digital banking transformation

149 Pages·2017·4.51 MB·English

DIGITAL BANKING
TRANSFORMATION
FOR SUSTAINABLE BUSINESS
Co
Smusptaaniny’asb Ilnei tFiaintaivnec in gIm top lSeumpepnotritn g PSeursfotarminabnlcee PresSidteantet mDierencttor’s On the RSeupsotaritnability About The Company SGuosvtaeirnnaabnicliety ProvidBinegn eEfcitosnomic Coinm Epnavniryo’sn mSuepnptaolr t HuMmana Rgesmoeunrctes ComThmei tBmeesnt tS teor vPicreosvide oPfr Iongcrlaumsio Snt rBeanngktihnegn aingd CSoumppmourtn iftoyr’ sE Qnhuanlitcyin ogf tLhifee CSrtoasnsd aRredf eInrednecxe w GitRhI 1
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
DIGITAL BANKING TRANSFORMATION
FOR SUSTAINABLE BUSINESS
In 2017, PT Bank Tabungan Negara (Persero) Tbk. enters resources through digital leadership, the establishment
the 2nd Phase of Transformation, the digital banking of school programs, and the development of developers
period. This transformation is a strategic step for the through the Housing Finance Center (HFC). To provide
Company in supporting the achievement of the national better service to the customers, the Company provides
program targets initiated by the Government, because digital-based products and services. The Company has
there are still about 11.4 million Indonesians who do not also synergized the digital banking with its flagship
have houses. Thus, so the Company has an opportunity product, i.e. Housing Loan, through the BTN Property
momentum to increase capacity. On the other hand, Portal service.
by 2020, Indonesia will enter the ASEAN Economic
Community (AEC), which will lead to intense competition. As a responsible business implementation, the Company
Thus, the Company established a digital mindset to create implemented various sustainable financing initiatives to
a more effective and efficient business pattern. support the achievement of sustainable development
goals. The Company ensures the business conducted is
A series of strategic programs have been implemented pro-environment and pro-community, through the policy
to support this transformation in terms of business of environmentally friendly credit as part of environmental
process digitalization, infrastructure, to human resources. risk management, the acceleration of digital banking
The Company has performed improvement of business transformation in banking products to save more paper,
process, from the accelerated Standard Operating delivery of inclusive banking products and services that can
Procedure (SOP), standardization of On the Spot Checking reach all levels of society, and consistent implementation
process which applies the compliance principle, and of Partnership and Community Development Programs
changes of brand activity and organizational structure, (PKBL) to support the improvement of people’s lives and
as the Head Office is currently acting as a conceptual to encourage national economic growth.
strategist, the Regional Offices as Operational Strategic,
and the Branch Offices as Sales and Service. To support
the improvement of the business process, the Company
also enhances the capacity and capability of human
Digital Banking Transformation for Sustainable Business
2 CoSmusptaaniny’asb Ilnei tFiaintaivnec in gIm top lSeumpepnotritn g PSeursfotarminabnlcee PresSidteantet mDierencttor’s On the RSeupsotaritnability About The Company SGuosvtaeirnnaabnicliety ProvidBinegn eEfcitosnomic Coinm Epnavniryo’sn mSuepnptaolr t HuMmana Rgesmoeunrctes ComThmei tBmeesnt tS teor vPicreosvide oPfr Iongcrlaumsio Snt rBeanngktihnegn aingd CSoumppmourtn iftoyr’ sE Qnhuanlitcyin ogf tLhifee CSrtoasnsd aRredf eInrednecxe w GitRhI 3
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
COMPANY’S INITITATIVE IN
IMPLEMENTING SUSTAINABLE
01
FINANCING TO SUPPORT THE
ACHIEVEMENT OF SUSTAINABLE
DEVELOPMENT GOALS
Bank BTN Digital Services, Source: Herwin Gunari
Sustainability Report 2017
Company’s Initiative in Implementing Sustainable President Director’s On the Sustainability About The Company Sustainability Providing Economic Company’s Support Human Resources Commitment to Provide Program Strengthening Support for Enhancing the Cross Reference GRI
3
Sustainable Financing to Support Performance Statement Report Governance Benefits in Environmental Management The Best Services of Inclusion Banking and Community’s Quality of Life Standard Index with
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
In order to support and realize the sustainable development In implementing the Principles of Strategy and Sustainable
goals (SDGs) starting on September 25, 2015, it is Business Practices, in 2017, the Company accelerated the
necessary that all industry sectors take roles to perform transformation of digital banking as a strategy to support
strategic steps to promote harmony between the economic, the Company’s business growth and as the Company’s
social, and environmental aspects into the company’s initiative to minimize negative impacts to the environment
business Therefore, the Company as one of the agents of through paperless saving. The initiatives include synergizing
development is committed to implementing the sustainable digital banking with the Company’s flagship product, i.e.
financing initiated by the Financial Services Authority (OJK) Housing Loan, through BTN Property Portal service, adding
with Sustainable Finance Roadmap and the Financial Smart Branch, increasing transaction using Electronic
Services Authority Regulation No. 51/POJK.03/2017 on the Channel, providing Digital Solution Application that enables
Implementation of Sustainable Finance. customers to conduct digital payment transactions, and
establishing BTN Zone in several universities to encourage
Sustainable finance is a comprehensive support of the cashless society in the millennial generation. In addition,
financial services sector to create sustainable economic the sustainable business strategies and practices are
growth by harmonizing the triple bottom line principle, i.e. also implemented through Partnership and Community
economic, social, and environmental. In the implementation, Development Program (PKBL), BUMDes (Village-Owned
there are eight principles, i.e. (1) Responsible Investment, (2) Enterprises) and Farmers Entrepreneurship Program,
Strategy and Sustainable Business Practices, (3) Social and Program Keluarga Harapan (PKH) through the provision
Environmental Risk Management, (4) Good Governance, (5) of PKH cards to fulfill the education-related needs, Social
Informative Communication, (6) Inclusiveness, (7) Priority Assistance Program (Bansos) in the form of savings, and
Sector Development, and (8) Coordination and Collaboration. the Social Forest Program that provides access to forest
communities to manage forest areas in order to improve the
The Company has applied these principles to the lives and welfare of the people.
Company’s business activities. In the Responsible
Investment Principles and Social and Environmental Risk The Company implements the BUMDes (Village-Owned
Management Principles, the Company has committed to Enterprise) and Farmers Entrepreneurship Programs as
managing the environmental risk management through an part of applying the Priority Sector Development Principle
environmentally friendly credit policy, which is a credit rating to improve the people’s welfare and economy, BUMDes,
that takes into account the results of the Environmental and Entrepreneurship Farmers are some of the priority
Impact Assessment (AMDAL) before deciding to grant credit programs initiated by the Ministry of Village, Development
to a project. The policy is stated in Circular Letter No. 17/ of Disadvantaged Regions, and Transmigration (Kemendes
DIR/CMLD/2016 on March 31, 2016, on Standard Operating PDTT), in cooperation with the Ministry of Agriculture,
Procedure Commercial Loan paragraph 4.1.3.3 point j, Ministry of SOEs, and Banking. These programs’ objective
i.e. ‘Environmental Management Effort or Environmental is to finance BUMDes business, thus encouraging villagers
Monitoring Effort (UKL/UPL) and/or Environmental Impact to manage the economy autonomously. The Company as
Assessment (AMDAL) if required by the local government, or an SOE Bank, is involved as an accelerator that incorporate
required in a Location Permit or Land Use Permit’. In addition agriculture and develops BUMDes by providing financing
to the AMDAL consideration, the Company also conducts schemes support to provide management training and
on-site monitoring to ensure that the debtor or developer access to financial inclusion to BUMDes.
fulfills environmental requirements.
Digital Banking Transformation for Sustainable Business
Company’s Initiative in Implementing Sustainable President Director’s On the Sustainability About The Company Sustainability Providing Economic Company’s Support Human Resources Commitment to Provide Program Strengthening Support for Enhancing the Cross Reference GRI
4 5
Sustainable Financing to Support Performance Statement Report Governance Benefits in Environmental Management The Best Services of Inclusion Banking and Community’s Quality of Life Standard Index with
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
As the implementation of the Governance Principles, With the many challenges faced, the Company needs
the Company has integrated the sustainability aspects synergy through collaboration and cooperation with
into the principles of TARIF (Transparency, Accountability, stakeholders. Therefore, the Company also applies the
Responsibility, Independence, and Fairness). In the Coordination and Collaboration Principle. Given the
Sustainability Report, all reported information relating challenges in regulatory and licensing issues, the Company
to economic, social, and environmental aspects are has approached the Regulators and Local Governments
adequate, clear, accurate, accountable, and accessible to to facilitate permits to build houses and buildings. The
all stakeholders. In carrying out the sustainability aspect, Company also approached the National Defense Agency
the Company complies with applicable regulations, such (BPN) on how to use unproductive land into housing. In
as employment-related regulations, customer data addition, in 2017, the Company also collaborated with
confidentiality, waste management, and the implementation students from 25 Universities in Indonesia in the Property
of the Partnership and Community Development Program in Literacy Training program, which aims to improve their skills
accordance with the Minister of SOEs Regulation PER-02/ in building property business to accelerate the improvement
MBU/7/2017 dated July 5, 2017 on the Second Amendment of economic prosperity.
to the Minister of State-Owned Enterprises Regulation No.
PER-09/MBU/07/2015 on Partnership and Community Through the Sustainability Report, the Company has made
Development Program. The application of the fairness this report as continuous dialogue process. Thus, this
principle is realized by the fair treatment of all stakeholders report is a Company’s media in implementing Informative
and provides an opportunity for all stakeholders in Communication Principles. The report discloses the
conveying topics related to sustainability issues to involve business and performance impacts of the Company
the stakeholders. that are not only related to economic achievements, but
also concerns the Company related to the social and
To support the government’s program in enhancing the environmental aspects. Through this report, the Company’s
accessibility of financial services to reach all levels of society, stakeholders, i.e. shareholders, customers, employees and
thus accelerating the economic progress, social welfare, unions, partners, Government and Financial Authorities,
and reducing gap levels, the Company also implements the business organizations, communities, and the media can
Inclusive Principle. The Company provides inclusive and also convey their wishes to the Company.
sustainable banking products through TCASH-BTN Cermat
Service, provides mortgage facilities for informal workers In addition to the implementation of these sustainable
(BTN Housing Loan for Gojek Partners and BTN Micro Housing financial principles, the Company has also performed
Loan for associations and communities). The Company also a series of other initiatives to achieve the sustainable
develops Micro, Small, and Medium Enterprises (MSMEs) development goals. The programs include supporting better
through KUMK and KUR (People’s Business Credit) schemes, education, supporting strengthening financial inclusion,
digital banking services development, and various financial creating a viable employment system, facilitating equitable
literacy programs such as Savings of BTN SimPel (Student infrastructure development, and enhancing community
Savings) and Property Entrepreneurship Literacy Training. entrepreneurship programs.
Sustainability Report 2017
Company’s Initiative in Implementing Sustainable President Director’s On the Sustainability About The Company Sustainability Providing Economic Company’s Support Human Resources Commitment to Provide Program Strengthening Support for Enhancing the Cross Reference GRI
5
Sustainable Financing to Support Performance Statement Report Governance Benefits in Environmental Management The Best Services of Inclusion Banking and Community’s Quality of Life Standard Index with
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
IMPROVING QUALITY OF EDUCATION
• Students Understand the Indonesia Archipelago
• Granting Scholarship
• Provision of Supporting Facilities and Infrastructure for School Activities
SUPPORTS FINANCIAL INCLUSION STRENGTHENING
• TCASH-BTN Cermat Service
• Provision of Housing Loan Facility for Informal Worker
• Expanding Access Point of Equitable Financial Services
• Developing Electronic Channel
• BTN SimPel (Student Saving) Savings
• Property Entrepreneurship Literacy Training
CREATING A VIABLE AND EQUITABLE EMPLOYMENT SYSTEM
• Sustainable and Non-Discriminatory Jobs Creation
• Elimination of Forced Labor, Child Labor, and Discrimination
• Equality in Remuneration and Employee Welfare
FACILITATING EQUITABLE INFRASTRUCTURE DEVELOPMENT
• One Million Houses Program for the People
• Road Repair and Arrangement
• Development of Worship Space in Various Areas of Indonesia
• Provision of Health Facilities and Infrastructures
IMPROVING THE COMMUNITY ENTREPRENEURSHIP PROGRAM
• Community Economic Development Through Karanganyar Village Economic
Center (Balkondes), Village Tourism Center of Pottery Industry
• BUMDes and Farmers Entrepreneurship Programs
• Improving Access to Financing of Micro, Small and Medium Enterprises
(MSMEs) and People’s Business Credit (KUR)
Digital Banking Transformation for Sustainable Business
SDGs FRAMWORK
6 CoSmusptaaniny’asb Ilnei tFiaintaivnec in gIm top lSeumpepnotritn g PSeursfotarminabnlcee PresSidteantet mDierencttor’s On the RSeupsotaritnability About The Company SGuosvtaeirnnaabnicliety ProvidBinegn eEfcitosnomic Coinm Epnavniryo’sn mSuepnptaolr t HuMmana Rgesmoeunrctes ComThmei tBmeesnt tS teor vPicreosvide oPfr Iongcrlaumsio Snt rBeanngktihnegn aingd CSoumppmourtn iftoyr’ sE Qnhuanlitcyin ogf tLhifee CSrtoasnsd aRredf eInrednecxe w GitRhI 7
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
SUSTAINABLE PERFORMANCE
OVERVIEW 2017
02
Economic ovErviEw
Rp2
m0,i8ll4io7n,165 Rp1m9,i6ll5io4n,406 Rp2,467,501 million Rp523,780 million 666,806 Units
Direct Distributed Tax Payment Dividend Mortgage Loan
Economic Value Economic Value to the Payment to Disbursement
Increased by Increased by Government Shareholders 100.12%
13.30% 14.93% Increased by Increased by of Target
26.64% 41.49%
EnvironmEnt ovErviEw
Environmental risk Participation in Earth The Environmental Paper Use Efficiency
management policy in Hour Campaign for Management and with iflow Application
loan disbursement Electricity Savings Conservation Cost
61.9 kWh/hour Rp157.20 Million
Sustainability Report 2017
Company’s Initiative in Implementing Sustainable President Director’s On the Sustainability About The Company Sustainability Providing Economic Company’s Support Human Resources Commitment to Provide Program Strengthening Support for Enhancing the Cross Reference GRI
7
Sustainable Financing to Support Performance Statement Report Governance Benefits in Environmental Management The Best Services of Inclusion Banking and Community’s Quality of Life Standard Index with
The Achievement of Sustainable Overview 2017 Conservation Financial Literacy Financial Services Sector
Development Goals Supplement
Social ovErviEw
Rp26,144
1,691 1.45 Rp5,148 million Rp1,508,323 million
million
Employees’ Salary Ratio PKBL Program Disbursement Disbursement
Promotion of Entry Level Disbursement of CSR Program of MSME credit
991 male Employees to increased Increased Increased by
employees Minimum Wage by 75.08% by 48.88% 48.88%
700 female 1.45
employees
SOE Synergy Program to Improve Provision of Housing Employee Training MURI record as
Community’s Lives: Loan Facility for Program pioneer of property
1. Social Assistance (Bansos) Informal Worker 1. School of Leadership entrepreneurship
2. Program Keluarga Harapan (PKH) 2. School of literacy with the
most participants in
3. Village-Owned Enterprises Operational Banking
Indonesia
(BumDes)
3. School of Business
4. Farmers Entrepreneurship 12,000 participants
Banking
Program
Average Training Hours
5. Social Forest
22.17 hours trained/
6. Community Economic
participant
Development Through
Karanganyar Village Economic
Center (Balkondes)
Digital Banking Transformation for Sustainable Business
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OC N T E N T S
02 GNITNEMELPMI NI EVIT AITINI S’YNA PMO C
T ROPUS O T GNICNANIF ELBANIA TSUS SUSTAINABILITY
ELBANIA TSUS FO TNEMEVEIHC A EHT GOVERNANCE
SLAOG TNEMPO LEVED
06 ECNAMRO FREP ELBANIA TSUS 48
OVERVIEW 2017
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PRESIDENT DIRECTOR’S
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STATEMENT
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10
75 Whistleblowing Reporting Mechanism
06 tneme vlo v nI ’sredlohe kat S
ON THE SUSTAINABILITY
REPORT
PROVIDING ECONOMIC
16
BENEFITS
62
ABOUT THE COMPANY 36 noitubirtsiD eula V cimono c E
46 etat S eht ot noitubirt no C s ’y napmo C ehT
46 stcapmI cimono c E tce ridnI fo t nemeganaM
24
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25 ynapmo C eht ot segnahC t nacifingiS
25 2 ni sd ra w A dna snoitacifitre C 017
03 yrotsiH feirB NT B knaB
COMPANY’S SUPPORT
23 2 ni st ne v E t nacifingiS 017
IN ENVIRONMENTAL
63 etaropro C dna noisiM ,noisiV s ’y napmo C
e rutlu C CONSERVATION
83 seitivitc A senisuB s ’y napmo C 68
04 noitazinag rO s ’y napmo C 96 eht ot t nemtimo C s ’y napmo C ehT
noita vresno C lat nemno riv nE
24 gnidlohe rahS s ’y napmo C
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4 e rahS t e kraM dna ae rA lanoitarepO t nemesrubsiD
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)gniknaB ne rG (
64 elacS lanoitazinag rO s ’y napmo C 74 margo rP ne rG oG
64 pihsrebme M noitaicosA 75 dna t nemeganaM lat nemno riv nE ehT
tso C noita vresno C
Sustainability Report 2017