Sustainability is part of the bank's commitment to manifest its vision to become the bank of choice and an important pillar of the Indonesian economy. The BCA commenced this sustainability report for 2017 in accordance with Schedule II of the Financial Services Authority Regulation No.
SUSTAINABILITY HIGHLIGHTS OF BCA IN 2017
Companies in this list are considered to have great concerns about environment, corporate governance, community involvement, human resources, human rights and business conduct in accordance with international business ethics. http://www.kehati.or.id/id/indeks-sri-kehati.html).
Social and Environmental
Employee
EnvironmentBusiness
Rp 27.15 trillion
Rp 23.3 trillion
Rp 5.84 trillion
3,76617.048 million
BCA and Sustainable Development
51/POJK.03/2017 on the implementation of sustainable banking for financial services, issuers and public companies in 2017. Review and development of internal policies to be adopted for the implementation of sustainable banking.
Four Principles of Sustainable Banking
Principle of Priority Economic Sector Development that is inclusive and sustainable;
These regulations require financial services providers (LJK), issuers and listed companies to incorporate sustainable banking into their business activities. Sustainable banking applies sustainable development principles that take into account environmental, social and economic aspects in the activities of financial services providers to support the creation of sustainable economic growth.
Principle of Capacity Building and Collaborative Partnership to create synergy in the
Sustainable Banking was born from the Indonesian government's commitment to be actively involved in global efforts to create a low-carbon economy, from the Pittsburgh Summit to the Paris Agreement to reduce the impacts of climate change . With regard to the financial sector, the Financial Services Authority (OJK) issued the Sustainable Banking Roadmap 2015-2019 on December 5, 2014 and OJK Regulation No.
Sustainable Finance
At the end of 2017, BCA disbursed Rp 467.5 trillion of loans to the community, an increase of 12.4 percent from the previous year, more than Bank Indonesia's projection of 8-10 percent. Growth in business loans reached 14.5 percent to Rp 177.3 trillion, and consumer credit grew 12.1 percent to Rp 122.8 trillion, primarily from mortgage loans.
SME FINANCING
For 60 years, BCA has provided a wide range of financial services to corporate, SME, commercial sector and individual clients. This program was initiated by the Association of Indonesian Retail Entrepreneurs (APRINDO) for Indogrosir's foreign traditional stores in Jakarta.
Rp 103.55 billion 8%
Rp 100 million
Rp 500 million
SAKUR
Infrastructure Financing
At the end of 2017, BCA participates in the joint loan financing of state electricity company PLN of approximately Rp 2.5 trillion, out of Rp 12 trillion of total joint capital expenditure, for generation, transmission, distribution and facilities in Indonesia for supported electricity supply to the community. In addition, BCA provided Rp 2.7 trillion in funding for the development of Jabodebek Light Rail (LRT), out of a total funding of Rp 19.25 trillion.
Support for Business Activities through Transaction Service
In 2017, BCA expanded its infrastructure financing portfolio through two Credit Union Agreements, including the financing of the Pandaan-Malang, Manado-Bitung and Bakauheni-Terbanggi Besar toll roads. By the end of 2017, BCA's outstanding loan portfolio reached Rp 467.51 trillion, with an increase of 12.4 percent year-on-year (YoY) supported by the corporate and consumer segments, while third-party funds increased to Rp 581.12 trillion, increasing by 9.6% in annual terms.
BCA PORTFOLIO (in billion rupiah) [203-2]
BCA maintained its solidity, keeping its non-performing loan (NPL) ratio at 1.5 percent. The credit to financing ratio was 78.2 percent and the capital adequacy ratio (CAR) was 23.1 percent.
BCA’S DISTRIBUTED BUSINESS BENEFITS (in trillion rupiah) [201-1]
Bakti BCA Empowering the Community
BCA carries out its social and environmental responsibilities (CSR) as the manifestation of the company's mission, namely to enhance corporate franchise and stakeholder value. In addition, social development is the implementation of one of the Bank's sustainable financial pillars.
BAKTI BCA’S CSR PILLARS
The program development is based on the concept of sustainability and shared value between the development of the community and the needs of the company, so that both parties will reap long-term benefits. The bank's consistent efforts to fulfill its social and environmental responsibilities in the context of sustainable finance have been appreciated by the stakeholders.
BCA BUSINESS EXCELLENT
BCA's CSR activities are not only limited to donations, but are also in line with the corporate strategy through the Bakti BCA program. On the occasion of its 60th anniversary, BCA is committed to #ToBeBetter through CSR activities on all three pillars: better learning, better serving and better giving.
SOLUTIONBCA SYNERGY
BCA allocates a special CSR fund every year which is managed by a work unit responsible for the development, execution and coordination of the implementation of BCA CSR since 2016. This unit is chaired by Executive Vice President of CSR and Senior Vice President of CSR Development Solutions.
SOLUTION BCA SMART
SOLUTION
BCA believes that education is one of the most important tools for the development and improvement of human resources in Indonesia. Through Smart Solutions, BCA strives to support the improvement of Indonesia's competitiveness and quality of human resources by providing opportunities to develop and promote.
Non-Degree Accounting Education Program (PPA) PPA is a accounting education program without a working
Agustin Ekadjaja
What Are They Saying?
Arif Hidayat
The PPTI students are also enriched with various self-development materials, including internships in the work unit of the BCA Head Office. PPTI graduates will have the opportunity to work at BCA throughout Indonesia without any work obligation.
Wennie Clarissa
POTI is intended for graduates of high school, vocational school and equivalent schools to continue their education for 30 months with a subject equivalent to the undergraduate course Informatics Engineering.
What Are They Saying? What Are They Saying?
Bakti BCA Internship Program
Veren Grasela
What They Are Saying?
Bakti BCA Scholarship
Dalam pemberian beasiswa, BCA bekerja sama dengan universitas terkemuka di Indonesia yaitu Universitas Indonesia, Institut Pertanian Bogor, Institut Teknologi Bandung, Universitas Padjadjaran, Universitas Diponegoro, Universitas Gadjah Mada, Institut Teknologi Sepuluh Nopember, Universitas Airlangga, Universitas Brawijaya, Udayana Universitas, Universitas Sumatera Utara, Universitas Sriwijaya, Universitas Hasanuddin, Universitas Sam Ratulangi, Universitas Mulawarman dan Universitas Cendrawasih.
16 Partner Universities
Scholarship Recipients
Alvianto Ardhi Witjaksono
Previously, BCA held a seminar for 600 students and alumni of the University of Indonesia (UI) on March 15, 2017 with the theme “Indonesian Fintech Education Seminar”. Hartono gave a public lecture to approximately 250 students from the Institut Teknologi Bandung (ITB). with the theme “Development of information technology in the financial technology era”.
Bakti BCA School Assistance
In the public lecture, which has become a BCA tradition, Armand spoke about the importance of graduates responding to rapid technological advances and finding solutions to the problems facing these uncertain times.
Education Partnership
Since 2015, the company has sponsored the development of banking laboratories at the School of Economics & Business (FEB), the improvement of the library and the purchase of the facilities in UGM's music education program room. Supported vocational training, such as the development of mini-banking at the School of Economics and Business (FEB) and fintech academy.
Sitibekti Wjaya
BCA and UGM will develop vocational education and build technology centers (tech centers) in Indonesia, especially for banks. A similar collaboration has been initiated by BCA with Brawijaya University in Malang for vocational education.
FS16] FINANCIAL LITERACY EDUCATION
Financial Literacy Program
If students are taught about financial literacy since early on, they will be
The Financial Literacy Program for Indonesian Migrant Workers (BMI) provided training in financial management and knowledge of financial products and services as well as entrepreneurship in cooperation with OJK, Hong Kong Consulate General, National Agency for Placement and Protection of Indonesian Migrant Workers (BNP2TKI) ) and other financial service institutions. Saba Desa: In addition to Indonesian migrant workers, BCA also offered financial literacy training on financial management and financial products/.
Ayla Davina Ramadhany
Rini Aprilianti
BCA Synergy Solution provides a way for BCA to help improve the welfare of society in areas of healthcare, culture, sports, empathy and dealing with environmental issues. In the implementation of Bakti BCA's program for this pillar, we work with the institutions that have credibility and competence corresponding to the nature and purpose of the program.
Areas of BCA Synergy Solution
BAKTI BCA FOR CULTURE BCA for Wayang Indonesia
BAKTI BCA IN HEALTH
Cataract Surgery
Buku Batik: Dalam rangka melestarikan batik sebagai salah satu warisan budaya terpenting Indonesia, dalam rangka perayaan hari jadinya yang ke-60, BCA mendukung penulisan dua buku tentang batik, Jurnal Batik Tulis (Panduan Batik Tulis) dan Batik Pekalongan dari Masa ke Masa (Batik Pekalongan dari masa ke masa).
Bakti BCA Blood Donation
Other activities in health sector
BAKTI BCA FOR THE ENVIRONMENT
Releasing Orangutans
Fundraising Coordinator, BOSF Since 2012, BCA has supported the effort by providing funding for orangutan release programs and raising awareness of how to protect orangutans and their habitats, including through the special edition of Flazz cards . Through this collaboration, we expect that public awareness about the protection of orangutans and their impact on the environment can continue on a broader scope.
Environmental Conservation
BAKTI BCA IN SPORTS
BCA Indonesia Open
Empathy Program
The program repaired soldiers' barracks and their houses as well as public facilities in eight military regional commands, which was carried out in three phases. To that end, BCA conducted capacity building training for MSMEs in the regions, organized by local BCA branches.
Partnership with Communities
Excellence Service Development Training, includes Excellent Service Training, Online Marketing Training and Leadership Training for the administrators of Gemah Sumilir Pekalongan Tourism Village. Excellent service training for village administrators in East Belitung Regency for geowisata and ecotourism development.
Gemah Sumilir Pekalongan Tourism Village
In addition, BCA also actively built the capacity of the local community to develop the potential for local tourism through Assisted Tourism Villages. Since 2014, BCA has participated in the development of Taman Sari Tourism Village in Banyuwangi; Wukirsari Tourism Village, Pentingsari Tourism Village and Wirawisata Goa Pindul in Yogyakarta; Gemah Sumilir Pekalongan Batik Village; Tinggan Village in Bali; as well as Cendil, Senyubuk and Limbongan tourist villages in Belitung Timur.
Pentingsari Village
Training for Dewi Peri administrators in facilities and infrastructure management and human resources. Training and mentoring on service standards for all homestead owners, training in digital marketing and development of homestead facilities and infrastructure.
Tamansari Tourism Village
The training materials were on tourism industry and management, service excellence, teamwork, communication, online branding, marketing and management for all village administrators. BCA helped Dewi Peri establish a village secretariat, repair and build a joglo houseguests and build a "production house" for housewives to make various snacks to be sold.
Wukirsari Tourism Village
Training in digital marketing and benchmarking for villagers in Magunan Pine Forest and areas around Imogiri.
Cendil, Senyubuk, and Limbongan Tourism Villages in East Belitung
Gua Pindul Tourism Village
Puncak Tinggan Tourism Village
The chosen approach in assessing the impacts was "The Most Significant Changes (MSC)" analysis, one of the most used methods to look at the importance of changes felt by beneficiaries (Davies and Dart, 2005). The results of the assessment analysis showed that three schools achieved minimum changes, seven schools showed moderate changes and seven schools showed large changes.
IMPACT ASSESSMENT WITH “THE MOST SIGNIFICANT CHANGES (MSC)” ANALYSIS
The hope of the scholarship recipients, such as the opportunity to work at BCA, the network of the scholarship recipients, and a number of suggestions for improving the program. Not all schools experienced the same change, one school achieved minimal change, one school achieved moderate change and four schools achieved major change.
Developing
Employees of BCA
HR is a key force in achieving sustainable growth and delivering quality services to all customers. BCA's approach in managing its HR is by positioning the HR unit as a strategic business partner of other units instead of mere business support.
PREPARING DIGITAL GENERATION
The bank understands that improving employee demographics and the succession process, as well as the ability to innovate to increase efficiency and productivity, is necessary to increase its competitiveness in the future. Both Finhacks and IKF are among the manifestations of BCA's commitment to actively support the development of Indonesia's young generation.
Meeting Manpower Needs in Digital Era
Use of Local Manpower
FOSTERING ENGAGEMENT
Cross-Generation Engagement
The competency development curriculum is designed by related units together with the BCA Learning Center with reference to the jobs and business carried out in the bank. The competency development curriculum is designed by related units together with the BCA Learning Center with reference to the jobs and business carried out in the bank.
TRAINING IMPLEMENTATION
CAREER AND LEADERSHIP
Succession Leadership
5 Directors 47 Executive
Innovation Bank
BCA Innovation Awards
DOLCE (Digital Official Letter) is an application for preparing, approving, distributing and documenting the Bank's internal and external official letters, which can be accessed at any place and at any time, and by any person with access. One Time Card is an innovation in the form of a single-use virtual card number that can be used for e-commerce transactions, with a limit that can be determined based on the needs of credit or BCA debit card holders.
PROTECTION AND EQUALITY
- Transparency of the Bank’s strategic employment policy Employees have access to a variety of BCA’s employment
- Disclosure of information for employees
- Labor Union
- Collective Labor Agreement
- Equal employment opportunity
- Occupational Health and Safety
- Mechanism to Submit Complaints on Manpower Issues The Bank is committed to always maintaining communication
- million+ Rp15,598.10/shares
In line with the government's worker health care programs, BCA facilitates employees and their families to join the government-sponsored health care and social security program (BPJS Kesehatan). Among the activities carried out in 2017, BCA held health seminars for employees, such as a seminar on Alzheimer's (October 2017) in Jakarta and Greater Jakarta, as well as a Health Coaching Seminar on.
Work-Life Balance
BCA offers attractive bonuses as fair reward to employees for their contribution to the achievement of performance targets based on the achievement of predetermined targets. In 2017, employees were given a share bonus to reward their performance within the period January 1 to December 31, 2016.
BCA Daycare Program
Pre-Retirement and Other Facilities
Awards for HR Management
Supporting Environmental Conservation
As part of the Company's efforts to implement sustainable banking, BCA initiated the integration of environmental conservation principles into banking solutions for customers and more environmentally friendly banking activities. Through various measures, BCA strives to contribute positively to the Planet, at the same time as the Company attempts to increase the benefits of Profit and People.
Indirect Impact of Financing
BCA emphasizes the importance of environmental conservation in banking operations, which focuses on the efficient use of natural resources and the minimization of environmental footprint, by optimizing the utilization of information technology. Intelligent building refers to the building's ability to manage and supervise the operation automatically and efficiently, while green building is applied to the choice of energy-saving design and building materials.
Energy Improvement in Existing Buildings
New Building Design
GREEN OFFICE PROGRAM
Paper Usage
Energy and Water Consumption
Waste Sorting
Transportation
Employee Involvement
Earth Hour
As part of the strategy, BCA develops a variety of electronic banking products with different digital platforms.
2017 Bank Transaction
Branch
Digital
TRANSACTION ON BCA CHANNELS (in million)
Flazz is Indonesia's first form of e-money that can be used for payments and Flazz BCA Syariah is Indonesia's first sharia bank e-money product which was launched by BCA Syariah.
Responsible Services
BCA’S APPROACH
CUSTOMER PROTECTION Banking Product Design
Banking Product (Solutions) Information
In addition, educational programs are held in cooperation with bloggers who share their experiences with banking transactions with the readers of their blogs. In collaboration with online media providers to publish Berita BCA (SWA, Kontan, Pikiran Rakyat, Kompas, Metro TV News, Tempo, Tribun).
Privacy and Customer Interests Protection
Customer Complaint
Communication channels for customer complaints
ENHANCING CUSTOMER SATISFACTION
Results of BCA Service Performance Assessment
Expanding Financial Services Access
The main focus of Financial Inclusion Month 2017 is to encourage saving habits among people for better financial planning and management. Since 2015, BCA has been one of the banks offering over-the-counter financial services to support a financial inclusion program called Laku Pandai launched by the Financial Services Authority (FSA).
LAKU BCA AND DUITT
82/2016 on the National Strategy for Financial Inclusion set the goal of 75% of the adult population having access to financial services in official financial institutions in 2019. Laku Pandai uses information technology networks in areas not reached by bank offices, offering savings customer service with their mobile phone numbers serving as account numbers.
Jujum Jumirah
LAKU BCA
DUITT
DUITT, with a maximum balance of Rp 5,000,000, is not a savings account, does not pay any interest and is therefore not guaranteed by the Deposit Insurance Corporation (LPS). It is expected to facilitate and motivate people to save money, as well as introduce and bring people closer to financial institutions or banking services.
LAKU SimPel
Talking ATMs
Building Governance and Stakeholder Engagement
The implementation of sustainable finance, which integrates environmental, social and governance (ESG) aspects into operational activities, as well as products and services of financial services institutions, has become BCA's long-term commitment. An embodiment of the management principles of sustainable finance on social and environmental responsibility is the issuance of sustainability report every year since 2016.
Commitment of Corporate Governance Implementation GCG implementation is a key factor in maintaining the trust
As a bank with more than 17 million customers, BCA is required to implement the principles of good corporate governance (GCG) and prudence to safeguard the mandate of its customers. The implementation of governance is seen as an obligation to achieve long-term sustainability and maximize corporate value in the eyes of shareholders and stakeholders.
Corporate Governance
BOARD OF DIRECTORSBOARD OF
COMMISSIONERS
SHAREHOLDERS’ MEETING
BOARD OF COMMISSIONERS
BOARD OF DIRECTORS
COMMITTEES OF BOARD OF COMMISSIONERS
To review and report to the board regarding complaints in connection with the bank's accounting process and financial reporting. To advise the board on future commissioners and/or future directors to be submitted to GMS.
EXECUTIVES COMMITTEES OF BOARD OF DIRECTORS
The integrated management committee is established by and reports to the board of directors of the bank as the primary legal entity of the financial conglomerate. The committee assists the bank's board of commissioners in overseeing the implementation of integrated governance.
Composition of Independent Commissioner 60% (3 people)
Composition of Independent Director 9% (1 people)
Composition of Board of Commissioners and Board of Directors as well as Their Positions in Committees of the Bank as of December 31, 2017
Structure
Asset and Liability Committee (ALCO), Risk Management Committee, Integrated Risk Management Committee, Credit Policy Committee, Credit Committee, Information Technology Steering Committee and Personnel Affairs Advisory Committee; .. 7) Work units of Risk Management, Compliance, Legal and Internal Audit.
Implementation
- Internalization
- Implementation Review
The internalization of the company's values and culture in the bank is done through sharing session. The implementation of corporate governance is a decisive factor in maintaining the confidence of the shareholders and stakeholders in the bank.
Assessment of Corporate Governance Performance The Assessment of Corporate Governance Performance is
The bank actively disseminates information on fraud awareness and anti-recognition and has drawn up guidelines for implementing the anti-fraud strategy. The bank therefore seeks to play an active role in disclosing information or reporting transactions with affiliations and transactions that contain conflicts of interest.
Results of GCG Assessment in 2017
The results of the self-assessment of the implementation of corporate governance at the Bank in the first and second semesters of 2017 were categorized as “Rank 1”. The GCG implementation at the Bank in 2017 was also assessed by external parties, namely the Indonesian Institute for Corporate Governance (IICG) together with SWA magazine through the Corporate Governance Perception Index (CGPI), and by the Indonesian Institute for Corporate Directorship (IICD ). .
Result
Excellent #1
The Most Trusted Company
Implementation of Risk Management
To effectively and optimally implement risk management, the Bank has established a Risk Management Committee empowered to review issues related to risk management and make recommendations to be decided by the Board of Directors. In addition, the Bank has established several other committees tasked with managing risks in a more specific manner, such as Credit Policy Committee, Credit Committee and Asset and Liability Committee (ALCO).
Low to
Adequacy of the risk identification, measurement, monitoring and control process, as well as the presence of the risk management information system. The bank constantly conducts a full risk review on the plan to launch new products and activities in accordance with the provisions set by the regulators.
Moderate Satisfactory
Risks Faced and Managed by the Bank
Anti-Money Laundering and Counter-Terrorism Financing Programs
Compliance with Environmental Requirements
Code of Ethics
Will not commit any misconduct that could be detrimental to the professional image and reputation of BCA in general. Will constantly build knowledge and expand horizons by keeping up to date with developments in the banking industry in particular and business in general.
Enforcement of Code of Ethics
Information Dissemination
Implementation of Anti fraud Strategy
It will continuously build knowledge and expand horizons by keeping abreast of developments in the banking industry in particular and the business world in general. known incidents within the Company's business operations, which at least include investigative standards, reporting mechanisms and imposition of sanctions. The devices intended to monitor and evaluate fraud incidents, as well as the necessary follow-up measures, are based on the evaluation results.
Whistleblowing System
The company has endeavored to implement an anti-fraud strategy by continuously raising awareness and employee vigilance against fraud through e-learning, classroom teaching, information dissemination through cartoons, posters, videos, anti-fraud culture, etc.
Anti fraud Training
Stakeholders Engagement
The Bank works hand in hand with stakeholders through a formal and informal engagement process. In addition, the Bank manages various internal communication channels to create smooth internal communication and improve interaction at all levels of the Bank.
Supporting Information
The Bank’s Business Supply Chain
BCA EMPLOYEE PROFILE [102-8]
Employee Status
Composition of Employees
Calculated from the total credit portfolio to third parties divided by the total assets of third parties and securities that met certain criteria and were issued by the bank for financing purposes. Calculated from total high quality liquid asset (HQLA) divided by total net cash flow based on Indonesian Financial Services Authority Regulation No. 42/POJK.03/2015 regarding the liquidity coverage ratio for commercial banks.
General Standard Disclosures Page
