Highlights of Procurement Policy

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https://www.bca.co.id/KebijakanPengadaan

A. Procurement of Goods and/or Services related to Operating Supplies and Buildings The procurement of goods and/or services related to the Company’s operating supplies and buildings must comply with the Fixed Assets Manual, the Guidelines on Standardization of Authority of Branch Offices & Regional Offices, and the Policy on the Procurement of Goods and/or Services related to Operating Supplies and Buildings. The Policy on the Procurement of Goods and/or Services related to Operating Supplies and Buildings shall contain, among others, the following:

1. The Provisions and Authority in relation to the Procurement of Goods and/or Services i.e., the provisions on the procurement method, payment system, eligible procurement transactions, etc.

2. System of Procurement of Goods and/or Services

i.e., the provisions on centralization and decentralization, types of goods and/or services by category, handling of issues relating to procurement, etc.

3. Classification of Activities

i.e., the provisions on the Classification of Activities of Procurement of Goods and/or Services.

4. Documentation

i.e., the provisions on the documentation used in the procurement of goods and/or services, and the provisions on bank guarantees

5. Process of Procurement of Goods and/or Services

i.e., the provisions on the process flow of the procurement of goods and/or services at the Regional Office/SLA/Branch Office and Head Office.

The process flow of the procurement of goods and/or services shall be more or less as follows:

The procurement of goods and/or services related to the Company’s operating supplies and buildings shall be coordinated by the Procurement Division, which is supervised by an Independent Director.

Request for the goods/services

needed

Selection of Vendor

Analysis (preparation of documents, quotation, price review & analysis, announcement, issuance

of PO/PKS/KK)

Approval by competent officer

Highlights of Procurement Policy

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B. Procurement of Goods and/or Services related to Information Technology (IT)

The procurement of goods and/or services related to IT refers to the procurement of goods and/or services related to the information technology that is required to support the Company’s business, operations and services in the branch offices, regional offices and Work Units in the Head Office.

The procurement of goods and/or services related to IT shall comply with, among others, OJK Regulation No. 38/POJK.03/2016 dated 01-12-16 on the Implementation of Risk Management in the Use of Information Technology by Commercial Banks, OJK Circular No.

21/SEOJK.03/2017 dated 06-06-17 on the Implementation of Risk Management in the Use of Information Technology by Commercial Banks, and the Basic Policy Manual for Risk Management in the Use of Information Technology.

The Policy on the Procurement of goods and/or services related to IT shall contain, among others, the following:

1. Scope of the procurement 2. Trial dan end user computing

3. Recommendation and approval for the procurement

4. Authority to give recommendations and approval in relation to the procurement 5. Implementation of multi principal/multi vendor/multi brand.

6. Implementation guidelines for procurement

In the procurement of IT-related goods and/or services, the relevant work unit must implement the principles of Good Corporate Governance (GCG) by considering more than one principal/ vendor / brand of comparable quality and technology (multi principal/ multi vendor /multi brand principle) as well as the continuity of the bank operations. The procurement of goods and/or services related to the Company’s operating supplies and buildings shall be coordinated by the Procurement Division, which is supervised by an Independent Director.

C. Implementation of the Anti- Graft Policy in the Procurement Process

To build up the stakeholders' trust and to support the implementation of good corporate governance principles, the Company needs to have a reasonable, appropriate and reliable code of conduct for all the personnel at all levels of the company to allow them to engage with the stakeholders. The code of conduct related to the implementation of the anti-graft policy in the procurement process includes, among others, the following:

1. The personnel at all levels of the company are prohibited from requesting or receiving, permitting or agreeing to receive any gift or reward from a third party who in return obtains or purports to obtain any facilities or privileges from the company in relation to the company's operational activities.

2. The personnel at all levels of the Company are prohibited from requesting or receiving, permitting or agreeing to receive any gift or reward from a third party who in return obtains or purports to obtain a certain job or order from the company in relation to the procurement of goods or services.

3. If a customer, partner, or any other party gives holiday parcels/gifts on certain occasions such as Idul Fitri Holiday or other festive holidays, and if:

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- as a result of receiving the parcels/gifts it is believed that the Company will be adversely affected and the Company’s decision may be affected, and

- the value of the parcels/gifts are unreasonably high,

then the relevant personnel receiving such parcels/gifts must immediately return the parcels/gifts along with an explanation that the personnel at all levels of the Company are prohibited from receiving such parcels or gifts.