ASEAN Corporate Governance Score Card
Part | Parameter | Company Practice in 2021 | Source Document |
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C.1 The rights of stakeholders that are established by law or through mutual agreements are to be respected. | |||
Does the company disclose a policy and practices that address : | |||
C.1.1 | The existence and scope of the company's efforts to address customers' welfare? |
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BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.1.2 | Supplier/contractor selection procedures? |
Bank BTN has disclosed a policy and practices that address the procedures of supplier/contractor. The Company has policies in place regarding the selection and improvement of suppliers or vendor ability - Aspect 4: Stakeholder Participation/ BTN Annual Report 2020 Page 608
Bank BTN has disclosed a standards of Business Ethics with providers of goods and services. The selection of providers of goods and services had to be based on an assessment of ability, achievement, and on compliance and objectivity in the areas of standard of price, quality, availability, requirements and services provided by partners/suppliers - Bank ethics with providers of goods and services/ BTN Annual Report 2020 Page 646 Bank BTN has disclosed that company had policies related to its social responsibility in the field of fair operations, including, Code of Conduct, Anti Gratituity Control, Anti-Fraud Strategy and Policy for Procurement of Goods and Services. Based on this policy, the Company carried out its responsibilities related to fair operations by emphasizing the importance of managing the Company which was transparent, fair and equitable. - Corporate Social Responsibility Related to Fair Operations/ BTN Annual Report 2020 Page 635, 645 Bank BTN has disclosed about commitment to prioritizing local / national suppliers was in accordance with the Circular of the Minister of SOEs Number SE-10 / MBU / 08/2020 dated August 26, 2020 that also in line with the Regulation of the Minister of State Owned Enterprises of the Republic of Indonesia Number PER-08 / MBU / 12/2019 concerning General Guidelines for the Implementation of Procurement of Goods and Services for State-Owned Enterprises - Supply Chain/BTN Sustainability Report 2020 Page 56 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.1.3 | The company's efforts to ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? |
Bank BTN has disclosed a policy and practices that address the company's efforts that its value chain is environmentally friendly or is consistent with promoting sustainable development. As it can be seen in the Annual Report that the company is fully aware of its role as a Bank that provides loan/capital to customers and also asa development agent that participates in fostering a sustainable development, including to maintain environmental sustainability. In addition, the Company also focuses on environmentally friendly lending by adhering to the Company’s Commercial Credit Facility Guidelines. In the guidelines, there are credit requirements that require documents on Effort for Environmental Feasibility/Environmental Management Efforts (UKL/UPL) and/or Environmental Impact Assessment(AMDAL) - Corporate Social Responsibility Related to the Environment/ BTN Annual Report 2020 Page 648-654
Bank BTN has disclosed Environmental Performance and commit to environmental sustainability that is in line with Law of the Republic of Indonesia Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking, which regulates the principle of prudence in lending. In this case, banks must pay serious attention Environmental Impact Analysis (AMDAL) for large-scale and / or high-risk companies - Strengthening Environmental Friendly Financing/BTN Sustainability Report 2020 Page 5, 109-114 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.1.4 | The company's efforts to interact with the communities in which they operate? |
Bank BTN has disclosed a policy and practices that address the company's efforts to interact with the communities in which they operate. The Company commit to participate in sustainable economic development in order to improve the quality of life and a beneficial environment for the Company itself, the local community, and society in general - Corporate Social Responsibility Related to Social Community Development/ BTN Annual Report 2020 Page 663-667
Bank BTN has disclosed that the Company fully realizes that business sustainabilityis very dependent on the creation of mutually beneficial relationships between all stakeholders, both external and internal, including the communities around the company’soperating area. As an important part of the national economic chain, the Company has an important role in the implementation of Social and Environmental Responsibility(TJSL), as stipulated in Law No. 40 of 2007 concerning Limited Liability Companies. TJSL is the Company’s commitment to participate in sustainable economic development in order to improve the quality of life and a beneficial environment, both for the Company itself, the local community, and society in general - Commitment to Empower and Develop the Community/ BTN Sustainability Report 2020 Page 97-103 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.1.5 | The company's anti-corruption programmes and procedures? |
Bank BTN has disclosed a policy and practices that address the company's anti-corruption programmes and procedures by zero Tolerance to Fraud & Zero-Defect Program. Those program aim to ensure that all efforts to mitigate the risk of fraud can be done effectively, the Company continuously increase the awareness of BTNers People of compliance aspects through continuous dissemination of the anti-fraud program and establishment of Anti-Fraud Team. The Anti Fraud Strategy is supported by the implementation of 4 (four) pillars, namely: 1. Prevention, 2. Detection, 3. Investigation, Reporting and Sanctions and 4. Monitoring, Evaluation and Follow-up - Zero Tolerance to Fraud & Zero-Defect Program/ BTN Annual Report 2020 Page 351
Bank BTN has applied a systematic framework for preventing corruption, collusion and nepotism by adopting the Corruption Prevention Guide (“Panduan Cegah Korupsi†or “CEKâ€) issued by KPK. To support this, the Company also collaborates with KPK on corruptionprevention programs through the Professional with Integrity or Profesional Berintegritas (“PROFITâ€) program, which includes the support of human resources (HR) who are competent in building integrity in guarding corruption prevention in the Company through participation in training as Integrity Builder and the participation in collaboration in campaigns with KPK on combating corruption through various communication media channels - Collaboration With the Corruption Eradication Commission (KPK) in the Professional tith Integrity Program (Profit)/BTN Annual Report 2020 Page 35 Bank BTN has applied Anti-Bribery Management System Certification ISO 37001, Certification Participation Implementation of Integrity Builder Expert (API), Code of Conduct and Management of Gratituity Control - Anti Corruption Program/ BTN Annual Report 2020 Page 579-586 Bank BTN has disclosed a policy and practices that address the procedures of Anti-Corruption and Anti-Fraud policy. The Company’s Fraud Prevention System has been regulated on the basis of the Board of Directors’ Circular Number 22/DIR/IAD/2014 concerning the Company’s Standard Operating Procedure regarding its Anti-Fraud Strategy. As a guideline in Gratification Control and as an initiative of the national Anti-Corruption Program, the Company has issued guidelines related to Gratification Control implementation based on the Board of Directors’ Circular Number 68/DIR/CMPD/2017.- Stakeholder Participation/ BTN Annual Report 2020 Page 608 Bank BTN commit to apply business activities, honestly, fairly and without corruption or bribery and trustworthiness. This commitment is built because the Company is aware that negative actions will greatly affect the Company’s name, brand, reputation and business sustainability. For the Company’s, every violation of anti-corruption and fraud policies are serious matter and are taken firmly according to the policies and regulations in force. The implementation of anti-corruption and fraud is regulated by the Directors Circular No. 22 / DIR / IAD / 2014 dated 28 May 2014 concerning the Standard Operating Procedure of the Company’s Anti-Fraud Strategy . This anti-corruption and fraud policy apply to all permanent and contract employees, the Company’s management, the Board of Commissioners and the Board of Directors who act on behalf of the Company - Anti Fraud/ BTN Sustainability Report 2018 Page 83 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.1.6 | How creditors' rights are safeguarded? | Bank BTN has disclosed a policy and practices about safeguarded creditors' right. The policy regarding fulfilling creditor rights is utilized as a guideline for providing loans to creditors. The purpose of the policy is to maintain the fulfillment of creditor rights and to maintain creditor trust in the Public Company. The policy includes consideration for making agreements, and follow-up procedures in fulfilling the obligations of the Public Company to creditors. The creditors’ basic rights policies include: 1. To receive the repayment of Principal and Interest payments at the agreed time. 2. To secure the rights to any penalties regarding the repayment of Principal and Interest payments. 3. To request for explanation, information, documents and inspect the Company’s books. In 2020, there were two forms of Company creditors: Bilateral Loan Lender and Lender of Bonds - Principle 7. Stakeholder Participation/ BTN Annual Report 2020 Page 608 | BTN Annual Report FY 2020 |
C.1.7 | Does the company have a separate report/section that discusses its efforts on environment/economy and social issues? | Bank BTN has a separate Sustainability Report that discusses its efforts on environment, economy, and social issues. | BTN Sustainability Report 2020 |
C.2 Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. | |||
C.2.1 | Does the company provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights? |
Bank BTN has provided contact details to receive further information regarding the Company, the general public and investors.All stakeholders can contact Bank BTN from several means such as:
Corporate Secretary Name : Ari Kurniaman Address : Menara BTN Jl. Gajah Mada No.1, Jakarta Pusat 10130 Phone : (021) 6336789 ext. 2003 Fax : (021) 6336719 E-mail : ari.kurniaman@btn.co.id Website : www.btn.co.id Head Office Address Menara Bank BTN Jl. Gajah Mada No. 1 Jakarta 10130, IndonesiaPhone : (021) 6336789, 6332666 Fax : (021) 6346704 Email : csd@btn.co.id Website : www.btn.co.id Investor Email: investor_relations@btn.co.id Phone: (021) 633 6789 ext: 2003 Contact Center : 1500-286 Source: Company Information and Data Access/ BTN Annual Report 2020 Page 569 |
BTN Annual Report FY 2020 |
C.3 Mechanisms for employee participation should be permitted to develop. | |||
C.3.1 | Does the company explicitly disclose the policies and practices on health, safety and welfare for its employees? |
Bank BTN has already disclosed the policies and practices on health, safety, and walfare for its employees. Referring to Law No. 13 of 2003, Article 86 paragraph 2, which stipulates that “In order to protect the safety of workers/ labor for realizing optimal productivity, occupational safety and health efforts shall be doneâ€, the Company has a policy related to Occupational Safety and Health Management System (SMK3), which is stated in:
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BTN Annual Report FY 2020
Employee Safety Programme |
C.3.2 | Does the company explicitly disclose the policies and practices on training and development programmes for its employees? |
Bank BTN has disclosed the organizes education and training to strengthen business operations in line with the needs and development of the banking industry. The Company provides equal opportunities to all employees in developing their potential through education and training. Employee participation contributes significantly to the achievement of the Company’s business performance. The structures of education and training that have been applied are divided into five groups, i.e. School of Leadership, School of Operational Banking, School of Credit & Risk, School of Sales & Service and School of Business & Sharia Banking that conduct training for employees - Equal Opportunities in Education and Training/ BTN Annual Report 2020 Page 656-657
Bank BTN periodically conducts education and training programs to improve employee competencies and skills. Education and training are intended for employees based on individual development plans and in accordance with the needs of the Company. Management of employee training and education is regulated in the Board of Directors Decree No. 04 / KD / SIPD / 2017 on May 29, 2017, amendment to the Board of Directors Decree No.3 / KD / DIR / SIPD / 2017 concerning Head Office Organizational Structure in article 8 point 5h concerning Organizational Structure of Learning Center Division - Training and Competency Developmentfor Employees/ BTN Sustainability Report 2020 Page 119-120 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.3.3 | Does the company have a reward/compensation policy that accounts for the performance of the company beyond short-term financial measures? |
Bank BTN implements a remuneration system to motivate and maintain the best employees and aims to meet the needs of qualified human capital. To support the Bank’s strategy and encourage optimal and sustainable performance, the Company applies performance-based remuneration. In addition, the Company applies the structure and scale of wages in accordance with the provisions regulated by the field of employment and the related authorities in the banking industries. Determination of remuneration was also carried out by taking into account the performance of each individual employee (based on performance), the performance of the work unit and the performance of the Company as a whole, but still taking into account the ability of the Company. In implementing the remuneration policy, the company provided salary, annual salary adjustments, holiday allowances, annual leave, and large leave pay for each 3 (three) year working period. The Company also provided health facilities for employees and their family members, including coverage of hospitalization, outpatient care after hospitalization, childbirth, dental care, General Check Up, glasses and others - Remuneration Governance and Remuneration Transparency of the Board of Commissioners and Directors/ BTN Annual Report 2020 Page 526-535 Bank BTN had a mandatory and additional remuneration governance policy for the Board of Commissioners, Directors and employees implemented based on the prevailing laws and regulations. Remuneration governance was an important aspect in attracting, motivating and maintaining quality human capital. Remuneration governance of the Company was inseparable from the Company’s ability to continue carry out policies based on competitive, fair and risk-based principles that were in line with the direction and policies of the FSA. In preparing the remuneration policy, the Company used the services of an external consultant to keep remuneration competitive - Remuneration Policy/ BTN Annual Report 2020 Page 327 In Bank BTN, the remuneration and employee benefits system is regulated in the Board of Directors Circular Letter Number 43 / DIR / CMO / 2011 concerning Human Capital Reward. In providing remuneration, the Company applies a fair reward pattern and equal treatment without discrimination to all employees regardless of gender, ethnicity, race, religion, color, and other diversity; however, based on the achievement of performance and job responsibilities - Remuneration System and Employees Welfare/ BTN Sustainability Report 2018 Page 115-116 |
BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.4 Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this. | |||
C.4.1 | Does the company have a whistle blowing policy which includes procedures for complaints by employees and other stakeholders concerning alleged illegal and unethical behaviour and provide contact details via the company's website or annual report |
The Company’s Violation Reporting System (WBS) policy is guided by Bank Indonesia Regulation No. 5/8/ PBI/2003 amended by PBI Number 11/23/PBI/2009 and the Bank Indonesia Circular Letter No. 13/28 /DPNP concerning the Anti-Fraud Policy. The Company’s WBS forms an integral part of the Internal Control System in preventing the occurrence of irregularities with the aim of both detecting and preventing the occurrence of irregularities or violations and to gradually create an open, sincere, honest and responsible work climate in the Company.The Company also built supporting infrastructure in implementing WBS policies wherein the reporter could submit their reports through the following media:
The Company has established, implemented and developed a Whistleblowing System (WBS) that ensures that every report receives appropriate responses and follows-up, including enforcement of sanctions that can provide a deterrent effect for violators and also for those who intend to do so. WBS aims to strengthen internal control mechanisms to support business growth. Early detection and prevention of irregularities or violations;
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BTN Annual Report FY 2020
BTN Sustainability Report FY 2020 |
C.4.2 | Does the company have a policy or procedures to protect an employee/person who reveals alleged illegal/unethical behaviour from retaliation? |
The Company guarantees the protection of the Whistle- Blower who shows a good intention of reporting any violations that may risk causing a loss for the Company. The protections included are the following:
a. Physical protection either against himself/herself or his/her family. b. Protection of his/her property and his/her family against terror or retaliation. c. Administrative protection in the form of promotion delays, dismissal, exclusion in the workplace, infeasible transfers, including job security, etc. d. Legal protection, in the litigation process in the District Court, including the cost, and if necessary, including protection through the Witness and Victim Protection Agency (LPSK). - Whistleblowing System / BTN Annual Report Page 586 |
Bank BTN Annual Report FY 2020 |