuningan, Cilacap, Jepara, and Banyuwangi.
under the direct supervision of the President Director, Rehabilitation of Organic Forests in West Java, and Nature
carries out the Community Development Activities in BNI. Conservation Programs in Citarum, and BNI Smart Parks
The Community Development activities implemented in maintenance in Jakarta and Mojokerto, and also the
2018 included. Greening Program in Semarang, Bandung, Purwakarta,
Magelang and Jakarta.
NATURAL DISASTER PROGRAM ASSISTANCE
The Natural Disaster activities included emergency response
assistance in the form of basic food packages, refugee tents,
public kitchens, health checks, public toilets and trauma
healing activities in a number of regions in Indonesia.
Construction of Temporary Shelter (HUNTARA) and
Temporary Classrooms (RUKANTARA) for victims of natural
disasters in Central Sulawesi and Banten.
ANNUAL
REPORT 2018
POVERTY ERADICATION
The Poverty Eradication activities included Home Surgery Programs for Veterans, Former Athletes and Retirees, donations
to orphans, cheap markets, and assistance with basic food packages in a number of regions in Indonesia. Also they included
agricultural and fishery facilities assistance in Indramayu, Banyuwangi, Bojonegoro, Tuban, Central Aceh and others, and
Community Empowerment Programs in Aceh, Bengkulu and Indramayu.
IMPACT OF ACTIVITIES
IMPACT OF POST DISASTER ASSISTANCE ACTIVITIES
The construction of Huntara (Temporary Shelters) and Rukantara (Temporary Classrooms) by BNI in disaster areas had a
positive impact on residents who were victims of the Lombok and Palu earthquakes. The Huntara shelters were used as transit
points for refugees from tents to permanent housing and relocation to completed settlements. Rukantara were used by
students in the earthquake areas so that they could still get teaching and learning activities even in an emergency.
IMPACT OF COMMUNITY EMPOWERMENT ACTIVITIES
Community empowerment activities conducted by BNI during 2017 had an impact by increasing community capacity and
independence. Infrastructure development had an impact by opening up access to economic activities, as well as improved
health levels, which in turn improved the community welfare. Social Forestry activities had an impact on the welfare of
communities in areas surrounding the forests, whilst still maintaining the forests sustainability.
IMPACT OF PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES (PKBL)
The Partnership and Community Development Program conducted by the Company impacted several aspects of the assisted
partners lives, including improving the surrounding community’s economic empowerment, alleviating poverty, and improving
the environment in the target areas.
COSTS INCURRED
By the end of 2018, Partnership Program lending reached Rp104.49 billion, classified with a ‘good’ category, and with non-
performing loans (NPLs) amounting to 0.8 %. In 2018, the distribution target amounted to Rp100 billion, including those
carried out in collaboration with other parties.
The costs of environmental development activities carried out by the Company in 2018 amounted to Rp115,438,383,424.
Details of the community development distribution costs are as follows.
Tabel Rincian Program dan Kegiatan Bina Lingkungan Tahun 2018 (dalam miliar Rupiah)
Bidang Bantuan Biaya Pelaksanaan
Bantuan Korban Bencana Alam 4,61

Bantuan Pendidikan dan Pelatihan 41,38
Bantuan Peningkatan Kesehatan 10,37
Bantuan Pengembangan Prasarana dan Sarana Umum 18,78
Bantuan Sarana Ibadah 24,55
Bantuan Pelestarian Alam 2,34
Bantuan Pengentasan Kemiskinan 13,41
SOCIAL COMMUNITY COMPLAINTS MECHANISMS
To fulfill the obligation to conduct a partnership program with the community, as well as community development for
improving community welfare, BNI provides a complaints mechanism through the Corporate Secretary and Communications
Division for managing complaints.
Corporate

RELATED TO CONSUMERS
ANNUAL
REPORT 2018
POLICY
Pursuant to OJK Circular Letter (SE OJK) No. 2/SEOJK.07/214 and updated through OJK (SE OJK) No. 17/POJK.07/2018, BNI
must provide information on resolving customer complaints through telephone, e-mail, letter or short message (SMS). If the
customer feels that the resolution solution provided by BNI does not meet expectations, then the customer can continue the
complaint resolution process through an Alternative Dispute Settlement Institution whose name is contained in the Financial
Services Authority List of Alternative Dispute Settlement Institutions.
TARGET ACTIVITIES
The Bank target is to meet consumer expectations, one being through grievances or complaints handling that can be resolved
in accordance with a standard level agreement. In accordance with OJK Regulations No. 2/ SEOJK.07/214 and POJK No. 18/
POJK.07/2018, written complaints must be settled within 20 (twenty) working days, and under certain conditions can be
extended for a further 20 (twenty) working days. For customer satisfaction, the Company always strives to ensure the security
of every product and feature offered / launched to consumers.
ACTIVITIES
CONSUMER RELATED SOCIAL RESPONSIBILITY ACTIVITIES
ATMs FOR PEOPLE WITH DISABILITIES

BNI has one ATM machine for people with disabilities located in Fatmawati, especially for wheelchair users. This ATM has
wheelchair access to the ATM gallery, an automatic ATM entrance, non-slip iron flooring under the ATM machine when
accessed by wheelchairs, with a lower ATM machine than other ATMs. These specifications facilitate wheelchair users.
In addition, BNI also has 19 ATM Disabilitas Netra machines located in the Jabodetabek area that are placed in hospitals, Branch
Offices and Office Buildings. Their features include ‘inquiry’ and ‘withdrawal’ with a ‘fast cash’ menu. These Special ATMs form
part of BNI’s efforts to support people with disabilities.
PRODUCT SECURITY
100% of the products and features launched by BNI have been evaluated for security after passing a post implementation
review (PIR) conducted by the Compliance Division, Bank Risk Management Division and Technology Division. If the PIR results
comply with the operational, technological and risk aspects, the product description is submitted to Bank Indonesia and the
Financial Services Authority to obtain approval before being released to the general public.
Corporate
IMPACT OF CONSUMER RELATED SOCIAL RESPONSIBILITY ACTIVITIES
Activities related to consumer responsibility, especially customer complaints handling and resolution have been carried out
effectively, as shown through the customer satisfaction surveys carried out routinely. Between 2011 and 2017, BNI conducted
five customer satisfaction surveys (CSS), annually in 2011, 2012, 2013 and starting in 2015 every 2 years. Compared to 4.05 in
2017, meaning the result was very good.
CUSTOMER COMPLAINT REPORTING AND SETTLEMENT PROCEDURE

The BNI Contact Center acts as a BNI frontline in providing services for BNI customers, always providing the best service,
including customer complaint settlement for both for banking and credit cards services. BNI customers have easy access to the
complaints services through various media choices, both oral and written.
Complaints Submission Media
The BNI Contact Center is supported by an integrated Online Request Management complaint handling application so that
the customer complaints receipt and settlement process can be handled by the application simplifying settlement status
monitoring.
ANNUAL
REPORT 2018
Customer verbal complaint settlement solutions are made within a maximum of 5 (five) working days *), and written
complaints within a maximum of 20 (twenty) working days. If supporting documents are needed for the verbal customer
complaints, BNI will ask the customer to submit the complaint in writing. Under certain conditions, the document requirement
and complaint settlement can be extended for a further 20 (twenty) working days based on POJK Number 1/POJK.07/2013, as
updated by POJK Number 18/POJK.07/2018 *) concerning Consumer Complaint Services in the Financial Services Sector. An
extension of the complaint settlement period is notified in writing to the customer.
Based on OJK Circular Letter (SE OJK) No. 2/SEOJK.07/2014, as updated by OJK Circular Letter (SE OJK) No. 17/SEOJK.07/2018,
BNI will provide information on customer complaint settlement via the telephone, e-mail, mail or short messages service
(SMS). If the customer feels that the settlement solution provided by BNI does not meet their expectations, then they can
continue the complaint settlement process through any Institution on the Financial Services Authority’s List of Alternative
Dispute Settlement Institutions.
Corporate
In 2018 the BNI Contact Center is backed up by BNI Smart Kios through a Video Contact Center service for opening accounts
through Digital Branches, as well as BNI Social Media for information requests and complaints, enabling the BNI Contact Center
to serve all customers through non-branch channels. With the spirit of “BNItuDigital”, and to always provide the best customer
service, the BNI Contact Center launched a BNI Call Application service, the first Contact Center banking application in
Indonesia based on Artificial Intelligence (AI), equipped with Voice Command features and Natural Language Processing (NLP).
The BNI Call application makes it easier for customers and non-customers, using Android and iOS devices, to find information
on BNI products and services, as well as the latest general information. In addition, through the BNI Call Application, customers
and non-customers can find out information and services from BNI Call officers via chat. The BNI Call application provides
a new experience and adds channel alternatives so customers are given a variety of choices with ease and convenience of
access, increasing customer satisfaction with BNI Call 1500046 services.
The BNI Contact Center is a point of contact for BNI customers through “voice of customers” where they can provide insights
for the business units for enhancing products, features and services to customers. It includes feedback for business / product
owners regarding customer complaints; monitors Service Level Agreements (SLA) complaints settlement; changes to internal
regulations if there are changes in legislation, and improvements to the customer complaint handling application for Online
Request Management.
If the customer feels the solution provided by BNI is still unsuitable, the customer can continue the complaint settlement
process through Bank Indonesia, Financial Services Authority mediation services, or through Alternative Dispute Settlement
Institution.
Customer Complaints Data Based on Media

Media Complaint 2018 2017 2016
Banking Credit Card Banking Credit Card Banking Credit Card
Mass Media (Newspapers) 1 7 6 2 - 5

Electronic Media (Online) 70 43 16 24 4 16
Social Media 4,048 43 334 104 82 50

Letter/Fax 17 15 13 34 - 32
Email 3,145 1,235 3,780 1,315 - 1.709
Telephone/Branch 563,937 68,113 376,297 74,070 190,023 66,423
Others 264 83 146 52 - 358
TOTAL 571,482 69,539 380,592 75,601 190,109 68,593
Settlement of Customer complaints

Type of 2018 2017
Complaint
Total In % Settled % Total In % Settled %
Progress Progress
Banking 571,482 10,526 1.84% 560,956 98.16% 380,592 11,274 2.96% 369,318 97.04%
Credit Card 69,539 549 0.79% 68,990 99.21% 75,601 1,936 2.56% 73,665 97.44%
TOTAL 641,021 11,075 1.32% 629,946 98.68% 456,193 13,210 2.90% 442,983 97.10%
ANNUAL
REPORT 2018
Risk
Management
Capital &
Practice
717 CAPITAL
721 RISK MANAGEMENT PRACTICES
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
As a commercial bank under the name of “Bank

Negara Indonesia 1946”, BNI has the task of
improving the economy of the Indonesian
people and participating in national economic
development by empowering various industrial
sectors in Indonesia.
Risk Management
Capital & Practice
CAPITAL
Capital is a source of financial support in the overall TIER 1 CAPITAL

implementation of activities, cushion for absorbing
unexpected losses, and safety nets in crisis conditions. Tier 1 Capital is Bank capital that consists of: Common
Adequate capital adequacy can increase stakeholder trust. Equity Tier 1 – CET 1 and Additional Tier 1. Common Equity
Tier 1 includes paid-up capital and disclosed reserve.
Disclosed reserves consist of additional factors (agio, capital
The Bank prepares a Capital Plan based on review and contribution, general reserves, past years profits, current year
assessment on the required capital adequacy requirements profit, excess in notes to financial statements, capital deposit
and combines it with review on the latest economic funds, warrants issued as incentives to Bank shareholders,
development. The Capital Plan is prepared by the Board of stock options, other comprehensive income, and fixed asset
Directors as part of the Bank’s Business Plan and is approved revaluation surplus balance) and deduction factors (disagio,
by the Board of Commissioners. The Bank always connects past years losses, current year loss, deficit in notes to financial
financial objectives and capital adequacy against risks statements, other comprehensive income, deficit between
through the capital planning process. Therefore, business Provisions of Asset Allowance (PPA) for productive assets
expansion is based on the Bank’s capital adequacy and and Allowance for Impairment Losses (CKPN) on productive
liquidity requirements. Capital needs are planned and assets, deficit between the amount of adjustments to the
discussed regularly with the support of analytical data. valuation results of financial instruments in the Trading
Book and the amount of adjustments based on financial
accounting standards and non-productive PPA).
The management policy related to capital is aimed at
ensuring that the Bank has strong capital and good capital
structure to support the current business expansion TIER 2 CAPITAL
development strategy and maintain the sustainable
development in the future. The capital management policy Tier 2 Capital (maximum 100% from Tier 1 Capital) Tier 2
is also used as a guide to identifying capital sources both Capital includes capital instruments in the forms of shares
internally and externally. In addition, the capital policy is or in other forms that fulfill the requirements, agio, or
established to meet the capital adequacy requirements set by disagio originating from the issuance of capital instruments
the regulator and ensure that the Bank’s capital structure has categorized as tier 2 capital, general reserves of PPA for
been effective and efficient. productive assets that must be calculated with a maximum
amount of 1.25% of Credit Risk RWA and Purpose Reserves.
In accordance with Financial Services Authority Regulation
(POJK) No. 11/POJK.03/2016, Bank capital consists of:
In 2018, BNI had a total tier 1 capital and tier 2 capital of
Rp104.25 trillion, this amount is higher than the tier 1 capital
and tier 2 capital in 2017 of Rp95.31 trillion.
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 1.a BNI Capital Structure (in million Rupiah)

31 December 2018 31 December 2017
Capital Components
Individual Consolidated Individual Consolidated
I. Tier 1 Capital 98,013,788 102,411,938 89,765,390 94,156,872
1. Common Equity Tier 1 (CET 1) 98,013,788 102,411,938 89,765,390 94,156,872
1.1 . Paid-Up Capital (after Treasury Stock) 9,054,807 9,054,807 9,054,807 9,054,807
1.2. Disclosed Reserve *) 93,776,277 95,372,851 84,777,424 86,341,937
1.2.1. Additional Factors 96,876,604 99,314,270 84,822,185 86,413,968
1.2.1.1. Other Comprehensive Income 14,921,658 15,044,109 12,563,636 12,354,344
1.2.1.1.1. Excess in notes to financial statements 84,951 84,886 93,279 93,155
1.2.1.1.2. Potential profit from an increase in fair value of financial assets in ready for sale
- - 280,627 -
category
1.2.1.1.3. Fixed assets revaluation surplus balance 14,836,707 14,959,223 12,189,730 12,261,189
1.2.1.2. Other disclosed reserves 81,954,946 84,270,161 72,258,549 74,059,624
1.2.1.2.1. Agio 14,568,468 14,568,468 14,568,468 14,568,468
1.2.1.2.2. General reserves 2,778,412 2,778,412 2,778,412 2,778,412
1.2.1.2.3. Past years profits 50,145,903 51,946,977 41,865,822 43,322,969
1.2.1.2.4. Current year profits 14,462,163 14,976,304 13,045,847 13,389,775
1.2.1.2.5. Paid-up capital funds - - - -
1.2.1.2.6. Others - - - -
1.2.2. Deduction Factors (3,100,327) (3,941,419) (44,761) (72,031)
1.2.2.1. Other comprehensive income (2,985,198) (3,826,108) - (20,766)
1.2.2.1.1. Deficit in notes to financial statements - - - -
1.2.2.1.2. Potential loss from a decrease in fair value of financial assets in ready
(2,985,198) (3,826,108) - (20,766)
for sale category
1.2.2.2. Other disclosed reserves (115,129) (115,311) (44,761) (51,265)
1.2.2.2.1. Disagio - - - -
1.2.2.2.2. Past years losses - - - -
1.2.2.2.3. Current year loss - - - -
1.2.2.2.4. Deficit between Provisions of Asset Allowance (PPA) and Allowance for
- - - -
Impairment Losses (CKPN) of productive assets
1.2.2.2.5. Deficit in the amount of adjustments to the fair value of financial
- - - -
instruments in the Trading Book
1.2.2.2.6. PPA of non-productive assets that must be established (115,129) (115,311) (44,761) (51,265)
1.2.2.2.7. Others - - - -
1.3. Non-Controlling Interests that can be calculated - 2,544 - 3,808
1.4. Common Equity Tier 1 Deduction Factors *) (4,817,296) (2,018,264) (4,066,841) (1,243,680)
1.4.1. Deferred tax calculation (1,514,755) (1,623,997) (764,300) (849,413)
1.4.2. Goodwill - - - -
1.4.3. All other intangible assets - - - -
1.4.4. Participation that is calculated as a deduction factor (3,302,541) (394,267) (3,302,541) (394,267)
1.4.5. Lack of capital in insurance subsidiary - - - -
1.4.6. Securitization exposures - - - -
1.4.7. Other common equity tier 1 deduction factors - - - -
1.4.7.1. Placement of funds in AT 1 instruments and/or Tier 2 at other banks - - - -
1.4.7.1. Cross ownership in other entities that is obtained based on transfer by law, grant, or
- - - -
probate grant
Risk Management
Capital & Practice

Capital Components
Individual Consolidated Individual Consolidated
2. Additional Tier 1 Capital (AT 1) *) - - - -
2.1. Instruments that fulfill AT 1 requirement - - - -
2.2. Agio/Disagio - - - -
2.3. Additional Tier 1 Deduction Factors *) - - - -
2.3.1. Placement of funds in AT 1 instruments and/or Tier 2 at other banks - - - -
2.3.2. Cross ownership in other entities that is obtained based on transfer by law, grant, or probate
- - - -
grant
II. Tier 2 Capital 6,240,307 6,487,602 5,541,500 5,715,552
1. 1. Capital instruments in the form of shares or other forms that fulfill Tier 2 requirements 93,333 93,333 - -
2. 2. Agio/Disagio - - - -
3. 3. General reserves of PPA for productive assets that must be established (the highest is 1.25% of Credit
6,146,973 6,394,269 5,541,500 5,715,552
Risk RWA)
4. 4. Tier 2 Capital Deduction Factors *) - - - -
4.1. Sinking Fund - - - -
4.2. Placement of funds in Tier 2 instruments at other banks - - - -
4.3. Cross ownership in other entities that is obtained based on transfer by law, grant, or probate grant - - - -
TOTAL CAPITAL 104,254,095 108,899,540 95,306,890 99,872,424
31 December 2018 31 December 2017 31 December 2018 31 December 2017

Individual Consolidated Individual Consolidated Individual Consolidated Individual Consolidated
RISK WEIGHTED ASSETS RISK WEIGHTED ASSETS
CET 1 Ratio
CREDIT RISK RWA 491,757,871 511,541,518 450,705,555 469,415,700 17.40% 17.46% 17.45% 17.56%
(%)
Tier 1 Ratio
MARKET RISK RWA 3,198,449 3,273,949 2,378,070 2,554,267 17.40% 17.46% 17.45% 17.56%
(%)
OPERATIONAL RISK Tier 2 Ratio
68,483,648 71,631,769 61,393,204 64,300,544 1.11% 1.11% 1.08% 1.07%
RWA (%)
CAR Ratio
TOTAL RWA 563,439,969 586,447,236 514,476,829 536,270,511 18.50% 18.57% 18.53% 18.62%
(%)
CAR RATIO CET 1 FOR

ACCORDING TO RISK 9.9% 9.9% 9.9% 9.9% BUFFER 8.60% 8.67% 8.63% 8.72%
PROFILE (%) (%)
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BankNegara
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2018
NegaraIndonesia
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To support business expansion and to maintain the market In addition to the minimum capital requirements according
share as well to fulfill the provisions of the Financial Services to the risk profile, as per January 2016, BNI must also form
Authority on Capital Adequacy Ratio/CAR according to the additional capital as a buffer in accordance with the criteria
Risk Profile and buffer capital, adequate capital is necessary. set by the Financial Services Authority. The buffer capital
consists of Capital Conservation Buffer, Countercyclical Buffer,
Therefore, BNI strives to continue strengthening its capital and Capital Surcharge for Systemic Bank. BNI’s CAR Ratio as
by increasing its organic tier 1 capital, in this matter, mainly per December 31, 2018, was 18.53% fulfilled the requirement
sourced from increase in retained earnings. of CAR based on the Risk Profile and buffer capital of 12.9%
Capital adequacy is assessed through calculation of Capital

Adequacy Ratio/CAR for Credit Risk, Market Risk, and INTEGRATED CAPITAL MANAGEMENT IN BNI’S
Operational Risk based on Risk Weighted Assets (RWA) FINANCIAL CONGLOMERATION
according to Pillar 1 Basel II.
Referring to POJK No. 26/POJK.03/2015, Financial
Calculation method of Credit Risk RWA uses Standardized Conglomeration must provide the integrated minimum
Approach, calculation method of Market Risk RWA uses capital of at minimum of 100% (one hundred percent) from
Standard Method, while calculation of Operational Risk RWA Total Minimum Capital of Financial Conglomeration which is
uses Basic Indicator Approach. conducted by calculating the integrated Capital Adequacy
Ratio (CAR).
Risks that are not calculated in these RWA are Credit
Concentration Risk, Interest Risk in Banking Book, Liquidity
Risk, Legal Risk, Strategic Risk, Compliance Risk, and Based on the results of the Risk Management Sub-Committee
Reputation Risk, which are calculated in Bank’s Risk Profile. of Risk and Capital Committee (KRKRMC) - 01/2016 dated
January 15, 2016, it was decided that the Integrated CAR
Referring to Financial Services Authority Regulation No. reporting of BNI’s Financial Conglomeration shall use BNI’s
11/POJK.03/2016 dated February 02, 2016, on Minimum consolidated capital plus BNI Life’s capital.
Capital Adequacy Ratio (CAR) for Commercial Banks, Banks
must provide minimum capital according to the Risk Profile. Calculation of Total Actual Capital (TMA) and Total Minimum
Minimum capital provision is calculated by using risk profile Capital of each FSI in BNI’s Financial Conglomeration are also
score as follows: conducted in order to monitor capital adequacy of each FSI.
The calculation results of Integrated Capital Adequacy Ratio
of BNI’s Financial Conglomeration as per December 31, 2018,
Risk Profile Score CAR
was 193%, above the minimum requirement of 100%.
1 8%
2 9% sd <10%
3 10% sd <11%
4 and 5 11% sd <14%
Risk Management
Capital & Practice
RISK
MANAGEMENT PRACTICES
BASIS OF RISK MANAGEMENT IMPLEMENTATION
BNI’s Risk Management Implementation is based on national 3. Integrated Risk Management Implementation.
and international regulations, including the Financial Services a. Financial Services Authority Regulation No. 17/
Authority (FSA) Regulations, the Financial Services Authority POJK.03/2014 dated November 18, 2014, on
(FSA) Circular Letter, Bank Indonesia Regulations (PBI), Bank Implementation of Integrated Risk Management for
Indonesia Circular Letter (SEBI), and documents of Basel Financial Conglomeration.
Committee on Banking Supervision (BCBS). b. Circular Letter of Financial Services Authority
No. 14/SEOJK.03/2015 dated May 25, 2015, on
Some regulations related to the Bank’s Risk Management are Implementation of Integrated Risk Management for
as follows: Financial Conglomeration.
1. Risk Management Implementation. 4. Risk Management for Commercial Bank Products and
a. Financial Services Authority Regulation No. 18/ Activities, including:
POJK.03/2016 dated March 16, 2016, on Risk a. Financial Services Authority Regulation No. 36/
Management Implementation for Commercial Bank. POJK.03/2017 dated July 12, 2017, on Prudential
b. Circular Letter of Financial Services Authority No. 34/ Principles in Capital Participation Activities.
SEOJK.03/2016 dated September 1, 2016, on Risk b. Financial Services Authority Regulation No. 38/
Management Implementation for Commercial Bank. POJK.03/2016 dated December 01, 2016, on
2. Risk Management Implementation Consolidated with Implementation of Risk Management in the Use of
Subsidiaries. Information Technology for Commercial Banks.
a. Financial Services Authority Regulation No. 38/ c. Circular Letter of Financial Services Authority No.
POJK.03/2017 dated July 12, 2017, on Consolidated 12/POJK.03/2018, dated August 6, 2018, on the
Risk Management Implementation for Banks Implementation of Digital Banking Services by
Exercising Control over Subsidiaries. Commercial Banks.
b. Circular Letter of Financial Services Authority No. 43/ 5. Internal Control System.
SEOJK.03/2017 dated July 19, 2017, on Prudential Circular Letter of Financial Services Authority No. 35/
Principles and Report in the Framework of Risk SEOJK.03/2017 dated July 07, 2017, on Guidelines for
Management Implementation Consolidated for Standards of Internal Control System for Commercial
Banks Exercising Control over Subsidiaries. Banks.
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BankNegara
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2018
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RISK MANAGEMENT IMPLEMENTATION IN GENERAL ADEQUACY OF RISK MANAGEMENT POLICIES AND

PROCEDURES AS WELL AS DETERMINATION OF RISK LIMIT
In order to implement effective Risk Management, either for
BNI only or Consolidated and Integrated with Subsidiaries, Risk Management Policies are written directives to implement
BNI’ risk management implementation consists of: risk management, which shall be in line with the vision,
1. Active monitoring of the Board and Directors and Board mission, and strategic plans, and focus more on risks that
of Commissioners; are relevant to BNI’s business activities, and be prepared by
2. Adequacy of risk management policies and procedures paying attention to the risk appetite, risk tolerance, and limit
and risk limit setting; set.
3. Adequacy of process of risk identification, measurement,
monitoring, and management, as well as risk The Risk Management Policies in BNI among others are:
management information system; and 1. Risk Management General Policies.
4. Comprehensive internal control system. 2. Credit Risk, Market Risk, Liquidity Risk, Operational
Risk, Compliance Risk, Legal Risk, Strategic Risk, and
ACTIVE MONITORING OF BOARD OF DIRECTORS AND Reputation Risk Management Policies.
BOARD OF COMMISSIONERS 3. Integrated Risk Management General Policies
4. Internal Control System Guidelines
Active monitoring of Board of Directors is performed
among others by preparing, approving, implementing, and In its implementation, the Risk Management Procedures are
evaluating policies and procedures of BNI’s risk management elaborations and implementation of the Risk Management
and integrated risk management. Policies and are used as a reference for implementing risk
management for each Risk Management Unit and are
In carrying out its functions in implementing effective risk adequately documented. The detailed provisions of each
management, the Board of Directors is assisted by the procedure are regulated in the technical guidelines (Juknis).
Risk Management Work Unit (SKMR) which concurrently
functions as the Integrated Risk Management Work Unit Evaluation and/or update of BNI’s Risk Management Policies
(SKMRT). Supervision is carried out through forums such as and Procedures are carried out regularly, or in the event of
Board of Directors’ Meetings (Radisi), Meetings of Risk and significant changes affecting BNI’s business activities.
Capital Committee (KRK), Risk Management Sub-Committee
(RMC), Assets & Liabilities Sub-Committee (ALCO), Anti Fraud As one of the risk control methods, BNI also already has risk
Sub-Committee (KAF), Credit Policy Committee (KKP), and limit. The risk limit is a threshold for determining the intensity
Credit Procedure Committee (KPP), and Integrated Risk level of risk mitigation that will be implemented by the
Management Committee (KMRT). management.
In carrying out its functions to supervise the implementation Determination of BNI’s risk limits includes limits per Risk
of BNI’s Risk Management and Integrated Risk Management, (credit risk, market risk, and liquidity risk), limits per
BNI’s Board of Commissioners in its implementation is functional activity or limit as a whole. The risk policies,
assisted by the Risk Monitoring Committee (KPR), Audit procedures, and limits are regularly reviewed with the
Committee, and Integrated Governance Committee. approval of up to the level of the Board of Directors through
committee meetings or circulation to the Board of Directors
Active monitoring of the Board of Commissioners is carried in accordance with the authority level.
out among other by approving and evaluating the Risk
Management General Policies prepared by the Board of
Directors. Periodically, the Board of Commissioners evaluates
the implementation of risk management policies through
Meeting forum of the Board of Directors and Board of
Commissioners (Radikom), and Meeting of Risk Monitoring
Committee (KPR).
Risk Management
Capital & Practice
ADEQUACY OF PROCESS OF RISK IDENTIFICATION, MEASUREMENT, MONITORING, AND MANAGEMENT, AS WELL AS RISK
MANAGEMENT INFORMATION SYSTEM
BNI’s Risk Management Process covers the process of identifying, measuring, monitoring, and controlling risk continuously on
8 (eight) types of risks supported by the Risk Management Information System, which can be illustrated as follows:
Risk Identification
Risk identification is carried

out proactively on all business
activities in order to analyze the
source, the level of possible risks,
and the impact they have
Risk Control
Disclosure
Risk control focuses on risks Submitting a risk report, Risk Measurement
that can disrupt the Bank’s which includes:
business continuity. The risk The risk measurement process
1. Risk Management
control process is adjusted to is carried out in order to
Reports to Regulators
the risk exposure and the risk know the magnitude of the
and Management
level and tolerance that will risk exposure as a reference
2. Risk Management
be taken. for carrying out controls
Information Report to
and for the purposes of
the public
calculating minimum capital
3. kepada publik
adequacy requirements.
4 Risk Monitoring
The risk monitoring process is carried out to
ensure that risks have been managed properly,
among others by:
• monitoring compliance with regulations
• setting risk tolerance and limits
• stress testing results as risk mitigation efforts
that have been carried out
Policies on the process of identifying, measuring, monitoring, and controlling of risks for 8 (eight) types of risks (credit, market,
liquidity, operational, legal, strategic, compliance, and reputation risks) are stipulated in the Risk Management Policy per type
of risk, while the Integrated Risk Management process in BNI’s Financial Conglomeration is stipulated in the Integrated Risk
Management General Policies (KUMRT).
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RISK IDENTIFICATION 6. Risk measurement for BNI individually is carried out

to 8 (eight) types of risks, while for BNI’s Financial
The risk identification process is carried out proactively on all Conglomeration it is carried out to 10 (ten) types of risks.
business activities in order to analyze the source, the level of 7. For the purposes of reporting the Minimum Capital
possible risks, and the impact they have. Adequacy Ratio (CAR) to Regulators, BNI’s risk
measurement is carried out individually to 3 (three) main
Several matters that are considered in risk identification risks, which are credit risk, market risk, and operational
process are: risk. While the calculation of integrated CAR is carried
1. Identification of all risks is performed regularly. out by comparing the total actual capital of Financial
2. Having a method or system to identify risks in all BNI’s Services Institutions (FSI) members of the Financial
products and business activities. Conglomeration with the total minimum capital
3. Specifically identifying risks on new products and that must be met by FSI members of BNI’s Financial
activities, before the new products/activities are Conglomeration.
introduced or implemented. 8. Risk measurement is carried out periodically where the
measurement results are reported to the Regulator as
RISK MEASUREMENT part of BNI’s Risk Profile and CAR reporting individually
as well as reporting of the Integrated Risk Profile and
The risk measurement process is carried out in order to know Integrated CAR of BNI’s Financial Conglomeration.
the magnitude of the risk exposure as a reference for carrying
out controls of risks and for the purposes of calculating RISK MONITORING
Minimum Capital Adequacy Requirements.
The risk monitoring process is carried out to ensure that risks
Risk measurement is carried out both quantitatively and/ have been managed properly, among others, by monitoring
or qualitatively according to the measurement method set the mitigation and predetermined risk limits.
by the Regulator or by using internal method developed
by BNI based on best practices in risk measurement. To Several matters that are considered in risk monitoring
anticipate extreme conditions, risk measurement in BNI is implementation are:
also complemented by stress testing for credit risk, market 1. Risk monitoring includes monitoring the magnitude of
risk, and liquidity risk. risk exposure, risk tolerance, limit compliance, and stress
testing results, as well as consistent implementation of
Several matters that are considered in carrying out risk established policies and procedures.
measurement are: 2. Risk monitoring is carried out both by the Operational
1. The risk measurement scope that at least measures Work Unit and Risk Management Work Unit.
sensitivity, trends, individual risk factors, overall risk 3. The monitoring results are presented in reports that are
exposures and per risk, by considering correlation and all submitted periodically to external parties (Regulators)
risks inherent in bank transactions and products. and internal (Management).
2. Risk measurement method can be carried out
quantitatively and/or qualitatively by using method set Risk monitoring is carried out both by the Operational Work
by the Regulator or those which are developed internally. Unit (risk taking unit) as the risk owner and the risk control
3. Implementation of measurement method is adjusted to unit, and the monitoring results are presented in a regular
the applicable Regulatory provisions. report, including the Loan Portfolio Report, Market Risk and
4. The use of internal method in terms of measuring credit Liquidity Risk Monitoring Report, Operational Risk Expense
risk, market risk, and operational risk, shall consider the Report, Operational Risk Self Assessment Feedback Report,
Regulatory requirements, including requirements of Internal Risk Report, Risk Profile Report, Bank Soundness
usage, backtesting, validation, and documentation. Report, and Minimum Capital Adequacy Ratio (CAR) Report.
5. Risk measurement is carried out by the Risk Management
Unit in coordination with the Risk Management Work
Unit.
Risk Management
Capital & Practice
RISK CONTROL 4. Risk Mitigation

Risk control will be optimal in the event that efforts
The risk control process is carried out primarily to manage are made to reduce the existing risks. Risk mitigation
risks that can disrupt BNI’s business continuity. is intended to minimize losses triggered by external
factors, as well as internal bank events. One alternative
Several matters that are considered in controlling risks are: to suppress and reduce risk is by improving control and
1. The risk control system refers to the established policies refining systems and work procedures.
and procedures.
2. The risk control process is adjusted to the risk exposure, RISK MANAGEMENT INFORMATION SYSTEM
risk appetite, and risk tolerance.
3. The hedging and risk mitigation mechanism is carried The Risk Management Information System shall be able to
out by the Operational Work Unit in collaboration with support the implementation of process of risk identification,
the Risk Management Work Unit. measurement, monitoring, and control.
The risk control strategies that can be carried out among Several risk management applications have been prepared
others are as follows: to support the implementation of proper, accurate, and
1. Risk Acceptance timely risk management processes including Credit Risk
For the types of risks that in a process manner does Management System (CRMS), Internal Rating System, Scoring
not allow for preventive intervention or situation System, Operational Risk Tools (PERISKOP), and Market Risk
improvement, then the existing potential risks will be Management Applications.
accepted as a consequence of the bank in utilizing
business opportunities, by considering that the existing BNI has prepared risk management solutions that are in line
risks are still within the Bank’s limits/tolerances. However, with the IT Strategic Plan, such as:
strict controls shall be exercised in the event that this risk 1. Preparing front end applications for credit risk, market
control strategy is implemented. risk, and operational risk.
2. Risk Avoidance 2. Preparing data storage and information system.
Risk avoidance is carried out to prevent BNI from 3. Preparing Capital Calculation Engine.
experiencing an unacceptable risk, or to prevent the
increase in the existing risk exposure. Risk avoidance Before implementing new risk management information
is chosen in the event that the potential profit from a system, testing shall be carried out to ensure that the
business activity is smaller than the risk exposure that processes and outputs produced have gone through a
might occur. process of development, testing, and re-evaluation effectively
3. 3Risk Transfer and accurately.
In the risk transfer strategy, the existing risks are
still inherent in the business activity, but the risk is
transferred to other parties. One of the most common
risk transfer methods is the use of insurance services or
outsourcing.
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OVERALL INTERNAL CONTROL SYSTEM
The internal control system in BNI is developed and implemented by using the Three Lines of Defense model which consists of:
1 st Risk Taking Unit

or 1st Line of Defense 2 n d RiskndControl Unit
or 2 Line of Defense 3 rd RiskndControl Unit
or 2 Line of Defense
Risk Owner, is responsible for Risk Control, is responsible Risk Assurance, is responsible
the risks taken, executed, and for preparing the Bank's risk for independently assessing
the results (day to day risk management framework, policies, the effectiveness of the risk
management and control) principles, and methodologies management implementation and
internal control
• Responsible for managing • Preparing proposals of risk • Conducting independent
and controlling risk inherent management strategies and and periodic internal audit
on day-to-day business policies, including risk appetite and on the implementation of risk
activities or functions management and internal
risk limit
• Identification, measurement, control.
mitigation, monitoring, and • Developing framework, policies, • Preparing recommendations
reporting of risks inherent principles, tools, methodologies, of corrective actions and
in business activities/ and standards of risk management monitoring the implementation.
functions in accordance with • Acting as a risk monitoring/ • Reporting the audit results to
the risk strategies/policies/ the Audit Committee and key
oversight unit, by carrying out
parameters set by the Risk stakeholders according to the
Control Unit (2nd line of aggregation and risk reporting in authority.
defense). overall.
• Providing advice or
recommendations to the
Operational Work Unit as the Risk-
Taking Unit (1st line of defense)
in implementing risk policies
according to the authority
• Escalating important issues/
decisions to the Senior
Management/Board of Directors
and/or the Risk Management Sub
Committee of the Risk and Capital
Committee and/or the Integrated
Risk Management Committee (Risk
Management Committee).
Risk Owner as the first line of defense/Risk Taking Unit manages the risk inherent in its business and functions on day to day
basis. The Bank Risk Management Division, Policy Governance Division, and Compliance Division are as the second line of
defense/Risk Control Unit. The Internal Audit Unit acts as the third line of defense/Risk Assurance Unit, which is responsible to
the President Director and has duties to independently assess the conformity of risk management implementation process
and internal control system with the set policies and procedures as well as with the Regulatory provisions.
The implementation of Internal Control System in BNI has been running effectively and efficiently by applying separation of
functions between the Risk Taking Unit and the Risk Control Unit as well as the Risk Assurance Unit.
Risk Management
Capital & Practice
RISK MANAGEMENT IMPLEMENTATION IN of guarantees in the notary, and closing the insurance.
PARTICULAR In addition, the principle of “not complete no disburse”
is applied which will not disbursed funds if the credit
CREDIT RISK administration requirements are not complete.
CREDIT RISK MANAGEMENT GOVERNANCE AND ORGANIZATION

Uncertainty and slowdown in the global economy have an To accelerate the business expansion process in all small
influence on the economic conditions in Indonesia. This also segment business units, the marketing function and credit
has an impact on banking credit performance and quality analysis process are carried out by Relationship Managers
in general. Under these conditions, BNI’s loan portfolio can who are under the business unit, by conducting business
grow quite aggressively, amounting to 16.2% in 2018, which analysis and risk analysis, and providing risk mitigation
is above the average growth rate of Commercial Banks and needed for the proposed prospective debtor.
State-Owned Banks. BNI’s Non-Performing Loans ratio can be
maintained at a reasonable range and improved from 2.3% in As for the Middle and Corporate segments, there are
2017 to 1.9% in 2018. differences in business processes compared to the small
segments. The credit process in this segment is carried out
To anticipate and control credit risk caused by the failure of by Senior Relationship Managers and Relationship Managers
the debtor to fulfill its obligations, BNI implements an early who are in the business unit with the task of processing
warning system, which is a monitoring system to identify proposals from prospective debtors, while the risk analysis
potential credit risk early that is used as an indicator for and review of prospective borrowers in Corporate and
further action before the credit falls into Non-Performing Medium segments are carried out by the Credit Risk Manager
Loans. In order to reduce the increase rate of NPL, BNI under the Risk Unit.
proactively continued its efforts to improve the management
of low-quality loans, among others by sharpening the The four eyes principles in the credit process at BNI are
function of Credit Risk Review, as well as the establishment of implemented in the credit approval process carried out
a cross-division member of Joint Effort Team to carry out early through the Credit Committee, which is a forum with credit
and integrated credit rescue and settlement steps. decision makers who have the authority to decide on loans
that are proposed in accordance with the specified limit.
To maintain the Bank’s ability to absorb the risks that might Credit Committee members consist of business unit officials
arise and anticipate uncertain economic conditions, BNI and business risk units. Business units and business risk
gradually increased the ratio of the Bank’s ability to absorb units act as the first line of defense (risk owner) in charge
potential losses due to poor credit quality through increased of managing and controlling credit risk in the unit’s daily
Coverage Ratio, and currently BNI’s Coverage Ratio has operational activities.
reached 153%, an increase from 148% in 2017.
The Bank’s Risk Management Division (ERM) and Policy
As part of the efforts to improve process quality, BNI has Governance Division (PGV) act as the second line of defense
implemented the Credit Discipline Program (CDP) as a guide tasked with preparing credit infrastructure such as the
for all credit management tools in carrying out the credit preparation of credit policies and procedures, setting limits
process so that it can be more effective and prudent, starting on the authority to decide on loans, setting up a rating
from the pipeline preparation process, verification, to credit and scoring system, with business units monitoring credit
monitoring. portfolios, and preparing other tools needed to support
credit activities.
In addition, to focus on high-quality expansion, BNI also
provides training and provision of credit experts specializing The Internal Audit Unit (SPI) as the third line of defense
in priority industry sectors, as well as expands corporate actively participates in maintaining the loan portfolio quality
partners using the learning model scheme (supply chain through immediate post review, which is to examine several
financing). debtors as soon as the credit is disbursed. SPI also examines
debtors by sampling to maintain the quality of debtors who
BNI also strengthens its credit administration unit by have obtained the credit facilities. In order to guarantee the
changing the paradigm from document administration implementation of a quality credit process on an ongoing
function to credit risk management, by involving the credit basis, the function of immediate post review will continue to
administration unit in minimizing credit risk through good be refined.
document management, monitoring the binding process
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NU
REPOR
U AALL
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
POLICIES AND PROCEDURES

Credit Policies and Procedures are prepared as a basis for In addition, BNI also already has a Credit Risk Management
conducting activities in the credit process so that the credit Policy which is derived in the form of a Credit Risk
quality can be maintained by keep paying attention to the Management Procedure. Policies and procedures of Credit
business targets set. BNI has a Bank Credit Policy (KPB) which and Credit Risk Management have been standardized into
is decided by the Credit Policy Committee (KKP) Forum and Company Guidelines. The Company Guidelines used at
approved by the Board of Commissioners. Furthermore, KPB present are available in the form of online guidelines, which
is translated into the Credit Company Guidelines which are are BNI e-PP (electronic Company Guidelines).
decided by the Credit Procedure Committee (KPP) Forum.
PROSES
The credit risk management process is implemented in all credit processes, starting from credit marketing to the credit paid
off. The process takes place continuously in a value chain activity that begins with setting strategy and planning, customer
insight, portfolio planning, product development, credit processing, credit administration, intensive monitoring, and portfolio
optimization.
In credit operational activities within the individual customer scope, the credit risk management process is carried out by
both the Business Unit and the Business Risk Unit through the stages of identification (including verification of data validity),
measurement (use of credit analysis tools), monitoring (through visits to customers and rating reviews of customers on a
regular basis), as well as controls (including through setting limits, covenants, and mitigant factors).
Credit Risk Management Process
Loan Origination/Acquisition Monitoring & Control Portfolio Optimazition
Strategic, Customer
Planning, Insight
& Budgeting & Product Dev.
Relationship Analysis Approval Crd.Adm Monitoring Remedial Portfolio Optimazition
Collection Analysis
Within the scope of overall portfolio, monitoring and reporting of credit exposures are carried out regularly to the
Management, among others, through the Loan Portfolio Report. In addition, monitoring of credit concentration is also
carried out, both concentrating on certain economic sectors and concentrating on certain segments. Periodically, the Risk
Management Sub-Committee of the Risk and Capital Committee (KRK-RMC) Forum evaluates the target achievement,
determines the steps and coordination of follow-up corrections, and evaluates the effectiveness of the corrective steps taken.
TOOLS AND METHODS

In order to support the operation of business processes and To regulate the composition of the loan portfolio, BNI already
management of credit risk, BNI already has several credit risk has a Loan Exposure Limit (LEL) which functions to limit the risk
management tools both at individual and portfolio exposure of loan exposure concentrations in each economic sector in each
levels. For credit processing in the individual exposure of the business segment, and to become guideline of loan expansion
business banking segment, BNI already has a rating model in the for one year. For an assessment of industrial risk, BNI implements
form of an internal rating system, while the consumer segment Industry Risk Rating (IRR) as well as financial ratio standards that
uses a debtor scoring system to help analyze the quality of are used as one of the factors in assessing the quality of debtors
debtors in the credit process. from the industry side.
To maintain that the bank portfolio is not concentrated in certain As part of measuring credit risk and in anticipating changes in
debtors and economic sectors, then credit restrictions have macro factors that affect the bank, BNI periodically conducts
been set according to the risk appetite, while in anticipating the stress testing of credit risk to assess changes in credit portfolios
excess of LLL, BNI has set an LLL limit called house limit with a and their effects on the bank and the bank’s ability to deal with
more prudent limit than the LLL limit in accordance with the these conditions.
regulatory provisions.
Risk Management
Capital & Practice
To integrate documentation in the credit process, BNI has used The calculation method to establish CKPN in BNI uses 2 (two)
the e-PAK application for corporate loans to assist the end-to- methods, which are Individual assessment and Collective
end credit process along with the documentation that is carried assessment.
out by integrating several existing tools.
Individual CKPN calculation is performed on a significant
ESTABLISHING PROVISION FOR IMPAIRMENT LOSSES financial asset that has objective evidence of impairment, which
(CKPN) is financial asset of the Corporate and Medium segments, and
ownership of securities.
Based on PSAK 55, banks must form the Provision for
Impairment Losses (CKPN) to anticipate a decline in the value Individual CKPN is calculated by using the present value method
of the bank’s financial assets. Impairment is a condition where of the cash flow estimation of a financial asset carried out
the carrying value of a bank’s financial assets exceeds the directly by the manager of each debtor.
recoverable value of the said financial assets.
Collective CKPN is calculated by using historical loss data
At the end of each month, BNI evaluates the impairment of all (calculation of Incurred Loss based on estimation of Probability
financial assets except financial assets classified in groups whose of Default [PD] and Loss Given Default [LGD] of each group of
fair value is measured through the Profit and Loss Report. BNI specific assets). Collective CKPN calculation is carried out for all
evaluates whether there is objective evidence that the Financial financial assets that:
Asset or Financial Asset group has experienced a decline in 1. Are not evaluated individually, which includes loans from
value. the Small segment, Consumptive Loans, Credit Cards,
Acceptance Bills, Documentary Bills, and Facilities.
Objective evidence is the proof of an adverse event as a result 2. Do not have objective evidence of impairment in the
of one or more events that occur after the initial recognition of value of the financial assets being evaluated, which
the asset, and the adverse event has an impact on the estimated is loan in the corporate segment and medium-sized
future cash flows of the financial asset or group of financial business that do not have objective evidence of
assets that can be estimated reliably. The objective evidence impairment.
includes: 3. Have objective evidence of impairment in the value of
1. Significant financial difficulties experienced by the issuer financial assets that are individually evaluated but there
or debtor. are no impairment losses.
2. Contract violation, which is the occurrence of defaults
or arrears in payment of debtor obligations of either In calculating collective CKPN, an asset is categorized as a
principal, interest, or penalties. mature asset (default) if the asset is recorded as having a number
3. BNI, under economic or legal reasons relating to financial of arrears days for principal payments and/or interest payments
difficulties experienced by the borrower, provides a relief of more than 180 (one hundred eighty) days, or has been written
(concession) to the borrower, which is impossible to be off.
given if the borrower does not experience such financial
difficulties. BNI uses a migration analysis and roll rate analysis with a
4. There is a possibility that the borrower is declared data observation period of 5 (five) years for the calculation of
bankrupt or has other financial reorganization. Collective PD and LGD CKPN.
5. The loss of the active market of financial assets due to
financial difficulties, or In the framework of implementing IFRS-9 in all BNI units either
6. Observable data indicates a measurable decrease in the in domestic or in overseas branches, BNI has prepared its
estimated future cash flows of the group of financial implementation by developing impairment (CKPN) calculation
assets since the initial recognition of the financial assets, methodologies in accordance with IFRS-9. The CKPN calculation
even though the decline cannot be identified against model according to IFRS-9 for overseas branches has been
the financial assets individually in such group of financial implemented in 3 (three) overseas branches since January
assets. 2018, while for BNI’s domestic branches, it will be implemented
starting in January 2020.
AN N
NU
REPOR
U AALL
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Disclosure of net receivables details of changes in the Bank’s provision of impairment losses individually and consolidated are
made in the tables of: Table 2.1.a, Table 2.1.b, Table 2.2.a, Table 2.2.b, Table 2.3.a, Table 2.3.b, Table 2.4.a, Table 2.4.b, Table 2.5.a,
Table 2.5.b, Table 2.6.a, and Table 2.6.b
Tabel 2.1a Disclosure of Net Receivables By Bank Regions individually (in million Rupiah)
31-Dec-18 31 December 2017
Portfolio
No. Net Receivables By Area Net Receivables By Area
Category
Group A Group B Group C Group D Group E Total Group A Group B Group C Group D Group E Total
Receivables on
1 216 23 - 149,274,501 17,323,908 166,598,648 707 18 13 125,280,427 18,531,330 143,812,495
Sovereigns
Receivables on
2 Public Sector 15,977,999 616,326 17,543,301 58,979,685 5,325,421 98,442,732 6,733,924 354,518 12,830,021 57,011,305 3,396,005 80,325,773
Entities
Receivables on
Multilateral
Development
3 - - - - - - - 2,524 501 - - 3,025
Banks and
International
Institutions
Receivables on
4 396,210 321,712 409,670 36,384,525 9,694,942 47,207,059 487,616 503,632 688,534 44,614,259 6,300,177 52,594,218
Banks
Loans Secured
5 by Residential 2,702,821 1,488,488 5,364,450 2,814,441 1,431 12,371,631 2,291,025 1,502,208 5,018,717 3,010,392 79 11,822,421
Property
Loans Secured
6 by Commercial 1,438,963 1,454,535 2,118,773 6,819,885 - 11,832,156 1,150,468 1,510,218 1,874,125 4,747,967 - 9,282,778
Real Estate
Employee/
7 142,171 98,614 211,797 99,918 3,356 555,856 218,787 151,663 322,244 147,581 3,927 844,202
Retiree Loans
Receivables
on Micro
Business,
8 Small 17,179,462 14,211,957 24,197,097 22,814,580 3,653 78,406,749 13,753,488 10,956,612 18,333,815 19,857,819 1,653 62,903,387
Business,
and Retail
Portfolio
Receivables on
9 60,273,981 26,535,000 66,861,926 156,216,495 20,674,663 330,562,065 55,504,764 23,997,043 62,572,201 131,378,913 17,866,593 291,319,514
Corporates
Past Due
10 840,965 313,485 1,238,703 1,333,608 260,204 3,986,966 66,141 9,447 8,960 119,958 75,398 279,904
Receivables
11 Other Assets 3,007,578 1,853,422 3,740,312 38,180,316 148,482 46,930,109 2,306,611 1,676,712 2,928,247 45,542,899 3,420,274 55,874,743
Exposures at
12 Sharia Unit (if - - - - - - - - - - - -
any)
Total 101,960,366 46,893,562 121,686,029 472,917,954 53,436,060 796,893,971 82,513,531 40,664,595 104,577,378 431,711,520 49,595,436 709,062,460
Group A: Medan Region, Padang Region, Palembang Region, Banjarmasin Region.

Group B: Makassar Region, Denpasar Region, Manado Region, Papua Region.
Group C: Bandung Region, Semarang Region, Surabaya Region, Jogyakarta Region, Malang Region.
Group D: Jakarta Senayan Region, Jakarta Kota Region, Jakarta BSD Region, Jakarta Kemayoran Region.
Group E: Overseas Branch Offices Region
Risk Management
Capital & Practice
Table 2.1.b Disclosure of Net Receivables By Bank Regions, Consolidated with Subsidiaries (in million Rupiah)
Portfolio
No. Net Receivables By Area Net Receivables By Area
Category
Group A Group B Group C Group D Group E Total Group A Group B Group C Group D Group E Total
Receivables on
1 216 23 - 149,262,106 17,323,908 166,586,253 707 18 13 125,280,427 18,531,330 143,812,495
Sovereigns
Receivables on
2 Public Sector 15,986,417 616,326 18,215,004 58,245,130 5,325,421 98,388,298 6,733,924 354,518 12,830,021 57,011,305 3,396,005 80,325,773
Entities
Receivables on
Multilateral
Development
3 - - - - - - - 2,524 501 - - 3,025
Banks and
International
Institutions
Receivables on
4 396,210 321,712 409,670 30,467,756 9,695,934 41,291,282 487,616 503,632 688,534 44,877,123 6,300,273 52,857,178
Banks
Loans Secured
5 by Residential 2,702,821 1,488,488 5,364,450 2,814,441 1,431 12,371,631 2,291,025 1,502,208 5,018,717 3,010,392 79 11,822,421
Property
Loans Secured
6 by Commercial 1,438,963 1,454,535 2,118,773 6,819,885 - 11,832,156 1,150,468 1,510,218 1,874,125 4,747,967 - 9,282,778
Real Estate
Employee/
7 146,893 98,748 227,092 79,766 3,356 555,855 218,787 151,663 322,244 147,581 3,927 844,202
Retiree Loans
Receivables
on Micro
Business,
8 Small 17,191,224 14,212,006 24,603,054 23,523,013 3,653 79,532,950 13,890,194 10,956,612 18,415,396 20,202,458 1,653 63,466,313
Business,
and Retail
Portfolio
Receivables on
9 60,275,256 26,535,000 66,884,832 154,841,977 20,674,663 329,211,728 55,517,535 23,997,043 62,642,010 131,296,329 17,866,596 291,319,513
Corporates
Past Due
10 840,965 313,485 1,238,703 1,333,608 260,204 3,986,965 66,141 9,447 8,960 119,958 75,398 279,904
Receivables
11 Other Assets 3,007,578 1,853,422 3,740,312 39,479,282 148,482 48,229,076 2,306,611 1,676,712 2,928,247 47,360,235 3,420,274 57,692,079
Exposures at
12 Sharia Unit (if 6,785,972 2,034,110 9,427,275 22,916,238 - 41,163,595 5,495,683 1,690,356 7,798,627 19,908,448 - 34,893,114
any)
Total 108,772,515 48,927,855 132,229,165 489,783,202 53,437,052 833,149,789 88,158,691 42,354,951 112,527,395 453,962,223 49,595,535 746,598,795

AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.2.a Disclosure of Net Receivables By Remaining Contract Period of Bank, (in million Rupiah)
Portfolio Net Receivables By Remaining Contract Period Net Receivables By Remaining Contract Period
No.
Category
> 1 year to > 3 years to Non- > 1 year to > 3 years to Non-
<1 year >5 years Total <1 year >5 years Total
3 years 5 years Contractual 3 years 5 years Contractual
1 Receivables on
Sovereigns 78,519,196 8,918,856 15,549,203 25,846,069 37,765,325 166,598,649 41,327,837 11,546,393 18,128,788 38,776,626 34,032,851 143,812,495
2 Receivables on
Public Sector 41,566,808 17,750,097 4,639,658 25,821,814 8,664,353 98,442,730 39,716,055 5,470,712 5,017,573 26,038,812 4,082,621 80,325,773
Entities
3 Receivables on
Multilateral
Development
Banks and - - - - - - 2,524 - 501 - - 3,025
International
Institutions
4 Receivables on
Banks 28,909,127 7,190,210 1,299,090 662,155 9,146,476 47,207,058 27,230,954 6,203,530 1,988,638 979,263 16,191,833 52,594,218
5 Loans Secured
by Residential 62,952 698,522 1,661,168 9,948,990 - 12,371,632 104,548 553,619 1,551,002 9,613,252 - 11,822,421
Property
6 Loans Secured by
Commercial Real 1,257,262 1,161,032 2,062,178 7,351,684 - 11,832,156 932,105 1,179,369 1,323,221 5,848,083 - 9,282,778
Estate
7 Employee/
Retiree Loans 3,407 17,655 66,773 468,022 - 555,857 3,419 16,498 70,436 753,849 - 844,202
8 Receivables on
Micro Business,
Small Business, 5,239,583 14,967,159 19,014,928 29,141,474 10,043,605 78,406,749 4,215,693 11,474,191 14,911,021 22,497,896 9,804,586 62,903,387
and Retail
Portfolio
9 Receivables on
Corporates 140,233,969 34,991,387 44,258,556 105,924,126 5,154,026 330,562,064 133,077,227 26,471,395 37,084,172 88,730,238 5,956,481 291,319,514
10 Past Due
Receivables 1,603,561 327,860 455,810 1,502,933 96,802 3,986,966 679,178 331,570 404,908 (981,192) (154,560) 279,904
11 Other Assets 12 9 4 99 46,929,985 46,930,109 - - - - 55,874,743 55,874,743

12 Exposures at
Sharia Unit - - - - - - - - - - - -
Total 297,395,877 86,022,787 89,007,368 206,667,366 117,800,572 796,893,970 247,289,540 63,247,277 80,480,260 192,256,827 125,788,556 709,062,460
Risk Management
Capital & Practice
Table 2.2.b Disclosure of Net Receivables By Remaining Contract Period of Bank, Consolidated with Subsidiaries (in million Rupiah)
Portfolio Net Receivables By Remaining Contract Period Net Receivables By Remaining Contract Period
No.
Category
> 1 year to > 3 years to Non- > 1 year to > 3 years to Non-
<1 year >5 years Total <1 year >5 years Total
3 years 5 years Contractual 3 years 5 years Contractual
1 Receivables on
78,519,196 8,918,856 15,549,203 25,846,069 37,752,928 166,586,252 41,327,837 11,546,393 18,128,788 38,776,626 34,032,851 143,812,495
Sovereigns
2 Receivables on
Public Sector 41,763,904 18,021,713 4,834,070 25,844,270 7,924,340 98,388,297 39,716,055 5,470,712 5,017,573 26,038,812 4,082,621 80,325,773
Entities
3 Receivables on
Multilateral
Development
- - - - - - 2,524 - 501 - - 3,025
Banks and
International
Institutions
4 Receivables on
29,157,852 7,190,210 1,299,090 662,155 2,981,975 41,291,2823 27,846,384 6,203,530 1,988,638 979,263 15,839,363 52,857,178
Banks
5 Loans Secured
by Residential 62,952 698,522 1,661,168 9,948,989 - 12,371,631 104,548 553,619 1,551,002 9,613,252 - 11,822,421
Property
6 Loans Secured
by Commercial 1,257,262 1,161,032 2,062,178 7,351,684 - 11,832,156 932,105 1,179,369 1,323,221 5,848,083 - 9,282,778
Real Estate
7 Employee/
6,632 26,789 74,316 448,120 - 555,857 3,419 16,498 70,436 753,849 - 844,202
Retiree Loans
8 Receivables on
Micro Business,
Small Business, 5,261,046 15,200,885 19,177,347 29,152,315 10,741,357 79,532,950 4,571,004 11,474,191 14,911,021 22,499,435 10,010,662 63,466,313
and Retail
Portfolio
9 Receivables on
140,233,969 35,007,264 44,265,584 105,925,401 3,779,507 329,211,725 133,241,756 26,551,761 37,164,538 88,836,574 5,524,884 291,319,513
Corporates
10 Past Due
1,603,561 327,860 455,810 1,502,933 96,802 3,986,966 679,178 331,570 404,908 (981,192) (154,560) 279,904
Receivables
11 Other Assets 12 9 4 99 48,228,951 48,229,075 - - - - 57,692,079 57,692,079
12 Exposures at
10,164,429 6,492,453 7,031,388 - 17,475,327 41,163,597 7,426,144 5,033,865 5,011,143 - 17,421,963 34,893,114
Sharia Unit
Total 308,030,815 93,045,593 96,410,158 206,682,035 128,981,187 833,149,7889 255,850,954 68,361,508 85,571,769 192,364,702 144,449,862 746,598,795
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.3.a Disclosure of Net Receivables By Economic Sector, Bank Only

31 December 2018
Receivables on
Receivables on Multilateral
Receivables on Receivables on Loans Secured by
No Economic Sector Public Sector Development Banks
Sovereigns Banks Residential Property
Entities and International
Institutions
1 Agriculture, Hunting, Forestry - 6,413,117 - - -
2 Fisheries - 77,772 - - -
3 Mining and Excavation - 9,494,673 - - -
4 Processing Industry - 20,294,567 - - -
5 Electricity, Gas, and Water - 13,847,497 - - -
6 Construction - 6,827,942 - - -
7 Wholesale and Retail 12,599,313 462,940 - - -
Provision of Accommodation and Provisions of

8 - - - - -
Food and Beverage
Transportation, Warehousing, and
9 - 4,495,609 - - -
Communication
10 Financial Intermediary 23,604,164 9,779,909 - 47,206,568 -
11 Real Estate, Rental and Corporate Services - 1,029,426 - - -
Government Administration, Defense, and

12 63,753,603 103,091 - - -
Mandatory Social Security
13 Education Services - - - 492 -
14 Health Services and Social Activities - 12,626 - - -
Community Service, Socio-Culture,

15 - 554,790 - - -
Entertainment and Other Individuals
16 Individual Services Serving Households - - - - -
International Bodies and Other Extra-

17 - - - - -
International Bodies
18 Activities with Limitations that are not yet clear - - - - -
19 Non-Business Field - - - - 10,446,036
20 Others 66,641,568 25,048,772 - - 1,925,595
Total 166,598,648 98,442,731 - 47,207,060 12,371,631
Risk Management
Capital & Practice
(in million Rupiah)
Receivables on Micro
Loans Secured by
Employee or Retiree Business, Small Receivables on Exposures at Sharia
Commercial Real Past Due Receivables Other Assets
Loans Business, and Retail Corporates Unit
Estate
Portfolio
1,578 - 4,329,138 35,886,346 20,125 - -
50 - 457,321 1,007,874 2,714 - -
- - 47,688 4,547,346 511,140 - -
88 - 3,063,889 71,474,919 987,039 - -
- - 40,085 10,451,611 - - -
- - 352,225 25,325,024 230,439 - -
3,650 - 13,650,187 49,812,762 783,542 - -
- - 1,387,927 12,887,842 80,697 - -
- - 407,878 25,551,772 216,848 - -
- - 28,626 15,382,455 3,940 - -
9,893,363 - 1,166,521 23,591,184 71,256 - -
- - 2,814 12,699 - - -
351 - 56,749 1,033,281 - - -
- - 219,678 1,734,631 5,618 - -
- - 887,280 5,040,707 9,449 - -
- - 35,574 5,488 158 - -
- - - 2,988 - - -
- - - - - - -
1,921,272 547,256 47,989,243 9,724,309 751,317 - -
11,805 8,600 4,283,926 37,088,827 312,683 46,930,109 -
11,832,157 555,856 78,406,749 330,562,065 3,986,965 46,930,109 -
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31 December 2017
Receivables on
Institutions
1 Agriculture, Hunting, Forestry - - - - -
2 Fisheries - 5,595,182 - - -
3 Mining and Excavation 48,805 - - - -
6 Construction - 18,108,394 - - -
7 Wholesale and Retail - 8,922,321 - - -
Provision of Accommodation and Provisions of

8 362 - 502 - 133
Food and Beverage
9 - - - - -
Communication
10 Financial Intermediary - 4,414,093 - - -
11 Real Estate, Rental and Corporate Services 48,733,488 5,275,298 - 42,370,872 -
Government Administration, Defense, and

12 3,815,351 325,598 - 38,218 -
Mandatory Social Security
13 Education Services 86,299,156 58,198 - - -
14 Health Services and Social Activities - - - - -

15 - - - 3,909 -
16 Individual Services Serving Households - 46,657 - 30,072 -

17 - - - - -
18 Activities with Limitations that are not yet clear - - - - -
19 Non-Business Field 2,827,075 - - 10,514 11,822,288
20 Others 2,088,258 23,399,228 2,523 10,140,634 -
Total 143,812,495 80,325,773 3,025 52,594,218 11,822,421
Risk Management
Capital & Practice
Loans Secured by
Estate
Portfolio
- - - - - - -
- - 2,277,019 35,609,969 1,206 - -
- - 322,087 938,935 12,287 - -
- - 24,725 7,730,760 - - -
348 - 1,313,178 67,239,574 8,850 - -
- - 16,884 8,791,952 53 - -
- - 181,851 16,594,785 15,261 - -
6,245 - 12,654,790 46,717,500 14,557 - -
1,566 - 753,057 11,774,476 8,123 - -
- - 257,951 20,578,436 - - -
- - 18,177 1,642,201 20,728 - -
7,187,433 - 774,516 15,019,997 23,648 - -
- - 2,293 42 - - -
385 - 37,624 575,620 - - -
- - 107,434 1,373,880 2,763 - -
172 - 410,783 3,219,559 - - -
- - 30,850 4,699 82 - -
- - - 5,961 - - -
2,086,629 844,201 43,373,839 11,658,627 163,411 - -
- - 346,331 41,842,541 8,934 55,874,743 -
9,282,778 844,202 62,903,387 291,319,514 279,904 55,874,743 -
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.3.b Disclosure of Net Receivables By Bank Economic Sector, Consolidated with Subsidiaries
31-Des-2018
Receivables on
Institutions
1 Agriculture, Hunting, Forestry - 6,412,595 - - -
2 Fisheries - 77,772 - - -
3 Mining and Excavation - 9,494,673 - - -
6 Construction - 6,824,117 - - -
7 Wholesale and Retail 12,599,313 441,622 - - -
Provision of Accommodation and

8 - - - - -
Provisions of Food and Beverage
9 - 4,486,642 - - -
Communication
10 Financial Intermediary 23,591,767 9,773,956 - 41,290,791 -
11 Real Estate, Rental and Corporate Services - 1,025,256 - - -
Government Administration, Defense,

12 63,753,603 103,091 - - -
and Mandatory Social Security
13 Education Services - - - 492 -
14 Health Services and Social Activities - 5,391 - - -

15 - 553,300 - - -
16 Individual Services Serving Households - - - - -

17 - - - - -
Activities with Limitations that are not
18 - - - - -
yet clear
19 Non-Business Field - - - - 10,446,036
20 Others 66,641,568 25,048,772 - - 1,925,595
Total 166,586,251 98,388,298 - 41,291,283 12,371,631
Risk Management
Capital & Practice
(in million Rupiah)
Loans Secured by
Estate
Portfolio
1,577 - 4,329,138 35,886,345 20,126 - 612,121
50 - 457,321 1,007,874 2,714 - 29,074
- - 47,688 4,547,346 511,140 - 268,878
88 - 3,064,988 71,474,919 987,039 - 1,676,912
- - 40,085 10,451,611 - - 1,286,500
- 1,075 387,033 24,736,079 230,439 - 1,637,684
3,650 5,520 14,479,784 49,400,857 783,542 - 2,427,390
- - 1,387,927 12,887,842 80,697 - 570,107
- 1,982 430,582 25,378,171 216,848 - 973,483
- 3,555 210,423 15,382,455 3,940 - 1,597,976
9,893,363 3,903 1,190,206 23,591,183 71,256 - 871,750
- - 2,814 12,699 - - -
351 - 56,749 1,033,281 - - 813,502
- 3,545 243,643 1,558,746 5,618 - 740,984
- 1,615 895,827 5,040,707 9,449 - 171,172
- - 35,574 5,488 158 - 6,640
- - - 2,988 - - -
- - - - - - -
1,921,272 526,061 47,989,243 9,724,309 751,317 - 14,184,667
11,805 8,600 4,283,926 37,088,826 312,683 48,229,075 13,294,756
11,832,156 555,856 79,532,951 329,211,726 3,986,966 48,229,075 41,163,596
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31 December 2017
Receivables on
Institutions
1 Agriculture, Hunting, Forestry - - - - -
2 Fisheries - 5,595,182 - - -
3 Mining and Excavation 48,805 - - - -
6 Construction - 18,108,394 - - -
7 Wholesale and Retail - 8,922,321 - - -
Provision of Accommodation and

8 362 - 502 - 133
Provisions of Food and Beverage
9 - - - - -
Communication
10 Financial Intermediary - 4,414,093 - 611,695 -
11 Real Estate, Rental and Corporate Services 48,733,488 5,275,298 - 42,089,924 -
Government Administration, Defense,

12 3,815,351 325,598 - 37,965 -
and Mandatory Social Security
13 Education Services 86,299,156 58,198 - - -
14 Health Services and Social Activities - - - - -

15 - - - 3,883 -
16 Individual Services Serving Households - 46,657 - 29,872 -

17 - - - - -
Activities with Limitations that are not
18 - - - - -
yet clear
19 Non-Business Field 2,827,075 - - 10,444 11,822,287
20 Others 2,088,258 23,399,228 2,523 10,073,395 -
Total 143,812,495 80,325,773 3,025 52,857,178 11,822,421
Risk Management
Capital & Practice
Loans Secured by
Estate
Portfolio
- - 33,453 2,679 - - 286,460
- - 2,284,297 35,559,831 1,206 - 28,031
- - 340,074 946,774 12,287 - 264,782
- - 145,288 7,746,170 - - 1,042,585
348 - 1,329,952 67,158,006 8,850 - 841,050
- - 51,720 8,793,115 53 - 1,183,005
- - 203,847 16,579,472 15,261 - 2,373,972
6,245 - 12,697,811 46,651,723 14,557 - 188,748
1,566 - 779,474 11,788,716 8,123 - 633,073
- - 266,570 20,806,061 - - 1,449,475
- - 84,903 1,681,632 20,728 - 714,374
7,187,433 - 776,991 15,000,323 23,648 - -
- - 2,301 42 - - 433,799
385 - 55,768 579,931 - - 713,995
- - 109,364 1,373,243 2,763 - 180,225
172 - 412,096 3,215,026 - - 4,983
- - 30,949 4,692 82 - -
- - - 5,953 - - -
2,086,629 844,201 43,512,475 11,642,210 163,411 - 12,848,859
- - 348,982 41,783,911 8,934 57,692,079 11,705,697
9,282,778 844,202 63,466,313 291,319,510 279,904 57,692,079 34,893,114
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.4.a Disclosure of Receivables and Provisioning By Bank Regions, Bank Only (in million Rupiah)
31-Dec-18
No. Description Area
Group A Group B Group C Group D Group E Total
1 Receivables 98,155,349 43,655,370 117,396,466 404,107,153 51,798,417 715,112,755
2 Impaired receivables - - - - -
a. Not Yet Due 445,040 110,308 841,695 1,035,228 192,008 2,624,279
b. Already Due 1,661,201 573,301 2,827,508 1,268,148 - 6,330,158
3 Allowances for Impairment Losses

(CKPN) - Individual 999,044 30,907 1,111,630 3,575,653 192,900 5,910,133
4 Allowances for Impairment Losses

(CKPN) - Collective 1,977,239 1,287,663 4,564,464 1,127,836 149,392 9,106,594
5 Written-off receivables 2,160,119 724,520 2,582,245 1,972,159 8,325 7,447,368
Information:
31-Dec-17
1 Receivables 81,238,049 37,815,260 101,591,686 348,572,230 42,320,424 611,537,649
Impaired receivables
2
a. Not Yet Due 121,570 51,567 90,491 1,021,168 190,389 1,475,185
b. Already Due 1,958,180 517,096 3,710,568 2,040,349 302,065 8,528,258
Allowances for Impairment Losses 1,281,626 142,557 951,330 1,247,641 102,361 3,725,514
3
(CKPN) - Individual
Allowances for Impairment Losses 2,325,870 1,053,740 3,894,534 3,169,422 93,875 10,537,441
4
(CKPN) - Collective
5 Written-off receivables 1,336,207 558,072 2,813,489 4,023,273 - 8,731,041
Risk Management
Capital & Practice
Table 2.4.b Disclosure of Receivables and Provisioning By Bank Regions, Consolidated with Subsidiaries (in million Rupiah)
31-Dec-18
1 Receivables 105,029,308 45,708,191 128,029,762 419,889,251 51,799,409 750,455,921
Impaired receivables - - - - -
2 a. Not Yet Due 6,187,265 2,843,171 9,160,563 25,730,920 192,008 44,113,927
b. Already Due 1,663,693 574,616 2,833,934 1,306,795 - 6,379,038
Allowances for Impairment Losses

3 999,044 54,228 1,116,557 3,710,876 192,900 6,073,605
(CKPN) - Individual
Allowances for Impairment Losses

4 2,153,389 1,380,937 4,765,214 1,291,727 149,392 9,740,659
(CKPN) - Collective
5 Written-off receivables 2,430,270 803,736 2,873,707 3,019,615 8,325 9,135,653
Information:
31-Dec-17
1 Receivables 86,917,098 39,516,037 109,589,786 370,041,277 42,329,543 648,393,741
Impaired receivables
2
a. Not Yet Due 5,644,924 1,750,455 7,932,244 21,016,651 190,389 36,534,663
b. Already Due 1,964,394 518,985 3,715,525 2,073,692 302,065 8,574,661
Allowances for Impairment Losses 1,281,626 142,557 952,371 1,402,579 102,361 3,881,494
3
(CKPN) - Individual
Allowances for Impairment Losses 2,410,754 1,093,452 3,987,158 3,380,949 93,875 10,966,188
4
(CKPN) - Collective
5 Written-off receivables 1,497,515 597,880 2,941,584 5,072,750 - 10,109,729
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.5.a Disclosure of Receivables and Provisioning By Bank Economic Sector, Bank Only (in million Rupiah)
31 December 2018
Impaired receivables Allowances for Allowances for
Impairment Impairment Written-off
No Economic Sector Receivables
Not Yet Due Already Due Losses (CKPN) - Losses (CKPN) - Receivables
Individual Collective
1 Agriculture, Hunting, Forestry 46,696,455 2,837 54,564 110,655 421,847 266,701
2 Fisheries 1,562,693 - 7,425 2,159 41,568 89,310
3 Mining and Excavation 15,400,192 386,987 934,133 1,470,616 123,183 1,066,573
4 Processing Industry 99,031,758 611,292 2,459,450 2,537,988 2,336,860 1,393,207
5 Electricity, Gas, and Water 23,245,121 - - 7,181 109,591 357
6 Construction 32,799,978 208,685 106,224 70,861 376,006 184,013
7 Wholesale and Retail 78,788,575 594,660 1,169,106 548,663 2,079,214 1,973,421
8 Provision of Accommodation and Provisions of Food and Beverage 14,545,319 20,293 156,292 48,079 318,368 264,690
9 Transportation, Warehousing, and Communication 30,454,446 209,023 22,281 151,249 327,620 120,634
10 Financial Intermediary 81,568,922 10 12,908 58,786 211,109 64,195
11 Real Estate, Rental and Corporate Services 36,371,174 5,653 260,936 288,364 705,259 258,865
12 Government Administration, Defense, and Mandatory Social Security 63,120,974 - - - 43,501 223
13 Education Services 1,089,572 - - - 15,626 4,688
14 Health Services and Social Activities 1,976,778 5,002 5,526 - 34,389 8,482
15 Community Service, Socio-Culture, Entertainment and Other Individuals 6,527,606 - 37,044 644 113,653 106,151
16 Individual Services Serving Households 41,908 - 433 - 1,397 271
17 International Bodies and Other Extra-International Bodies 2,982 - - - 61 -
18 Activities with Limitations that are not yet clear - - - - - 8,145
19 Non-Business Field 72,614,129 577,290 987,249 121,529 1,438,117 1,637,441
20 Others 109,274,173 2,547 116,586 493,359 409,222 -
Total 715,112,755 2,624,279 6,330,157 5,910,133 9,106,591 7,447,367
Risk Management
Capital & Practice
31 December 2017

44,282,116 1,594 153,479 706,214 501,586 91,443
1 Agriculture, Hunting, Forestry
1,392,086 128 73,802 37,848 61,432 7,785

2 Fisheries
9,184,363 - 1,035,737 270,568 64,163 540,433

3 Mining and Excavation
84,574,551 446,925 2,762,130 1,040,404 2,577,216 2,469,355

4 Processing Industry
25,923,685 - 220 6,906 143,545 133,396

5 Electricity, Gas, and Water
25,747,259 182,537 195,566 5,609 323,169 265,965

6 Construction
59,995,590 216,240 1,500,452 96,114 2,068,455 1,941,038

7 Wholesale and Retail
Provision of Accommodation and Provisions of Food and 12,853,353 21,901 100,615 256,584 242,802 44,910
8
Beverage
25,077,058 2,463 147,734 123,399 255,033 1,447,253

9 Transportation, Warehousing, and Communication
96,919,335 150,681 56,261 266,286 141,537 47,885

10 Financial Intermediary
14,235,111 81,014 439,528 618,261 988,368 74,589

11 Real Estate, Rental and Corporate Services
Government Administration, Defense, and Mandatory Social 85,795,058 - - - 44,039 -

12
Security
615,487 - - - 15,085 1,066

13 Education Services
1,497,880 - 10,480 217 38,791 39,181

14 Health Services and Social Activities
Community Service, Socio-Culture, Entertainment and Other 3,738,904 2,784 69,215 10,998 87,673 71,206
15
Individuals
36,127 - 238 - 1,475 928

16 Individual Services Serving Households
5,950 - - - 164 -
17 International Bodies and Other Extra-International Bodies
- - - - - 356
18 Activities with Limitations that are not yet clear
74,970,147 368,918 1,393,986 185,170 1,998,880 -

19 Non-Business Field
44,693,589 - 588,815 100,936 984,028 1,554,252

20 Others
Total 611,537,649 1,475,185 8,528,258 3,725,514 10,537,441 8,731,041
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank NegaraIndonesia
2018
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.5.b Disclosure of Receivables and Provisioning By Bank Economic Sector, Consolidated with Subsidiaries (in million Rupiah)
31 December 2018
Written-off
No Economic Sector Receivables Impairment Losses Impairment Losses
Not Yet Due Already Due Receivables
(CKPN) - Individual (CKPN) - Collective
2 Fisheries 1,592,195 29,391 7,535 2,159 42,133 91,298
3 Mining and Excavation 15,671,991 658,436 934,483 1,470,616 129,625 1,070,438
4 Processing Industry 100,733,754 2,312,636 2,461,167 2,543,603 2,374,231 1,429,520
5 Electricity, Gas, and Water 24,531,877 1,286,757 - 8,651 122,419 3,709
6 Construction 33,840,516 1,858,487 114,817 70,861 410,671 241,464
7 Wholesale and Retail 81,754,165 3,138,845 1,188,893 576,958 2,252,027 2,087,236
9 Transportation, Warehousing, and Communication 31,313,596 1,250,970 24,357 210,932 346,864 126,484
10 Financial Intermediary 76,782,392 1,604,984 15,119 98,067 234,847 271,727
11 Real Estate, Rental and Corporate Services 37,357,749 909,237 264,226 294,069 741,615 285,236
12 Government Administration, Defense, and Mandatory Social Security 63,120,974 - - - 43,501 223
13 Education Services 1,904,588 814,995 21 710 23,121 5,609
14 Health Services and Social Activities 2,546,220 756,004 5,536 8,836 40,795 10,519
15 Community Service, Socio-Culture, Entertainment and Other Individuals 6,706,961 172,206 37,417 644 116,502 112,913
16 Individual Services Serving Households 48,552 6,638 439 - 1,454 283
19 Non-Business Field 86,977,640 14,956,669 994,563 135,406 1,677,277 2,371,494
20 Others 123,136,744 13,144,833 116,882 493,359 422,669 434,680
Total 750,455,921 44,113,927 6,379,038 6,073,605 9,740,659 9,135,653
Risk Management
Capital & Practice
31 December 2017

2 Fisheries 1,421,905 29,862 73,886 37,848 63,349 9,189
3 Mining and Excavation 9,475,562 265,121 1,035,737 270,569 66,145 632,273
4 Processing Industry 85,775,546 1,497,570 2,766,046 1,040,404 2,596,973 2,626,526
5 Electricity, Gas, and Water 26,790,595 841,251 220 7,137 151,782 134,007
6 Construction 26,992,830 1,367,700 207,742 5,609 348,588 304,774
7 Wholesale and Retail 62,474,870 2,657,104 1,509,458 120,952 2,179,356 2,104,991
9 Transportation, Warehousing, and Communication 25,779,334 648,675 149,003 134,987 262,317 1,452,243
10 Financial Intermediary 99,631,805 1,705,871 57,669 365,477 163,090 244,174
11 Real Estate, Rental and Corporate Services 15,082,423 814,518 445,077 622,364 1,013,555 88,288
12 Government Administration, Defense, and Mandatory Social Security 85,796,533 - - - 44,039 -
13 Education Services 1,049,685 434,197 - 1,041 17,844 1,302
14 Health Services and Social Activities 2,235,182 714,207 10,480 4,545 43,791 39,291
15 Community Service, Socio-Culture, Entertainment and Other Individuals 3,923,169 184,043 69,341 10,998 90,304 78,188
16 Individual Services Serving Households 41,164 5,030 245 - 1,565 940
19 Non-Business Field 87,971,667 13,361,606 1,402,818 195,830 2,173,565 213,031
20 Others 56,288,530 11,503,559 590,769 100,936 994,173 1,993,599
Total 648,393,741 36,534,664 8,574,660 3,881,493 10,966,189 10,109,729
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 2.6.a Disclosure of Detailed Changes in Allowances for Impairment Losses (CKPN) Bank Only (in million Rupiah)
31-Dev-18 31-Dev-17
No Description
Individual CKPN Collective CKPN Individual CKPN Collective CKPN
1 Beginning Balance of CKPN 4,419,430 10,299,301 8,164,248 8,418,756
Establishment (Recovery) of CKPN in the current period (Net) 2,782,977 4,576,268 (684,686) 7,677,958
2 2.a Establishment of CKPN in the current period 2,675,373 4,123,217 (1,017,865) 7,521,029
2.b Recovery of CKPN in the current period 107,604 453,050 333,179 156,929
3 CKPN used for written off receivables in the current period (1,353,692) (6,093,701) (3,361,222) (5,368,832)
4 Other establishment (recovery) in the current period 61,418 324,726 8,942 (196,228)
Ending Balance of CKPN 5,910,133 9,106,594 4,127,282 10,531,654
Table 2.6.b Disclosure of Detailed Changes in Allowances for Impairment Losses (CKPN),
Bank Consolidated with Subsidiaries (in million Rupiah)
31-Dev-18 31-Dev-17
No Description
Individual CKPN Collective CKPN Individual CKPN Collective CKPN
1 Beginning Balance of CKPN 4,419,429 10,898,677 8,164,248 8,935,654
Establishment (Recovery) of CKPN in the current period (Net) 2,788,725 5,255,832 (685,831) 8,367,209
2 2.a Establishment of CKPN in the current period 2,681,121 4,707,292 (1,019,010) 8,145,346
2.b Recovery of CKPN in the current period 107,604 548,540 333,179 221,863
3 CKPN used for written off receivables in the current period (1,353,692) (6,480,881) (3,361,222) (6,034,722)
4 Other establishment (recovery) in the current period 55,670 280,300 10,087 (138,637)
Ending Balance of CKPN 5,910,132 9,953,928 4,127,282 11,129,504
CREDIT RISK MEASUREMENT BY USING STANDARDIZED APPROACH
USE OF RATING FROM EXTERNAL RATING AGENCIES

In accordance with Financial Services Authority Circular Letter (SEOJK) No. 42/SEOJK.03/2016 dated September 28, 2016, BNI
uses External Ratings in the Calculation of Risk Weighted Assets (ATMR) which are:
1. The rating of a Bank is only valid for that Bank, therefore, even though it is in a business group, a company’s rating
cannot be used to determine the risk weight of another company.
2. Domestic ratings (Pefindo, Fitch Indonesia, and ICRA Indonesia) are only used to determine the risk weight of receivables
in Rupiah currency, while international ratings (Moody’s, S & P, and Fitch) are used to determine the risk weight of
receivables in foreign currencies.
3. Determination of the risk weight of receivables in the form of securities is based on the rating of such securities (issue
rating). In the event that the securities do not have a rating, then the determination of the risk weight is based on the risk
weight of receivables without ratings. Determination of the risk weight of receivables in the form of other than securities
is based on the rating of the debtors (issuer rating). In the event that the receivables are in the form of other than
securities that do not have a rating, then the determination of the risk weight is based on the risk weight of receivables
without ratings.
4. Short-term rating is used to determine the risk weight of securities that have a short-term period and are issued by
parties included in the scope of Receivables on Banks or Receivables on Corporates. In the even that the short-term
receivables do not have a short-term rating, then the determination of risk weight uses a long-term rating.
5. In the event that an exposure has more than one eligible rating, then the rating used is the one that gives the second
lowest risk weight. In this matter, in the event that there are only two ratings, then the lowest rating is used.
Risk Management
Capital & Practice
PORTFOLIO CATEGORIZATION USING RATINGS

Determination of risk weight by exposure ratings as mentioned above is only applied to portfolio categories as follows:
1. Receivables on Government of other Countries
2. Receivables on Public Sector Entities
3. Receivables on Multilateral Development Banks and International Institutions
4. Receivables on Banks (Long Term and Short Term)
5. Receivables on Corporate (Long Term and Short Term)
Composition per exposure for credit risk per Risk Weight of December 31, 2018, (%) by the latest rating issued by rating
agencies.
0.7% 0.7%
24.6% 24.7%
2.4% 2.9%
46.1% 45.2%
BNI Individual BNI Konsolidasi
0.3% 0.5%
1.0% 1.9%
15.3% 14.9%
9.6% 9.2%
Bobot Risiko 0%............................24.6% Bobot Risiko 50%..........................15.3% Bobot Risiko 50%.........14.9%

Bobot Risiko 0%.........24.7%
Bobot Risiko 20%.............................2.4% Bobot Risiko 75%.............................9.6% Bobot Risiko 75%.........9.2%
Bobot Risiko 20%.........2.9%
Bobot Risiko 25%..............................0.3% Bobot Risiko 100%.......................46.1% Bobot Risiko 100%.....45.2%
Bobot Risiko 25%.........0.5%
Bobot Risiko 30%..............................1.0% Bobot Risiko 150%...........................0.7% Bobot Risiko 150%.......0.7%
Bobot Risiko 35%.........1.9%
Bobot Risiko 40%..............................0.0% Lainnya................................................0.0% Bobot Risiko 40%.........0.0% Lainnya.............................0.0%
Bobot Risiko 45%..............................0.0% Bobot Risiko 40%.........0.0%
RATING AGENCIES USED

The list of rating agencies and ratings recognized are as follows:
1. Fitch Ratings
2. Moody’s Investor Service
3. Standard and Poor’s
4. PT Fitch Ratings Indonesia
5. PT ICRA Indonesia
6. PT Pemeringkat Efek Indonesia
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 3.1.a Net Receivables By Portfolio Category and Rating Scale

31-Dec-2018
Rating Agency Long-Term Rating

Standards and
AAA AA+ to AA- A+ to A- BBB+ to BBB- BB+ to BB-
Poor's
Fitch Rating AAA AA+ to AA- A+ to A- BBB+ to BBB- BB+ to BB-
No Portfolio Category Moody's Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3 Ba1 to Ba3
PT Fitch Ratings AA+(idn) to AA- A+(idn) to BBB+(idn) to BB+(idn) to BB-
AAA (idn)
Indonesia (idn) A-(idn) BBB-(idn) (idn)
PT ICRA [Idr]AA+ to [Idr] [Idr]BBB+ to [Idr]BB+ to [Idr]
[Idr] AAA [Idr]A+ to [Idr]A-
Indonesia AA- [Idr]BBB- BB-
PT Pemeringkat id BBB+ to id
idAAA idA+ to id A- id BB+ to id BB-
Efek Indonesia BBB-
1 Receivables on Sovereigns 7,444,866 1,787,433 699,454 155,667,273 999,622
2 Receivables on Public Sector Entities 1,583,783 25,383 4,232 812,223 484,784
3 Development Banks and International - - - - -
Institutions
4 Receivables on Banks 9,862,518 3,064,041 1,065,843 970,432 184,853
5 Loans Secured by Residential Property - - - - -
Loans Secured by Commercial Real

6 - - - - -
Estate
7 Employee or Retiree Loans - - - - -
Receivables on Micro Business, Small

8 - - - - -
Business, and Retail Portfolio
9 Receivables on Corporates 4,084 108,881 57,885 366,831 3,530,117
10 Past Due Receivables 74,050 - - 61,900 122,642
11 Other Assets - - - - -
12 Exposures at Sharia Unit - - - - -
Total 18,969,301 4,985,738 1,827,414 157,878,659 5,322,018
Risk Management
Capital & Practice
(in million Rupiah)
Net Receivables
Short-Term Rating
B+ to B- Less than B- A-1 A-2 A-3 Less than A-3
B+ to B- Less than B- F1+ to F1 F2 F3 Less than F3

B1 to B3 Less than B3 P-1 P-2 P-3 Less than P-3
No Rating Total
F1+(idn) to
B+(idn) to B-(idn) Less than B-(idn) F2(idn) F3(idn) Less than F3 (idn)
F1(idn)
[Idr]A3+ to [Idr]
[Idr]B+ to [Idr]B- Less than [Idr]B- [Idr]A1+ to [Idr]A1 [Idr]A2+ to [Idr]A2 Less than [idr] A3
A3
id B+ to id B- Less than idB- idA1 idA2 idA3 to idA4 Less than idA4
- - - - - - - 166.598.648
- - - - - - 95,532,327 98.442.732
- - - - - - - -
- - - - - - 32,059,374 47.207.061
- - - - - - 12,371,631 12.371.631
- - - - - - 11,832,156 11.832.156
- - - - - - 555,856 555.856
- - - - - - 78,406,749 78.406.749
621,750 - - - - - 325,872,516 330.562.064
252 - - - - - 3,728,122 3.986.966
- - - - - - 46,930,109 46.930.109
- - - - - - - -
622,002 - - - - - 607,288,840 796.893.972
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Bank Only
31-Dec-2017
Standards and
Poor's
No Portfolio Category
Moody's Aaa Aa1 to Aa3 A1 to A3 Baa1 to Baa3 Ba1 to Ba3
AAA (idn)
Efek Indonesia BBB-
2 Receivables on Public Sector Entities 21,696,657 5,064,528 8,481,352 373,173 625,447
Receivables on Multilateral Development Banks

3 - - - - -
and International Institutions
4 Receivables on Banks 9,702,304 3,634,931 2,077,900 2,478,600 1,520,698
6 Loans Secured by Commercial Real Estate - - - - -
Receivables on Micro Business, Small Business,

8 - - - - -
and Retail Portfolio
9 Receivables on Corporates - 2,572,222 531,230 2,382,065 3,262,023
10 Past Due Receivables 73,666 - - 289 48,115
Total 83,681,292 13,489,997 11,743,664 93,921,944 5,500,800
Risk Management
Capital & Practice
(in million Rupiah)
Net Receivables
Short-Term Rating

B1 to B3 Less than B3 P-1 P-2 P-3 Less than P-3 No Rating Total
F1+(idn) to
F1(idn)
[Idr]A3+ to [Idr]
A3
- - - - - - - 143,812,495
- - - - - - 44,084,616 80,325,773
- - - - - - 3,025 3,025
- - - - - - 33,179,785 52,594,218
- - - - - - 11,822,421 11,822,421
- - - - - - 9,282,778 9,282,778
- - - - - - 844,202 844,202
- - - - - - 62,903,387 62,903,387
898,861 - - - - - 281,673,108 291,319,514
251 - - - - - 157,583 279,904
- - - - - - 55,874,743 55,874,743
- - - - - - - -
899,112 - - - - - 499,825,651 709,062,460
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Table 3.1.b Net Receivables By Portfolio Category and Rating Scale, Bank Consolidated with
31-Des-2018

Standards and
Poor's
AAA (idn)
Efek Indonesia BBB-
2 Receivables on Public Sector Entities 1,583,783 25,383 4,232 812,223 484,784

3 - - - - -
4 Receivables on Banks 9,862,517 3,064,041 1,065,843 970,432 184,853

8 - - - - -
9 Receivables on Corporates 4,084 108,881 57,885 366,831 3,530,117
10 Past Due Receivables 74,050 - - 61,900 122,642
Total 18,969,301 4,985,738 1,827,414 157,878,659 5,309,621
Risk Management
Capital & Practice
(in million Rupiah)
Net Receivables
Short-Term Rating

No Rating Total
F1+(idn) to
F1(idn)
[Idr]A3+ to [Idr]
A3
- - - - - - - 166,586,252
- - - - - - 95,477,892 98,388,296
- - - - - - - -
- - - - - - 26,143,598 41,291,284
- - - - - - 12,371,631 12,371,631
- - - - - - 11,832,156 11,832,156
- - - - - - 555,856 555,856
- - - - - - 79,532,951 79,532,951
621,750 - - - - - 324,522,178 329,211,726
252 - - - - - 3,728,122 3,986,966
- - - - - - 48,229,075 48,229,075
- - - - - - 41,163,596 41,163,596
622,002 - - - - - 643,557,055 833,149,789
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31-Dec-2017
Standards and
Poor's

AAA (idn)
Efek Indonesia BBB-
2 Receivables on Public Sector Entities 21,696,657 5,064,528 8,481,352 373,173 625,447

3 - - - - -
4 Receivables on Banks 9,702,304 3,634,931 2,077,900 2,478,600 1,520,698

8 - - - - -
9 Receivables on Corporates - 2,572,222 531,230 2,382,065 3,262,028
10 Past Due Receivables 73,666 - - 289 48,115
12 Exposures at Sharia Unit 568,443 - 93,020 - -
Total 84,249,735 13,489,997 11,836,684 93,921,944 5,500,805
Risk Management
Capital & Practice
Net Receivables
Short-Term Rating

No Rating Total
F1+(idn) to
F1(idn)
[Idr]A3+ to [Idr]
A3
- - - - - - - 143,812,495
- - - - - - 44,084,618 80,325,775
- - - - - - 3,026 3,026
- - - - - - 33,442,746 52,857,179
- - - - - - 11,822,420 11,822,420
- - - - - - 9,282,778 9,282,778
- - - - - - 844,201 844,201
- - - - - - 63,466,314 63,466,314
898,861 - - - - - 281,673,102 291,319,508
251 - - - - - 157,583 279,904
- - - - - - 57,692,079 57,692,079
- - - - - - 34,231,651 34,893,114
899,112 - - - - - 536,700,518 746,598,793
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
COUNTERPARTY CREDIT RISK
COUNTERPARTY CREDIT RISK

Counterparty credit risk is part of credit risk. Counterparty credit risk is a risk due to the failure of the other party before the
final settlement of cash flows on the transaction is either influenced by business conditions or due to factors in the movement
of fair value or market value, for example in derivative transactions, repo, and reverse repo.
The types of risk mitigation instruments from counterparty credit risk received by banks include:
1. Cash held by the bank
2. Current accounts, savings, or deposits issued by bank
3. Indonesian government securities and State Sharia Securities
Each counterparty has a different limit, and to determine the limit of each counterparty, the Counterparty Limit Application
Package (CLAP) application is used. Assessment of counterparty limits is carried out by the Corporate Credit Risk Division and
reviewed periodically or tailored to the needs that are influenced by the business dynamics and risk level of each counterparty.
To calculate capital adequacy by considering the results of RWA calculation using Standardized approach, a calculation of
additional RWA credit risk from the Counterparty Risk has been prepared by entering Credit Valuation Adjustment (CVA)
component.
1. DERIVATIVE TRANSACTIONS
Derivative transactions carried out by the Bank are generally Forward, Cross Currency Swap (CCS), and Interest Rate Swap
(IRS) transactions. Bank Customers who will conduct derivative transactions shall have a transaction limit determined by
the Business Unit and Risk Unit. The derivative transaction policy also determines the minimum marginal deposit amount
that shall be deposited by the customer in accordance with the types of risks inherent in the derivative transactions.
Disclosure of counterparty credit risk of derivative transactions is contained in Table 3.2.a Counterparty Credit Risk:
Derivative Transactions.
Table 3.2.a Counterparty Credit Risk: Derivative Transactions (in million Rupiah)
31-Dec-18
Underlying Notional Amount
No Derivative Derivative Net Receivables Net Receivables
Variables MRK
>1 year - ≤5 Receivables Liabilities Before MRK After MRK
≤1 year >5 years
years
BANK ONLY
1 Interest Rates 19,996,408 16,991 - 156,187 - 240,131 - 240,131
2 Exchange Rate 8,879,650 16,788,650 - 424,098 - 624,912 - 624,912
3 Others 558,306 329,213 - 24,963 - 47,006 - 47,006
Total 29,434,364 17,134,854 - 605,248 - 912,049 - 912,049
BANK CONSOLIDATED
1 Interest Rates 19,996,408 16,991 - 156,187 - 240,131 - 240,131
2 Exchange Rate 8,879,650 16,788,650 - 424,098 - 624,912 - 624,912
3 Units - - - - - - - -
4 Gold - - - - - - - -
Metals Other than

5 - - - - - - - -
Gold
6 Others 558,306 329,213 - 24,963 - 47,006 - 47,006
TOTAL 29,434,364 17,134,854 - 605,248 - 912,049 - 912,049
Risk Management
Capital & Practice
31-Dec-17
Underlying Notional Amount

No Derivative Derivative Net Receivables Net Receivables
Variables MRK
>1 year - ≤5 Receivables Liabilities Before MRK After MRK
≤1 year >5 years
years
BANK ONLY
1 Interest Rates 8,615,363 12,753,450 - 77,680 - 141,447 - 141,447
2 Exchange Rate 18,576,137 1,026 - 116,098 - 301,909 - 301,909
3 Others 389,849 359,099 - 23,092 - 44,945 - 44,945
Total 27,581,349 13,113,575 - 216,870 - 488,301 - 488,301
BANK CONSOLIDATED
1 Interest Rates 8,615,363 12,753,450 - 77,680 - 141,447 - 141,447
2 Exchange Rate 18,576,137 1,026 - 116,098 - 301,909 - 301,909
3 Units - - - - - - - -
4 Gold - - - - - - - -
Metals Other than

5 - - - - - - - -
Gold
6 Others 389,849 359,099 - 23,092 - 44,945 - 44,945
Total 27,581,349 13,113,575 - 216,870 - 488,301 - 488,301
2. REPO and REVERSE REPO TRANSACTIONS

BNI only conducts Repo or Reverse Repo transactions with the underlying assets of Securities of the Government of the
Republic of Indonesia (Sovereign Debt Instruments).
Table 3.2.b.1 Repo Transactions Bank Only (in million Rupiah)

No Portfolio Category Repo’s Net Repo’s Net

Fair Value Net Fair Value Net
Receivables RWA Receivables RWA
SB Receivables SB Receivables
Liabilities Liabilities
1 Receivables on Sovereigns - - - - - - - -
2 Receivables on Public Sector Entities - - - - - - - -
Receivables on Multilateral Development Banks and International

3 - - - - - - - -
Institutions
4 Receivables on Banks 20,759,642 - 21,063,665 - 5,279,319 5,304,942 3,013,341 74,736
Receivables on Micro Business, Small Business, and Retail

5 - - - - - - - -
Portfolio
6 Receivables on Corporates - - - - - - - -
7 Exposures at Sharia Unit - - - - - - - -
Total 20,759,642 - 21,063,665 - 5,279,319 5,304,942 3,013,341 74,736
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
3.2.b.2 Repo Transaction

No Portfolio Category Repo’s Net Repo’s Net

Fair Value Net Fair Value Net
Receivables RWA Receivables RWA
SB Receivables SB Receivables
Liabilities Liabilities
1 Receivables on Sovereigns - - - - - - - -
2 Receivables on Public Sector Entities - - - - - - - -
Receivables on Multilateral Development Banks and International - - - -

3 - - - -
Institutions
4 Receivables on Banks 20,759,642 - 21,063,665 - 5,279,319 5,304,942 3,013,341 74,736
5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - - - -

6 Receivables on Corporates - - - - - - - -
7 Exposures at Sharia Unit - - - - - - - -
Total 20,759,642 - 21,063,665 - 5,279,319 5,304,942 3,013,341 74,736
3.2.c1 Reverse Repo Transactions

Bank Only (in million Rupiah)
31-Dec-18
No. Portfolio Category
Net Receivables CRM Value Receivables Net of CRM RWA after CRM
1 Receivables on Sovereigns - - - -
2 Receivables on Public Sector Entities - - - -
Receivables on Multilateral Development Banks and

3 - - - -
International Institutions
4 Receivables on Banks - - - -
Receivables on Micro Business, Small Business, and

5 - - - -
Retail Portfolio
6 Receivables on Corporates - - - -
7 Exposures at Sharia Unit (if any) - - - -
Total - - - -
31-Dec-17
1 Receivables on Sovereigns 387,845 387,845 - -
Receivables on Multilateral Development Banks and

3 - - - -
Receivables on Micro Business, Small Business, and

5 - - - -
Retail Portfolio
Total 387,845 387,845 - -
Risk Management
Capital & Practice
3.2.c2 Reverse Repo Transactions

31-Dec-18
1 Receivables on Sovereigns - - - -
3 Receivables on Multilateral Development Banks and International

Institutions - - - -
5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - -


Total - - - -
31-Dec-17
1 Receivables on Sovereigns 387,845 387,845 - -
3 Receivables on Multilateral Development Banks and International - - - -

Institutions


Total 387,845 387,845 - -
CREDIT RISK MITIGATION BY USING STANDARDIZED APPROACH
IMPLEMENTATION OF CREDIT RISK MITIGATION TECHNIQUE BY USING STANDARDIZED APPROACH

The main types of collateral received in respect to credit risk mitigation is the object financed by the Bank. While as
complementary, the Bank may accept additional collateral. The main and additional collateral types can be grouped into:
1. Collateral, which can be either physical assets (land, buildings, machinery, equipment, etc.) or financial assets (cash
collateral, marginal deposits, gold, receivables, debentures, or other securities). In credit risk mitigation technique, the
physical assets are not counted as credit risk mitigation technique.
2. Guarantee, which is received from the Government of the Republic of Indonesia, Bank correspondents, as well as
Insurance companies. In credit risk mitigation technique, the guarantees calculated are only guarantees issued by parties
included in the category scope of Claims To the Government of Indonesia, Claims To Other Country’s Government, Claims
To Bank and warranty/insurance institution by observing the fulfillment of requirements of guarantee and guarantee
issuer.
3. Credit Insurance, which is issued by the insurer with due observance of the fulfillment of requirements of the insurance
policy, the insurer, and the category of portfolio of insurance recipients.
BNI regulates policies, procedures, and processes to assess and manage the collateral by type of exposure and financing
schemes given. Assessment of adequacy of the collaterals received has calculated the existing of cash equivalent value. For
credit exposure (loan), assessment of the collateral shall be made at least every 24 months by independent appraiser or by an
independent internal appraisal staff in the credit provision process.
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
In addition to mitigation technique in the form of collateral, BNI also uses guarantee/collateral and credit insurance. Analysis
of the main parties of the guarantor/warranty provider is part of the credit feasibility analysis and credit risk mitigation. The
guarantor parties among others are: (1) Guarantee of the Government of the Republic of Indonesia to SOE in electricity sector
for financing in the form of KMK subsidy and syndicated KI, (2) Warranty by Credit Insurance Company which is a State-Owned
Enterprise to financing People’s Business Loan disbursed by BNI.
4.1.a Net Receivables By Risk Weight After Calculating Credit Risk Mitigation Impact
Bank Only
0% 20% 25% 35% 40%

A Balance Sheet Exposures
1 Receivables on Sovereigns 164,648,163 699,454 - - -
2 Receivables on Public Sector Entities - 1,609,166 - - -
3 Receivables on Multilateral Development Banks and International Institutions - - - - -
4 Receivables on Banks - 14,840,780 - - -
5 Loans Secured by Residential Property - 1,826,873 2,347,676 8,197,082 -
7 Employee/Retiree Loans - - - - -
8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - -
9 Receivables on Corporates - 112,965 - - -
10 Past Due Receivables - - - - -
11 Other Assets 13,681,005 - - - -
12 Exposures at Sharia Unit (if any) - - - - -
Total Balance Sheet Exposures 178,329,168 19,089,238 2,347,676 8,197,082 -

B Commitment/Contingency Liabilities Exposure in Administrative Account Transactions
1 Receivables on Sovereigns 414,466 - - - -
2 Receivables on Public Sector Entities - - - - -
4 Receivables on Banks - 16 - - -
9 Receivables on Corporates - - - - -
Total Administrative Account Transactions Exposures 414,466 16 - - -
C Counterparty Credit Risk

4 Receivables on Banks 21,063,665 72,208 - - -
Total Counterparty Credit Risk Exposure 21,076,062 72,208 - - -
Risk Management
Capital & Practice
Until now, credit risk mitigation technique using collateral is still quite dominant and has a higher concentration than the
guarantee/warranty from the Government and credit insurance from insurance companies.
Disclosure of Bank’s net receivables in an individual and consolidated manner based on risk weighting after calculating the
credit risk mitigation impacts is shown in Table 4.1.a and b.
(in million Rupiah)

31-Dec-18
Net Receivables After Calculating Credit Risk Mitigation Impact

RWA Capital Expense
45% 50% 75% 100% 150% Lainnya
- 660,465 - 163,703 - 633,826 50,706
- 81,964,316 - 484,784 - 41,788,775 3,343,102
- - - - - - -
- 17,861,520 - 184,853 - 12,083,768 966,701
- - - - - 3,821,272 305,702
- - - 11,832,156 - 11,832,156 946,572
- 555,856 - - - 277,928 22,234
- - 78,152,952 - - 58,614,714 4,689,177
- 57,885 - 310,847,069 621,750 311,831,229 24,946,498
- - - 150,002 3,836,964 5,905,448 472,436
- - - 31,672,568 1,576,289 34,037,001 2,722,960
- - - - - - - -
- 101,100,041 78,152,952 355,335,135 6,035,003 - 480,826,118 38,466,089
- - - - - - -
- 14,330,032 - - - 7,165,016 573,201
- - - - - - -
- 8,404,115 - - - 4,202,061 336,165
- - - - - - -
- - - - - - -
- - - - - - -
- - 253,797 - - 190,348 15,228
- - - 18,853,000 - 18,853,000 1,508,240
- - - - - - -
- - - - - - - -
- 22,734,146 253,797 18,853,000 - - 30,410,424 2,432,834
- - - - - - -
- 95,201 - - - 47,600 3,808
- - - - - - -
- 576,601 - - - 302,742 24,219
- - - - - - -
- - - 83,416 - 83,416 6,673
- - - - - - - -
- 671,802 - 83,416 - - 433,759 34,701
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31-Dec-2017
No Portfolio Category Net Receivables After Calculating Credit Risk Mitigation Impact
0% 20% 25% 35% 40%
1 Receivables on Sovereigns 141,888,754 653,182 - -
2 Receivables on Public Sector Entities 41,737,900 - - -
3 Receivables on Multilateral Development Banks and International Institutions 125 - - -
4 Receivables on Banks 309,621 15,184,148 - -
5 Loans Secured by Residential Property - - - 11,822,420
6 Loans Secured by Commercial Real Estate - - - -
7 Employee/Retiree Loans - - - -
8 Receivables on Micro Business, Small Business, and Retail Portfolio 3,424,365 - - -
9 Receivables on Corporates 190,176 2,572,222 - -
10 Past Due Receivables 41,750 - - -
11 Other Assets 12,481,313 - - -
Total Balance Sheet Exposures 200,074,004 18,409,552 - 11,822,420
1 Receivables on Sovereigns 440,881 - - -
3 Receivables on Multilateral Development Banks and International Institutions - - - -
4 Receivables on Banks - 255,061 - -
5 Loans Secured by Residential Property - - - -
6 Loans Secured by Commercial Real Estate - - - -
7 Employee/Retiree Loans - - - -
9 Receivables on Corporates 253 44,078 - -
10 Past Due Receivables - - - -
Total Administrative Account Transactions Exposures 441,134 299,139 - -
1 Receivables on Sovereigns 387,845 - - -
3 Receivables on Multilateral Development Banks and International Institutions - - - -
4 Receivables on Banks 845,612 633,983 - -
Total Counterparty Credit Risk Exposure 1,233,457 633,983 - -
Risk Management
Capital & Practice
Portfolio Category
RWA Capital Expense

45% 50% 75% 100% 150% Lainnya
- - 441,834 - - - 351,553 28,124

- - - - 26,538,851 - 26,538,851 2,123,108
- - 251 - 126 - 252 20
- - 25,566,087 - 673,429 - 16,493,302 1,319,464
- - - - - - 4,137,847 331,028
- - - - 9,282,778 - 9,282,778 742,622
- - 844,201 - - - 422,101 33,768
- - - 48,982,234 10,273,095 - 47,009,771 3,760,782
- - - - 269,235,215 695,349 270,792,683 21,663,415
- - - - 98,202 139,952 308,130 24,650
- - - - 38,899,569 4,493,861 45,640,361 3,651,229
- - - - - - - - -
- - 26,852,373 48,982,234 355,001,265 5,329,162 - 420,977,629 33,678,210
- - - - - - - -
- - 12,006,818 - - - 6,003,409 480,273
- - 2,524 - - - 1,262 101
- - 9,004,741 - - - 4,553,383 364,271
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - 223,693 - - 167,770 13,422
- - - - 18,542,882 - 18,551,698 1,484,136
- - - - - - - -
- - - - - - - - -
- - 21,014,083 223,693 18,542,882 - - 29,277,522 2,342,203
- - - - - - - -
- - 42,205 - - - 21,103 1,688
- - - - - - - -
- - - - 121,536 - 248,333 19,867
- - - - - - - -
- - - - 39,334 - 39,334 3,147
- - - - - - - - -
- - 42,205 - 160,870 - - 308,770 24,702
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
4.1.b Net Receivables By Risk Weight After Calculating Credit Risk Mitigation Impact
31-Dec-2018
0% 20% 25% 35% 40%
2 Receivables on Public Sector Entities - 2,143,727 - - -
4 Receivables on Banks - 15,217,898 - - -
5 Loans Secured by Residential Property - 3,837,390 4,270,350 15,980,089 -
6 Loans Secured by Commercial Real Estate - 119,292 - - -
7 Employee/Retiree Loans - 30,513 - - -
8 Receivables on Micro Business, Small Business, and Retail Portfolio - 2,461,746 - - -
9 Receivables on Corporates - 272,824 - - -
11 Other Assets 13,681,005 - - - -
Total Balance Sheet Exposures 189,237,634 24,782,844 4,270,350 15,980,089 -

4 Receivables on Banks - 16 - - -
Total Administrative Account Transactions Exposures 414,466 16 - - -

4 Receivables on Banks 21,063,665 72,208 - - -
Risk Management
Capital & Practice
(in million Rupiah)
ATMR Beban Modal

45% 50% 75% 100% 150% Lainnya
- 660,465 - 163,703 - 633,826 50,706
- 84,448,019 - 484,784 - 43,137,539 3,451,003
- - - - - - -
- 17,866,520 - 184,853 - 12,161,693 972,935
- - - - - 7,428,097 594,248
- - - 11,832,156 - 11,856,014 948,481
- 555,856 - - - 284,031 22,722
- - 78,152,952 - - 59,107,063 4,728,565
- 57,885 - 322,165,396 621,750 323,181,528 25,854,522
- - - 175,139 3,836,964 5,930,585 474,447
- - - 31,672,568 1,576,289 34,037,002 2,722,960
- - - - - - - -
- 103,588,745 78,152,952 366,678,599 6,035,003 - 497,757,377 39,820,589
- - - - - - -
- 14,332,848 - - - 7,166,424 573,314
- - - - - - -
- 8,404,115 - - - 4,202,061 336,165
- - - - - - -
- - - - - - -
- - - - - - -
- - 268,928 - - 201,696 16,136
- - - 18,871,172 - 18,871,172 1,509,694
- - - - - - -
- - - - - - - -
- 22,736,963 268,928 18,871,172 - - 30,441,353 2,435,309
- - - - - - -
- 95,201 - - - 47,601 3,808
- - - - - - -
- 576,601 - - - 302,742 24,219
- - - - - - -
- - - 83,416 - 83,416 6,673
- - - - - - - -
- 671,802 - 83,416 - - 433,759 34,700
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31-Dec-17
0% 20% 25% 35% 40%
2 Receivables on Public Sector Entities 41,737,900 - - - -
3 125 - - - -
4 Receivables on Banks 441,100 15,184,148 - - -
5 Loans Secured by Residential Property - - - 11,822,420 -
8 3,565,097 - - - -
9 Receivables on Corporates 190,176 2,572,222 - - -
10 Past Due Receivables 41,750 - - - -
11 Other Assets 12,102,902 - - - -
12 Exposures at Sharia Unit (if any) 18,797,037 - - - -
Total Balance Sheet Exposures 218,764,841 18,409,552 - 11,822,420 -
3 - - - - -
4 Receivables on Banks - 255,061 - - -
8 - - - - -
9 Receivables on Corporates 253 44,078 - - -
11 Exposures at Sharia Unit (if any) 4,685 - - - -
Total Administrative Account Transactions 445,819 299,139 - - -
Exposures
3 - - - - -
4 Receivables on Banks 845,612 633,983 - - -
5 - - - - -
7 Exposures at Sharia Unit (if any) 130,664 - - - -
Risk Management
Capital & Practice
RWA Capital Expense

45% 50% 75% 100% 150% Lainnya
- 441,834 - - - 351,553 28,124

- - - 26,538,851 - 26,538,851 2,123,108
- 251 - 126 - 252 20
- 25,566,087 - 804,908 - 16,624,781 1,329,983

- - - - - 4,137,847 331,028
- - - 9,282,778 - 9,282,778 742,622
- 844,201 - - - 422,101 33,768
- - 48,982,234 10,695,290 - 47,431,966 3,794,557
- - - 269,235,214 695,349 270,792,682 21,663,415

- - - 98,202 139,952 308,130 24,650
- - - 41,095,317 4,493,861 47,836,109 3,826,889
- - - 15,896,412 - - 15,896,412 1,271,713
- 26,852,373 48,982,234 373,647,098 5,329,162 - 439,623,462 35,169,877
- - - - - - -
- 12,006,818 - - - 6,003,409 480,273
- 2,524 - - - 1,262 101
- 9,004,741 - - - 4,553,383 364,271

- - - - - - -
- - - - - - -
- - - - - - -
- - 223,693 - - 167,770 13,422
- - - 18,542,882 - 18,551,698 1,484,136

- - - - - - -
- - - 64,315 - - 64,315 5,145
- 21,014,083 223,693 18,607,197 - - 29,341,837 2,347,348
- - - - - - -
- 42,205 - - - 21,103 1,688
- - - - - - -
- - - 121,536 - 248,333 19,867
- - - - - - -
- - - 39,334 - 39,334 3,147

- - - - - - - -
- 42,205 - 160,870 - - 308,770 24,702
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
4.2.a Tagihan Bersih dan Teknik Mitigasi Risiko Kredit

31-Dec-18
No Portfolio Category Portion Secured By Bagian yang Tidak

Net Receivables
Collateral Guarantee Credit Insurance Others Dijamin
1 Receivables on Sovereigns 166,171,785 - - - 166,171,785
2 Receivables on Public Sector Entities 84,058,266 19,268 - - 84,038,998
3 Receivables on Multilateral Development Banks and

International Institutions - - - - -
4 Receivables on Banks 32,887,152 2,261 - - 32,884,891
5 Loans Secured by Residential Property 12,371,631 1,675 - - 12,369,956
6 Loans Secured by Commercial Real Estate 11,832,156 76,374 - - 11,755,782
7 Employee/Retiree Loans 555,856 19 - - 555,837
8 Receivables on Micro Business, Small Business, and

Retail Portfolio 78,152,952 10,000,802 - - 68,152,150
9 Receivables on Corporates 311,639,669 1,054,311 - - 310,585,358
10 Past Due Receivables 3,986,966 49,439 - - 3,937,527
11 Other Assets 46,929,862 - - - 46,929,862
12 Exposures at Sharia Unit (if any) - - - - - -
Total Balance Sheet Exposures 748,586,295 11,204,149 - - - 737,382,146
B Commitment/Contingency
Liabilities Exposure in
Administrative Account
Transactions
1 Receivables on Sovereigns 414,466 - - - 414,466
2 Receivables on Public Sector Entities 14,330,032 - - - 14,330,032

4 Receivables on Banks 8,404,131 - - - 8,404,131

Retail Portfolio 253,797 - - - 253,797
9 Receivables on Corporates 18,853,000 - - - 18,853,000
Total Administrative Account Transactions Exposures 42,255,426 - - - - 42,255,426
1 Receivables on Sovereigns 12,397 12,397 - - -
2 Receivables on Public Sector Entities 95,201 95,201 - - -

4 Receivables on Banks 21,712,474 5,915,777 - - 15,796,697

Retail Portfolio - - - - -
6 Receivables on Corporates 83,416 83,416 - - -
Total Counterparty Credit Risk Exposure 21,903,488 6,106,791 - - - 15,796,697
Risk Management
Capital & Practice
31-Dec-2017
No Portfolio Category Bagian yang Dijamin Dengan
Net Receivables Portion Unsecured
Collateral Guarantee Credit Insurance Others
3 Receivables on Multilateral Development Banks and 501 - - - 501
5 Loans Secured by Residential Property 11,822,420 517 - - 11,821,903
6 Loans Secured by Commercial Real Estate 9,282,778 - - - 9,282,778
7 Employee/Retiree Loans 844,201 - - - 844,201
8 Receivables on Micro Business, Small Business, and 62,679,695 86,411 - - 62,593,284
Retail Portfolio
10 Past Due Receivables 279,905 900,000 - - (620,095)
11 Other Assets 55,874,743 1,421,353 - - 54,453,390
3 Receivables on Multilateral Development Banks and 2,524 - - - 2,524
8 Receivables on Micro Business, Small Business, and 223,693 - - - 223,693
Retail Portfolio
2 Receivables on Public Sector Entities 42,205 - - - 42,205
3 Receivables on Multilateral Development Banks and - - - - -
5 Receivables on Micro Business, Small Business, and - - - - -
Retail Portfolio
6 Receivables on Corporates 39,334 - - - 39,334
Total Counterparty Credit Risk Exposure 2,070,516 548,344 - - - 1,522,172
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
4.2.b Net Receivables and Credit Risk Mitigation Technique

31-Dec-18
No Portfolio Category Bagian yang Dijamin Dengan

Net Receivables Portion Unsecured
Collateral Guarantee Credit Insurance Others

- - - - -
5 Loans Secured by Residential Property 24,087,829 1,675 - - 24,086,154
6 Loans Secured by Commercial Real Estate 11,951,448 76,374 - - 11,875,074
7 Employee/Retiree Loans 586,369 19 - - 586,350

Retail Portfolio 80,614,697 10,000,802 - 27,261,590 43,352,305
10 Past Due Receivables 4,012,102 49,439 - - 3,962,663
11 Other Assets 46,929,862 - - - 46,929,862
Total Balance Sheet Exposures 788,726,213 11,204,149 - 27,261,590 - 750,260,474
B Commitment/Contingency
Liabilities Exposure in
Administrative Account
Transactions


Retail Portfolio 268,928 - - - 268,928
Total Administrative Account Transactions 42,291,545 - - - - 42,291,545

Exposures
2 Receivables on Public Sector Entities 95,201 95,201 - - -

4 Receivables on Banks 21,712,474 5,915,777 - - 15,796,697

Retail Portfolio - - - - -
6 Receivables on Corporates 83,416 83,416 - - -
Total Counterparty Credit Risk Exposure 21,903,488 6,106,791 - - - 15,796,697
Risk Management
Capital & Practice
31-Dec-2017
Bagian yang Dijamin Dengan

No Portfolio Category Net Portion
Receivables Credit Unsecured
Collateral Guarantee Others
Insurance
3 Receivables on Multilateral Development Banks and International Institutions 501 - - - 501

5 Loans Secured by Residential Property 11,822,420 517 - - 11,821,903
6 Loans Secured by Commercial Real Estate 9,282,778 - - - 9,282,778
7 Employee/Retiree Loans 844,201 - - - 844,201
8 Receivables on Micro Business, Small Business, and Retail Portfolio 63,242,621 86,411 - - 63,156,210
10 Past Due Receivables 279,905 900,000 - - (620,095)
11 Other Assets 57,692,079 1,421,353 - - 56,270,726
12 Exposures at Sharia Unit (if any) 34,693,450 - - - - 34,693,450

3 Receivables on Multilateral Development Banks and International Institutions 2,524 - - - 2,524

8 Receivables on Micro Business, Small Business, and Retail Portfolio 223,693 - - - 223,693
11 Exposures at Sharia Unit (if any) 69,000 - - - - 69,000

2 Receivables on Public Sector Entities 42,205 - - - 42,205


6 Receivables on Corporates 39,334 - - - 39,334
7 Exposures at Sharia Unit (if any) 130,664 - - - - 130,664
Total Counterparty Credit Risk Exposure 2,201,180 548,344 - - - 1,652,836
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
ASSET SECURITIZATION
BNI’s securitization activities are limited to ownership of credit linked notes, but as of December 31, 2018, there was no asset
securitization exposure.
RWA CALCULATION OF CREDIT RISK WITH STANDARDIZED APPROACH

RWA Calculation of Credit Risk with Standardized Approach - Bank Only is included in Table 6.1.1, Table 6.1.2, Table 6.1.3, and
Table 6.1.7
The RWA Calculation of Credit Risk with Standardized Approach - Bank Consolidated is included in Table 6.2.1, Table 6.2.2, Table
6.2.3, Table 6.2.6 and Table 6.2.7.
1. Asset Exposure in Balance Sheet
6.1.1 Asset Exposure in Balance Sheet

31-Dec-18
Net Receivables RWA before CRM RWA after CRM
1 Receivables on Sovereigns 166,171,785 633,826 633,826

2 Receivables on Public Sector Entities 84,058,265 41,768,392 41,779,141
- - -
Institutions
4 Receivables on Banks 32,887,152 12,083,768 12,082,638
5 Loans Secured by Residential Property 12,371,631 3,821,272 3,820,713
6 Loans Secured by Commercial Real Estate 11,832,156 11,832,156 11,755,782
7 Employee or Retiree Loans 555,856 277,928 277,919
8 Receivables on Micro Business, Small Business, and Retail Portfolio 78,152,952 58,614,714 45,158,820
9 Receivables on Corporates 311,639,668 311,817,209 310,776,919
10 Past Due Receivables 3,986,966 5,905,448 5,831,289
11 Other Assets 46,929,862 36,784,124 34,037,001
Total 748,586,293 483,538,837 466,154,048
31-Dec-17
3 Receivables on Multilateral Development Banks and International 501 251 251
Institutions
10 Past Due Receivables 279,905 308,130 308,130
11 Other Assets 55,874,743 - 45,640,360
Total 666,471,013 375,337,269 420,977,629
Risk Management
Capital & Practice
Tabel 6.2.1 Asset Exposure in Balance Sheet

31-Dec-18
3 Receivables on Multilateral Development Banks and International Institutions - - -
10 Past Due Receivables 3,986,966 5,905,448 5,831,289
11 Other Assets 46,929,862 36,784,124 34,037,001
Total 748,586,295 483,538,837 466,154,048
31-Dec-17
3 Receivables on Multilateral Development Banks and International Institutions 501 251 251
10 Past Due Receivables 279,905 308,130 308,130
11 Other Assets 57,692,079 - 47,836,107
Total 669,114,234 375,890,943 423,727,050
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Commitment/Contingency Liabilities Exposure in Administrative Account Transactions
6.1.2 Commitment/Contingency Liabilities Exposure in Administrative Account Transactions

31-Dec-18 31-Dec-17
Net Receivables RWA before CRM RWA after CRM Net Receivables RWA before CRM RWA after CRM
1 Receivables on Sovereigns 414,466 - - 440,881 - -

2 Receivables on Public Sector Entities 14,330,032 7,165,015 7,165,016 12,006,818 6,003,409 6,003,409
- - - 2,524 1,262 1,262
Institutions
4 Receivables on Banks 8,404,131 4,202,061 4,202,061 9,259,802 4,553,383 4,553,383
5 Loans Secured by Residential Property - - - - - -
6 Loans Secured by Commercial Real Estate - - - - - -
7 Employee or Retiree Loans - - - - - -
8 Receivables on Micro Business, Small Business, and Retail Portfolio 253,797 190,348 190,348 223,693 167,770 167,770
9 Receivables on Corporates 18,853,000 18,836,181 18,852,999 18,587,213 18,561,773 18,551,697
10 Past Due Receivables - - - - - -
Total 42,255,426 30,393,605 30,410,424 40,520,931 29,287,597 29,277,521
Tabel 6.2.2 Commitment/Contingency Liabilities Exposure in Administrative Account Transactions

31-Dec-18 31-Dec-17
Net Receivables RWA before CRM RWA after CRM Net Receivables RWA before CRM RWA after CRM

2 Receivables on Public Sector Entities - - - 12,006,818 6,003,409 6,003,409
3 8,760,711 4,380,355 4,380,355 2,524 1,262 1,262
Institutions
4 Receivables on Banks 13,079,365 6,539,682 6,539,682 9,259,802 4,553,383 4,553,383
5 Loans Secured by Residential Property 18,606,766 18,606,766 18,603,185 - - -
6 Loans Secured by Commercial Real Estate 400,354 300,266 300,266 - - -
7 Employee or Retiree Loans - - - - - -
8 Receivables on Micro Business, Small Business, and Retail Portfolio - - - 223,693 167,770 167,770
9 Receivables on Corporates - - - 18,587,213 18,561,773 18,551,697
10 Past Due Receivables - - - - - -
Total 41,351,152 29,827,069 29,823,488 40,520,931 29,287,597 29,277,521
2. Exposure Rising Credit Risk Due to Counterparty Credit Risk
6.1.3 Exposure Rising Credit Risk Due to Counterparty Credit Risk

31-Dec-18 31-Dec-17
No Portfolio Category Net RWA before Net RWA before
RWA after CRM RWA after CRM
Receivables CRM Receivables CRM
2 Receivables on Public Sector Entities 95,201 47,600 47,600 42,205 21,103 21,103
3 Receivables on Multilateral Development Banks and International Institutions - - - - - -
4 Receivables on Banks 21,712,474 302,742 302,742 1,601,132 610,534 248,333
5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - -
6 Receivables on Corporates 83,416 83,417 83,417 39,334 39,334 39,334
Total 21,903,488 433,759 433,759 2,070,516 670,971 308,770
Risk Management
Capital & Practice
6.2.3 Exposure Rising Credit Risk Due to Counterparty Credit Risk

31-Dec-18 31-Dec-17
No Portfolio Category RWA

Net RWA before
Net Receivables RWA before CRM RWA after CRM after
Receivables CRM
CRM
2 Receivables on Public Sector Entities 95,201 47,600 47,600 42,205 21,103 21,103
3 - - - - - -
Institutions
4 Receivables on Banks 21,712,474 302,742 302,742 1,601,132 610,534 248,333
5 Receivables on Micro Business, Small Business, and Retail Portfolio - - - - - -
6 Receivables on Corporates 83,416 83,416 83,416 39,334 39,334 39,334
Total 21,903,488 433,758 433,758 2,070,516 670,971 308,770
3. Exposure Rising Credit Risk Due to Settlement Risk

Per December 31, 2018, and December 31, 2017, the Bank did not have Credit Risk due to Settlement Risk.
4. Securitization Exposures
6.1.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization Exposures
31-Dec-18 31-Dec-2017
No. Type of Transactions Capital Capital

RWA after RWA after
Reducing Reducing
CRM CRM
Factors Factors
1 Supporting Credit Facilities Meeting the Requirements - - - -
2 Supporting Credit Facilities Not Meeting the Requirements - - - -

3 Liquidity Facilities Meeting the Requirements - - -
4 Liquidity Facilities Not Meeting the Requirements - - - -
5 Purchase of Asset-Backed Securities Meeting the Requirements - - - -

6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - -
7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for
307,604 77,390
Commercial Banks
Total - 307,604 - 77,390
6.2.5 RWA Calculation of Credit Risk with Standardized Approach: Securitization Exposures
31-Dec-18 31-Dec-17
No. Jenis Transaksi Capital Capital

RWA after RWA after
Reducing Reducing
CRM CRM
Factors Factors
1 Supporting Credit Facilities Meeting the Requirements - - - -
2 Supporting Credit Facilities Not Meeting the Requirements - - - -

3 Liquidity Facilities Meeting the Requirements - - -
4 Liquidity Facilities Not Meeting the Requirements - - - -
5 Purchase of Asset-Backed Securities Meeting the Requirements - - - -
6 Purchase of Asset-Backed Securities Not Meeting the Requirements - - - -
7 Securitization Exposure not Covered in Bank Indonesia provisions on Prudential Principles in Asset Securitization Activities for
307,604 77,390
Commercial Banks
Total - 307,604 77,390
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
5. Exposures at Sharia Business Unit

Per December 31, 2018 and December 31, 2017, the Bank did not have Exposures at Sharia Business Unit
6. Total Credit Risk Measurement
6.1.7 Total Credit Risk Measurement

Description 31-Dec-18 31-Dec-17
TOTAL CREDIT RISK RWA 491,757,871 450,641,311

TOTAL CAPITAL REDUCING FACTORS (3,302,541) -
6.2.7 Total Credit Risk Measurement

Description 31-Dec-18 31-Dec-7
TOTAL CREDIT RISK RWA 511,541,518 469,351,459
TOTAL CAPITAL REDUCING FACTORS (394,267 ) -
MARKET RISK
Most Market Risk of Trading Book is originating from Treasury business activities held domestically or by Overseas Branch
Offices, while Market Risk of Banking Book, particularly the Interest Rate Risk in Banking Book and Net Open Position (NOP), is
originating from all of the Bank’s activities. The Bank constantly monitors and manages market risk continuously and strictly.
GOVERNANCE AND ORGANIZATION

In the framework of effective and independent market risk management, the Treasury’s business activities are divided into 3
(three) parts, which are front office, middle office, and back office. Front office as a business unit seeks to achieve the business
targets by conducting business activities and connecting with the customers. However, as part of the internal control system,
the front office also functions as the first line of defense that will attempt to limit and anticipate the market risk caused
by changes in exchange rates and interest rates in accordance with the predetermined limits. In conducting its activities,
Treasury’s business is limited by the Risk Appetite and Risk Limit proposed by the Bank’s Risk Management Division to the Risk
Management Sub-Committee of Risk and Capital Committee (KRK-RMC). The Treasury transaction limit is proposed by the
Policy Governance Division through the Credit Procedure Committee (KPP), while counterparty limit is set by the Business Risk
Unit.
The Bank’s Risk Management Division as the second line of defense performs functions of monitoring on market risk and
compliance with risk limit either market risk limit, authority limit, or counterpart limit, validating fixing price, checking price
fairness of treasury transaction, investigating off market, and reviewing the use of limit. Furthermore, to complement the
existing market risk management function, BNI also has the Middle Office function to monitor, control, and report the risks in
Treasury transactions.
Back office functions are in the Operational Division that performs activities of confirmation, bookkeeping, and transaction
settlement of Treasury.

In order to support business targets with due observance of the prudential principles, BNI already has Company Guidelines for
Treasury and International Business. Moreover, to make market risk management effective, BNI is guided by the Market Risk
Management Company Guidelines. The Company Guidelines contain the governance and methodology and model of market
risk management, which is compiled and reviewed and periodically validated by the Bank’s Risk Management Division.
PROCESS
Identification, measurement, monitoring, and controlling risk market is carried out by a unit that is independent from
business unit. Market Risk Identification is particularly carried out for each new product or activity. BNI conducts Risk Market
measurement by using Standardized Method and Internal Method. Standardized Method is used to calculate the Minimum
Capital Reserve Requirement (KPMM) of Market Risk, while daily Risk Market management uses Internal Method (Value at Risk).
Risk Management
Capital & Practice
The portfolio coverage calculated in KPMM by using Standardized Method is the trading book portfolio for interest rate risk
and the trading book and banking book portfolio for domestic and overseas branch office’s exchange rate risk.
Market risk exposure of the Bank only and consolidation with subsidiaries by using standardized method is listed in Table 7.1 as
follows.
Tabel 7.1 Market Risk By Using Standardized Method

Bank Only and Consolidated (in million Rupiah)
31-Des-18 31-Des-17
Bank Consolidation Bank Consolidation

No Type of Risks
Capital Capital Capital Capital
RWA RWA RWA RWA
Expense Expense Expense Expense
1 Interest Rate Risk 17,279 215,983 22,498 281,225 14,423 180,289 17,726 221,580
a. Specific Risk - - 3,884 48,552 - - 2,458 30,728
b. General Risk 17,279 215,983 18,614 232,673 14,423 180,289 15,268 190,851
2 Exchange Rate Risk 230,201 2,877,514 228,629 2,857,863 175,823 2,197,782 181,419 2,267,731
3 Equity Risk - - 2,393 29,908 - - 5,196 64,956
4 Commodity Risk - - - - - - -
5 Option Risk 8,396 104,952 8,396 104,952 - - - -
Total 255,876 3,198,449 261,916 3,273,949 190,246 2,378,070 204,341 2,554,267
VaR Composition per Type of Risks per December 31, 2018, is as follows:
8%
2018
Interest Rate Risk
92%
Exchange Rate Risk
Market risk exposure (Value at Risk) of Domestic and Overseas Branches are regularly monitored daily and delivered to the
Management on a weekly and monthly basis. The current price valuation policy for actively-traded instruments is mark-to-
market while the valuation method for less actively-traded instruments is using the fair price of an independent source.
Market risk exposure of the Bank only and consolidation by using internal model (value at risk) is listed in Table 7.2 as follows.
Tabel 7.2 Market Risk using Internal Method (Value at Risk/VaR) (in million Rupiah)
31-Dec-2018 31-Dec-2017
No Type of Risks End of Period End of Period
Average VaR Maximum VaR Minimum VaR Average VaR Maximum VaR Minimum VaR
VaR VaR
1 Interest Rate Risk 275,195 389,567 232,498 296,025 214,745 273,540 151,988 245,943
2 Exchange Rate Risk 9,712 20,602 5,109 9,112 12,554 23,679 4,846 6,603
3 Option Risk - - - - - - - -
Total 284,907 410,169 237,607 305,137 227,299 297,219 156,833 252,546
Risk development in the banking book portfolio is periodically monitored entirely according to the measurement method set
by the regulator, which is monitoring Net Open Position (NOP) for exchange rate risk and interest rate risk in banking book
AN N
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
gap, and delivered to the management through the Risk and exchange rates, interest rates, stock prices, and commodity
Capital Committee Forum of Asset & Liability Sub Committee prices. To know the potential impact on banks, Scenario
(KRK-ALCO). Analysis and Stress Testing have been done periodically
and incidentally. Stress Testing periodically uses scenarios
Some information related to measurement of gap of the referring to the regulatory provisions and internal Bank
interest rate risk in banking book is as follows: scenarios. While the scenarios of incidental Stress Testing
1. Non-Maturity Instrument Treatment and Scenario Analysis shall adjust to the macroeconomic
Maturity assumptions for core deposit obligations, such conditions and market factor at that time. Each Overseas
as demand deposits, savings deposits, and time deposits, Branch Office also performs Stress Testing in accordance with
are grouped in a certain time scale in which these the internal regulations and provisions of local regulators.
assumptions will be periodically analyzed by the Treasury Stress testing result is used to prepare contingency plan so
Division and documented and submitted to the Bank’s that the risk that happens can still be limited and managed
Risk Management Division for obtaining validation. well.
2. Assumption of interest rate changes
Using standard assumptions of interest rate changes of LIQUIDITY RISK
0.25% and 0.5%, which are parallel in nature across the
time band. Liquidity risk is related to the possibility that banks are
3. Measurement Frequency unable to meet short-term liabilities to depositors, investors,
Measurement of interest rate risk in banking book gap is and creditors, as well as the fulfillment of the minimum
conducted monthly. statutory reserves, which are among others due to limited
access to funding or the inability to liquidate their owned
TOOLS AND METHODS assets at reasonable prices. Liquidity risk management aims
To support business processes and in line with market risk to minimize the possibility of the Bank’s inability to obtain
management, BNI already has market risk management tools. sources of cash flow funding, and to build bank’s balance
Whereas, to obtain market data from Reuters, Bloomberg, sheet structural liquidity strengths to support sustainable
and other independent sources. Some predetermined limits long-term growth.
for managing potential Market Risk losses in the Treasury
Division or Overseas Branch Offices are as follows: GOVERNANCE AND ORGANIZATION
1. Value at Risk Limit (VaR Limit), which is the maximum Liquidity Risk Management is performed by the Bank’s
potential loss that may occur at any time in the future with Risk Management Division (ERM), Treasury Division (TRS),
certain confidence level. and Overseas Branch Offices. Liquidity Risk Policies and
2. Stress Value at Risk Limit (Stress VaR Limit), which is Procedures are prepared by the ERM Division, subsequently
a measurement of market risk adjusted to abnormal implemented by the TRS Division and all Overseas Branch
conditions in the market or maximum potential loss when Offices, as embodied in the liquidity strategy management.
the market is not normal. ERM Division also monitors the implementation of liquidity
3. Budget Loss Limit which is used to limit the realization of management conducted by the TRS Division.
loss of business activities.
4. Management Action Trigger (MAT), which is the Limit to POLICIES AND PROCEDURES
take action against the risk of changes in loss value (early ERM Division develops Liquidity Risk Policy in the form
warning signal). MAT completes the loss limit in the form of of Guidelines for Implementation of Liquidity Risk
a certain percentage of the loss limit. Management, which is further elaborated into the Liquidity
5. Limit on securities purchases, which is used to limit the Risk Management Procedure containing guidance on the
concentration of purchases of corporate securities by rating implementation of liquidity risk management, such as:
and type of currency of the securities 1. Availability of Liquid Equipment: Cash, Minimum Reserve
Requirement (GWM), Secondary Reserve, Early Warning
6. Limit of asset and liability repricing gap (Interest Rate Risk in Indicator, Liquidity Contingency Plan of Head Office and
Banking Book) to limit the interest rate risk in banking book. Overseas Branch Office, and others.
7. Nominal of open position limit, which is the maximum 2. Liquidity Risk Measurement: Liquidity Ratio, Cash Flow
nominal of open position limit that a dealer can use. Projection, Maturity Profile, Liquidity Coverage Ratio,
8. Overall NOP internal limit (absolute), which is the maximum Stress testing, and others.
limit of NOP management. 3. Liquidity Risk Monitoring
4. Liquidity Risk Control
Measures to strengthen market risk management in order to 5. Determination of Liquidity Limit: Cash limit of BNI Wide,
deal with changes in economic conditions throughout 2018, limit of Secondary Reserve Ideal (SR Ideal), Maturity
among others, are by closely monitoring the movement of Profile limit, and restriction of Foreign Exchange Credit
market factors that could potentially impact banks, such as based on Availability of Fund.
Risk Management
Capital & Practice
PROCESS
In managing liquidity, in addition to managing the primary reserve (cash and GWM), BNI holds and maintains secondary
reserves to ensure that liquidity is at a safe level. For the reserve of secondary reserve, BNI holds and maintains tertiary reserve.
Determination and monitoring of limits, which are Cash limit of BNI Wide, limit of Secondary Reserve Ideal (SR Ideal), Maturity
Profile limit, and restriction of Foreign Exchange Credit based on Availability of Fund is conducted periodically by the ERM
Division. Whereas, the availability of the entire reserve is monitored daily, weekly, and monthly by the TRS Division and ERM
Division.
TOOLS AND METHODS

In managing liquidity risk, BNI uses daily cash flow projections and monthly maturity profiles, both contractually and
behaviorally, in order to establish appropriate and accurate strategies to anticipate the Bank’s liquidity conditions in the future.
Disclosure of the Bank’s Rupiah and Foreign Currency Maturity Profile either the Bank only or consolidated is listed in Table
9.1.a and b, Table 9.2.a and b.
Tabel 9.1.a Rupiah Maturity Profile 2018

31-Dec-2018
Maturity Dates
Balance >1 month to 3 >3 month to 6 >6 month to 12
≤1 month >12 months
months months months
I BALANCE SHEET
A. Assets
1. Cash 12,968,368 12,968,368 - - - -

2. Placement with Bank Indonesia 51,957,966 48,357,966 - 600,000 3,000,000 -
3. Placement with other banks 3,783,777 2,407,670 30,000 640,000 606,107 100,000
4. Marketable Securities 68,145,535 2,107,751 3,786,085 3,090,902 3,413,345 55,747,452
5. Loans Provided 387,462,488 54,480,165 29,270,170 41,280,930 29,913,124 232,518,099
6. Other Receivables 11,914,819 3,564,905 4,063,344 3,484,191 779,393 22,986
7. Others 25,218,315 2,307,458 349,980 184,869 40,421 22,335,587
Total Assets 561,451,268 126,194,283 37,499,579 49,280,892 37,752,390 310,724,124
B. Liabilities
1. Third Party Fund 454,173,557 146,662,838 54,046,207 6,607,940 3,530,836 243,325,736
2. Liabilities with Bank Indonesia 534,789 - - - - 534,789
3. Liabilities with other banks 1,985,712 989,112 85,199 190,376 719,665 1,360
4. Securities Issued 3,098,997 - - - - 3,098,997
5. Received Loans 5,894 - - - - 5,894
6. Other Liabilities 18,681,840 17,181,723 632,074 404,971 463,072 -
7. Others 10,584,288 249,798 150,344 18,382 9,822 10,155,942
Total Liabilities 489,065,077 165,083,471 54,913,824 7,221,669 4,723,395 257,122,718
Differences of Asset and Liabilities in Balance Sheet 72,386,191 (38,889,188) (17,414,245) 42,059,223 33,028,995 53,601,406
II ADMINISTRATIVE ACCOUNTS
A. Administrative Account Receivables
1. Commitment 19,493,440 13,662,126 2,145,251 1,648,170 2,037,893 -
2. Contingency 5,745,560 5,745,560 - - - -
Total Administrative Account Receivables 25,239,000 19,407,686 2,145,251 1,648,170 2,037,893 -
B. Administrative Account Liabilities

1. Commitment 68,685,369 23,611,526 5,887,726 5,665,923 6,200,481 27,319,713
AN N
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REPOR
U AALL
R TT
BankNegara
PT Bank NegaraIndonesia
2018
Indonesia(Persero)
(Persero) Tbk
Tbk
31-Dec-2018
Maturity Dates
2. Contingency 33,696,127 8,859,815 5,304,010 3,691,626 5,393,569 10,447,107
Total Administrative Account Liabilities 102,381,496 32,471,341 11,191,736 9,357,549 11,594,050 37,766,820
Differences of Receivables and Liabilities in Administrative (77,142,495) (13,063,655) (9,046,485) (7,709,379) (9,556,157) (37,766,820)
Accounts
Differences [(IA-IB)+(IIA-IIB)] (4,756,304) (51,952,842) (26,460,730) 34,349,844 23,472,838 15,834,586
Cumulative Differences (51,952,842) (78,413,572) (44,063,728) (20,590,890) (4,756,304)
Tabel 9.1.a Rupiah Maturity Profile 2017

31-Dec-2017
Maturity Dates
I BALANCE SHEET
A. Assets
1. Cash 10,791,819 10,791,819 - - - -
2. Placement with Bank Indonesia 39,242,672 29,571,320 3,250,000 4,541,865 1,879,487 -
5. Loans Provided 338,158,262 54,356,567 29,547,258 31,685,017 31,096,416 191,473,004
7. Others 20,452,615 1,818,460 299,188 168,365 - 18,166,602
Total Assets 493,714,406 106,798,980 41,582,497 42,493,861 35,899,554 266,939,514
B. Liabilities
1. Third Party Fund 4,134,247 169,761,796 48,026,060 9,745,263 5,302,743 180,588,881
3. Liabilities with other banks 6,117,254 1,806,676 24,024 2,593,330 815,102 878,122
5. Received Loans 5,888 - - - - 5,888
6. Other Liabilities 1,985,632 311,429 363,362 317,558 597,783 395,500
7. Others 11,868,708 208,887 119,428 24,234 13,187 11,502,972
1. Commitment 25,199,356 18,976,859 2,124,075 3,263,257 835,165 -
2. Contingency 6,105,543 6,105,543 - - - -
Total Administrative Account Receivables 31,304,899 25,082,402 2,124,075 3,263,257 835,165 -
Risk Management
Capital & Practice
31-Dec-2017
Maturity Dates
1. Commitment 62,483,360 17,023,789 8,336,836 7,398,904 5,065,098 24,658,733
2. Contingency 30,673,215 11,499,442 386,588 5,198,411 3,966,701 9,622,073
Differences of Receivables and Liabilities in Administrative Accounts (61,851,676) (3,440,829) (6,599,349) (9,334,058) (8,196,634) (34,280,806)
Differences [(IA-IB)+(IIA-IIB)] (4,547,612) (68,730,637) (13,549,726) 20,479,418 20,974,105 36,279,228
Cumulative Differences (68,730,637) (82,280,363) (61,800,945) (40,826,840) (4,547,612)
Tabel 9.1.b Rupiah Maturity Profile 2018

31 December 2018
Maturity Dates
I BALANCE SHEET
A. Assets
1. Cash 13,282,120 13,281,943 - - - 177
2. Placement with Bank Indonesia 56,166,075 52,166,075 - 750,000 3,200,000 50,000
5. Loans Provided 388,420,315 54,480,165 29,270,170 41,280,930 29,986,969 233,402,081
7. Others 40,555,770 3,307,458 5,549,980 834,869 909,232 29,954,231
Total Assets 602,345,349 134,877,619 45,199,579 52,821,952 42,127,577 327,318,622
B. Liabilities
1. Third Party Fund 461,609,124 150,100,296 54,179,620 6,680,990 3,718,883 246,929,335
3. Liabilities with other banks 2,094,971 1,014,112 110,199 215,376 744,665 10,619
5. Received Loans 763,257 - - - - 763,257
6. Other Liabilities 18,733,977 17,181,723 632,074 404,971 463,072 52,137
7. Others 22,986,962 452,472 350,344 18,382 9,822 22,155,942
1. Commitment 19,493,440 13,662,126 2,145,251 1,648,170 2,037,893 -
2. Contingency 5,817,015 5,817,015 - - - -
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31 December 2018
Maturity Dates

1. Commitment 69,863,569 24,773,211 5,887,726 5,665,923 6,200,481 27,336,228
2. Contingency 33,753,856 8,913,561 5,304,010 3,691,626 5,393,569 10,451,090
Differences of Receivables and Liabilities in Administrative Accounts (78,306,969) (14,207,631) (9,046,485) (7,709,379) (9,556,157) (37,787,318)
Differences [(IA-IB)+(IIA-IIB)] 14,227,883 (48,078,615) (19,119,143) 37,792,854 27,634,979 15,997,808
Cumulative Differences (48,078,615) (67,197,758) (29,404,904) (1,769,925) 14,227,883
Tabel 9.1.b Rupiah Maturity Profile 2017

31-Dec-2017
Maturity Dates
I BALANCE SHEET
A. Assets
1. Cash 11,025,722 11,025,722 - - - -
2. Placement with Bank Indonesia 44,001,259 33,635,571 3,270,000 4,891,201 2,204,487 -
5. Loans Provided 338,719,946 53,911,792 29,225,801 32,177,951 31,887,306 191,517,096
7. Others 22,416,627 3,780,403 299,188 168,365 - 18,168,671
Total Assets 520,281,297 125,114,808 43,560,948 44,174,131 37,111,052 270,320,358
B. Liabilities
1. Third Party Fund 418,678,768 170,282,264 48,233,801 9,902,204 5,704,292 184,556,207
3. Liabilities with other banks 6,534,099 2,142,865 24,024 2,593,330 815,102 958,778
4. Securities Issued 3,482,279 - - 500,000 - 2,982,279
5. Received Loans 514,637 - - - - 514,637
6. Other Liabilities 2,001,544 311,429 363,362 317,558 597,783 411,412
7. Others 22,787,735 708,887 519,428 43,261 13,187 21,502,972

1. Commitment 25,199,356 18,976,859 2,124,075 3,263,257 835,165 -
2. Contingency 6,175,396 6,175,396 - - - -
Risk Management
Capital & Practice
31-Dec-2017
Maturity Dates

1. Commitment 63,531,244 18,071,673 8,336,836 7,398,904 5,065,098 24,658,733
2. Contingency 30,766,153 11,592,380 386,588 5,198,411 3,966,701 9,622,073
Differences of Receivables and Liabilities in Administrative (62,922,645) (3,440,829) (6,599,349) (9,334,058) (8,196,634) (34,280,806)
Accounts
Differences [(IA-IB)+(IIA-IIB)] 3,350,291 (51,771,466) (12,179,016) 21,483,720 21,784,054 25,103,968
Cumulative Differences (51,771,466) (63,950,482) (42,466,762) (20,682,708) 4,421,260
Tabel 9.2.a Foreign Currency Maturity Profile 2018

31-Dec-2018
No. Portfolio Category Maturity Dates

I BALANCE SHEET
A Assets
1 Cash 712,636 712,636 - - - -
2 Placement with Bank Indonesia 12,372,153 12,372,153 - - - -
3 Placement with other banks 14,467,347 14,046,948 43,140 377,259 - -
4 Marketable Securities 44,323,826 7,080,798 6,455,728 1,835,132 13,345 28,938,822
5 Loans Provided 82,110,633 12,362,659 4,090,779 8,962,047 1,778,864 54,916,284
6 Other Receivables 9,103,024 3,825,693 2,179,562 2,228,253 866,337 3,178
7 Others 219,506 219,506 - - - -
Total Assets 163,309,125 50,620,393 12,769,210 13,402,692 2,658,546 83,858,284
B Liabilities
1 Third Party Fund 90,485,986 40,234,515 10,164,100 4,902,732 990,653 34,193,986
2 Liabilities with Bank Indonesia 297,037 4,558 - - 292,479 -
3 Liabilities with other banks 11,430,961 8,521,556 1,824,664 1,019,427 65,314 -
4 Securities Issued - - - - - -
5 Received Loans 51,191,754 4,727,066 2,126,888 5,505,067 13,236,848 25,595,886
6 Other Liabilities 7,518,708 5,277,197 1,134,697 946,650 156,986 3,178
7 Others 1,462,825 259,545 356,106 94,577 20,046 732,551
Differences of Asset and Liabilities in Balance Sheet 921,854 (8,404,044) (2,837,246) 934,240 (12,103,779) 23,332,683
AN N
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BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
31-Dec-2018

A Administrative Account Receivables
1 Commitment 49,897,895 41,377,904 1,480,076 5,287,152 1,752,764 -
2 Contingency 15,874,588 15,874,588 - - - -
B Administrative Account Liabilities

1 Commitment 65,209,103 31,644,342 14,248,682 13,455,007 4,276,698 1,584,374
2 Contingency 28,013,612 2,687,478 1,845,788 2,807,652 8,555,338 12,117,356
Differences of Receivables and Liabilities in Administrative (27,450,231) 22,920,671 (14,614,394) (10,975,506) (11,079,272) (13,701,730)
Accounts
Differences [(IA-IB)+(IIA-IIB)] (26,528,377) 14,516,628 (17,451,640) (10,041,266) (23,183,051) 9,630,953
Cumulative Differences 14,516,628 (2,935,012) (12,976,279) (36,159,330) (26,528,377)
Tabel 9.2.a Foreign Currency Maturity Profile 2017

31-Dec-2017

I BALANCE SHEET
A Assets
1 Cash 538,224 538,224 - - - -
4 Marketable Securities 35,508,537 6,400,061 3,611,275 20,663 78,027 25,398,511
5 Loans Provided 65,058,043 11,162,647 3,069,972 2,173,052 4,270,601 44,381,770
6 Other Receivables 8,675,709 1,579,935 3,611,450 2,174,219 1,282,631 27,474
Risk Management
Capital & Practice
31-Dec-2017

7 Others 20,537 20,537
Total Assets 141,115,037 50,790,225 10,496,210 4,389,588 5,631,259 69,807,755
B Liabilities
1 Third Party Fund 74,036,764 32,091,859 8,097,898 4,600,197 601,949 28,644,861
3 Liabilities with other banks 5,843,203 5,617,820 224,759 624 - -
5 Received Loans 44,081,237 1,305,723 3,498,909 2,769,574 3,511,785 32,995,246
6 Other Liabilities 5,009,673 1,086,418 1,036,923 2,537,747 321,116 27,470
7 Others 2,142,904 165,741 2,591 - 168,305 1,806,267
Differences of Asset and Liabilities in Balance Sheet 9,884,263 10,519,287 (2,364,871) (5,518,553) 914,490 6,333,911
1 Commitment 41,320,250 30,905,769 2,378,546 7,233,458 802,477 -
2 Contingency 16,725,543 16,725,543 - - - -

1 Commitment 63,553,256 41,843,451 8,800,003 9,152,961 2,586,549 1,170,292
2 Contingency 28,702,243 2,629,978 1,806,282 2,747,568 8,372,246 13,146,168
Accounts
Differences [(IA-IB)+(IIA-IIB)] (24,325,443) 13,677,170 (10,592,610) (10,185,624) (9,241,829) (7,982,549)
Cumulative Differences 13,677,170 3,084,559 (7,101,065) (16,342,894) (24,325,443)
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Tabel 9.2.b Foreign Currency Maturity Profile 2018

31-Dec-2018

Maturity Dates
I BALANCE SHEET
A Assets
1 Cash 761,726 761,726 - - - -
4 Marketable Securities 44,731,281 7,285,698 6,635,728 1,835,132 13,345 28,961,377
5 Loans Provided 82,110,633 12,362,659 4,090,779 8,962,047 1,778,864 54,916,284
6 Other Receivables 9,103,024 3,825,693 2,179,562 2,228,253 866,337 3,178
7 Others 819,973 819,973 - - - -
Total Assets 164,744,308 51,831,135 12,951,096 13,422,692 2,658,546 83,880,839
B Liabilities
1 Third Party Fund 90,563,077 40,263,343 10,165,830 4,903,812 991,458 34,238,634
3 Liabilities with other banks 11,168,610 8,259,205 1,824,664 1,019,427 65,314 -
5 Received Loans 51,191,754 4,727,066 2,126,888 5,505,067 13,236,848 25,595,886
6 Other Liabilities 7,518,708 5,277,197 1,134,697 946,650 156,986 3,178
7 Others 1,512,056 259,545 356,106 94,577 20,046 781,782
Differences of Asset and Liabilities in Balance Sheet 2,493,066 (6,959,779) (2,657,090) 953,160 (12,104,584) 23,261,359
1 Commitment 49,897,895 41,377,904 1,480,076 5,287,152 1,752,764 -
2 Contingency 15,874,588 15,874,588 - - - -

1 Commitment 65,213,393 31,645,789 14,251,525 13,455,007 4,276,698 1,584,374
2 Contingency 28,013,612 2,687,478 1,845,788 2,807,652 8,555,338 12,117,356
Accounts
Differences [(IA-IB)+(IIA-IIB)] (24,961,455) 15,959,446 (17,274,327) (10,022,346) (23,183,856) 9,559,629
Cumulative Differences 15,959,446 (1,314,881) (11,337,228) (34,521,084) (24,961,455)
Risk Management
Capital & Practice
Tabel 9.2.b Foreign Currency Maturity Profile 2017

31-Dec-2017

Maturity Dates
I BALANCE SHEET
A Assets
1 Cash 551,942 551,942 - - - -
4 Marketable Securities 35,923,731 6,795,188 3,611,275 20,663 78,027 25,418,578
5 Loans Provided 65,058,043 11,162,647 3,069,972 2,173,052 4,270,601 44,381,770
6 Other Receivables 8,675,709 1,579,935 3,611,450 2,174,219 1,282,631 27,474
7 Others 20,537 20,537
Total Assets 141,981,741 51,636,862 10,496,210 4,389,588 5,631,259 69,827,822
B Liabilities
1 Third Party Fund 74,069,179 32,114,011 8,099,803 4,600,597 602,170 28,652,599
3 Liabilities with other banks 5,642,612 5,417,229 224,759 624 - -
5 Received Loans 44,081,237 1,305,723 3,498,909 2,769,574 3,511,785 32,995,246
6 Other Liabilities 5,009,673 1,086,418 1,036,923 2,537,747 321,116 27,470
7 Others 2,148,691 165,741 2,591 - 168,305 1,812,054
Differences of Asset and Liabilities in Balance Sheet 10,913,356 11,544,363 (2,366,776) (5,518,954) 914,270 6,340,454
1 Commitment 41,320,250 30,905,769 2,378,546 7,233,458 802,477 -
2 Contingency 16,725,543 16,725,543 - - - -

1 Commitment 63,554,664 41,843,546 8,800,003 9,152,961 2,586,549 1,171,606
2 Contingency 28,702,242 2,633,036 1,806,282 2,747,568 8,372,246 13,143,110
Accounts
Differences [(IA-IB)+(IIA-IIB)] (23,297,758) 14,699,093 (10,594,515) (10,186,025) (9,242,049) (7,974,262)
Cumulative Differences 14,699,093 4,104,578 (6,081,447) (15,323,496) (23,297,758)
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
The maturity profile calculation is in accordance with the regulatory requirements and does not include the
maturity profile of the subsidiary engaged in insurance sector. One of the strengths of BNI’s risk monitoring
process is the availability of Bank liquidity profile information. The information is available in the LDAP
Executive Information Management (EIS) application, which can present daily information on funding and
loan and can generate daily cash flow profile and monthly maturity profile that can be used as one of the
bank’s liquidity risk monitoring and management system.
EARLY WARNING INDICATOR

Early warning indicators are outlined in Secondary Reserve Indicators under normal, moderate, or tight
conditions for both Rupiah and foreign currency, among others, the trend of BI Rate 7 Days Reverse Repo
Rate, JIBOR, LIBOR, average of interest rates of Competitors Deposit, or Credit Default Swap spread (CDS)
which rises significantly according to the pre-determined limits, the significant downward trend of foreign
exchange reserves in accordance with the established limits, the dominant customer fund trend that
tends to decrease significantly according to the pre-determined limits, and others. Determination of SR
Ideal in moderate or tight conditions may be considered in the event that one of the conditions/indicators
or parameters occurs. Determination is carried out by ERM Division by referring to the indicators above
and data obtained from TRS Division as business unit. The determination will then apply a moderate or
tight SR Ideal of Liquidity Contingency Plan (LCP). The above indicators can be reviewed periodically
according to the development of external and internal conditions in line with national, regional, and
global economic developments.
LIQUIDITY STRESS TESTING

To know the liquidity resilience in crisis period, periodic liquidity stress testing has been done. The stress
testing scenario is performed by using specific scenario on bank (Idiosyncratic Scenario) and the stress
scenario on market (Market Wide Scenario). Specific scenario on bank (Idiosyncratic Scenario) uses the
assumption that banks are in liquidity difficulties due to loss of confidence of the investors/depositors
in the banks. Whereas, the stress scenario on market (Market Wide Scenario) uses the assumption of
disturbance in the market/financial system as a whole which resulting in disruption of bank operations.
Stress testing result from this scenario is used for liquidity funding plan so that the risk that happens can
still be limited and managed well.
LIQUIDITY ADEQUACY RATIO

In order to improve short-term liquidity resilience, the bank manages the Liquidity Coverage Ratio (LCR)
by maintaining adequate High Quality Liquid Assets (HQLA) to meet liquidity needs over the next 30 days
in a stress scenario, in such a way that the bank can maintain the liquidity adequacy ratio to always be
above 100%, both individually (bank only) and consolidated with Subsidiaries, with an individual BNI LCR
value as of December 2018 of 192%.
Risk Management
Capital & Practice
OPERATIONAL RISK
With the increasing diversity and complexity of products and banking activities offered to customers, the rapid development
of systems and supporting technologies, and the rising customer expectations of the services provided by banks, the
management of operational risks is of paramount importance.

Operational risk management governance has been implemented by BNI whereby all business units and supporting units both
at home and abroad serve as Risk Owner or Risk Taker which is the first line of defense. Such implementation is supported by
the second line of defense run by the Bank’s Risk Management Division, Compliance Division, and Policy Governance Division
as the Risk Control Units, and the third line of defense is the Internal Control Unit as the Risk Assurance Unit.

The Bank’s Risk Management Division already has Operational Risk Management Implementation Guidelines to support the
implementation of operational risk management on all units both within and outside the country, which are:
1. Domestic Operational Risk Management Policy
2. Operational Risk Management Policy for Overseas Branches
The policy is elaborated in more details in the prudent transaction and operational Procedures or Standard Operating
Procedures and Technical Guidelines to carry out daily business activities such as:
1. Domestic Operational Risk Management Procedures
2. Self Assessment (SA) Implementation Procedures of Operational Risk
3. Operational Risk Management Procedure for Overseas Branches
4. Operational Risk Self Assessment Manual for Overseas Branches
5. Loss Event Database (LED) Implementation Procedure
6. Implementation Procedure of Key Risk Indicators (KRI)
7. Implementation Guidelines on Recording of Operational Risk Expenses Account (BRO).
PROCESS
BNI’s operational risk management consists of 5 (five) main continuous processes, which are identification, assessment,
measurement, monitoring, and control.
1. Risk Identification
The operational risk identification mechanism is carried out by applying the Macro Process Mapping Assessment to the
work processes/activities of each unit to capture the potential operational risks conducted by interview method (one on
one meeting).
2. Risk Assessment
Performed by each risk-owner unit through operational risk self assessment methods, including assessment of impacts,
frequency and causes of risks and their solutions.
3. Risk Measurement
In accordance with the Regulatory provisions, the current operational risk measurement uses the Basic Indicator Approach
method.
Tabel 8.1.a Disclosure of Operational Risk Quantitative

31-Dec-18 31-Dec-17
No Approach Used Gross Income (Average Gross Income (Average

Capital Expense RWA Capital Expense RWA
Last 3 Years) Last 3 Years)
1 Basic Indicator Approach 32,743,042 4,911,456 61,393,204

36,524,612 5,478,692 68,483,648
Total 36,524,612 5,478,692 68,483,648 32,743,042 4,911,456 61,393,204
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Tabel 8.1.b Disclosure of Operational Risk Quantitative

31-Dec-18 31-Dec-17
No Approach Used Gross Income (Average Gross Income (Average
Capital Expense RWA Capital Expense RWA
Last 3 Years) Last 3 Years)
1 Basic Indicator Approach 38,203,610 5,730,541 71,631,769 34,293,623 5,144,044 64,300,544
Total 38,203,610 5,730,541 71,631,769 34,293,623 5,144,044 64,300,544
4. Risk Monitoring
Performed by all units as the first line of defense on the 5. Risk Control
main risks during ongoing activities. The mechanism for operational risk mitigation
is reflected in the internal control processes by
Whereas, the Bank’s Risk Management Division evaluates implementing the 4 (four) mitigation strategies: which
and gives report/feedback on risk assessments based are avoiding, mitigating, transferring, and accepting. The
on self assessment results as well as realization on four mitigation strategies are stated in the Operational
operational risk losses that happen that includes: Risk mitigation procedures that include procedures of
a. Report feedback for all divisions/units/areas/branches control, transaction settlement, accounting, asset and
b. Monthly reports on Operational Risk Expenses custodial storing, product supply, and fraud prevention.
Monitoring to the Board of Directors
c. Operational Risk Profile Report
TOOLS AND METHODS

To assist the operational risk management process in each unit, BNI has developed web-based operational risk management
tools named PERISKOP (Operational Risk Tools). PERISKOP has a very important role, which is disseminating the Risk Culture
and improving Risk Awareness because there are three (3) main processes in operational risk management using these tools:
which are Self Assessment, Loss Event Database, and Key Risk Indicator.
Risk Management
Capital & Practice
PERISKOP
Self Assessment (SA) is a series of activities carried out independently by each unit (risk owner) in order to identify
Self Assessment potential operational risks in the unit, to find the cause, to measure potential losses (impact and frequency) that may
Module arise, and to find solutions in order to overcome them. SA results provide an overview of the potential risks faced by the
unit for the next 3 months, which are based on the historical data of the previous 3 months as well as the inherent risk.
Is a database of all financial losses covering actual loss and near miss since the event occurs until the settlement
due to the operational risks occurring in all units in the Bank. Loss data collected through the LED module, aside
Loss Event Database
from being used for better operational risk management and for preventing similar cases, is also used for the basis
Module
for RWA calculation of operational risk in order to calculate the capital requirement to cover operational risk by
using Advance Measurement Approach (AMA) method.
Key Risk Indicator is a measurement tool to identify early the potential operational risk losses inherent to products and
Key Risk Indicator
activities and to provide an early warning signal if it exceeds a predetermined threshold to monitor the operational risk
Module
exposure and the Bank’s control effectiveness.
BUSINESS CONTINUITY MANAGEMENT
Disruptions or disasters caused by nature factors, human building and Command Center, which are routinely managed.
actions, and systems may happen to BNI’s critical business
functions, causing disruptions on BNI’S business activities POLICIES AND PROCEDURES
and services. Related to Business Continuity Management (BCM)
implementation, BNI has set:
To anticipate such events, BNI has implemented a Business 1. Domestic Business Continuity Management (BCM)
Continuity Management (BCM) in every domestic and Policies.
overseas unit that is expected to be able to minimize 2. Domestic Business Continuity Management (BCM)
operational risk in emergency event or disaster situation. Procedures.
3. Business Continuity Management (BCM) Policy for
The development of this tool is in line with the Regulatory Overseas Branches.
requirements requiring banks to implement risk control 4. Business Continuity Management (BCM) Procedure for
process to manage risks that could compromise a bank’s Overseas Branches.
business continuity, and also in line with the Basel II 5. Crisis Management Protocol (CMP) Policies.
document requiring banks to have business continuity 6. Business Continuity Management (BCM) Building
management and contingency plans to ensure the bank’s Governance Procedures.
ability to keep operating and to limit losses due to disruption
to their business activities. Beside the provisions of the PROCESS
Regulator and Basel II for Overseas Branch Office, BCM Every Recovery Strategy and Restoration Strategy step taken is
is implemented by fulfilling BCM regulations in the local monitored and reported to the Crisis Management Team (CMT)
country. until the conditions return to normal. To ensure preparation
and evaluation level of Business Continuity Management
GOVERNANCE AND ORGANIZATION (BCM), BNI tests the system to each critical division/unit once
In a disaster situation, BNI has prepared a specific every 3 months, conducts site visits and disaster management
organization in the form of a Crisis Management Team simulations for BCM implementation to all operational units
(CMT) and Emergency Task Force (ETF) consisting of Senior routinely every year to find out the preparation level of each
Executives/Highest Unit Leaders as coordinators who have unit, in terms of its organization or its BCM infrastructure. The
the highest level of authority. CMT will be active in the event evaluations and routine testing results will show the systematic
that the Executive Management Team (EMT), as the highest and structured handling system in dealing with disasters caused
CMT authority, declares a disaster condition. by man, nature, or by the system that can make BNI’s operational
activities in the disaster areas can continue to run at a certain
BNI already has the necessary infrastructures for BCM level, although some facilities and infrastructure that supports
implementation, which are Disaster Recovery Center (DRC), the business activities may be temporarily down.
Dual Data Center (DDC), an alternate location for BCM
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LEGAL RISK
GOVERNANCE AND ORGANIZATION weak binding factor, and factor of absence of or changes
Legal risk management is carried out by the Legal Division in regulations in Legal Risk identification. The results of
under the active supervision of the Compliance Director. Legal Risk measurement are reflected in the Legal Risk
In conducting legal risk management, the Legal Division Profile.
cooperates with the Legal Management Unit or staff who 3. Monitoring Legal Risk by evaluating the exposure of
handle the legal function contained in the Division/Unit/ inherent legal risk, especially the material nature or its
Regional Office or other organizational units where the Legal impact on BNI’s capital. Monitoring results that include
Affairs Unit is intended to function as a ‘legal watch’, which an evaluation of the legal risk exposure are structured in
provides legal analysis/advice to the organizational unit and/ a Legal Risk Management Information System (SIM Legal
or employees at every level of the organization to minimize Risk) that provides regular legal risk exposure reports
the possible negative impact due to weakness of the (monthly, quarterly, and yearly) including the required
judicial aspect, absence and/or changes in legislations and follow-up actions.
litigation process. In managing legal risk, the Legal Division 4. The legal risk control process is carried out primarily to
collaborates with the Bank’s Risk Management Division in activities that can disrupt BNI’s business continuity. Legal
regularly assessing and monitoring Legal Risk Management Risk control process is carried out among others by
implementation. a. Conducting evaluation/assessment in the form of
judicial reviews in the event of new products and/or
POLICIES AND PROCEDURES new activities, or changes in/additional features on
Legal risk management implementation refers to the Legal BNI’s products.
Risk Management Company Guidelines as well as other b. Providing legal advice and/or legal assistance in the
policies related to legal risk management. event of Legal Risks in the operational activities.
c. Periodically reviewing standard agreement formats,
In order to produce the appropriate Legal Risk Management in particular credit agreements, in order to ensure
policies, the Legal Division and the Bank Risk Management compliance with laws and regulations and other
Division periodically evaluates and updates the Legal Risk applicable provisions.
Control policies and procedures, in accordance with the d. Periodically reviewing contracts and agreements
developments of the applicable provisions and regulations. between BNI and other parties, among others by
reviewing the effectiveness of enforcement process
PROCESS in order to check the validity of rights in the existing
In carrying out Legal Risk control function, BNI implements contracts and agreements, particularly for non-
risk management policies in a flow process consisting of: standard agreements or agreements that have not
been standardized in BNI’s Company Guidelines.
1. Identifying the Legal Risk periodically and continuously. e. Conducting intensive monitoring on legal issues,
The legal risk identification process is carried out by particularly lawsuits based on Act Against the Law
analyzing all legal risk sources, which at least to legal risk involving the Bank as Defendant or Co-defendant.
from BNI’s products and business activities, as well as
the new products and business activities through viable
legal risk management control process before they are
introduced or implemented.
2. Carrying out Legal Risk measurements performed by
using parameters of comparison between the case value
faced and BNI’s capital, for indicators of litigation factor,
Risk Management
Capital & Practice
STRATEGIC RISK
GOVERNANCE AND ORGANIZATION in every functional activity that potentially harms BNI for
Strategic Risk management is carried out by the Strategic example due to inappropriate policy, less responsive to
Planning Division under the active supervision of the Finance changes that occur, implementation of policies that are
Director. not according to plan, or because the implementation is
not in line with the predefined schedule.
Strategic risk management is carried out through a series 2. Conducting Strategic Risk measurement by using 4 (four)
of strategic planning process in the forms of planning and parameters, which are strategy suitability with business
budgeting, which includes alignment with the corporate environment conditions, high-risk strategies and low-risk
strategy and the unit strategy as well as cascading Bankwide strategies, bank’s business position against competitors,
targets into unit target outlined in the planning documents. and the achievement of Bank’s Business Plan (RBB)
realization. Detailed assessment of the strategic risk
Strategic planning documents include: profile is stated in the strategic risk profile report by
1. Corporate Plan, compiled once every 5 (five) years referring to BNI’s Risk Profile Assessment Policy and
2. Board of Directors General Policy (KUD), compiled once a Procedure.
year 3. Monitoring Strategic Risk, among others, by observing
3. Bank Business Plan (RBB), compiled annually the experience of past losses caused by strategic risks
4. Business Plan, compiled annually and/or deviations in the implementation of the strategic
plan.
Mechanism of strategic planning document preparation
begins with preparing Corporate Plan as a target reference For bank wide scope, BNI has set a work unit that
and the Board of Directors General Policy as guidance to analyzes and monitors realization vs. targets in this case
prepare Bank Business Plan. the Strategic Planning Division for strategy and the
Budgeting and Financial Control Division for financial
Furthermore, the Board of Directors General Policy and Bank targets.
Business Plan will become a reference to prepare Operational
Planning, which will be outlined in the Business Plan for Whereas for Division/Unit scope, a support unit and/or
Divisions, Regions, and Branches/Centers. The Business Plans other specific unit is appointed to analyze and monitor
for Regions will be a reference in Business Plan for Branches/ the realization vs. target of the strategy implementation
Centers. Through this mechanism, the strategy alignment of the Division/Unit periodically.
process is maintained from the corporate level to the lowest
level (branch). The mechanism to monitor achievements of the
established business plans is carried out by comparing
The Corporate Plan document must be reviewed annually the targets with the actual business achievements under
to suit the changing business environment. The Document the following provisions:
of the General Policy of Board of Directors and Bank’s a. Monthly monitoring of performance and bank-wide
Business Plan, Business Plan for Unit is reviewed in the first strategy
semester, even within a shorter period of time if significant b. Quarterly monitoring of Division performance
environmental changes occur. c. Semi-annual monitoring of the performance
achievements of the Company and all units through
POLICIES AND PROCEDURES Business Meetings forum at the Head Office and
Strategic Risk Management implementation refers to the Regional Offices.
Strategic Risk Management Implementation Guidelines and
Policies and Procedures such as New Product and Activity 4. The Strategic Risk control process is carried out by
Development Procedures. comparing actual results with expected results to
ensure that the risks taken are still within the tolerance
PROCESS limits and to report significant deviations to the Board
In carrying out Strategic Risk control function, BNI of Directors. The risk control system is approved and
implements strategic risk management policies in a flow reviewed periodically by the Board of Directors to ensure
process consisting of: its continuing suitability.
The strategic risk control mechanism is carried out on the
1. Identifying the Strategic Risk periodically and monitoring results of the following factors:
continuously. Strategic risk identification process is a. BNI’s performance achievement is compared to the
carried out by identifying strategic risk factors inherent proportional target and the current year target in a
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monthly manner in the Board of Directors Meeting 2. Compliance Risk Measurement, is carried out by using
(Radisi) forum which can take strategic action to indicators/parameters such as:
manage strategic risk. a. Types and significance of violations committed;
b. Realization of Business Plan Strategies for each b. Frequency of violation against the provisions (BNI’s
Division/Unit so that problems can be identified in compliance track record);
implementing strategies and work programs in order c. Violation against certain financial transaction
to be corrected immediately so that the financial provisions.
targets that have been set can be achieved quarterly.
c. Realization vs. Bank Business Plan targets to be As part of the compliance risk measurement, the indicators/
reported to the Financial Services Authority (FSA) parameters and the amount of weight and ratio used to
quarterly. measure the compliance risk profile are determined by the
d. Performance achievement of the company and all Compliance Division with due regard of input from the
units is conducted semi-annually in the Business Board of Directors, Bank Risk Management Division (ERM),
Meeting forum at Head Office and Regional Offices. and other Units as well as Regulatory provisions.
e. The Board of Directors always monitors the
realization of strategy implementation and the Detailed assessment of the compliance risk profile is
achievement of targets stated in the Bank’s Business stated in the compliance risk profile report by referring to
Plan (RBB) periodically. In the event that there BNI’s Risk Profile Assessment Procedure. Compliance Risk
is a strategy implementation and achievement Assessment is carried out by conducting assessment or
of the RBB that is not in line with the target, the testing on compliance with policies that will be/have been
Board of Directors asks the relevant unit to make effective, new product/activity, and compliance opinion on
improvements. transactions that will be made by BNI.
COMPLIANCE RISK 3. Compliance Risk Monitoring includes monitoring and

reporting Compliance Risk that occurs to the Board of
GOVERNANCE AND ORGANIZATION Directors at any occurring time of the Compliance Risk or
Compliance Risk management is carried out by the periodically on:
Compliance Division (KPN) under the active supervision of a. Legal Lending Limit.
the Compliance Director. b. Net Open Position.
c. Minimum Statutory Reserves in rupiah and foreign
POLICIES AND PROCEDURES currency.
Compliance Risk Management Implementation refers to the d. Establishment of Provision of Earning Assets.
Compliance Risk Management Implementation Guidelines e. Non-performing Loan.
and other relevant Policies and Procedures, among others f. Minimum Capital Reserve Requirement Ratio.
Compliance Policy, Anti-Fraud Policy, and Anti-Money g. Mandatory reporting to external parties.
Laundering and Combating the Financing of Terrorism h. Implementation of bank commitments to external
Procedures. parties.
i. Compliance Risk Level.
PROCESS j. Bank Composite Risk Rating.
In order to contribute to BNI’s sound and sustainable business
growth, the Compliance Division assists the Compliance 4. Compliance Risk Control, is carried out by conducting
Director in performing compliance functions and performing actions or steps that are ex-ante (preventive) to ensure
compliance risk management processes including that policies, provisions, systems, and procedures, as well
Compliance Risk Management, covering: as business activities carried out by BNI are in accordance
1. Compliance risk identification, carried out to identify all with the provisions of the Financial Services Authority
types of risks inherent in every functional activity that (FSA) and Bank Indonesia (BI) and applicable laws and
potentially harms BNI, which are factors that can increase regulations, as well as ensuring BNI’s compliance with
compliance risk exposure, such as: commitments made by the Bank to the Regulators
a. Type and complexity of BNI’s business activities, (ie. FSA and BI) and/or other authorized supervisory
including new products and activities. authorities.
b. The amount (volume) and materiality of BNI’s
non-compliance with the internal policies and Compliance Risk Control is not only carried out on
procedures, provisions and/or laws and regulations organizational units that are in the country but also
as well as sound business practices and ethics includes organizational units overseas. BNI shall ensure
standards. an adequate level of compliance with the laws and
regulations where the BNI branch office is located.
Risk Management
Capital & Practice
REPUTATION RISK

Reputation Risk management is carried out by the Corporate Communication and Secretariat Division (KMP) under the active
supervision of the President Director. News management and communication crisis management as well as monitoring on
opinions/comments in the news media or social media is carried out in collaboration with the Corporate Communication
Division. Whereas management of customer complaints/grievances is carried out in cooperation with the Customer Services
Central Unit.

Implementation of reputation risk management refers to the Reputation Risk Management Implementation Guidelines as well
as other relevant Policies and Procedures.
PROCESS
The Corporate Communication and Secretariat Division assists the President Director in implementing functions and processes
of reputation risk management, among others, through the following processes:
1. Reputation Risk identification, is carried out from several sources of data and/or information such as mass media coverage,
Bank website, and social media network analysis, customer complaints/grievances through customer service or mass
media and social media, as well as customer satisfaction survey questionnaire.
BNI shall record and administer every incident related to Reputation Risk, including the amount of potential loss due to
the said incident in a data administration. Such data recording and administration is compiled in a statistical data that
can be used to project potential loss in a certain period and activity. Each group of data and/or information is handled
differently according to the impact of reputation risk it generates.
2. Reputation Risk measurement, is carried out by using indicators among others as follows:
a. Frequency, Materiality, and Exposure of Negative News on BNI.
The frequency, type of media, and materiality of negative news on BNI, also includes bank administrators, by using
measurements and indicators as follows:
i. The frequency and scale of negative news on BNI and its subsidiaries in print and online media.
ii. Materialization on negative news is assessed based on BNI’s follow-up in response to the negative news.
b. The frequency and materiality of Customer Complaints, the measurements and indicators are:
i. Frequency of customer complaints.
ii. Customer Complaint settlement.
iii. Materiality of customer complaints.
c. The frequency and materiality of generally applicable Violations of Business Ethics/business norms, the measurement
and indicators include:
i. The frequency and scale of negative news related to Transparency of Financial Information.
ii. The frequency and scale of negative news related to BNI’s business cooperation with other stakeholders.
3. 3. Bank wide Reputation Risk monitoring, is carried out by the Corporate Communication and Secretariat Division
(KMP), by reporting Reputation Risk that occurs to the Board of Directors both incidentally at the time of the incident and
periodically including the necessary follow-up actions.
News management and communication crisis management as well as monitoring on opinions/comments on news
media or social media as well as choosing strategies to respond to opinions that develop on social media is carried out
in coordination with the Corporate Communication & Secretariat (KMP) Division. Whereas management of customer
complaints/grievances is carried out in cooperation with the Customer Services Central Unit (BCC).
Daily, weekly, monthly, quarterly, and annual evaluations of reputation risk faced by BNI are outlined in the Media
Monitoring Report.
4. Reputation Risk Control

BNI immediately follows-up and settles customer complaints and lawsuits that can increase the Reputation Risk exposure
and has also developed mechanisms for effective reputation risk control measures
In general, reputation risk control is carried out through 2 (two) things, which are:
a. Prevention of events leading to reputation risk
b. Recovery of BNI’s reputation after an incident raises reputation risk.
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Mitigation on Reputation Risk or incidents causing Reputation Risk is carried out by considering the materiality of
problems and costs. Nevertheless, a Reputation Risk may be accepted as long as it is still in line with the Risk level to be
taken.
Some risk control measures are:
a. Standardizing the competence of public relation/media relations staff in the Corporate Communication Division,
regional offices in order to have the ability and sensitivity in responding to issues and opinions that are developing.
b. Establishing a Service Level Agreement (SLA) as a standard of speed in responding to customer complaints.
Reputation Risk management in a crisis uses the standard determined in the Crisis Contingency Plan, which is
implemented when a crisis occurs, from mild to severe level. The Crisis Contingency Plan consists of:
i. Problem or chronology review
ii. Information flow
iii. Determination of the person in charge
iv. Determination of authorities and spokesperson
v. Schedule of crisis management activities
vi. Alternative communication strategies
vii. Evaluation
INTEGRATED RISK MANAGEMENT IN BNI’S FINANCIAL CONGLOMERATION
BNI’S BUSINESS GROUP STRUCTURE
1. Legal Entity of BNI’s Owner

Based on the composition of share ownership, the majority of BNI ownership is the Government of Indonesia at 60%,
Domestic Public of 8%, and Foreign Public of 32%. Ownership by Government of RI is represented by the Ministry of
SOE, while for foreign public ownership through foreign institutions. For domestic public ownership, among others
through mutual funds, pension funds, foundations, companies, insurance, other domestic institutions, and ownership by
individuals.
2. Ultimate Shareholders
The majority ownership of BNI shares is the Ministry of SOE as a representation of the Government of RI in the General
Meeting of Shareholders with ownership of 60%.
3. Related Companies (Sister Companies)

Cfm article 4 POJK No. 17/POJK.03/2014 on November 18, 2014, the related companies (sister companies) are several
Financial Services Institution (FSI), which are institutionally and/or legally separate but owned and/or controlled by the
same controlling shareholders.
BNI’s main controlling shareholder is the Government of the Republic of Indonesia which is also the majority owner of
other SOEs engaging in Financial Services Institution industry. However, based on the POJK, the relationship between
the FSIs owned and controlled directly by the Central Government of the Republic of Indonesia is exempted from the
definition of Financial Conglomeration, therefore, Himbara banks are not sister companies of BNI.
4. Subsidiary
BNI has capital placement in 5 (five) subsidiaries with majority ownership and as a controlling entity, and 5 (five) financial
services institutions with minority ownership and not as a controlling entity, as well as 1 (one) second-tier company. BNI’s
Financial Conglomeration Holding Body is as follows:
Risk Management
Capital & Practice
99,98% 75,00% 60,00% 99,94% 100%

Financing 1983 Securities 2010 Life Insurance 1996 Sharia Banking 1995 Money Transfer 1997
99,9%
PT BNI Asset Management 2011
1,93% 8,00% 2,50% 1,00% 0,52%

Securities Rating Investment 1981 Securities Settlement Financial Services Financial Service
1994 Institution 1988 2003 2004
Sarana Bersama
Pembiayaan Indonesia
Based on POJK No. 17/POJK.03/2014 on the Implementation of Integrated Risk Management for Financial Conglomeration
(KK), Financial Services Institutions (LJK) included in KK includes FSI types of banks, insurance and reinsurance companies,
securities companies, and/or financing companies, including second-tier company.
The structure of BNI’s Financial Conglomeration is determined by considering the conformity of the Subsidiary business type
with FSA provisions and considering the significance of BNI’s inclusion in each FSI Subsidiary Company of BNI’s Financial
Conglomeration.
BNI’s Financial Conglomeration Structure consists of:

1. Main Entity: PT Bank Negara Indonesia Persero Tbk.
2. FSI Member of Financial Conglomeration:
a. PT BNI Multifinance
b. PT BNI Sekuritas
c. PT BNI Life Insurance
d. PT BNI Syariah
e. PT BNI Asset Management
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Based on the composition of BNI’s share ownership in FSI members of BNI’s Financial Conglomeration as of December 31, 2018,
BNI’s ownership in each LJK member of BNI’s Financial Conglomeration is as follows:
1. BNI Multifinance 99,98%
2. BNI Sekuritas 75,00%
3. BNI Life 60,00%
4. BNI Syariah 99,94%
5. BNI Asset Management 99,90%
BNI’s Financial Conglomeration Structure is as follows:

MAIN ENTITY
99,98% 75% 60% 99,9%
Financing Securities Life Insurance Sharia Banking
99,9%
Asset Management
TRANSACTION BETWEEN BANKS WITH RELATED PARTIES IN BNI’S FINANCIAL CONGLOMERATION
1. Financial Relationship
To assess the inter-group material financial relationship among FSIs in BNI’s Financial Conglomeration, it is measured based
on BNI’s financial transaction value with FSI members of BNI’s Financial Conglomeration, that includes transactions of:
placement, bank guarantee, securities, and demand deposits. Contribution of inter-group transaction value among FSIs to
the total transactions is as follows:
Inter-Group Connection (%)

Entity
BNI BNI Syariah BNI Life BNI Multifinance BNI Sekuritas BNI Asset Mngt
BNI - 21.06% 2.17% 2.80% 0.54% 24.53%

BNI Syariah 0.11% - - - 0.62% 1.04%
BNI Life - 0.54% - 0.05% 3.78% 9.13%
BNI Multifinance 0.15% - 0.04% - 0.04% 0.01%
BNI Sekuritas 25.42% - - - - 7.67%
BNI Asset Management 0.29% - - - - -
Risk Management
Capital & Practice
2. Capital Participation
Based on the banking regulation, PBI No. 15/11/PBI/2013 dated November 22, 2013, and POJK No. 36/POJK.03/2017
dated July 12, 2017, on Prudential Principles in Capital Participation Activities, Capital Participation is the placement of
Bank funds in the form of shares in companies engaged in finance sector, including placement in the form of mandatory
convertible bonds or certain types of transactions that result in the Bank having or will be having shares in a company
engaged in finance sector.
Value of Capital Participation among FSIs in BNI’s Financial Conglomeration position as of December 31, 2018, is as follows:
Value Share of Capital
Name of FSI receiving Portion of Capital
No Name of FSI placing capital (investor) Time of Capital Placement 1) Placement 1) to the total
capital (investee) Placement 2)
(%)
1 BNI BNI Sekuritas Maret 1996 75.00% 3.03%
2 BNI BNI Life Insurance Agustus 2012 60.00% 11.97%
3 BNI BNI Syariah September 2014 999.4% 75.89%
Desember 2017
4 BNI BNI Multifinance Juni 2016 99.99% 9.06%
5 BNI Life BNI Syariah November 2012
0.70% 0.05%
6 BNI Life BNI Syariah September 2014
Total Capital Participation 100.00% 100.00%
Information:
The effective date, month, and year of commencement of capital placement
Percentage of capital placement (ownership) in the investee company per reporting position
Value of capital placement per reporting position
3. Financial Support among FSIs in BNI’s Financial Conglomeration

Name of FSI depositing the Provision Name of FSI receiving the Provision
No Types of Provision of Fund Share of Fund Provision Value
of Fund of Fund
1 BNI BNI Syariah Capital Placement, Bank Guarantee, 21.06%
Acceptance Receivables, Securities, SCO, SOF,
Micro Financing, Hajj Fund Migration
2 BNI BNI Multifinance Capital Placement, Bank Guarantee, KMK 2.80%
Provision
3 BNI BNI Life PCapital Placement, Bank Guarantee, KMK 2.17%
Provision
4 BNI BNI Sekuritas Capital Placement, Bank Guarantee, KMK 0.54%
Provision
5 BNI BNI Asset Management PAsset Management, BNI’s DPLK Investment 24.53%
6 BNI Syariah BNI Technical Assistance Agreements (SLA) 0.11%
6 BNI Syariah BNI Sekuritas Operating Lease 0.62%
7 BNI Syariah BNI Asset Management Reksadana Terpoteksi 1.04%
8 BNI Multifinance BNI Operating Lease, Finance Lease 0.15%
8 BNI Multifinance BNI Asset Management Operating Lease 0.01%
9 BNI Multifinance BNI Sekuritas Operating Lease Kendaraan dan Trading 0.04%
Platform
BNI Multifinance BNI Life Insurance Operating Lease 0.04%
AN N
NU
REPOR
U AALL
R TT
BankNegara
PT Bank
2018
NegaraIndonesia
Indonesia(Persero)
(Persero) Tbk
Tbk
Name of FSI depositing the Provision Name of FSI receiving the Provision
No Types of Provision of Fund Share of Fund Provision Value
of Fund of Fund
10 BNI Life Insurance BNI Asset Management Asuransi Kesehatan Pegawai, Reksadana 9.13%
11 BNI Life Insurance BNI Sekuritas Asuransi Kesehatan Pegawai, Transaksi 3.78%
Obligasi
12 BNI Life Insurance BNI Multifinance Asuransi Kesehatan Pegawai, Operating 0.05%
Lease
13 BNI Life Insurance BNI Syariah Asuransi Kesehatan Pegawai, Pemasaran in 0.54%
Branch, telemarketing, Flexi Umroh
BNI Sekutritas BNI Kerjasama Brokerage Obligasi 25.42%
14 BNI Sekuritas BNI Asset Management Transaksi Brokerage Surat Berharga, 7.67%
Reksadana
BNI Asset Managemenet BNI Investasi DPLK BNI 0.29%
Total Penyediaan Dana 100.00%
IMPLEMENTATION OF INTEGRATED RISK MANAGEMENT
BNI’s Financial Conglomeration needs to pay attention to all Risks inherent in the Financial Conglomeration that may affect its
business continuity.
1. The types of Risks in BNI’s Financial Conglomeration in the implementation of Integrated Risk Management, in which BNI
as the Main Entity and all FSI members of BNI’s Financial Conglomeration, must manage are 10 (ten) types of Risks:
a. Credit Risk.
Risk due to the failure of debtor and/or other parties to fulfill obligations to the Financial Conglomeration.
b. Market Risk.
Risk due to movement of market variables (adverse movement) from portfolio owned by the Financial
Conglomeration.
c. Liquidity Risk.
Risk due to the Financial Conglomeration’s inability to meet the obligations due from cash flow source of fund and/
or from high quality liquid assets that can be pledged, without disturbing the Financial Conglomeration’s activity and
financial condition.
d. Operational Risk.
Risk due to inadequacy and/or malfunction of internal process, human error, system failure, and/or external incidents
affecting the Financial Conglomeration’s operations.
e. Legal Risk.
Risk due to lawsuits and/or weakness of juridical aspect. Weakness of juridical aspect is, among others, due to low
knowledge/understanding on law and/or laws and regulations, absence of supporting laws and regulations, or weak
agreement such as non-fulfillment of the valid terms of a contract and incomplete collateral binding.
f. Strategic Risk.
Risk due to incorrectness in making and/or implementing a strategic decision, and failure in anticipating changes in
the business environment.
g. Compliance Risk.
Risk due to not complying with and/or not implementing the provisions and laws and regulations.
h. Reputation Risk.
Risk due to decreased stakeholders’ confidence level due to negative perceptions to FSI in the Financial
Conglomeration or to the Financial Conglomeration as an overall.
i. Inter-Group Transaction Risk.
Risk Management
Capital & Practice
Risk due to the dependence of an entity, either directly or indirectly, on other entities in one Financial Conglomeration
in order to fulfill written and unwritten agreement obligations, followed by transfer of funds and/or not followed by
transfer of funds.
j. Insurance Risk.
Risk due to failure of the insurance company in meeting its liability to the policyholders as a result of insufficient risk
selection process (underwriting), premium determination (pricing), use of reinsurance, and/or claim handling.
2. Potential Losses Faced by BNI’s Financial Conglomeration

To know the potential losses faced by BNI’s Financial Conglomeration is carried out through the assessment of the
Integrated Risk Profile. Based on the Self Assessment result of the Integrated Risk Profile of 10 types of Risks for position
of December 31, 2017, the risk rating of BNI’s Financial Conglomeration is 2 (low to moderate), which means that the
possibility of losses faced by the Financial Conglomeration is low during certain period of time in the future.
3. Risk Mitigation
BNI as the Main Entity carries out the integrated risk control, especially risks that may endanger the Financial
Conglomeration business continuity.
The Integrated Risk control method is carried out among others by

a. Setting risk limits, which are:
• Overall Risk Limit (the integrated limit of BNI’s Financial Conglomeration).
• Limit for each type of risks.
• Risk Limit of each FSI member of BNI’s Financial Conglomeration that has Risk exposure.
b. Approval or escalation mechanism in the event of exceeding the overall Risk Limit.
c. Feedback/corrective action mechanism on the integrated Risk Profile monitoring result.
Financial
Report
1068 CROSS REFERENCE OF
CROSS REFERENCE OF
Criteria Explanation Page
I GENERAL
1 The annual report is presented in good and v
correct Indonesian and also recommended
in English
2 Annual reports is printed in good quality v
fand use easy-to-read type and letter sizes
3 The annual report clearly identifies the v
identity of the company
5 Name of company and year of annual report 1. Front cover; v
shown on: 2. Side;
3. Back cover; and
4. Every page.
4 Information on the Company Website v
including the latest annual report and at
least for the last 4 years.
II SUMMARY OF IMPORTANT FINANCIAL DATA
Information on business results of the Information includes among others: 16-19
company in the form of comparison for 1. Sales / operating revenues;
3 (three) financial years, or since starting 2. Profit and loss):
business if the Company’s business activities a. Attributed to the owner of the parent;
are less than 3 (three) years b. Attributed to non-controlling interests;
3. Comprehensive income for the current period:
a. Attributed to the owner of the parent;
b. Attributed to non-controlling interests;
4. Earnings (loss) per share.
Note: If the company does not have a subsidiary, the company presents
the total current profit (loss) and total income for the current year.
2 Company's financial position information in Information includes among others: 16-19
the form of comparison for 3 (three) financial 1. Amount of investment in associate entity;
years, or since starting business if the 2. Total assets;
Company’s business activities are less than 3 3. Amount of liabilities; and
(three) years 4. Total equity.
3 Financial ratios in the form of comparisons Information contains 5 (five) financial ratios that are common and 19-20
for 3 (three) fiscal years or since the start relevant to the company's industry.
of business business if the the Company’s
business activities are less than 3 (three)
years
4 Stock price information in tables and graphs 1. Number of shares outstanding; 25-26
2. Information in tabular form which contains:
a. Market capitalization based on the price at the Stock Exchange
where the shares are listed;
b. The highest, lowest, and closing prices are based on the price
at the Stock Exchange where the shares are listed; and
c. Stock trading volume on the Stock Exchange where the shares
are listed.
3. Information in graphical form containing at least:
a. The closing price based on the price at the Stock Exchange
where the shares are listed; and
b. Stock trading volume on the Stock Exchange where the shares
are listed.
for each quarter for the last 2 (two) fiscal years.
Note: if the company does not have market capitalization, stock price
information, and stock trading volume, to be disclosed.
5 Information on bonds, sukuk or convertible Information includes: 28

bonds outstanding in the last 2 (two) fiscal 1. Number of bonds / sukuk / bonds of conversion in circulation
years (outstanding);
2. Interest rate / reward;
3. Due date; and
4. Rating for bonds / sukuk in 2017 and 2018
Note: if the company does not have bonds / sukuk / convertible bonds,
to be disclosed.
III BOARD OF COMMISSIONERS AND BOARD OF DIRECTORS REPORT
1 Board of Commissioners Report Including the following: 36-43
1. Assessment of the Board of Directors' performance on the
management of the company and scoring basis;
2. A view of the business prospects of the company drawn up by the
Board of Directors and the basis for their consideration;
3. The views on the whistleblowing system (WBS) in the company and
the role of the Board of Commissioners in the WBS; and
4. Changes in the composition of the Board of Commissioners (if any)
and reasons for the change.
2 Board of Directors Report Including the following: 47-55
1. An analysis of the company's performance, which includes among
others:
a. strategic policy;
b. comparison between results achieved and targeted; and
c. constraints faced by the company and its settlement measures;
2. Analysis of business prospects;
3. The development of corporate governance in the fiscal year; and
4. Changes in the composition of the Board of Directors members (if
any) and reasons for the change.
3 Signatures of members of the Board of Including the following: 56-57
Commissioners and members of the Board 1. The signaturea are contained on a separate sheet;
of Directors 2. A statement that the Board of Commissioners and the Board of
Directors are fully responsible for the accuracy of the contents of
the annual report;
3. Signed by all members of the Board of Commissioners and
members of the Board of Directors by stating their names and
positions; and
4. A written explanation in a separate letter from individuals in the
event that there are members of the Board of Commissioners
or members of the Board of Directors who do not sign the
annual report, or written explanation in separate letters from
other members in the absence of written explanation from the
concerned.
IV COMPANY PROFILE
1 The full name and address of the company 5. The information includes: name and address, zip code, no. Tel, no. 61
Fax, email, and website.
2 Company brief history 6. Includes: date / year of establishment, name, change of company 62-63
name (if any), and effective date of change of company name.
7.
8. Note: if the company has never changes its name, to disclose it
3 Business fields 9. Description of: 65-68
10. Company's business activities according to the latest articles of
association;
11. Business activities carried out; and
12. Products and / or services produced.
4 Organizational structure 13. In the form of a chart, including the names and positions, at least 74-75
up to 1 (one) level below the board of directors.
5 Vision, Mission, and Corporate Culture 14. Includes: 74-77
15. Company vision;
16. Company Mission;
17. Information that the vision and mission have been reviewed and
approved by the Board of Directors / Board of Commissioners in
the fiscal year; and
18. Statement about corporate culture owned by the company.
6 Identity and brief biography of members of 19. Information includes: 80-88
the Board of Commissioners 20. Name;
21. Position and term of office (including position in company or other
institution);
22. Age;
23. Domicile;
24. Education (Field of Study and Educational Institution);
25. Work experience (Position, Institution, and Period of Service); and
26. The history of appointment (period and position) as a member of
the Board of Commissioners in the Company since first appointed.
7 Identity and brief biography of members of 27. Information includes: 89-99
the Board of Directors 28. Name;
29. Position (including position in company orother institution);
30. Age;
31. Domicile;
32. Education (Field of Study and Educational Institution
33. Work experience (Position, Institution, and Period of Service); and
34. The history of appointment (period and position) as a member of
the Board of Directors in the Company since first appointed.
8 Number of employees (2 years comparative) 35. Information includes: 117-127
and employee competency development 36. Number of employees for each level of organization;
data reflecting the opportunities at each 37. Number of employees for each level of education;
level of organization 38. Number of employees by employment status;
39. Data of employee competency development that has been
done in the fiscal year consisting of position levels for those who
participated in training, type of training, and training objectives;
and
40. Employee competency development costs incurred during the
fiscal year.
9 Shareholder Composition 41. Includes: 128-130
42. Details of the shareholder's name including the 20 largest
shareholders and the percentage of ownership;
43. Shareholder details and percentage of ownership include:
44. Name of shareholder owning 5% or more shares; and
45. Groups of public shareholders with share ownership of less than
5% each.
46. Name of Directors and Commissioners as well as the percentage of
ownership of shares directly and indirectly.
47.
48. Note: if the Director and Commissioner have no direct and indirect
shares to disclose.
10 List of subsidiaries and / or associates In the form of the table containing information, including: 131-135
1. Name of subsidiary and / or associate;
2. Percentage of share ownership;
3. Description of the business of the subsidiary and / or associate; and
4. Description of the operating status of the subsidiary and / or
associate entity (already in operation or not yet operating).
11 Company group structure The group structure of the company in the form of a chart showing 136
subsidiaries, associates, joint ventures, and special purpose vehicles
(SPV).
12 Chronology of shares issuance (including Includes: 137-138
private placement) and / or stock listing from 1. Year of issuance, number of shares, par value of shares, and stock
initial offering up to the end of the fiscal year quotation price for each corporate action;
2. Number of shares registered after each corporate action; and
3. The name of the stock where the company's shares are listed.
Note: if the company does not have a share listing chronology, it should
be disclosed.
13 The chronology of the issuance and / or Includes: 140
listing of other securities from the initial 1. Other securities name, other issuance year, other securities interest
publication until the end of the fiscal year rate / reward, and maturity date of the securities;
2. The value of other securities offerings;
3. Name of exchange where other securities are listed; and
4. Securities Ranking.
Note: if the company does not have a chronology for other securities
listing, to be disclosed.
14 Name and address of supporting institutions Information includes: 143

and / or professions 1. Name and address of BAE / party administering shares of the
company;
2. Name and address of Public Accounting Firm; and
3. Name and address of the rating agency.
15 Awards received in the last fiscal year and Information includes: 144-150
/ or certification that is still valid in the last 1. Name of award and / or certificate;
fiscal year both nationally and internationally 2. Year of acquisition;
3. Awarding bodies and / or certificates; and
4. Validity period (for certification).
16 Names and addresses of subsidiaries and / Information includes: 151-153
or branch offices or representative offices 5. Name and address the subsidiaries; and
(if any) 6. Name and address of branch offices / representatives.
Note: if the company does not have subsidiaries / branches /

representatives, to be disclosed.
17 Information on the Company Website Information includes: 154-155
1. Shareholder information up to the individual end owner;
2. Code of Ethics Content;
3. General Meeting of Shareholders (GMS) at least includes the
agenda items discussed in the GMS, summaries of minutes of the
GMS, and important information, namely the date of the GMS
announcement, the date of the GMS call, the GMS, the date of the
minutes of the GMS;
4. Separate annual financial statements (last 5 years);
5. Profile of Board of Commissioners and Board of Directors; and
6. Board of Commissioners, Directors, Committees, and Internal Audit
Unit Charter.
18 Education and / or training for the Board Includes at least (types and relevant parties): 156-169
of Commissioners, Directors, Committees, 1. Education and / or training for the Board of Commissioners;
Corporate Secretary, and Internal Audit Unit 2. Education and / or training for Directors;
3. Education and / or training for the Audit Committee;
4. Education and / or training for the Nomination and Remuneration
Committee;
5. Education and / or training for Other Committees;
6. Education and / or training for Corporate Secretary; and
7. Education and / or training for the Internal Audit Unit. which is
followed in the book year.
Note: if there is no education and / or training in the fiscal year, to be

disclosed
V MANAGEMENT DISCUSSION AND ANALYSIS ON COMPANY PERFORMANCE
1 Overview of operations per business Information includes: 179-221
segment 1. Explanation of each business segment.
2. Per business segment performance, including:
3. Production;
4. Increased / decreased production capacity;
5. Sales / operating revenues; and
6. Profitability
2 Description of the company's financial 1. Financial performance analysis which includes comparison 234-259
performance between financial performance for the year concerned with
previous year and reason for increase / decrease (in the form of
narration and table), among others concerning:
2. Current assets, non-current assets, and total assets;
3. Short-term liabilities, long-term liabilities, and total liabilities;
4. Equity;
5. Sales / operating revenue, expenses and profits (loss), other
comprehensive income, and total profit (loss) and other
comprehensive income; and
6. Cash flow.
3 Discussion and analysis of debt ability Explanation of : 270-272
and collectibility level of the company, by 1. The ability to pay the debt, both short-term and long-term; and
presenting the calculation of relevant ratios 2. Collectibility of receivables.
according to the type of industrial company
4 Discussion about capital structure and Explanation of: 268-269

management policy on capital structure 1. Details of capital structure consisting of interest-based / sukuk and
policy equity debts; and
2. Management policy on capital structure policies; and
3. Basic selection of management policies on capital structure.
5 Discussion of material ties to capital Explanation of: 283-284
investment (not funding ties) in the last fiscal 1. Name of the party making the bond;
year 2. The purpose of the bond;
3. Sources of funds expected to fulfill such commitments;
4. Denominated currency; and
5. Measures planned by the company to protect the risk of foreign
currency positions.
Note: if the company does not have capital investment related bonds in
the last fiscal year to disclose.
6 Discussion on capital goods investment Explanation of: 284-285

realized in the last fiscal year 1. Type of investment of capital goods:
2. The purpose of investment of capital goods; and
3. The investment value of capital goods issued in the last fiscal year.
Note: if there is no realization of investment in capital goods, to

disclose.
7 Comparative information between the Information includes: 285-286

targets at the beginning of the fiscal year 1. Comparison between targets at the beginning of the fiscal year and
and the results achieved (realization), and the results achieved (realization); and
the target or projection to be achieved 2. Target or projection to be achieved 1 (one) year ahead.
for the coming 1 (one) year for revenue,
profits, and others deemed important to the
enterprise
8 Material information and facts occurring Description of important events after the date of the accountant's 303
after the date of the accountant's report report including impact on future performance and business risks.
Note: if there are no important events after the date of the accountant's
report, to be disclosed.
9 A description of the business prospects of Description of the company prospects attributed to industry and the 229-232
the company economy in general along with quantitative support data from reliable
data sources.
10 A description of the marketing aspects Description of the marketing aspects of a company's products and / or 223-228
services, among others, marketing strategy and market share.
11 Description on dividend policy and amount Description of: 291

of cash dividend per share and the amount 1. Dividend distribution policy;
of dividend per annum announced or paid 2. Total dividends distributed;
during the last 2 (two) 3. Amount of cash dividend per share;
4. Payout ratio; and
5. Date of announcement and payment of cash dividend. for each
year.
Note: if there is no dividend distribution, please disclose the reason.

12 Company's existing employee and / or Description of: 291-293
management shareholding (ESOP / MSOP) 1. Number of shares of ESOP / MSOP and realization;
program for the fiscal year 2. Time period;
3. Eligible employee and / or management requirements; and
4. Exercise price.
Note: if it does not have the intended program, to be disclosed.

13 Use of proceeds from the public offering (in Description of: 286-291
case the company is still required to submit a 1. Total acquisition of funds;
report on the realization of the use of funds) 2. Plan for the use of funds;
3. Details of the use of funds;
4. Fund balance; and
5. Date of AGM / RUPO approval on changes in use of funds (if any).
Note: if no realization information on the use of proceeds from the

public offering, to be disclosed.
14 Material transaction information containing Description of: 282
conflict of interest and / or transaction with 1. The name of the transacting party and the nature of the affiliate
affiliates relationship;
2. Explanation of the fairness of transactions;
3. The reason for the transaction;
4. Actual transactions during the last fiscal year;
5. Company policy related to review mechanism of transaction; and
6. Compliance with relevant rules and regulations.
Note: if no such transaction, to be disclosed.
15 A description of legislation changes in the Description of: 304-309

last fiscal year 1. The name of the changed legislation; and
2. The impact (quantitative and / or qualitative) on the firm (if
significant) or the statement that the impact is insignificant.
Note: if there is no change in legislation that has any significant effect,

to be disclosed.
16 A description of the accounting policy Description of: 310-313

changes adopted by the company in the last 3. Changes in accounting policies;
fiscal year 1. Reasons for changes in accounting policies; and
2. The quantitative impact on the financial statements.
Note: if there is no change in accounting policy in the last fiscal year, to

disclose.
17 Information on business continuity Information disclosure regarding: 314-315
1. Potential issues significantly affecting the company’s business
sustainability during the last financial year;
2. Management assessment for issues mentioned above;
3. Basic assumptions used by the management in conducting the
assessment.
Note: if there is no potential issues significantly affecting the

company’s business sustainability during the last financial year,
disclose assumptions as the management basis in believing that there
is no potential issues significantly affecting the company’s business
sustainability during the last financial year.
VI Good Corporate Governance
1. Description of the Board of Commissioners Description of: 410-450
1. Description of the responsibilities of the Board of Commissioners;
2. Assessment of the performance of each committee under the
Board of Commissioners and the basis of its assessment; and
3. Disclosure of Board Charter (Code of Conduct and Board of
Commissioners).
2. Independent Commissioners (at least 30% Includes: 421-422
of the total Board of Commissioners) 1. Criteria for determining Independent Commissioners; and
2. Statement on the independence of each Independent
Commissioner.
3. Description of the Board of Directors Description of: 452-495
1. The scope of work and responsibilities of each member of the
Board of Directors;
2. Assessment of the performance of committees under the Board of
Directors (if any); and
3. Disclosure of Board Charter (guidelines and work discipline of the
Board of Directors).
4. Assessment of GCG Implementation for the Includes: 373-380
fiscal year 2016 covering at least the aspect 1. Criteria used in the assessment;
of the Board of Commissioners and the 2. The party conducting the assessment;
Board of Directors 3. Scoring scores for each criterion;
4. Recommendation of assessment results; and
5. Reason for not yet / not implementing recommendation.
Note: if there is no GCG implementation assessment for the fiscal year

2016, to be disclosed.
5. Description of remuneration policy for Includes: 446-448,
Board of Commissioners and Board of 1. Disclosure of procedure up to the determination of remuneration 490-492
Directors of the Board of Commissioners;
2. Disclosure of procedure up to the determination of the
remuneration of the Board of Directors;
3. Remuneration structure showing remuneration component and
nominal amount per component for each member of the Board of
Commissioners;
4. Remuneration structure showing remuneration component and
nominal amount per component for each member of the Board of
Directors;
5. Disclosure of indicators for the Board of Directors' remuneration;
and
6. Disclosure of performance bonuses, non performance bonuses,
and / or stock options received by each member of the Board of
Commissioners and Board of Directors (if any).
7.
8. Note: where there are no performance bonuses, non performance
bonuses, and stock options received by each member of the Board
of Commissioners and Board of Directors, to be disclosed.
6. Frequency and Attendance by members at 1. Information includes: 430-442,

Board of Commissioners meetings (at least 2. Date of Meeting; 467-488
1 times in 2 months), Board of Directors 3. Meeting participants; and
Meetings (at least 1 time in 1 month), and 4. Meeting agenda.
Joint Meeting of Board of Commissioners
with Board of Directors (minimum 1 time for each meeting of the Board of Commissioners, Board of Directors,
in 4 months) and joint meetings.
7. Information on the major and controlling In the form of schematics or diagrams that separate major shareholders 658
shareholders, either directly or indirectly, with controlling shareholders.
to individual owners
Note: the major shareholder is a party, directly or indirectly, with at least
20% (twenty percent) of the voting rights of all voting shares issued by
a Company, but not the controlling shareholder.
8. Disclosure of affiliate relationships Includes: 420-
between members of the Board of 1. Affiliation relationships between members of the Board of 421,463
Directors, the Board of Commissioners, Directors and other members of the Board of Directors;
and the Principal and / or controlling 2. Affiliation relationships between members of the Board of
Shareholders Directors and members of the Board of Commissioners;
3. Affiliation relationships between members of the Board of Directors
and the Majority and / or Controlling Shareholders;
4. Affiliated relationships between members of the Board of
Commissioners and other members of the Board of Commissioners;
and
5. Affiliated relationships between members of the Board of
Commissioners and the Majority and / or Controlling Shareholders.
Note: if it has no such affiliate relationship, it should be disclosed.

9. Audit Committee Includes: 499-509
1. Name and position of audit committee members;
2. Education history (Study Field and Educational Institution) and
work experience (Position, Institution, and Period of Work) of audit
committee members;
3. Independence of audit committee members;
4. Description of duties and responsibilities;
5. Description of the audit committee activities in the fiscal year; and
6. The frequency of meetings and attendance of the audit committee.
10. Nomination and / or Remuneration Includes: 508-517

Committee Functions 1. Name, position, and brief biography of nomination and / or
remuneration committee members;
2. Independence of nomination and / or remuneration committee
members;
4. Description of the nomination and / or remuneration committee
activities;
5. The frequency of meetings and the attendance of the nomination
and / or remuneration committee;
6. Statement of the nomination and / or remuneration committee
members guidelines; and
7. Policy on the succession of the Board of Directors.
11. Other Committees under the Board of Includes: 517-533
Commissioners 1. Name, position, and brief biography of committee members;
2. Independence of committees;
4. Description of the implementation of the activities of committees;
and
5. The frequency of meetings and the attendance levels of
committees.
12. Job Description and Function of Corporate Includes: 537-542
Secretary 1. Name, and history of the corporate secretary;
2. Domicile;
3. Description of duties and responsibilities; and
4. Description on execution of the tasks of corporate secretary in the
fiscal year.
13. Description of the internal audit unit Includes: 543-551

1. Name of the head of the internal audit unit;
2. Number of employees (internal auditors) in the internal audit unit;
3. Certification in an internal audit profession;
4. The position of the internal audit unit within the company
structure;
5. Description of the internal audit unit activities in the fiscal year; and
6. Parties who appoint and dismiss the chair of the internal audit unit.
14. Public Accountant Information includes: 568-570
1. Name and year the public accountant who audited the annual
financial statements for the last 5 years;
2. Name and year of the Public Accounting Firm who audited the
annual financial statements for the last 5 years;
3. The amount of fee for each type of services provided by the public
accountant in the last fiscal year; and
4. Other services provided by the accountant in addition to the
annual financial statement audit services in the last fiscal year.
Note: if no other services are provided, to be disclosed.

15. Description of the company's risk Includes: 571-591
management 1. A description of the company's risk management system;
2. A description of the evaluation of the effectiveness of the risk
management system;
3. A description of the risks facing the company; and
4. Efforts to manage those risks.
16. Description of the internal control system Includes: 591-595
1. Brief explanation of the internal control system, including financial
and operational controls, among others;
2. Explanation of conformity of internal control system with
internationally recognized framework (COSO - internal control
framework); and
3. An explanation of the results of reviews conducted on the
implementation of the internal control system in the financial year.
17. A description of corporate social 1. Information on commitment to social responsibility 687-688
responsibility related to social 2. Information on methods and scope of due diligence on the social,
responsibility governance economic and environmental impacts from corporate activities
3. Information on important stakeholders affected or influences
impacts from corporate activities
4. Information on important socio-economic and environmental
issues related to impacts from corporate activities
5. Information about the scope of corporate social responsibility that
is both an obligation and beyond obligation
6. Information on the company’s strategies and work programs
in handling social, economic and environmental issues in
stakeholders engagement and increasing value for stakeholders
and shareholders
7. Information about various programs that exceeds the company’s
minimum responsibilities that are relevant to the ongoing business
8. Information about financing and budgeting for social responsibility
18. A description of corporate social 1. Information about social responsibility commitments and policies, 689-690
responsibility related to core subject of core subject: Human Rights
human rights 2. Information about the company’s formulation of the scope of social
responsibility, core subject: Human Rights
3. Information about plans for corporate social responsibility in the
field of Human Rights
4. Information about implementing CSR initiatives in the field of
Human Rights
5. Information about achievements and awards for CSR initiatives in
the field of of Human Rights
19. A description of corporate social 1. Information about social responsibility commitments and policies, 691
responsibility related to core subject of fair core subject: Fair operation
operations 2. Information about the company’s formulation of the scope of social
responsibility, core subject: fair operation
3. Information about plans for corporate social responsibility in the
field of fair operations
4. Information about implementing CSR initiatives in the field of fair
operations
5. Information about achievements and awards for CSR initiatives in
the field of fair operations
20. A description of corporate social Information disclosure on: 695-701
responsibility related to environment 1. Information about environmental commitments and policies
2. Information about important environmental impacts and risks that
are directly or indirectly related to the company
3. Information about the 2018 target/activity plan determined by the
management;
4. Information on activities undertaken and environmental programs
related to the company’s operations
5. Information about CSR initiative implementation related to the
environment
6. Information about the results of quantitative impacts on
these activities; such as the use of environmentally-friendly
and recycleable materials and energy, the company’s waste
treatment system, complaint mechanism for environmental issues,
consideration of environmental aspects in providing credit to
customers, and others.
7. Certification in environmental issues..
21 Description of corporate social Includes information about: 701-703
responsibility related to employment, 1. Corporate social responsibility policy and commitment, with core
occupational health and safety subject of social and community development
2. Information about social issues that are relevant to the Company
3. Information about social risks managed by the company
4. Information on the scope and formulation of social responsibility in
social and community development
5. Activity target/plan in 2018 set by management; Activities carried
out and impacts of these activities; and Cost incurred Related
to social and community development, such as the use of local
labor, empowerment of communities around the Company,
improvement of social facilities and infrastructure, other forms
of donations, communication about anti-corruption policies and
procedures, anti-corruption training, and others.
22 Description of corporate social Includes among others: 709-713
responsibility related to responsibility to 1. Activity target/plan in 2018 set by management; and
customers 2. Activities carried out and impacts of these activities
3. Related to product responsibility, such as customer health
and safety, product information, facilities, number and
countermeasures for customer complaints, and others.
23 description of corporate social Includes information about: 704-710
responsibility related to social and 1. Corporate social responsibility policy and commitment, with core
community development subject of social and community development
2. Information about social issues that are relevant to the Company
3. Information about social risks managed by the company
4. Information on the scope and formulation of social responsibility in
social and community development
5. Activity target/plan in 2018 set by management;
6. Activities carried out and impacts of these activities; and
7. Cost incurred
8. Related to social and community development, such as the use of
local labor, empowerment of communities around the Company,
improvement of social facilities and infrastructure, other forms
of donations, communication about anti-corruption policies and
procedures, anti-corruption training, and others.
24 Important matters currently faced by the 1. Includes: 604-610

company, subsidiaries, and members of the 2. Principal cases / lawsuits;
Board of Commissioners and members of 3. Court settlement / lawsuit status;
the Board of Directors serving during the 4. Risks facing the company and the value of claims; and
annual reporting period 5. Administrative sanctions imposed on corporations, members of the
Board of Commissioners and the Board of Directors, by the relevant
authorities (capital market, banking and others) in the last fiscal
year (or there is a statement that it is not subject to administrative
sanctions).
Note: In the case that a company, subsidiary, member of the Board of

Commissioners, and member of the Board of Directors is involved in no
important cases, it is disclosed.
25 Access to company information and data Description of availability of access to information and corporate data 618-638
for the public, for example through the website (in Indonesian and
English), mass media, mailing lists, newsletters, meetings with analysts,
and so forth.
26 Discussion of codes of conduct Description of: 639-640
1. Key points of ethics;
2. Disclosure that the code of ethics applies to all levels of the
organization;
3. Dissemination of codes of ethics;
4. Sanctions for each type of offense set out in the code of ethics
(normative); and
5. Number of code violations and sanctions given in the last fiscal
year.
Note: if there are no violations of the code of ethics in the last fiscal
year, to be disclosed
27 Disclosure of the whistleblowing system Description of the whistleblowing system mechanism: 644-646
1. Submission of violation reports;
2. Protection for whistleblowers;
3. The handling of complaints;
4. The party managing the complaint; and
5. Number of incoming and processed complaints in the last fiscal
year; and
6. Sanctions / follow-up on complaints that have been processed in
the fiscal year.
Note: if there are no incoming complaints in the last fiscal year, to be

disclosed
28. Policy on the composition of the Board of The Company's policy description on the composition of the Board of 414-419,
Commissioners and the Board of Directors Commissioners and the Board of Directors in education (field of study), 459-460
work experience, age, and gender.
Note: if there is no such policy, to disclose the reasons and

considerations.
VII FINANCIAL INFORMATION

1 Letter of the Board of Directors and Compliance with relevant regulations on Liability to Financial 807
/ or Board of Commissioners on the Statements.
Responsibility of the Financial Statement
2. Opinion of independent auditors for 811
financial statements
3. Description of Independent Auditor for Description of: 809-811
Opinion 1. Name & signature;
2. Date of Audit Report; and
3. KAP license number and license number of a Public Accountant.
4. Complete financial statements Complete financial statements: 812-1067

1. Statements of financial position;
2. Income and other comprehensive income statement;
3. Statement of Changes in Equity;
4. Cash flow statement;
5. Notes to the financial statements;
6. Comparative information on previous periods; and
7. The statement of financial position at the beginning of the previous
period when the entity applies an accounting policy retrospectively
or prepares a restatement of financial statement items, or when the
entity reclassifies the items in its financial statements (if relevant).
5. Comparison of profitability levels Comparison of performance / profit (loss) of the current year with the 817-819
previous year.
6. Cash flow statement Meet the following conditions: 822-824
1. Grouping into three categories of activities: operations,
investments, and financing;
2. The use of direct method to report cash flows from operating
activities;
3. Separation of the presentations between cash receipts and / or
cash disbursements during the year for operating, investing and
financing activities; and
4. Disclosure of non-cash transactions should be included in the
notes to the financial statements.
7. Summary of Accounting Policies Includes: 837-896
1. Statement of compliance with SAK;
2. Basis of measurement and preparation of financial statements;
3. Income tax;
4. Employee benefits; and
5. Financial Instruments.
8. Disclosure of related party transactions Matters expressed: 1002-1012
1. The names of related parties, as well as the nature and relationship
of related parties;
2. The value of the transaction and its percentage of total revenues
and related expenses; and
3. Total balance and percentage of total related assets or liabilities.
9. Disclosures related to taxation Matters be Disclosed: 954-961
1. Fiscal reconciliation and current tax expense calculation;
2. Explanation of the relationship between tax expense (income) and
accounting profit;
3. The statement that the taxable income (LKP) resulted from the
reconciliation is used as the basis for filling the Annual Income Tax
Return of the Company in 2016;
4. The details of the deferred tax assets and liabilities recognized in
the statement of financial position for each presentation period
and the total deferred tax expense (income) recognized in the
statement of income if the amount is not reflected in the total
deferred tax assets or liabilities recognized in the statement of
financial position; and
5. Disclosure of no or no tax disputes.
10. Disclosures related to fixed assets Matters to be Disclosed: 939-943
1. Method of depreciation used;
2. A description of the selected accounting policies between the
revaluation model and the cost model;
3. Significant methods and assumptions used in estimating the fair
value of property, plant and equipment (for revaluation model) or
disclosure of fair value of property, plant and equipment (for cost
model); and
4. Reconciliation of gross carrying amount and accumulated
depreciation of property and equipment at the beginning and end
of the period by showing: addition, subtraction and reclassification.
11. Disclosures related to operating segments * Matters to be Disclosed: 1013-1015

1. General information covering factors used to identify reported
segments;
2. Information on reported segment of income, assets, and liabilities;
3. Reconciliation of total segment revenues, reported segment loss,
segment assets, segment liabilities, and other segment material
items to related amounts in the entity; and
4. Disclosure at the entity level, which includes information about
products and / or services, geographic areas and key customers.
12. Disclosures related to Financial Instruments Matters to be Disclosed: 824-1064
1. Details of financial instruments held by their classification;
2. Fair value and hierarchy for each group of financial instruments;
3. Risk management policy;
4. Explanation of risks related to financial instruments: market risk,
credit risk and liquidity risk; and
5. The risk analysis associated with financial instruments is
quantitative.
13. Issuance of financial statements Matters expressed include: 811
1. Date of financial statements authorized for publication; and
2. The party responsible for authorizing the financial statements.
ANNUAL
REPORT 2018
Kantor Pusat :
Gedung BNI
Jl. Jend. Sudirman Kav. 1
Online Phone & Fax

Email : BNI@46.co.id Solution Center : 1500 046
Website : bni.co.id Phone : 021 - 2511 946 , 572 8387
Fax : 021 - 572 8295 , 572 8053

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Serving the Country, the Pride of the Nation

2 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

Bigger, Better, Together

Advancing On The Right Track

4 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

To support the achievement of these goals, BNI plays an active role as

Moving Faster Wins The Competition

Strengthening Competitive Advantage

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 5

Net Interest and

6 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

Coverage Ratio The ACGS score

The Best State Owned

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 7

BNI converts to a As a commercial bank with the name “Bank

The establishment of PT Bank BNI supports the Indonesian

8 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

BNI conducts operational The monetary crisis hits Asia

Under a new Management team, BNI issued new shares

BNI Subordinate I Medium

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 9

CORPORATE SEGMENT GROWTH IS

STRONG CREDIT CARD

In 2018 BNI’s credit card market share in Indonesia BBNI

10 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

As of December 31, 2018, BNI had disbursed KUR amounting to Rp66.1

GOOD CASH MANAGEMENT SKILLS

CORPORATE MIDDLE SMALL

BNI Danamon Permata BNI Mandiri BCA Danamon Mandiri BCA

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 11

Performance Highlights 2018

Management Discussion And Analysis

12 Adapting Quickly to Face Change PT Bank Negara Indonesia (Persero) Tbk

Good Corporate Governance

CORPORATE SOCIAL RESPONSIBILITY

Risk Management Capital & Practice

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 13

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PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 15

REPORT OF FINANCIAL POSITION

Government Bonds 86,791 79,849 63,006 47,222 43,830

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Description 2018 2017 2016 2015 2014

PT Bank Negara Indonesia (Persero) Tbk  Adapting Quickly to Face Change 17

Description 2018 2017 2016 2015 2014

STATEMENT OF PROFIT OR LOSS AND OTHER COMPRHENSIVE INCOME

Premium Income 5,997 6,871 5,597 3,618 1,476

Claims Expense (4,285) (5,104) (4,255) (2,485) (1,343)

Premium Income - Net 1,712 1,767 1,342 1,133 607

- Other Operating Income 9,616 9,308 8,174 6,684 6,559

- Recovery 1,997 1,732 1,378 1,590 1,856

Total Operational Income 48,771 44,744 40,888 34,967 31,783

Other Operating Expenses (21,783) (20,396) (18,806) (16,218) (14,576)

Allowance For Impairment Losses (7,388) (7,126) (7,853) (7,336) (3,642)

Operating Income 19,599 17,222 14,229 11,412 13,566

Non-Operating (Expense)/Income-Net – Net 221 (57) 74 54 178

Income Before Tax Expenses 19,821 17,165 14,303 11,466 13,744

Tax Expense (4,729) (3,394) (2,893) (2,326) (2,695)

Income For The Year 15,092 13,771 11,410 9,141 11,049

Income For The Year Attributable To:

- Non-controlling interests 77 154 71 74 47

- Owner of the Parent Entity 15,015 13,617 11,339 9,067 10,783

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