BECOMING A LEADING SUSTAINABLE Becoming a … · Penghargaan Sambutan Bersama ... efforts at “Becoming A Leading Sustainable Bank” can be seen in this report. Becoming ... English

Laporan Keberlanjutan 2013

BECOMING A LEADING SUSTAINABLEBANK

Sustainability Report 2013

BECOMING A LEADING SUSTAINABLEBANK

Bec

omin

g a

Lead

ing

Sust

aina

ble

Ban

k

DAFTAR ISI

Laporan Sektor Keberlanjutan

Informasi Laporan Keberlanjutan

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Tema : Becoming A Leading Sustainable Bank

Ungkapan Terima Kasih Penerima Manfaat

Kegiatan CSR

Visi

Nilai-nilai Utama

Tentang Laporan Ini

Ikhtisar Kinerja Keberlanjutan

Profil CIMB Niaga

Jejak Langkah

Peristiwa Penting

Penghargaan

Sambutan Bersama Presiden Komisaris &

Presiden Direktur

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Meningkatkan Perekonomian Indonesia

Partisipasi Aktif dalam Pelestarian

Lingkungan

CIMB Niaga Peduli

Insan CIMB Niaga

Meningkatkan Kualitas Layanan,

Mengutamakan Nasabah

Tata Kelola Keberlanjutan

Independent Assurance Statement

Indeks GRI G4 Core Option

Daftar IstilahCONTENTS

Sustainability Sector Report

Information regarding the Sustainability Report

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Theme : Becoming A Leading Sustainable Bank

Expression of Thanks from Beneficiaries of CSR

Program

Vision

Core Values

About This Report

Sustainability Highlights

CIMB Niaga Profile

Milestones

Significant Events

Awards

Joint Statement from the President

Commissioner and President Director

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Improving The Indonesian Economy

Active Participation in Conserving

The Environment

CIMB Niaga Cares

CIMB Niaga’s People

Improving Service Quality, Prioritizing

Customers

Sustainable Governance


GRI Index G4 Core Option

Glossary

1Sustainability Report CIMB Niaga 2013

S

During 2013, CIMB Niaga continued to sharpen its policies and strategies to achieve its goal of “Becoming A Leading Sustainable Bank”. Primarily, these policies and strategies are compiled based on the 3P principle (Profit, People, Planet). Based on this, CIMB is not only responsible for creating profit, but also to the planet, the place where the Company plies its trade.

CIMB Niaga is also responsible to the people, be they within or outside the Company. People in the Company (employees and their families) play a significant role in growing and developing the CIMB Niaga business. Those outside the Company (society) are impacted on by CIMB Niaga’s business. They play a significant role in the growth of CIMB Niaga. For this reason, CIMB Niaga has a commitment to continue to minimize any negative impact and to optimize the positive impact from its business on the people and the planet.

The 3P principle forms the basis for CIMB Niaga to become a sustainable bank. As a business in the finance industry, CIMB Niaga’s sustainability strategy is further sharpened along the lines of economic, environmental and social aspects. Economic aspects are aimed at creating Company growth, creating employment, increasing State revenue in the form of various tax payments, improving the economy for suppliers through the creation of healthy business relationships, improving community economics by facilitating ease of access to financial services and creating a comfortable work place for employees through a conducive atmosphere at work and satisfactory remuneration.

For environmental aspects, CIMB Niaga is the leading bank in increasing environmental responsibility. Policies and strategies are continually refined with the aim of minimizing carbon emissions (CO2) as a result of CIMB Niaga’s operations. Environmentally friendly lending is an important part of a sustainable bank. Environmentally friendly lending policies are implemented in accordance with regulations issued by the Government and Bank Indonesia, as well as best practices. Portfolio product innovations continue to be rolled out with the support of digital banking technology.

Refinement of sustainability policies and strategies from the social aspect also continues to optimize CIMB Niaga’s participation in achieving sustainable development goals. CIMB Niaga’s business not only aims to meet the needs of today’s generation, but is also concerned with the welfare of future generations. CIMB Niaga is an inseparable part of society. Therefore, from the social aspect, CIMB Niaga continues to share with communities through various corporate social responsibility programs. All CIMB Niaga’s efforts at “Becoming A Leading Sustainable Bank” can be seen in this report.

Becoming A Leading Sustainable Bank

2 Sustainability Report CIMB Niaga 2013

“Even if people say that donating blood can make you fat, it doesn’t stop me from being a blood donor, it depends on your life and eating habits. It clearly makes your body fresher and healthier. This is my 11th time as a blood donor to help other people, it’s especially useful because I have a rare blood type (AB). I hope that the CIMB Niaga Caring for Others blood donors can take place every three months.”

“This training has been very useful for me because these skills supply me with the ability to design clothes and to sew, even though I didn’t know anything about clothes design or sewing before.

I hope in future this kind of activity can continue and there is other training made available to us, such as how to make cakes and cook.”

“We are very happy because we received gifts from CIMB Niaga and the volunteers are so kind. We really hope there is other support for our school so that it can be even better.

Thank you CIMB Niaga and all our friends there.”

Expression of Thanks from Beneficiaries of CSR Program

“This activity had an impact on me because by taking part I learned a lot, especially that helping and sharing are beautiful things. In Babakan Madang village, Sentul, Bogor, it turned out there are still many people who need help, especially to make their homes into a suitable place to live because most of their house were made of wood or bamboo. With the CIMB Build program, many residents could get livable accommodation. I think activities like this are very beneficial for the village residents and for the employees. I really hope that I can routinely join the Employee Volunteer Day and that more and more employees take part.”

“My first impression of the Smart Parenting Club (SPC) was good because it is an employee program with smart ideas for each topic. The topics presented very useful in everyday life. And they can certainly help reduce fatigue at work. From the SPC activities, I also got to know lots of colleagues from other departments and to share stories and tips about a woman’s three functions: mother, wife and employee. The SPC activities also always present speakers who are proactive and communicative, which is an added benefit.”

“The Business Development activities and Business Incubator are very good for students who have businesses and who are just starting up in business. This program is very useful for them from the financial side and also helps to develop their businesses.

For me, this program was very useful because it gave me knowledge to manage my business better and now making a financial report isn’t a problem for me anymore.”

Fausia DesyaniRisk Control – Card Operation Collection & Risk Control Group

Annissa HermindaCorporate Banking & Capital Market Legal Group and Participant of Employee Volunteer – CIMB Build

Monika Customer Care Funding – Jakarta

Ibu YatiResident of Cisauk and recipient of Clothes Design and Sewing Training Program

Devi Natalia Timoti Student at Oelii 2 Elementary School, class IV

Arda Surya EdityaStudent at Surabaya State University, Supplying Internet Access and Computer Build Up/Services


“I have been using library service in Mitra Netra Foundation since I was in 226 Junior High School in Jakarta. I can get all kinds of books that I need in Braille and audio digital not only to support my school and university studies, but also to widen my knowledge and seek for entertainment. The availability of books at the Mitra Netra Foundation library gives me enthusiasm to keep learning, growing and taking up opportunities for personal development. I feel that I am not left behind from my sighted friends in gaining knowledge through books. With proud, I can finish my tasks in university by reading a lot of books in Mitra Netra Foundation’s library. I hope that collection of Braille and audio digital books in the library, continues to grow and stay up to date. CIMB Niaga’s support for Mitra Netra Foundation is proof of the banking business’ care for this noble endeavor.”

“I am very grateful to CIMB Niaga because I feel greatly helped by this event where I could get a complete package of staple goods for only Rp25,000. I will use these staple goods in my preparations for Lebaran. I hope that CIMB Niaga will always prosper and God Almighty will repay its kindness.”

“Thank you to CIMB Niaga for the Al’Quran donation we received. May CIMB Niaga always be blessed by God the Almighty and the CIMB Niaga Earth Learning Center in our vicinity be of more benefit to the residents of Pasir Angin, Bogor.”

“Today I have just finished my English language test, the questions were easy, because I have already studied with my friends here. Learning English in English Training Center is different from I have in school. Here, Mr. J and the other teachers teach us patiently so I can understand and we often have lessons from friends from overseas. Their English is very good. I want to be like them…”

“We have a small food stall. Our business was greatly aided by the additional capital from CIMB Niaga. Usually the capital we can generate from our own funds is very limited. This program that provides access to additional capital, is very beneficial to middle to lower-scale businesses like ours. The capital we were given, we can turn over continually and we can now sustain our family. The installment payments are easy and affordable and we don’t feel burdened by the repayment system used.”

“On behalf of Yayasan Tunas Mulia Foundation, we express our gratitude to CIMB Niaga for the activities of studying and playing with the children. I feel supported by the people who helped in preparing these activities so that the lessons could go smoothly. This was a very positive activity for our children, especially to motivate them to have good employment and a better life. I hope similar activities will continue in the future and that CIMB Niaga is always be the best bank. Once again, thank you very much CIMB Niaga.”

Juanda SaputraStudent in Semester 4, studying Language and Indonesian Literature, UIN Syarif Hidayatullah, Jakarta

Ibu MaryamRecipient of cheap staple goods package at the Bazar Ramadhan 1434 H

Nadam Dwi Subekti Secretary at Yayasan Tunas Mulia Bantar Gebang – Bekasi

Nur Janah Community Link Program, Food Stall Entrepreneur

M. Daffa F – 9 tahun Community Link Program - English Training Center

Ibu A’iMember of Majlis Taklim Al Huda Pasir Angin, Gunung Geulis – Bogor


Vision“To be the most trusted Indonesian bank

that is part of South East Asia’s leading Universal Bank by

understanding our customers’ needs, providing the right

comprehensive financial solutions and building lifetime

relationships.”

Explanation:

To be the most trusted bank in Indonesia,

we identified three main aspects, which focused

on customer satisfaction of our services:

1. Understanding customer needs;

2. Providing the right comprehensive financial solutions;

and

3. Building lifetime relationships.


Core Values

Explanation:

CIMB Niaga always puts our customers’ satisfaction first, through excellent services from employees who have high integrity and passion for excellence in their work.

The Main Behavior of Core Values

“Integrity is Everything”• Speakandactwithhonestyandsincerity.• Makedecisionsreliablybasedonprofessionalism.

“Always Put Customers First”• Assistandservetofulfillandanticipatetheneeds

of stakeholders.• Createaddedvalueandsolutionsthatexceed

customer expectations.• Empowerhumanresourcesandsupportall

potential for excellence.

“Passion for Excellence”• Providethebestqualityproducts,services,

and work processes.• Implementopenleadership,delegatingauthorityandrequiringresponsibilityforanydecisionmade.

• Recognizetheimportanceofcooperationtoattainsuccess,tobuildtrustandmutualrespect,and to struggle together within a competitive environment.

AlwaysPutCustomers First Passionfor Excellence

IntegrityisEverything

(G4-56)


ThisisthethirdofCIMBNiaga’sSustainabilityReports,with

the first having covered 2011. This report complements CIMB

Niaga’s2013AnnualReport,asstipulatedbyDecisionofthe

ChairofBapepam-LKNo.KEP-431/BL/2012,dated1August

2012. The sustainability report is publishedon an annual

basis,andthisreportcoverstheperiodfrom1Januaryto

31December2013.Thepreviousyear’sreportwaspublished

on 28 March 2013. [G4-28, G4-29, G4-30]

GRI G4 Core and Assurance [G4-32, G4-33]

ThisreportcontainsinformationonCIMBNiaga’ssustainability

activities for economic, environmental and social aspects and

iscompiledbasedontheSustainabilityReportingGuidelines

version4(G4)andFinancialServicesSector(FSS)issuedby

GlobalReportingInitiative(GRI).Theseguidelinesprovide

for two formatoptionscompatiblewithGRIG4,coreand

comprehensive.Thisreporthasbeenpreparedinaccordance

withGRIG4Core.TofacilitatetheidentificationoftheG4

CoreindicatorsusedinthisReport,wehavepresentedthe

indicatorsinredoneachrelevantpage.TheG4CoreIndex

list applied in this report is presented on page 90.

There has beenno restatement of data used in previous

years. There are also no significant changes to the scope and

boundariesinthisreportingperiod.[G4-22, G4-23]

To improve thecredibilityof thisReport,CIMBNiagahas

assigned an independent external assurer - PTMazars

Indonesia,toprovideassuranceservicesonthisReport.The

process to select an independent assurer was conducted

through a selection process involving several assurance

service providers. The selection of the independent

assurerinvolvedauthorizedpersonnelfromCIMBNiaga,in

accordance with the procurement procedures. CIMB Niaga

hasnootherworkingrelationshipwithPTMazarsIndonesia.

The report of the independent assurer on CIMB Niaga’s 2013

SustainabilityReportispresentedonpage88.

Determining the Report Content (G4-18)

Theprocess todetermine thecontentof thisReportwas

divided into 4 (four) steps, as defined byGRIG4. The

firstwas identifying thematerial aspects andboundaries

(identification).Secondwasprioritizingthematerialaspects

andissuesidentifiedinthepreviousstep(prioritization).Third

wasvalidatingthesematerialaspects (validation). Fourth

wasreviewingReportsthathadbeenpublishedtoimprove

thequalityofthefollowingyear’sreport(review).Theprocess

of determining theReport contents utilized the 4 (four)

principlesmandatedbyGRIG4,stakeholderinclusiveness,

materiality,sustainabilitycontextandcompleteness.

In accordance with the principle of stakeholder inclusiveness,

CIMB Niaga involved stakeholders in the report content

determination process to decide on material aspects to

be disclosed in thisReport through aStakeholderGroup

DiscussionForum(SGDF). Inaddition,attentionwasalso

paid to the opinions and advice from stakeholders with the

regardtothepreviousyear’sSustainabilityReport.

Themateriality principlewas applied to this Report by

selecting Report contents thatwerematerial issues or

aspects required by the stakeholders tomakedecisions.

The contents of thisReport, according to theprinciple of

sustainabilitycontextareissuesrelatedtothesustainability

contextand relevant for theusersof thisReport tomake

decisions. In accordance with the principle of completeness,

thisReportwascompiledwithaclearscopeforthe2013

reportingperiodandsupportedbycompletedata.

These four steps to determine report content are illustrated

inthefollowingReportContentDeterminationFlowchart.

About This Report


Report Content Determination Flow Process

Determining Materiality Level

IndeterminingthelevelofmaterialityfortheReportcontent,inaccordancewiththeprincipleofstakeholderinclusiveness,

thestakeholderswereapproachedtorequesttheiropinionontheissuestobedisclosedinthe2013SustainabilityReport.A

StakeholderGroupDiscussionForum(SGDF)washeldon5December2013intheCIMBNiagaheadofficeinJakartaforthis

purpose.TheSGDFwasattendedbyrepresentativesfromvariousstakeholdergroups,including:laborunions,largecustomers,

smallcustomers,thecommunity,NGOs,suppliers,bankingindustryassociationsandtheGovernment.Fromthisforum,an

illustrationwasobtainedastothematerialityleveloftheissuestobereported,asshowninthematerialitylevelgraphbelow.

Thelevelofmateriality,accordingtotheSGDFcanbeseeninthefollowingMaterialityLevelFlowchart.

Materiality Level Chart

Imp

ort

ant

to S

take

ho

lder

1. Easeofaccesstobankingservice

2. Banking security

3. Banking facilities for minority communities

4. Clear product and service information

5. Banking services to micro finance and SMEsectors

6. Employeerights7. Diversityandrespectforhumanrights8. Equalityofopportunity

9. Training and development

10. Occupationalhealthandsafetyworkplace

11. Remuneration

12. Community empowerment

13. Donation/contributiontosociety14. Improvement in living conditions

15. Productsandservicesrelatedtofinancingrenewableenergysector

16. Environmentalandsocialriskanalysisincredit provision

17. Electricalenergyandfuelconsumption

18. Responsetoclimatechange/carbonemissions mitigation

19. Carbonfootprintmanagement

Important for the Company


Report Boundaries and Supply Chain [G4-12, G4-17]

CIMBNiagaisthemajorityshareholderintwosubsidiaries,PT

CIMBNiagaAutoFinance(99.9%)andPTKencanaInternusa

ArthaFinance(51%).Eachyearend,CIMBNiagacompiles

aConsolidatedAnnualReportincludingthesesubsidiaries.

This report, however, covers the economic, environmental

andsocialperformanceofCIMBHeadOfficeanditsbranches

across Indonesia, including conventional banking offices,

sharia(Islamic)bankingandthemicrocreditsector.Withthe

exceptionoffinancialinformation,thisSustainabilityReport

doesnotincludethesubsidiaries.

To facilitate analysis of any negative impact on CIMB Niaga’s

imagecausedbysuppliers,thesuppliersweredividedinto

2(two)groups.Thefirstgroupissuppliersofgeneralgoods

andservices,forwhichthelaborandhumanrightspolicies

and implementation thereof have no direct impact on the

Company’s image. They are not part of the Company’s

operationalsegmentandtheirbusinessisnotdependenton

CIMBNiaga.TheCompanyhasnocontrolovertheirlabor

and human rights policies or their implementation. The

suppliers in this group include those supplying goods and

servicessuchasstationery,officeequipment,spareparts,

andothergoodsandservices.InthisReport,theyarenot

includedwithintheboundary.

The second group is suppliers of specific goods and services.

Theirlaborandhumanrightspolicies,aswellasthepractice

thereof, have a direct impact on CIMB Niaga’s image. The

services they provide are connected directly to CIMB Niaga’s

operationalactivities.Theirbusinessesarehighlydependent

on the Company. These suppliers’ policies and attitude

to laborandhuman rights, aswell as the implementation

thereof, are an important criteria for consideration when

selecting suppliers. The suppliers included in this second

group, covered in thisReport, include suppliers of labor

forsecurity,salesandpromotion,debtcollection,cleaning

services and transportation.

Even though theseworkers are not employees ofCIMB

Niaga, their performance has a direct impact on the image

andreputationoftheCompany.Onthisbasis,tominimize

the risk of negative impact on the Company’s image, tight

regulations are implemented on suppliers in this second group

to ensure their compliance with regulations and legislation,

includingBank Indonesia regulations, in relation to labor

andhumanrights.Thisisalsoemphasizedintherelevant

suppliers’ service contracts. [G4-LA14]

Determining Material Aspects and Boundaries

[G4-19, G4-20, G4-21]

Theprocesstodeterminematerialaspectsandboundaries

involved CIMB Niaga employees and various work units

through G4 workshops. The workshop participants

contributedtothedatainthe2013SustainabilityReport.In

theseworkshops,theparticipantsanalyzedmaterialaspects

and boundaries for the 2013 Sustainability Report. The

resultsoftheseworkshopscanbeseenintheListofMaterial

AspectsandBoundary

List of Material Aspects and BoundaryAspect Boundary

1. Economy

2. Indirect economic impact

3. Energy

4. Emissions

5. Labor

6. Employeehealthandsafety

7. Training and development

8. Supplierlaborpracticesassessment

9. Assessmentofsupplierhumanrightspractices

10. Freedom of association and collective bargaining

11. Local communities

12. Productlabelingandservices

13. Customer privacy

14. Productportfolio

CIMB Niaga

Subsidiary

OutsidetheCompany

CIMB NIAGA

OuTSIDE ThE COMPAny

Subsidiary

Tran

sporta

tion Cleaning ServiceS

alesSecurity

Col

lect

or


Sustainability Report 2013

BECOMING A LEADING SUSTAINABLE BANK

Contact Person [G4-31]

Readerswishing for further informationorwith additional

queriesaboutthisReportareinvitedtocontact:

Corporate Secretary

GrahaCIMBNiaga

Jl.Jend.SudirmanKav.58

Jakarta12190,Indonesia

Tel.:(62-21)2505252,2505353

Fax.:(62-21)2526749

Email:[email protected]

Facebook:CIMBIndonesia

Twitter:@CIMBIndonesia

Significant Changes from the Previous year [G4-13]

TheSustainabilityReports of previous yearswere based

on theGRIG3.1Guidelines,while fromthisyear theGRI

G4Guidelines have been used. Despite the change in

Guidelines for the compilation of this Report, there has

beennosubstantialinfluenceorrepresentationofdatafrom

previous years. In addition, in this reporting period there

has been no fundamental change on the previous year’s

informationregardingorganizationstructure,capitalstructure

and ownership, or the Company’s operational areas.


2013 2012

Revenues 13.564 12.940 Rp trillion

Suppliers 6.495 6.056 Rp trillion

Employee Wages and Benefits 3.229 2.882 Rp trillion

Government Revenue (Tax) 1.536 1.537 Rp trillion

Social Investments 18.806 15.216 Rp billion

Micro Credit Sector

Number of Clients 16,000 14,000 Client

Number of Outlets 350 350 Unit

Amount of Credit Disbursed 2.4 2.1 Rp trillion

Sharia Business Unit 6.68 7.86 Rp trillion

Junior Savings 625,000 613,000 Client

Remittance services for Indonesian 424,772 313,025 Transaction

Customer Satisfaction Survey 78 73 %

Economic Performance

Sustainability Highlights

Social Performance

CSR Fund 2013 2012

Education 7.039 5.950 Rp billion

Development and Community Empowerment

2.430 1.500 Rp billion

Philanthropy 1.561 2.333 Rp billion

Donation 335 343 Rp million

Environment 765 641 Rp million

Qordhul Hasan CIMB Niaga Sharia 5.466 2.349 Rp billion

CSR Program 1.153 2.101 Rp billion

Number of Scholarship Beneficiaries 69 53 individual

Total Scholarship Funds 4.052 4.488 Rp billion

Number of Scholarship Graduates 178 130 individual


Environmental Performance

Smart Spending Policy

Efficiency efforts are made by implementing environmentally friendly operational polices that reduce usage.

Green Office Policies

Planting Bamboo in Bali

Planting Trees by Pesanggrahan River

CIMB niaga Goes Gardening

Recycling Program

Paper-saving Program

Energy-saving Program

Promoting Green Banking


PT Bank CIMB NiagaTbk (hereinafter in this report CIMB

Niaga / the Company) was established on 26 September

1955 under the name of PT Bank Niaga. CIMB Niaga’s

head office is based at Graha CIMB Niaga in Jakarta

and it has a number of branches spread across various

regions of Indonesia. As of 31 December 2013, CIMB

Niaga had 969 office networks and 2,956 ATMs, 480

CDMs and 203 SSTs distributed across 28 provinces

and 109 cities/regencies across Indonesia, covering

Commercial Banking, Sharia Banking and Mikro Laju

booths, supported by 14,342 employees. [G4-3, G4-5,

G4-6]

CIMB Niaga has two subsidiaries engaged in the

financing of motor vehicles, PT CIMB Niaga Auto Finance

(CNAF) and PT Kencana Internusa Artha Finance (KITAF)

with respective share ownership of 99.9% and 51.0%.

[G4-3, G4-5, G4-6]

CIMB Niaga offers comprehensive products and services

for conventional and sharia banking with combined

strengths in Consumer Banking, Small-Medium and

Micro Enterprises, Commercial and Corporate Banking,

CIMB Niaga Profile

Treasury, and payment services supported by a network

of branches and branchless banking spread across

Indonesia. CIMB Niaga also continues to develop its

Micro-finance business with the Mikro Laju product,

which has 350 booths to serve customers. [G4-4, G4-8]

In anticipation of future growth opportunities, the

development of branchless banking, or an electronic

distribution network, is one of CIMB Niaga’s strategies,

especially in the Consumer Banking sector. CIMB

Niaga has added a Preferred Phone Banking service,

with access through 500800, specifically for Preferred

customers. This service supports and enriches the

previous branchless banking, i.e. mobile banking Go

Mobile, internet banking CIMB Clicks, ATM, self-service

terminals (SST), Cash Deposit Machines (CDM), and the

phone banking service accessed on 14041. Through its

regional ATM network, CIMB Niaga is also connected to

the Prima ATM, ATM Bersama, Cirrus, VISA and MEPS

networks that provide customers with expansive access

and ease of use for transactions by ATM in Indonesia

and in regional areas including Singapore, Malaysia and

Thailand. [G4-4]

Share Ownership [G4.7]

PT Bank CIMB Niaga Tbk shares are listed and traded on the Indonesia Stock Exchange (IDX) with the share code:

BNGA. A summary of the Company’s Share Ownership Composition per 31 December 2013 can be seen in the following

table:

Summary of CIMB niaga Share Ownership

2013 2012

CIMBGroupSdnBhd 96.9% 96.9%

Public 3.1% 3.1%



Scale of the Company [G4-9]

2013 2012

Numberofemployees(Individuals) 14,342 14,224

NetRevenue(BillionsofRp) 13,564 12,940

TotalCapitalization:

-NetDebts(BillionsofRp) 192,980 174,761

-Equity(BillionsofRp) 25,792 22,568

-ValuesofAssets(BillionsofRp) 218,866 197,412

Numberofregionaloffices 969 974

Relationship with Suppliers (Supply Chain) [G4-12]

G4 introduces a number of new approaches, the best

known of which is the concept of identifying material issues

inrelationtotheorganization’svaluechain.Thedefinitionof

supplychaininG4isasequenceofactivitiesorpartiesthat

supply products or services to the Company. This concept,

referredtoinG4asAspectBoundariesinsideandoutside

theorganization,istoexpandtheCompany’sthinkingtoall

businessrolesthataresignificanttotheCompany.

The supply chain for CIMB Niaga is defined as a chain of

activities conducted by the Company to add to its brand

reputation and improve customer trust in its products. To

apply this approach, it is necessary to really understand

whichmaterialissuesarecausedbywho,andwherethey

own the impact and to whom in the overall supply chain.

In accordance with CIMB Niaga’s mission, suppliers are

businesspartnerswhogrowtogetherwiththeCompany.

CIMBNiagaissupportedbysuppliersofgoodsandservices

including cleaning services, security, transportation and

collectors. In 2013, the Company started gathering data

related to the sustainability of its suppliers. CIMBNiaga

hopes that in future Sustainability Reports it will be able

toelaboratemoredeeplyaboutitssuppliers.CIMBNiaga

continues to ensure and guarantee every supplier is treated

fairly and transparently.

CIMB Niaga involves its suppliers in open communications

and various meetings, as well as routine seminars.

Significant Change [G4-13]

There has been no significant change during 2013 in the

Company’s share ownership and other fundamental

changes.

Precautionary Approach [G4-14]

Intheimplementationof itsbusinessstrategyandcontrol

employee performance, CIMB Niaga uses a Balanced

Scorecard. This is in line with the Company’s policy to

measure achievement and provide awards and remuneration

basedonperformance.Toensurethesmoothrunningofthis

strategy to achieve its intended purpose, it is implemented

through Key Performance Indicators (KPI) that must be

approvedwiththeBoardofDirectorsandimplementedto

thelowestleveloftheorganization.

The KPI system established by CIMB Niaga enables the

Company to implement the balanced scorecard strategy

in terms of four basic parameters, these being Finance,

Customers,InternalProcessesandEmployees.

Inaddition,policiesestablishedbytheBankrelatedtothe

evaluation of credit applications do not permit the provision

of credit to third parties who do not have official permits or

do not meet government standards and references related

to emissions and environmental management. In order to

beabletomaintainitsoperations,CIMBNiagamustapply

strict standards to determine whether customers have the

necessaryqualificationsandlevelofawarenessconcerning

fundamental environmental risks and their impact.


The risk assessment team monitors the following factors

whenevaluatingapplicationsforcredit:

• Theapplicationanditsbenefits;

• Generalinformationandreportsconcerningthepotential

debtor;

• Businesssurveyreports;

• Financialreportsrelatedtothedebtor;

• Evaluationsofvalue,liquidity,ownershiprightsandthe

valueofcollateralpresented;

• Creditassessment,internalandexternalinvestigations,

includingwhetherthedebtorhasaRedorBlackPROPER

(nationalenvironmentalmanagementstandard)status-

whichdemonstratesthecompany’senvironment;

• Accountprofitabilityratio;

• Supporting documents such as government permits

and CSR policies, Environmental Impact Analysis and

PROPERevaluation.


Establishment of PT Bank niaga

The first bank that launched ATM services

CIMB Group (formerly Commerce Asset-holding Berhad) took over 50.99% shares in PT Bank niaga Tbk from IBRA

1955Rights Issue Rp1.3 trillion

Issued Subordinated Bonds uSD100 million

19731983

Merged with:• Bank Agung - 1973• Bank Tabungan Bandung - 1978• Bank Amerta - 1983

Initial Public Offering

1989

Launch of Sharia Banking

2004

Issued Subordinated Bonds uSD200 million

2006

2005

2002

1987

Milestones


Strengthened its position as the fifth largest bank in Indonesia

Completed systems and operations integration

Established Mikro Laju as the brand for micro financing unit

2008

Recorded net Income of Rp2.5 trillion

Issued subordinated debt of Rp2.98 trillion and Rights Issue of Rp1.5 trillion

Obtained AAA(idn) Rating from Fitch Ratings

Launched BizChannel and CIMB Clicks

Recorded net Income of Rp3.2 trillion

Announced interim dividend distribution of Rp200 billion

Launched Sharia Gold Pawn business

Issued Senior Bonds of Rp1.5 trillion

Subordinated debt Payment of uSD200 billion

2010

2011 Recorded net Income of Rp4.2 trillion

Launched Go Mobile, a new mobile banking platform

Issued Continuous Bond I totalling Rp8 trillion, with Phase I ofRp2 trillion

Launched Phone Banking service 14041 and Preferred Phone Banking 500800 with various excellent features

2012

Recorded net Income of Rp4,3 trillion

Launched Digital Lounge

Launched Rekening Ponsel

Launched Poin Xtra

Issued Continuous Bond I Phase II of Rp1.45 trillion

Launching of net Banking - online opening account

2013

Changed name to PT Bank CIMB niaga Tbk

Effective merger of CIMB niaga and LippoBank

2009


January – March

April - June

Significant Events

Education – Let’s Save and Share Accountability Program 201217January –CIMBNiagaclosed theLet’sSaveandShareProgram (AMDB)2012andfollowedupwithAMDB2013. Fundsraisedthroughthe2012AMDBprogramtotalledRp621million andwere handed over to the IndonesiaHeritage Foundation tomanageteachers education from 23 early learning schools.

Education – Khazanah Asia 2013 Scholarship Assessment Camp20–22May2013.CIMBNiaga incooperationwithKhazanahAsiaFoundationrunstheKhazanahAsia2013ScholarshipProgram.ThescholarshipselectionprocessstartswithanAssessmentCampinwhich19candidatestookpartand3candidatespassedfortheopportunitytocontinuetheirstudieswithaMasterDegreeinuniversitiesinMalaysia.

Education – Launch of e-banking Financial Literacy Campaign17 January – CIMBNiaga always supports the Let’sGo to the Bank - Bank Indonesiaprogram.Onerealizationofthisisthelaunchofthee-bankingfinancialliteracycampaignmakinguseofsocialmediathroughCIMBIndonesia’sfacebookpageasabankingeducationmediatorinthedigitalera.Thecampaignranfrom14January–28February2013.

Education – Business Development Program and Business Incubation 28–31May2013.ThroughitsCreativeIndustryTechnologiesScholarshipProgram(BUTIKCIMBNiaga),CIMBNiagaworksincooperationwiththeEducationandCultureMinistrytorunaBusinessDevelopmentProgramandBusinessIncubationfor15BUTIKCIMBNiagarecipients who are young entrepreneurs.

Environment – Cleaning Brantas River9March–AlongsidetheresidentsofMalang,CIMBNiagaemployees in itsEmployeeVolunteerProgramcleanedBrantasRiverintheheartofMalangcity.TheCleanUpBrantasRiverprogramwasopenedby theEnvironmentMinister,Prof.Dr.BalthasarKambuaya,MBA.

Environment – Indonesia Green Awards 201325June2013.CIMBNiagaonceagainachievedsuccessintheenvironmentalfieldwiththebestowalofIndonesiaGreenAwards2013intheBiodiversityConservationcategory.This achievement is a result of CIMB Niaga’s commitment to efforts to conserve the environmentandbiodiversity.

Philanthropy – Disaster AssistanceJanuary–February–IncooperationwithAlAzharPeduliUmmatandPKPU,CIMBNiagahandedoveremergencyrelieftovictimsoffloodinginvariousareasacrossJakartaanditssurroundingstoatotalofRp175million.

Community Development and Empowerment – CIMB niaga Care Community20April2013.Aiming togatherCIMBNiagastakeholders toparticipateactively inCSRactivities, CIMB Niaga launched the CIMB Niaga Care Community. The launch of this program was implemented as an environmental action with the planting of trees at PesanggrahanRiverinSanggaBuana,SouthJakarta.


July - September

October - December

Philanthropy – Ramadhan 1434 h Activities12July–1August2013.CIMBNiagaonceagaincelebratedtheHolyMonthofRamadhanwithavarietyofactivities,including:DonationstotheOrphanFoundationwithaRamadhanSafari,BazaarandsalesofcheapstaplegoodstothelessfortunateinthecommunityinKarawaci and Bintaro.

Education – Indonesia Saves Movement, Makassar and Banjarmasin19Octoberand16November2013.CIMBNiagasupportedtheIndonesiaSavesMovementinMakassarandBanjarmasinrunbyBankIndonesia.Inaddition,CIMBNiagaalsoranitsLet’sSaveandShareProgramaspartofthePublicEducationinBankingprogram.

Education – Annual Gathering 201323–25August2013.TheAnnualGatheringwasheldtostrengthenthesoftskillsofallCIMBNiagascholarship recipients. Alongwith theEducationandCultureMinistry, theAnnualGatheringwasdesigned to improve the senseof belonging in theCIMBNiagaScholarshipProgram.

Award – Anugerah Peduli Pendidikan and SR Award 201329Novemberand17December2013.CIMBNiagaatthecloseof2013received2awards,the Anugerah Peduli Pendidikan Award from theEducation andCultureMinistry on 29November2013and1stRunnerUpBestSustainabilityReportingAward2013fromtheNationalCenterforSustainabilityReporting(NCSR)on17December2013.

Philanthropy – Disaster Assistance for Alam SinabungSeptember 2013. CIMB Niaga worked with NGO Al Azhar Peduli Ummat, which wascommitted to helping the victims of theMount Sinabung eruption in North Sumatera,by supplying staplegoods for thepublic kitchen,warmclothing, healthequipment andmedication.

Environment – CIMB niaga Goes Gardening7December2013.CIMBNiagacooperatedwiththeIndonesiaGardeningCommunitytoholdanenvironmentaleventtitledCIMBNiagaGoesGardeningtomakeuseofemptylandattheCIMBNiagaEarthLearningCenterinGunungGeulis.

Philanthropy – CSR Activities – CIMB niaga 58th Anniversary26–28September2013.CIMBNiagacelebratedits58thanniversarywithvarioussocialactivities,includingPlayandLearnwiththeBantarGebangScavengerChildrenatKIDZANIAandsimultaneousCSRactivities in216branchofficesacrossIndonesia, includingMikroLajuunitsandShariabranches.

Education – uMKM CIMB niaga Academy15November2013. In itseffortstodevelopandrefineCIMBNiagacareforeducationandthecreationofbusinesspeopleinMicro,SmallandMediumEnterprises(UMKM)inIndonesia,CIMBNiagainaugurateditsUMKMAcademywithabusinesstrainingprogramforUMKMcustomersofCIMBNiaga.


Indonesia GreenAwards 2013

Anugerah PeduliPendidikan

Indonesian Sustainability Reporting Award2013

Awards



The Company’s growth is not only beneficial for shareholders, but also targets providing added value to all stakeholders, including the Government, customers, employees and their families, suppliers and society.

Dato’ Sri Nazir RazakPresident Commissioner

Joint Statement from the President Commissioner and President Director (G4-1)


Arwin RasyidPresident Director

We understand that CIMB Niaga grows in harmony with the community, which is an inseparable part of its growth and development. Therefore, the economic value that we generate is shared with the community through various Sharing Programs.


Dear Stakeholders,

2013 was marked for CIMB Niaga with encouraging

sustainability performance in the economic,

environmental and social fields, thus strengthening

the image and reputation of CIMB Niaga as a leading

private bank in Indonesia, conducting business based

on the principle of sustainability.

By applying the sustainability principle, CIMB Niaga

played a significant role in increasing the rate of

economic growth in Indonesia and as part of the CIMB

Group business network, indirectly, CIMB Niaga made

a significant contribution to supporting the economy

of Southeast Asia.

Increasing the Rate of Economic Growth

CIMB Niaga’s sustainability performance in the

economic field during 2013 resulted in a rise in net

profit for the year totaling Rp4.30 trillion, or a 1.1%

increase on the previous year’s Rp4.25 trillion. In

addition, net profit attributed to the equity holders of

the parent company in 2013 also rose, from Rp4.23

trillion in 2012 to Rp4.28 trillion in 2013. This is

one of the indicators demonstrating CIMB Niaga’s

contribution to the increased rate of economic growth

in Indonesia.

In line with strong national and regional economic

growth, as well as the strengthening of the Company’s

operations and corporate governance systems,

we forecast CIMB Niaga’s economic performance

will continue to improve in the coming 3-5 years.

Compiling a business strategy orientated toward long-

term growth will strengthen CIMB Niaga’s presence in

the arena of national economic development.

The Company’s growth is not only beneficial for

shareholders, but also targets providing added

value to all stakeholders, including the Government,

customers, employees and their families, suppliers

and society.

Strengthening Commitment to be an Environmentally

Friendly Bank

CIMB Niaga’s sustainability performance in the

environmental field in 2013 has also improved.

We continue to expand application of the online

system aimed at bringing us closer to customers,

providing rapid, comfortable and safe service

without the significant use of paper. Developing pro-

environment products for our portfolio continues in

line with Government regulations, best practices and

international initiatives. We continue to increase

environmental performance through the application

of various strategic polices and the refinement of

systems and procedures aimed at reducing as much as

possible the environmental impact from CIMB Niaga’s

business. All the pro-environment policies and their

implementation are aimed at strengthening CIMB

Niaga’s commitment to securing its place as one of

the foremost banks for environmental care.

Over and above applying pro-environment policies

to banking operations management, CIMB Niaga

encourages the public to improve their environmental

awareness through the CIMB Cares for the Environment

program. We also encourage employees to be involved

as environmental volunteers, including through the

CIMB Niaga Goes Gardening program. In 2013,

CIMB Niaga also participated in and funded various

community activities aimed at environmental

conservation.


Comfort at Work and Sharing with the Community

Social sustainability involves two fundamental aspects

that function as triggers for CIMB Niaga’s business

growth, the creation of a comfortable workplace for

employees and the creation of value sharing programs

for communities. Both these important aspects

have been implemented in 2013 with impressive

performance. CIMB Niaga has grown successfully

and developed into one of the largest private banks

in Indonesia thanks to its workforce, which is strong,

creative and has high integrity. The corporate culture

continues to be strengthened and internalized. Various

programs to develop professionalism and improve

employees’ career paths have played a fundamental

role in raising the competitiveness of CIMB Niaga’s

business in the midst of increasingly intense business

competition and the continuing instability of the global

economy.

We understand that CIMB Niaga grows in harmony

with the community, which is an inseparable part

of its growth and development. Therefore, the

economic value that we generate is shared with

the community through various Sharing Programs.

Primarily, these programs aim to improve the lives of

marginalized people and are a tangible manifestation

of CIMB Niaga’s role in efforts to achieve sustainable

development goals. The programs are also in line

with the Millennium Development Goals/MDGs - Post

2015 launched by the global community and adopted

by the Indonesian Government.

In 2013, CIMB Niaga increased its focus on the rights of

the marginalized to a decent education. The education

sector plays a fundamental role in improving the

quality of life for the majority of Indonesian people

who are yet to have a decent standard of living.

CIMB Niaga continues to increase the reach of its

Scholarship Programs to play our part in providing

a decent education to marginalized communities. In

addition, we also continue to increase our assistance

to communities with the provision of educational

facilities and infrastructure.

By applying the sustainability principle, we believe

that CIMB Niaga’s presence in the community will

be of increasing long-term benefit. All stakeholders

will benefit greatly from CIMB Niaga’s presence in

Indonesia, thus the strategic approach of creating a

harmonious relationship with all stakeholders should

be further implemented. Variables in conventional

risk management focus merely on financial aspects,

while with the sustainability principle we add two more

variables, the environment and people, thus reducing

the risks in banking.

Close

The success of the 2013 sustainability performance

is due in large part to the hard work of everyone at

CIMB Niaga and the support of their families. For

this, we, the Board of Commissioners and Board of

Directors, express our deep thanks and gratitude. We

would also like to express our appreciation to the other

stakeholders who have participated in improving CIMB

Niaga’s 2013 performance.


Dato’ Sri nazir Razak President Commissioner

Arwin RasyidPresident Director

As we enter 2014, let’s work even harder, being smart, prudent and professional, to achieve even more impressive

performance than in previous years. The harmonious relationship with stakeholders must be strengthened.

Customer loyalty and excellent customer services must be our key priority and have our full attention.

Sustainable portfolio innovations must be developed and compliance with regulations and best practices must

be maintained.

Jakarta, March 2014

On behalf of the Board of Directors On behalf of the Board of Commissioners







The global economy was still in the recovery phase in 2013, as were the economies of Indonesia’s trading partners, such as China, Japan, the United States, Europe and India. Falling demand for Indonesia’s export products from these countries resulted in a surge in the national trade deficit, which in turn impacted on the Rupiah exchange rate, causing it to weaken. In addition, the American central bank, The Federal Reserve, implemented a stimulus reduction policy from the beginning of the previous year, which added to the pressure on the Rupiah exchange rate.

ECOnOMIC COnDITIOnS AnD InDOnESIAn BAnKInG

The Indonesian trade deficit grew from USD1.7 billion in 2012 to USD4.1 billion in 2013.

The exchange rate for the Rupiah weakened by 26.1% from Rp9,670/USD as of end 2012 to

Rp12,289/USD as of end 2013. The Rupiah depreciation caused by the year’s trade deficit

resulted in foreign exchange reserves falling from USD112.8 billion in 2012 to USD99.4

billion in 2013. The Indonesian Government strove to lessen the resulting impact, including

by increasing the price of subsidized fuel in June 2013. This step was also taken as part of

the Indonesian Government’s efforts to maintain its fiscal health, which had been seriously

eroded by the surge in oil imports through subsidized fuel. However, the impact of these

policies triggered a surge in national inflation from 4.3% in 2012 to 8.4% in 2013. Bank

Indonesia (BI) then attempted to address this by curbing inflation and reducing pressure on

the Rupiah by raising the benchmark interest rate from its position as of end 2012 at only

5.75% to 7.50% as of end 2013.

IMProvING The INdoNeSIaN eCoNoMy


Griya CIMB Niaga, Bintaro


Meanwhile, the impact of these BI policies slowed

Indonesia’s economic growth from 6.3% in 2012 to

5.8%in2013.

Even so, in the midst of decreasing economic

performance, the banking sector last year remained

relativelystrong.Thiswasreflectedbyarelativelyhigh

CapitalAdequacyRatio(CAR)of18.1%,farhigherthan

theminimumlimitof8.0%.BIdataalsoshowedthatthe

qualityofnational bankingcreditwaswellmaintained.

This was demonstrated by the gross Non Performing

Loans (grossNPL) level of 1.8%, far below the gross

NPLmaximumlimitof5.0%.Meanwhile,nationalcredit

growthcontinuedwithstronggrowthat21.6%yoy in

2013,aslightfallfromthepreviousyear’s23.1%.Credit

growth in2013continued tobedominatedbyasurge

in productive credit, namely working capital credit and

investment loans,respectivelygrowing20.4%yoyand

35.0%yoy.Thisdemonstratesboththeprospectsand

potential for Indonesia’s economic growth, which remain

strong in the future.

ThE ROLE OF CIMB nIAGA [G4-EC8]

CIMBNiaga, asaprivatenationalbankwithassetsas

oftheendof2013amountingtoRp218.87trillionand

services covering almost all Indonesia’s main cities,

contributed to the overall achievement in economic

growthandbanking.

Strategy for Participation in Economic Growth

CIMB Niaga is now continuing its transformation

from a local bank into a bank which is part of the

foremostuniversalbankingnetwork inSoutheastAsia.

This transformation is being achieved through the

Transformation 2 (T2) strategies first implemented in

2010 and continued throughout 2013.

Aspartof itsefforts toachieve itsvisionofbecoming

the most trusted bank in Indonesia, CIMB Niaga has

formulated both long and short-term strategies. The

following is an explanation of CIMB Niaga’s long-term

and short-term strategies.

• Short-termStrategy

In the short term, CIMB Niaga focuses on various

businesseswhichare in linewith itssix (6)priority

pillars, including expanding micro-finance facilities,

credit cards, loans, mortgages, motor vehicle loans,

improving efficiency and developing alternative

channels,aswellasdevelopingvaluechainbusiness

forcommercialandcorporatebanking.

• Long-termStrategy.

In the long term, CIMB Niaga focuses on strategies

with six (6) priority pillars, namely: selectivity;

diversificationoffundingsources;expansionoflow-

cost funding; transformation of sales and services;

improvements in efficiency; and development of

human resources. These strategies form CIMB

Niaga’s foundation to encourage growth in the

Company’sprincipalbusinessunitsandwilltherefore

drivethebank’soverallgrowth.

At the same time, CIMB Niaga is also leveraging

synergies with CIMB Group subsidiaries in Indonesia,

as well as other CIMB Niaga companies, through raised

levelsofcollaborationattheregionallevel.

Several strategic initiatives implemented by CIMB

Niaga in2013 in linewiththeabovestrategies include

the development of high-margin products and services,

such as credit card products, personal loans, sharia pawn

broking (Rahn) andMikroLajumicrofinanceproducts.

Included in these strategic initiatives are products and

services offered by subsidiaries such as CIMB Niaga

AutoFinance(CNAF),includingMotorLaju.Meanwhile,

toincreaseCASA,CIMBNiagaispromotinge-Channels

suchasCIMBClicksforinternetbankingandGoMobile

formobilebankingservices.


2013 Strategic Focus Initiative

CIMB Niaga has applied strategic focus initiatives in each

ofitsbusinesssegments,coveringthefollowing:

• RetailBanking

The Retail Banking Unit (UPR) has continued to

develop a variety of products and to improve the

quality of its service. UPR is optimistic about the

performance of its credit products, in particular

mortgages and motor vehicle loans. In the credit

cardbusiness,UPRseeksconsolidationwithcurrent

products, implementing cross sales for card holders

andoverallencouragingthefrequencyofcarduse.

• CommercialBanking

Considering domestic demand which is forecasted to

remain strong, supporting Indonesia’s economy, the

commercialbankingmarket,whichincludesHighEnd

Commercial,MiddleCommercial(SMECommercial)

and Micro Finance, is expected to expand, with the

industrialsectorbecomingthebackbone,inaddition

to trade, agriculture, property, manufacturing,

infrastructure and tourism.

• CorporateBanking

The Corporate Banking segment is working to

increase transactional business volume through

cash management services, export import funding

and treasury. The target market is predominantly

customers requiring investment banking services

(syndication, advisory and capitalmarkets), aswell

as large corporations also operating at a regional

level. Corporate Banking is also leveraging synergies

betweenbusinessunits.

• ShariaBanking

In improvingtheShariaBusinessUnit (UUS),CIMB

Niaga continues to develop the application of

the dual banking concept through a dual banking

leveragemodel(DBLM)initsbusinessunits,support

and operations, including all CIMB Niaga branch

offices. In cooperation with Human Resources

andLearningandTalentDevelopment,CIMBNiaga

Shariaisimprovingtheabilityofallitsemployeesto

understandtheshariabankingproductsandservices

beingoffered. Focus isbeingappliedto improving

employee capabilities to cross sell CIMB Niaga’s

products and services effectively.

CIMBNiagacontinuestodevelopitsbrandimageand

shariabankingbusinessthrougheffectivemarketing

strategies, including joint promotion programs,

product bundling and financing product sales, third

party funding and other services, providing these

services through its Sharia Branch Offices (KCS)

networkandshariaserviceofficeschanneling(OC)in

CIMB Niaga offices across Indonesia.

• TransactionBanking

Transaction Banking is focused on innovations and

packaging of cash management and trade finance

services throughout theCompany’s business chain

by creating solutions to connect corporate and

commercial clients to suppliers, distributors and

employees through distribution networks of their

own choosing.

• PrivateBanking

CIMB Niaga Private Banking is a pioneer in the

private banking sector in Indonesia. Our extensive

experience has won us the trust of high net worth

individualclientswhorequireproductsandservices

that meet their financial needs and support their

investments.

In addition to the strategic focus on the provision of credit

andotherbankingservicesdescribedabove,CIMBNiaga

is also preparing to implement strategic actions related

to funding, the expansion of branches and networks,

treasury and capital markets, risk management, and

othermattersrelatedtobankingoperations.

REALIZED DISBuRSED CREDIT By SEGMEnT (FS6)

CIMB Niaga’s credit disbursement strategies focus

on the commercial, retail, corporate and sharia

segments. Through the provision of credit to these

principal segments, CIMB Niaga played an active role

in developing Indonesia’s economy by providing the

necessary banking services. As of end 2013, CIMB

Niaga had disbursed funds to corporate and individual

clients with the total value of outstanding loans reaching

Rp157.0trillion,representingan increaseof8.0%over

theRp145.4trillionin2012.


AdescriptionofCIMBNiaga’screditdisbursementaccordingtosegmentasofDecember2013canbeseenfromthe

following date.

Total Credit by Segment

Realized Disbursed Credit by Segment

2011 2012 2013 Changes (%)

Rp trillion Rp trillion Rp trillion 2011 - 2012 2012 - 2013

Corporate 39.8 43.5 43.9 9.4 0.9

Commercial 24.5 30.3 34.1 23.7 12.6

SMME 22.7 27.5 31.1 20.7 13.1

Consumer 38.7 44.1 47.9 14.0 8.6

Total 125.7 145.4 157.0 15.7 8.0

These efforts were focused on providing substantial

marginsfrombankingservicesandallowingCIMBNiaga

todevelop itsbusinessthroughfunddisbursement,as

well as expansion of its operating area with the opening

of new bank branches and the increased reach of its

informationtechnology-basedservicenetwork.

As a result, the bank’s net profit has increased over

the last few years, including in the 2013 reporting year,

inwhich net profit after taxwas recorded at Rp4,296

billion.

In 2013,CIMBNiaga also distributed interest revenue

to the owners of leased property, fees for the operating

systembeingusedand similar, fromoperational costs

amountingtoRp6,495billion. Inaddition,CIMBNiaga

distributed revenue to its employees, with salaries

amounting to Rp3,229 billion; tax payments to the

State totalling Rp1,536 billion and set aside funds for

communitydevelopment(CSR)totallingRp18.749billion

(asacomparison,in2012CSRfundingtotalledRp15.216

billion).

Distributed Economic Values [G4-EC1]

InMillionsofRupiah

Achieved Economic Value 2011 2012 2013

TotalOperatingRevenues-BeforeTax 10,399,614 12,940,184 13,564,454

DistributedEconomic

OperatingExpenses (5,230,507) (6,056,466) (6,495,003)

EmployeeSalariesandOtherBenefits (2,228,000) (2,881,704) (3,229,054)

Dividends 199,796 No dividend were paid No dividend were paid

TaxExpenses (1,214,822) (1,537,066) (1,535,866)

CorporateSocialResponsibility 13,396 15,216 18,749

AdescriptionofCIMBNiaga’sbankingportfolioaccording

tocreditactivitycanbeseeninthefollowingpiechart:

SMME : 19.8%

Corporate: 28.0%

Consumer : 30.5%

Commercial : 21.7%

Total Credit by Segment

CIMB Niaga also implemented various follow up

strategies to improve operational efficiency, protect

credit asset quality, access low-cost funding, improve

customerserviceswiththeopeningofnewbranchesand

the extension of its electronic services network, develop

newproductsandenrichthefeaturesofcurrentbanking

productstobettermeettheneedsofcustomers.


COnTRIBuTIOnS TO STATE REVEnuES

Throughitsbankingactivitiesin2013,CIMBNiagamade

directandindirectcontributionstoStaterevenues.As

showninTableEC1,CIMBNiagacontributeddirectlyto

State revenueswith the payment of Corporate Tax of

Rp1.536billioninthe2013reportingyear,aslightfallof

0.1%onthepreviousyear.

CIMB Niaga also paid taxes on several of its investment

activities, including the supply of goods to support

operations and other physical investments.

Inadditiontothesedirecttaxcontributions,CIMBNiaga

also contributed indirectly by supporting increased

economic activity through the provision of credit that

facilitatedbusinessdevelopment.Thisincreasedactivity

generated additional income, which in turn increased

taxespaidtotheState.

IMPROVInG SMALL-SCALE ECOnOMIC

PERFORMAnCE [G4-FS7]

CIMB Niaga also plays a significant role in expanding

theeconomicperformanceofthesmall-scalebusiness

sector by providing banking products designed to

assist micro- and small-scale entrepreneurs through its

MikroLaju business unit. In addition to theMikroLaju

businessunit,forthelastseveralyears,CIMBNiagahas

alsointroducedanumberofShariabankingproductsto

support the economic activities of small- to medium-scale

businesseswhowouldliketodeveloptheirbusinessin

accordance with religious principles.

Asofend2013,therewere350MikroLajuunitsacross

Indonesia with total credit disbursed up from Rp2.1

trilliontoRp2.4trillion.Thenumberofmicroandsmall

businesses receiving credit fromMikro Laju units had

also risen to in excess of 16,000 customers (in the

2012 reporting year, there were 14,000 Mikro Laju

customers).

Todevelopsustainablerelationshipswithitscustomers,

MikroLaju ranaprogramentitled“UMKMCIMBNiaga

Academy” (UMKMmeans small,mediumenterprises,

orSME),offeringpracticalbusinesstrainingforselected

customers to improve their knowledgeandabilitiesas

SME entrepreneurs to make their businesses more

profitableinasustainablemanner.

The Sharia Business Unit (UUS) in 2013 saw a 13%

reduction in total outstanding sharia-based funding

from Rp7.68 trillion as of end 2012 to Rp6.68 trillion

in 2013. CIMB Niaga implemented many financial

services programs and micro-, small- and medium-scale

business empowerment programs in 2013 with the

support of experienced experts competent in developing

entrepreneurs, who are expected to contribute to

Indonesia’s economic development. From this sector,

CIMB Niaga identified the opportunity to increase future

transactionsbringingmutualbenefittobothparties.

SuPPORTInG SuSTAInABLE BuSInESS GROWTh

[G4-FS7]

CIMBNiagabelievesthatoverthelongterm,byfostering

direct relationships with its customers and with potential

clients, itwillestablishstrong ties thatwillensure the

ongoingsustainabilityofitsbusiness.Thus,inorderto

increase the number of its customers and to provide

earlybankingeducationandtoestablishdeeply rooted

ties, CIMB Niaga has developed a range of attractively

packaged banking programs and products to attract

potential clients.

Junior Savings

TheCIMB Junior SavingsAccount has been designed

toencouragethehabitofsavingfromanearlyageand

wasdesignedforchildrenbelowtheageof18.Withthis

product, account holders are not charged administrative

fees and the required initial deposit is relatively small.

Accountholdersalsoreceiveattractivelydesigneddebit

cardsthatarenotsubjecttocardfees,aswellasdaily

interest. TheCIMBJuniordebit card canbeused for

commercial banking transactions, such as to make

payments and withdraw funds.

Asofend2013,therewere625,000CIMBNiagaJunior

accountholders(2012:613,000)andthistotalisexpected

to grow as more children make use of this product to

save for the future.

Since June 2011, the CIMB Niaga Junior Savings

accounts have been included in the CSR program

“Let’sSaveandShare”. Thisprogramtargetshelping

disadvantaged children to improve their level of education

and have the chance for a higher education. CIMB Niaga

has implemented these activities in Kupang, Jakarta,

Bandung, Semarang, Yogyakarta, Surabaya, Malang,

Medan, Banjarmasin, Makassar and Batam.


Anotherprogramaimedatstimulatinganinterestinsaving

while doing good deeds for others is Kit for Kids. This

program is aimed specifically at young school children,

up to elementary school age, and incorporates CIMB

Niaga making visits to elementary schools to provide

studentswithanunderstandingofthebenefitsofsaving

and caring for each other. The students are invited to

play video games such asRunBankingRun,which is

partofthee-FinancialLiteracyProgramimplementation,

toactrolesinMiniBankingRolePlayandtoplanttrees

to instill a sense of care for the environment and people

who need help.

To encourage participation, the children are given a Kit

forKidspackagethatincludesvegetableseeds,suchas

spinachandChinesecabbage,aswellaswatertowater

theirplants.Thephilosophybehindplantingandcaring

for plants also applies to saving. To ensure that the trees

andplantsgrowhealthily,thechildrenmustbediligent

in paying attention, maintaining and caring for what they

have planted. They have to apply the same principles

iftheywanttobeinastrongfinancialposition,namely

save diligently to increase the value of their savings.

In 2013, CIMB Niaga chose Kupang as the location for the launch of its Let’s Save and Share (AMDB) 2013 Program as part of its commitment to promote eastern Indonesia. The event took place on Wednesday, 6 February 2013 at Naikoten 1 elementary school in Kupang. The Event conduct in supporting of Bank Indonesia activities, which encourages Indonesia’s citizens to save enthusiastically.

The AMDB 2013 launch program took the form of an education seminar themed “Recognizing Potential and Limitations in Children” led by Drs. Benekditus Labre M, Psi, Lecturer of the Teaching and Education Faculty at Nusa Cendana University Kupang, and attended by 80

students’ parents. The interactive seminar was presented professionally, encouraging participants to ask questions, and also provided a counseling session.

The program ended with tree planting to symbolize the launch of the 2013 AMDB program. A tree was symbolically planted by L. WulanTumbelaka (Compliance, Corporate Affairs and Legal Director), Drs. Benekditus Labre M, Psi (Lecturer of the Teaching and Education Faculty at Nusa Cendana University Kupang), Fince Lairihi (Deputy Assistant Manager KBI Kupang), Anfrida Mira, S. Pd (Principal, Naikoten 1 Elementary School Kupang) and Laiya Wolu (Head of Curriculum and Testing in Elementary Education at the Education and Culture Ministry).

LAunChInG ThE “LET’S ShARE AnD SAVE” 2013 PROGRAM

“It doesn’t have to be perfect to share to others”


CIMB Preferred, Private Banking and Wealth

Management (PPWM)

ThroughtheCIMBPreferred,PrivateBankingandWealth

Management(PPWM)unit,CIMBNiagahascontributed

tothedevelopmentofthenationaleconomybyproviding

services that satisfy the financial and investment needs

of individual clients from the middle classes (upper mass

affluent)andofhighnetworthindividualsthroughCIMB

Niaga Private Banking. These banking services were

designed to provide facilities that meet the needs of

upper middle income groups within the community, with

thenumbersofthisgroupgrowingrapidlyinproportion

to the growth of the Indonesian economy.

Remittance Facilities for Indonesian Workers

Overseas [G4-FS13]

CIMB Niaga also pays attention to meeting the financial

needs of lower income members of the community

whoareworkingabroad. Throughremittanceservices

for Indonesian Workers Abroad (TKI), CIMB Niaga

contributes to the development of rural communities

or small towns where most TKI come from. These

remittancefacilitiesareofferedtoenableTKItoeasily,

quicklyandsafelysendtheirearningstotheirfamily in

Indonesiaatacompetitiveandaffordablecost.

This facility was first opened in Hong Kong in the 1980s

by CIMB Niaga, which at the time was named Bank

Niaga, through its subsidiary Niaga Finance Company.

CurrentlythisservicehasbeenextendedtotheMiddle

EastandAsiaPacific region to reachmorecustomers.

Toachievethis,CIMBNiagacooperateswithanumber

of large banks, such as CIMB Bank, CIMB Islamic

Bank and The National Commercial Bank, as well as

leading multinational money transfer companies such

asMoneyGram andWesternUnion,while to increase

thereachofitsdistributionnetworkinIndonesia,CIMB

Niagaiscooperatingwithalocalpartner,namelyPTPos

Indonesia.

In 2013, there were 424,000 transactions recorded

(2012: 313,000) remitting funds from Malaysia, Hong

Kong,America,UEA,Bahrainandothercountries.

ConsideringIndonesia’slargepopulation,butlownumber

of people who are aware of and familiar with using

banking services, CIMB Niaga continues its efforts to

increasebusinessandexpanditsnetworkbyparticipating

in efforts to strengthen public awareness of banking

services, while taking part in national development.

DatareleasedbyPerbanasattheendof2012showed

that approximately 120 million Indonesians still did not

usemodernbankingservices.Thisisironicalconsidering

thatthelevelofcapitalizationoftheIndonesianeconomy

is amongst the highest of ASEAN nations. This also

demonstratesthesizeoftheopportunityforthebanking

sector in general, and CIMB Niaga in particular, to develop

and expand in line with the growth of the Indonesian

economy into the future.



Extreme weather impacted areas across the Earth, including Indonesia, demonstrating that nature is almost no longer able to tolerate the causes of climate change. One cause of extreme weather is human activity, such as industrial activity, transportation, even household activities. For this reason, CIMB Niaga believes the main challenge facing humankind at present is improving the current condition of the environment and following this by living in harmony with the environment around us.

In CIMB Niaga’s understanding, while banking operations do not have a significant impact

on climate change compared to other sectors, such as mining, agriculture, manufacturing

and such like, as a business in the banking sector, CIMB Niaga can and must contribute

significantly through its credit provision policies.

Considering CIMB Niaga’s strong commitment to environmental conservation and complete

commitment to join with the global community in facing these challenges, CIMB Niaga

applies credit provision policies and operational policies that are environmentally friendly

to help mitigate risk to the environment.

CIMB Niaga implements a credit assessment policy that considers environmental risk

mitigation. With the enactment of this policy, CIMB Niaga prevents all its employees from

disbursing funds to third parties/customers/end users, who do not have the appropriate

official permits or do not meet standards and guidelines set by the Government related to

emissions and environmental management. To ensure its implementation, CIMB Niaga

always visits and carefully inspects the site to be assured customers and potential customers

have the required qualifications and have implemented basic environment-related risk

mitigation activities in their operations.

aCTIve ParTICIPaTIoN IN CoNServING The eNvIroNMeNT


CIMB Niaga Gardening at the CIMB Niaga Gunung Geulis

Learning Center, Bogor


CIMBNiaga’scarefor theenvironment isalsorealized

through various beneficial and healthy activities

run by its employees. CIMB Niaga has initiated

environmentally friendly activities, as well as sponsoring

a number of activities targeting community education

and the implementation of healthy lifestyles and an

environmentally friendly attitude. CIMB Niaga also

makes every effort to educate the public about the

importance of conserving nature for our lives now and

thoseof futuregenerations. In addition to the above,

CIMB Niaga is, of course, committed to the environment

in the manner in which it runs its operational activities.

An Environmentally Friendly Bank

CIMB Niaga is determined to run its financial

intermediationbusiness,collectinganddistributingfunds,

withattentiontotheenvironment.Fundsaredistributed

selectively, paying special attention to environmental

aspects. CIMB Niaga carefully observes legislative

provisions in Law No. 10/1998 on Banking and Bank

Indonesia’s regulation issued in 2004, which mandates

that one of the criteria in assessing credit applications

is environmental conservation, and uses these as input

and guidance to safeguard the environment.

CIMB Niaga is determined to support the completion,

design and promotion of Green Banking principles in

Indonesian banking operations. CIMB Niaga believes

that the application of Green Banking in Indonesia

should not only accommodate international standards

andguidelines,butalsopoliciesissuedbytheNational

Indonesian Council for Climate Change, the United

Nations Framework Convention on Climate Change

(UNFCCC), the United Nations Environment Program

(UNEP),andtheEquatorPrinciples(EP).

EquatorPrinciplesarecreditriskmanagementstandards

applied to analyze infrastructure development projects

and large-scale industrial projects with a value greater

than USD10 million. The term ‘equator’ was chosen

to reflect the principle that the standards may be

implemented by entities in both the northern and

southern hemispheres. The 10 defined principles were

established in 2003 following International Finance

Corporation (IFC) performance standards related to

communitysustainabilityandtheenvironmentandWorld

Bank guidelines related to the environment, health and

security.

Financial institutions applying these standards do not

issuecredit todebtorsunable toapply theappropriate

environmental risk mitigation standards. Currently, 73

financial institutions in 27 countries officially implement

EP.

The Indonesian Government fully supports steps to

reducecarbonemissions,asdemonstratedinastatement

madebyPresidentSusiloBambangYudhoyonothatthe

Governmentplannedtoreduceemissionsby26%from

currentlevelsby2020.

CIMBNiaga, as one of the leading private bankswith

a strong commitment to environmental conservation

efforts, is striving to fully support the Indonesian

Governmentrealizeitseffortstoreduceemissions.CIMB

Niaga continually monitors and actively participates in

theformulationoftheGreenBankingconcepttoensure

that its operational activities involving the environment

are genuinely conducted in accordance with globally

accepted policies and procedures.

Environmentally Friendly Operations

As a manifestation of its concern for environmental

conservation, CIMB Niaga implements environmentally

friendly operations, as well as various programs for the

care of the environment. The environmentally friendly

operational activities include the following.

Environmentally Friendly Credit Policy

[G4-FS8]

CIMB Niaga applies a credit policy that insists on

prioritizing environmental conservation efforts. In the

assessment process for investment loans, working

capital or banking services requested by prospective

commercial customers involved in manufacturing-

based processing, agriculture, mining or large-scale

infrastructure,CIMBNiagarequiresthesecompaniesto

implement environmental risk mitigation policies.

One of the principal criteria used in the assessment

of a debtor’s business prospects is the extent of the

measures implemented by the debtor to manage

environmental issues, particularly in the case of large-

scaledebtorswhoseoperationsmayhaveasignificant

impact on the environment. These policies are in

accordancewith theClarificationofArticle8, LawNo.


7/1992 concerning Banking, as revised by Law No.

10/1998, which states that credit should be provided

on the basis of consideration of an Environmental

Impact Analysis (EIA/AMDAL), particularly in the case

ofapplicationsby large-scalecompaniesor thosewith

highriskfactors.TheobligationtoprepareanEIAisalso

stipulatedinLawNo.23/1997concerningEnvironmental

Management,andGovernmentRegulationNo.27/1999

concerningEnvironmentalImpactAnalyses.

BusinessactivitiesconductedwithoutanEIAcanhave

a significant negative impact in later days. The lack of

an EIA demonstrates the debtor’s lack of satisfactory

environmental management planning, indicating that the

debtormaybeunawareofthepotentialenvironmental

impact of their activities. This can have an impact on

the sustainability of the business operations due to

environmentalproblemsandcausetheforcedcessation

of thedebtor’s companyactivities, affecting theability

of thedebtor to repaythe loan. Clearly, this is reason

enoughforCIMBNiagatorequireprospectivedebtors/

customerstoincludetheEIAwiththeircreditproposal.

The CIMB Niaga policies supporting environmental

management are contained in detail in the Cost

Efficiency(EFI)policy.TheEFIpolicyalsocontainsthe

GreenOfficepolicies,whicharepartoftheCompany’s

plantobecomepartoftheGreenBankingIndustryinthe

future,inlinewiththeGoGreenprogrammandatedby

Bank Indonesia.

Smart Spending Policy [G4-En6, G4-En19]

CIMBNiagaimplementsaSmartSpendingPolicy,which

is intended to improve efficiency through the application

of environmentally friendly policies that also result in

costreductions.Thesepoliciesrequirethatinbusiness

operations, the use of fuel, electricity and paper must

be significantly reduced. Several examples of the

application of these policies follow.

a. car rental,

The Company implements a policy for the rental

of small-enginemotor vehicles that are capable of

carryingalargenumberofpassengersandwhichare

no more than four years old. The target of this policy

is the reduction of gas emissions, the reduction of

thenumberofmotorvehiclesrequiredforoperational

purposes and the reduction of transportation costs.

b. standardizedpapermeasurements,

The Company requires all employees to maximize

the use of both sides of paper. The target of this

policy is that, in addition to savings, waste paper is

reduced,while facilitatingwaste collection by third

party recyclers.

c. promoting e-statements,

The Company applies a policy for which, as far as

possible,all reportstocustomers(account,savings

and credit card statements) are electronically

transmittedviae-statement(paperless).Thetarget

of this policy is to reduce the use of paper and reduce

delivery costs, which further impacts on reducing

vehicle emissions in the delivery process.

d. authorized use of electricity outside office hours

and restricting use to a maximum of two hours

after official office hours. Any overtime must be

authorizedbyaGroupHeadorAreaManager.This

policy targets controlling electricity use.

e. electricity savings.

The Company applies a policy to save electricity

throughreducedconsumptionbyusingenergysaving

lightbulbs,zoningandthepositioningoflightsources,

as well as air conditioning load during overtime. This

policy targets a reduction in emissions, effective

office hours, reduced overtime, the impact of which

reduces electricity usage.

Green Office Policy

CIMB Niaga has formulated and implemented Green

Office policies as an integral part of the Company’s

plan to becomepart of theGreenBanking Industry in

thefuture.TheGreenOfficepoliciesarepartoftheEFI

policy. The Smart Spending policies described above

stronglysupport theseGreenOfficepolicies, thusalso

supporttherealizationoftheEFIpolicy.

The ultimate goal of the Green Office program is to

enhance the Company’s productivity and maintain

stakeholders care toward environmental conservation.

GreenOfficepoliciesare:

• CIMBNiaga’scarefortheenvironment,

• efforts to increase work productivity and Smart

Spendingefficiencies,

• effortstoeducateemployeestoactivelyparticipate

in maintaining the environment at work and at home

with unique, beneficial and sustainable company

strategies.

• effortstoimproveCIMBNiaga’sbrandimageinthe

eyesofthepublic.


GreenOfficepoliciesconsistof3(three)mainactivities,

asillustratedbelow.

• RecycleProgram

o Cooperating with third parties to manage office

waste in the form of paper, organic and non-

organic waste for recycling.

o Organicwastemanagement to create compost

forthebank’suseandforsale.

o This program is implemented across the

head office and branch offices network and

implemented in stages.

• LessPaperOfficeProgram

o Theoptimaluseofmultifunctionprinters(MFP)

for direct scanning, facsimiles and e-mail without

requiringdocumentstobeprinted/copied.

o Units/groupsusingMFParerequiredtoreturnor

re-allocate their conventional photocopiers, fax

machines, scanners and printers to other users,

with the exception of the printer in the Group

Head’s office.

o Gradualimplementationofe-statements/e-billing.

Starting with internal use, until all reports or

statements to customers are sent in e-statement

form.

o Optimaluseofusedpapertoprintdocumentsor

photocopy internal documents.

o Optimizing the use of scanners, e-mail and the

Company’s internalwebsite, thus removing the

needtoprintbrochures,news/companymagazine

and other internal employee communications.

o Printing on both sides of paper if the printer

function facilitates this.

o Printing using draft quality instead of normal

qualitytoreducetheuseofprintertoner.

• EnergySavingProgram[G4-En6]

o Turningoffelectricalequipment/lightsnotbeing

used out of official office hours.

o Use of energy saving features for all electrical

equipment/computers with such features, e.g.

screen savers or power save mode on computers,

LCD,projectors,AC,etc.

o Useofenergyefficientvehicles.

o Useofteleconferencingandvideoconferencing

to facilitate meetings with long distance

participants.

CIMBNiagadoesnothave,atthistime,anyquantitative

data on the direct impact of the Green Office and

Smart Spending Policies with regard to the amount

of electricity, vehicle fuel and paper saved. However,

related operational costs have fallen significantly since

these policies were implemented.

Promoting Green Banking

CIMB Niaga has designed banners, posters and an

e-mail campaign targeting all levels of employees to

comply with and implement the environmentally friendly

operationspolicy initiatives.Severalof thesecampaign

methodsaredetailedbelow.


CIMBNiagahasorganizedvariousactivitiesrunacrossallCIMBNiagaworkunits,themed“ConscientiousConsumption,

CostSavings”,thepurposeofwhichistocampaignforenvironmentallyfriendlybankingoperationpolicies.Aspart

oftheGreenBankingpolicyimplementation,CIMBNiagaistargetingreducedelectricityuseinofficesandbranches,

savingsinpaperuse,paperrecyclingsupport,useofbusesanduseofteleconferenceandvideoconferencefacilities

for meetings so employees have no need to travel to the meeting place.

Environmental Conservation through CSR Programs

CIMB Niaga demonstrates its full commitment to environmental conservation through a variety of community activities.

ThisisemphasizedthroughtheCSRprogramimplementationstrategy,whichisbuiltontheconcept“inlinewithrapid

globalpopulationgrowth,CIMBNiagaandallitsemployeeswillparticipateinmaintainingandconservingthenatural

resourcesandenvironmentthatbelongtousall.”

Activitiesundertakenarevaried,fromplantingbamboo,toenvironmentalcare/greeningeducation,gardeningandthe

CIMBNiagaCaresfortheEnvironmentProgram.


BOOSTInG ThE EnVIROnMEnTAL AWAREnESS PROGRAM

The launch of the 2013 CIMB Niaga Cares for the Environment program started with a Joint Tree Planting program in Pesanggrahan, Sangga Buana, Lebak Bulus, South Jakarta on 20 April 2013. This event also launched the CIMB Niaga Peduli Community.

The CIMB Niaga Cares for the Environment program also featured a photo competition with the topic “Rivers for Life” and a blog competition themed “Let’s Save Trees!” These programs invited the public to contribute to the environment by donating funds through the CIMB Niaga Cares for the Environment account. CIMB Niaga demonstrated its commitment

to the program by donating one seed of tree for every Junior Savings or MySavings account opened in the 22 April to 30 June 2013 period.

During this period, a total of 27,685 Junior Savings and MySavings accounts were opened and thus CIMB Niaga donated that number of seed of trees. The tree planting was conducted in cooperation with the Biodiversity (Kehati) Foundation at the Sangga Buana City Park Forest and at Kehati Park in Belitung.

Funds donated through the CIMB Niaga Cares for the Environment account totaled Rp93 million, thus aid from CIMB Niaga Cares for the Environment totaled to Rp593 million.

One way CIMB Niaga manifested its care for the environment was through a bamboo planting program in Gianyar, Bali. This was one in a series of events in a program to plant 10,000 bamboo plants implemented in West Java and Bali.

The bamboo planting in Gianyar coincided with the first bamboo harvest, the seedlings for which

were planted 2.5 years ago by bamboo farmers. This activity was undertaken with cooperation b e t w e e n C I M B N i a g a , t h e Biodiversity (Kehati) Foundation, Udayana University and the Gianyar regency government, with the aim of sustaining the ecology of the environment. In addition, the bamboo farmers benefit economically as they can

PLAnTInG BAMBOO In GIAnyAR, BALI

process the bamboo and sell it for a higher price.

CIMB Niaga expects this program will promote the benefits of the economic planting of bamboo for environmental balance and to increase community welfare.


Environmental damage resulting from careless and irresponsible discarding of trash and waste has reduced the quality of towns and cities aesthetically, reduced the extent of green areas and public spaces, in particular play areas for children, as well as threatening a future food source crisis. These are a group of problems that we need to resolve together. The smallest steps we take to resolve these issues, to act and take action are steps for the good and demonstrate our concern for the environmental issues surrounding us.

Based on these problems, CIMB Niaga took the initiative to implement an environmental act ion t i t led

“CIMB Niaga Goes Gardening”, which took place on Saturday, 7 December 2013 at the CIMB Niaga Learning Center at Gunung Geulis, Bogor. This activity is a manifestation of CIMB Niaga’s continued love and care for the Indonesian environment.

The program opened with a greeting from L. Wulan Tumbelaka, Compliance, Corporate Affairs and Legal Director of CIMB Niaga and continued with a workshop presenting gardening-related materials presented by Ida Amal from the Indonesian Gardening Community. On the completion of the workshop, the 85 participants, consis t ing of the Company’s

CIMB nIAGA GOES GARDEnInG

employees and the Indonesian Gardening Community, headed down to an empty plot of land to plant various vegetables, including chili, tomatoes, water spinach, etc. The harvested vegetables will be used by the local community in the vicinity of CIMB Niaga’s Gunung Geulis Learning Center.



Improving competencies in communities to allow them to become more independent is the most beneficial commitment provided by the presence of CIMB Niaga. The Bank hopes that this commitment can be shaped through the CIMB Niaga Peduli education program, care for the environment and improvements to social conditions.

The most recent data from the Central Office of Statistics (BPS) shows that per capita Gross

Domestic Product in 2013 amounted to Rp 36.5 million. This is an increase of 8.8% compared

to per capita GDP in 2012 of Rp 33.5 million. The Indonesian economy in 2013 grew 5.78%,

despite the continuing unfavorable global and national economies. Meanwhile, Indonesia’s

sociopolitical situation remained stable and under control, as it has for the last few years.

However, this stability and economic growth has not been able to reduce the poverty rate,

which has held steady at approximately 11.37% in 2012 and 11.47% in 2013. This means

that in 2013, approximately 27.5 million Indonesians (from a total population of 240 million),

were still classified as living under the poverty line. This data shows there is still a large

poverty gap.

CIMB NIaGa CareS[G4-EC7]


Sharing the joy with Child Victims of the Sinabung Volcanic Eruption, North

Sumatera.


As we all know, Indonesia has, in fact, been blessed

with a rich variety of natural resources, as well as a large

population and workforce. However, maximum use

of Indonesia’s potential natural resources continues to

hittheclassicobstaclesfoundindevelopingcountries,

namelylowskilllevelsinitshumanresourcescausedby

anunevenlevelofeducationavailableacrossthecountry.

Other obstacles include poor basic infrastructure and

regulatory framework, which in turn impact negatively

on Indonesia’s ability to provide optimum formal

employmenttooptimizethesepotentials.Theavailability

of basic infrastructure and a regulatory framework are

important in increasing the value of Indonesia’s natural

resourcesandenablingittocompeteasitshouldinthe

international goods and services markets.

CIMB Niaga seeks to overcome these obstacles

to development potential through its Social and

Environmental Responsibility programs, also known

as Corporate Social Responsibility (CSR), focused on

strengthening education programs, improving the

socioeconomic quality of community lives and raising

awareness of the need for environmental conservation.

The education program is focused predominantly from

elementary school to vocational training on creating a

young generation that has mastered various disciplines

and can apply these to many aspects of life. To CIMB

Niaga,educationistheprimarykeytobreakingthecycle

of poverty. With the skills learned througheducation,

CIMBNiagabelievesthatIndonesiancitizens,whotoday

aredisadvantaged,willbeabletoresolvethedifficulties

and challenges they face in life.

With the successes achieved to become one of the

foremost companies in the financial sector, CIMB Niaga

recognizesthat itsresponsibilitieshavealso increased.

To that end, CIMB Niaga is determined to continue to

disburse sustainable assistance to Indonesian citizens

who are disadvantaged either in their education or

empowerment. The goal is purely to create a better

qualityoflifeforpeople.

The challenging conditions in 2013 were a trigger to add

andimprovethequalityofcommunityactivities.CIMB

Niagahopes that through itspresence, it isable tobe

increasinglybeneficialinsupportingthedevelopmentof

independence in communities, particularly supporting

the marginalized to overcome obstacles to their skill

levels and to improve their welfare.

CIMB Niaga believes that the community programs it

implements must support the principle of improving skills

for all kinds of people. This will ensure that the country’s

potentialcanbeoptimizedtoincreasetheprosperityof

the whole nation.

CSR IMPLEMEnTATIOn STRATEGIES

CIMBNiagaconsistentlyimplementsitsCSRprograms

withafocuson4(four)mainareasofactivity,thesebeing

education, community development and empowerment,

humanitarian assistance and environmental management.

Our goal is to improve skills, assist in the provision

of facilities that could create business opportunities

and trigger mutual awareness of the importance of

environmental management, thus creating sustainable

national development for overall prosperity.

InimplementingitsCSRactivities,CIMBNiagaprioritizes

programs that benefit disadvantagedmembers of the

community,enablingthemtoriseoutofpoverty.With

this focus, CIMB Niaga wishes to ensure other interests

with the potential to reduce the effectiveness of these

programsdonotarise.Asanationalbankrepresenting

theinterestsofalargenumberofindividualsandwidely

ranging industrial sectors, in the implementation of its

CSRprograms,CIMBNiagamaintainsastrictlyneutral

stance in the implementation of community activities

thatmaybe influencedbypoliticalpartiesor interests.

To this end, CIMB Niaga carefully monitors and assesses

theaccountabilityofitsCSRprogramsfromtheplanning

stage through to post-implementation.

The4principlefociofCIMBNiaga’sCSRprogramsare:

• education and character building (for youths,

businessesandabrighterfuture);

• community (through empowerment and increased

independence);

• humanitarian aid (assisting victims of disaster,

misfortuneandotherdifficulties);and

• environment (in line with the rapidly expanding

globalpopulation,CIMBNiagahastheresponsibility

to participate in maintaining and managing the

environment and natural resources that we own

together).


EDuCATIOn PROGRAM

Aspreviouslymentioned, improving skill is one of the

mainwaystobreakthechainofpoverty indeveloping

countries. Education is an investment for a better

future. Therefore, inrealizing itseducation-basedCSR

programs, CIMB Niaga has pioneered the provision of

scholarships from an early age through a variety of its

smartly designed and attractive programs. The target

istoestablishgoodstudyhabitsatayoungage,while

developing the characters of these young Indonesians to

takeresponsibilityforthefuture.

CIMB Niaga’s education programs include scholarship

programs,PublicEducation inBanking,aSchool-based

Management program and the Let’s Save and Share

program. Several of these corporate responsibility

programsareexplainedbelow.

Scholarship Program–supportingimprovedacademic

competence in young generation.

The CIMB Niaga Scholarship Program is the largest

program and is implemented at all educational levels.

Everyyear,CIMBNiagaofferseducationscholarshipsto

HighSchool(SMA)students,whoarefromdisadvantaged

backgrounds but who have good academic or non-

academic achievements, so they can continue their

education to Bachelor degree level. CIMB Niaga also

provides the opportunity for scholarship recipients to

continue their education toMaster orDoctorate level,

bothinIndonesiaandoverseas.

Asof theendof2013,CIMBNiagahaddesignedand

managed 8 (eight) scholarship programs: CIMB Niaga

Outstanding Achievements Scholarship (BU), CIMB

NiagaOverseasScholarship,KhazanahAsiaScholarship,

CIMBNiagaUniversityofIndonesiaEconomicsFaculty

Scholarship (FE-UI), CIMB Niaga Creative Industry

Technologies (BUTIK) Scholarship, CIMB Niaga

Sampoerna Academy Scholarship, CIMB Niaga KKI

ScholarshipandCIMBNiagaIKOPINScholarship.

On 31 January 2013, CIMB Niaga witnessed the graduation of 53 recipients of CIMB Niaga scholarships, 48 of whom were graduates of the CIMB Niaga Outstanding Achievements Scholarship for the local bachelor degree program who had studied from 2008-2012, and five recipients of the CIMB Niaga Overseas bachelor degree Scholarship studying from 2008-2011. Therefore, as of 31 January 2012, CIMB Niaga scholarship programs had seen 121 successful graduates. In appreciation of their achievements and graduation, the management of CIMB Niaga proudly presented award certificates to these successful graduates.

To provide a golden opportunity for these CIMB Niaga scholarship recipients, this time the graduation event was held as a job fair and business parties and supporting CIMB Niaga business units were invited to hold employment interviews for the graduates. This event strengthened the graduates’ bond to CIMB Niaga and linked work programs and CIMB Niaga scholarships.

CIMB nIAGA SChOLARShIP GRADuATES, 2008-2012


CIMB niaga Outstanding Achievements Bachelor

(local) Scholarship Program

Firstimplementedin2006,theCIMBNiagaOutstanding

Achievements(BU)ScholarshipProgramisintendedto

benefithighachievinghighschoolorequivalentstudents

wishing to enroll in undergraduate programs at 11 state

universities in Indonesia (UI, IPB, ITB,UNPAD,UNDIP,

UGM,UNAIR,UB,ITS,USUandUNHAS).Thisprogram

is implemented in cooperation with the Indonesian

EducationandCultureMinistry.

At the end of 2013, this programwas benefiting 281

recipients,including30newrecipientsin2013.Ofthe

four first intakes of this program in 2006, 2007, 2008,

and2009,atotalof151havegraduatedwithabachelor

degree. In the 2013 reporting year, 130 university

students were still receiving scholarships through this

program.

CIMB niaga Overseas Scholarship Program

This program was first implemented in 2008 in cooperation

with CIMB Foundation. These scholarships target

high school, or equivalent, students with outstanding

academic achievements who wish to continue their

undergraduate education inMalaysia. As of the 2013

reporting year, CIMB Niaga had provided scholarships to

15peopletostudyattheUniversityofMalayaandThe

National University ofMalaysia, Kuala Lumpur. CIMB

Niaga and CIMB Foundation fully shoulder education

fees, health insurance, accommodation, cost of living,

books,computersandreturntripshome.

Khazanah Asia Masters (Overseas) Scholarship

Program

This scholarship program is offered in cooperation with

KhazanahFoundationandgiventoIndonesianstudents

with outstanding academic achievements wishing

to continue their education with a master degree in

Malaysia. Established in 2010, in the 2013 reporting

year, the program had accepted 10 students, three of

whom passed the selection process in 2013.

23-25 May 2013. CIMB Niaga once again took part in the Indonesia Banking Expo (IBEX) held at Jakarta Convention Center (JCC). CIMB Niaga’s active participation was not only though its Digital Lounge booth on the business side, but also a CIMB Niaga Peduli booth focused on the Corporate Social Responsibility (CSR) activities implemented by CIMB Niaga. At the CIMB Niaga Peduli booth, CIMB Niaga promoted its CIMB Niaga Outstanding Achievement Scholarships (BU CIMB Niaga), its CIMB Niaga Creative Industry Technologies Scholarship (BUTIK CIMB Niaga), and invited stakeholders to register their interest to become part of the CIMB Niaga Peduli Community.

Information on the scholarship programs managed by CIMB Niaga was attractively presented by recipients of BU CIMB Niaga to IBEX visitors. In addition, some of the excellent products produced by CIMB Niaga BUTIK recipients were presented, including the fashion product “Legal and Crime” by Ribka Pratiwi (a FISIP UI student), the “Rlnd” shoes of Rowland Asfales (a FSRD ITB student) and the “Lumas” cow’s milk shampoo made by Latifah Dini Archam (a Teknik Industri UB student).

PROMOTInG ThE Bu CIMB nIAGA AnD BuTIK CIMB nIAGA SChOLARShIP PROGRAMS

AT IBEX 2013


CIMB niaga Creative Industry Technologies (BuTIK)

Scholarship Program

This scholarship program is also known as the Young

Entrepreneurs’ScholarshipandisawardedtoIndonesian

students with an entrepreneurial soul. The program

has been running in cooperation with the Indonesian

Education andCultureMinistry since 2012. It targets

student entrepreneurs in at least their fifth semester at

universityandwhohavebeenactive inbusinessforat

least6(six)months.

Scholarshiprecipientsreceiveeducationalfees,costof

livingandsubsidizedbusinesscapital.CIMBNiagaalso

providesbusinesstrainingfromfinancialmanagementto

optimizingthepotentialofavailablehumanresources.

Asofend2013,therehadbeenatotalof30students

receiving the scholarship, with 15 each in 2012 and

2013. This scholarship program is expected to last for

two years.

CIMB niaga Sampoerna Academy Scholarship

Program

In cooperationwith thePuteraSampoerna Foundation

(PSF) since 2011, CIMB Niaga runs this scholarship

program for disadvantaged children with high academic

and non-academic potential to facilitate them completing

their education. At this time, scholarships have been

awarded to 25 students at SMAN 1 Bali Mandara,

SingarajainBali.

CIMB niaga-university of Indonesia Economics

Faculty Program

This program is dedicated to CIMB Niaga employees

with outstanding academic excellence wishing to

continue their university education at bachelor,master

or doctorate level. The scholarship program is run in

cooperation with the Economics Faculty at University

of Indonesia (FE-UI). Established in2009, in the2013

reportingyear21employeeshadbeenawarded these

scholarships, including 6 in 2013. In 2013, 7 completed

their education, 1 at bachelor level and 6 at master

level.

CIMB niaga KKI (SMK) Scholarship Program

This scholarship program is a new initiative and provided

for vocational highschool (SMK) students. Recipients

arechildrenofKoperasiKasihIndonesia(KKI)members

intheCilincing,NorthJakartaareasotheycanenrollin

SMK. In2013,CIMBNiagaprovided9scholarships in

the program’s first year.

CIMB niaga IKOPIn (3 year Vocational Diploma)

Scholarship Program

This scholarship program is a cooperative endeavor

with The Indonesian Cooperatives Institute (IKOPIN)

for3yearVocationalDiploma(DIII)students.Thisnew

initiativebenefitsDIIIstudentsandin2013,itsfirstyear,

six scholarships were awarded.

Events for CIMB niaga Scholarship Recipients

To strengthen the relationship and foster creativity in its

scholarship recipients, CIMB Niaga holds gatherings and

creative meeting forums. In these events, as well as

presenting art performances, creative products made

by recipients are also exhibited. These events are

expected to foster creativity, an entrepreneurial soul and

independence in scholarship recipients, who have a wide

rangeofeducationalbackgroundsandexperiences.

The whole series of educational programs provided

through these scholarships are expected to confirm the

testimonies of scholarship recipients that CIMB Niaga

supports and provides answers to all doubts about

continuing with a higher education at university.


CIMB nIAGA SChOLARShIP BEnEFICIARIES

no. Scholarship Program Sub Total Total

1 CIMB niaga Outstanding Achievement (undergraduate) 281

- Class of 2006 - 2010 26

- Class of 2007 - 2011 42

- Class of 2008 - 2012 48

- Class of 2009 - 2013 35

- Class of 2010 - 2014 40

- Class of 2011 - 2015 29

- Class of 2012 - 2016 31

- Class of 2013 - 2017 30

2 CIMB niaga Foundation Scholarship Program - Overseas (undergraduate)

15

- Class of 2008 - 2011 5

- Class of 2009 - 2012 2

- Class of 2010 - 2013 5

- Class of 2011 - 2014 3

3 Outstanding Achievement Creative Industries Technology (BuTIK) Scholarship

30

- Class of 2012 - 2015 15

- Class of 2013 - 2016 15

4 Khazanah Asia Scholarship (Post Graduate) 10

- Class of 2010 - 2012 1

- Class of 2011 - 2013 3

- Class of 2012 - 2014 3

- Class of 2013 - 2015 3

5 The university of Indonesia Faculty of Economics 21

-Classof2009-2011(PostGraduate:1) 1

-Classof2010-2012(Undergraduate:1,PostGraduate:4) 5




6 CIMB niaga Sampoerna Academy Scholarship (SeniorHighSchool)

25

7 CIMB niaga Koperasi Kasih Indonesia (KKI) Scholarship (VocationalHighSchool)

9

8 CIMB niaga Institut Koperasi Indonesia (IKOPIn) Scholarship (VocationalDiploma)

6

Total CIMB niaga Scholarship Beneficiaries 397


Public Education in Banking

Toimprovepublicknowledgeinallcornersofthecountry

and support the acceleration of financial inclusion in

Indonesia, CIMB Niaga holds a variety of activities to

educate the public in practical banking knowledge.

Severalexamplesfollow.

Tour de Bank

Tour de Bank is one public education program in

bankingthatinvitesyoungstudentsinkindergartenand

elementaryschooltovisitCIMBNiagabankbranchesor

supporting network facilities. The students are invited to

understandvariousimportantbankingfeatures,suchas

howtouseanautomatictellermachine(ATM),theduties

of tellers and customer service officers, and introducing

variousbankingproducts.

Electronic Banking Financial Literacy Program

This educational program, themed “Smart with CIMB

Niaga”takestheformofgamescontainingeducational

materialonbankingproductsandservices.Theprogram

wasrunfor5weeksthroughJanuaryandFebruary2013.

Itstargetsincluded:

• educating stakeholders about CIMB Niaga banking

services,specificallyinternetandmobilebanking;

• supportingtheimplementationofbranchlessbanking

through the provision of education on accessibility,

security, use, speed and accuracy in banking

transactions with CIMB Niaga, thus stakeholders

trusttheyareabletoaccessaddedvalue;

• creating integrated and interactive measurements

with more interesting programs (through social

media).

Let’s Go to the Bank Program

Thisprogram isaseriesofactivitiescreated to realize

Public Education in Banking as mandated by Bank

Indonesia.Activitiesimplementedinthecontextofthis

programinclude:

Visit by DIII uI Program Students

The purpose this visit is to share knowledge of functions

and matters related to the banking industry, such as

Treasury,RiskManagementandtheCIMBNiagaInternal

Audit.Inadditiontothisvisit,onadifferentoccasion,the

students and their lecturers visited to share knowledge

about the roleofShariaBankingandMicroFinance in

CIMBNiagabankingpractices.

Visit by FE-uI Students

The company visit by a group of students ismade to

learnmoreaboutCIMBNiagaMicroFinance.Thisisa

routine visitmadeeach semester by theUniversity of

IndonesiaFacultyofEconomicsstudents.

CIMB niaga Synthesis

CIMB Niaga Synthesis is an activity to develop ideas

and concepts, hold open discussions, find experience

and the best knowledge from the worlds of private

and government education to improve Indonesia’s

competitiveness in the era of the ASEAN Economic

Community. For this activity, high school students are

invited to take part, make interactive presentations and

holddialogueswithspeakersfromvariousbackgrounds

appropriate to teenage life in large cities.

Indonesia Saves Movement

Thisactivitytargetspromotingapubliccultureofsaving

aswidely as possible, especially in elementary school

students across Indonesia. In 2013, CIMB held an

Indonesia Saves Movement event in Makassar and

Banjarmasin, in which various stakeholders took part,

including over 1,500 elementary school students, their

teachersandpublic.


School Based Management Program

[G4-EC7, G4-EC8]

Asamanifestationofitsfullcommitmentinimprovingthe

qualityofeducation,CIMBNiagaalsopaysattentionto

supplying supporting educational facilities, improving the

qualityofeducationalmaterial,aswellasimprovingthe

qualityofteachers.Anoutlineofseveralprogramsrun

undertheflagofSchoolBasedManagementfollows.

Mini Banking Laboratory Inventory Grant for DIII uI

Program

In 2013, CIMB Niaga donated various inventory items

requiredfortheMiniBankingLaboratorylocatedinthe

FISIP UI Building (old laboratory) at the University of

Indonesia (UI) Depok campus to the UI DIII program.

Theinfrastructureresemblesarealbankandisexpected

to encourage trainees and make small business

entrepreneursmorebankableandtaxaware.

The Million Books Program

CIMBNiagaconsistentlysupportshighqualityeducation

throughtheMillionBooksProgram,whichinvolvesthe

provisionofeducationalbooksto foundationsengaged

in education. The goal of the program is to develop

interest in reading among young children and to assist

the government in its program to eliminate illiteracy

throughout Indonesia. Foundations that have received

assistancefromtheMillionBooksProgramare:

Yayasan Kesejahteraan Anak Indonesia (YKAI) and

RumahBacaHarapan, located inMaros,Makassarand

Semarang.

• FirstStage:14schoolsinMakassar,SouthSulawesi

at the opening of theMikro Laju Branch Office in

Makassar.

• SecondStage:5schoolsinvariousregions:

o PAUDITBinaMuliaAkhlakinBatang,Semarang,

CentralJava

o PAUDBriliantinAmbarawa,CentralJava

o PAUD and TK Senyum Ananda in Padalarang,

Bandung,WestJava

o SMKMitra Payakumbuh in Payakumbuh,West

Sumatera

o SMANegeri1TalangPadanginLampung

• ThirdStage:2schoolsinBatam,AqilGlobalIslamic

SchoolBatamandYayasanHangTuahBatam.

• Fourth Stage: Provided to CIMB Niaga banking

customers inBatam, such as: PonpesHidayatullah

Batam, SDIT Nabilah, Yayasan Ulil Albab Batam,

GlobeNationalPlusSchool,YayasanBinaInsanMulia,

Rumah Belajar Muallaf, Mobil Pintar, SDIT Insan

Harapan,YayasanAlKahfiandYayasanNurulJadid.

The purpose of this was to encourage all educational

elements to continue to expand the knowledge of

their students.

Education Assistance for SDn Oelii 2 Kupang Barat

Elementary School

In addition to providing funding to the Thousand and

OneHandsFoundation,CIMBNiagaprovidedconcrete

assistance to the people of Kupang by donating 100

chairsforKalvariPosPIGetsemaniBoneanaChurch,71

foldingdesksforSDNOelii2DesaBoneanaElementary

School,WestKupangandscholarshipsfor4studentsat

SMASinarPancasilaKupangHighSchool.Onadifferent

occasion, CIMB Niaga also made a donation toward the

constructionofSDOelii2BoneanaElementarySchool

inWestKupang.

Restoring Bung Karno’s Place of Exile and Building

Bung Karno Statue at Taman Rendo, Ende, Flores,

nTT

Based on the importance of an awareness of history for

Indonesia’s younger generation, CIMB Niaga supported

restoration efforts for the house where Bung Karno,

Indonesia’s first president,wasexiled inEnde, Flores,

andthecreationofBungKarnostatueforTamanRendo

(RendoPark). TheBungKarno site in Ende is one of

historicalsignificanceforIndonesia,beingwherethefirst

presidentwasexiledbytheDutchcolonialgovernment

from 1934-1938.


Let’s Save and Share Program

Let’sSaveandShare(AMDB)Programisamanifestation

ofthePublicEducationinBankingprogram.Throughthis

program, CIMB Niaga invites its stakeholders, particularly

elementary school students, to foster a culture of saving

from an early age.

In addition to saving, the children are also invited to

empathize and sympathize through sharing, thus they

are able to help those less fortunate than themselves

access a better education. The AMDB program has

beenrunningsince2011andremainsongoing.

Toensureaccountabilityby theprogram implementers

to the stakeholders, CIMB Niaga holds an AMDB

AccountabilityProgramforeachperiod.For2012,this

washeldonThursday,January17,2013atCIMBNiaga

IconPondokIndah,Jakarta.Thisprogramisexpectedto

ensure that stakeholders are aware of the transparency

of theAMDBprogram andwhere the funds from the

accountaredisbursedto.Thisdemonstratestheprinciple

ofaccountabilityandtransparencybeingapplied.

Launch of the 2013 Let’s Save and Share Program

Todemonstrateitscommitmenttotheevendistribution

ofbankingknowledgeacrossIndonesia,CIMBNiagaon

February6,2013,madeKupangthelocationforthelaunch

ofthe2013Let’sSaveandShareProgram.Thislaunch

took the form of a seminar themed “Understanding

thePotentialandLimitationsofChildren”withkeynote

speakerDrs.BenekditusLabreM,Psi,Lecturerof the

TeachingandEducationFacultyatNusaCendanaKupang

University.

Kit for Kids - AMDB Promotional Program

Since 2011, CIMB Niaga has routinely held early

education programs through its Kits for Kids (KFK),

which is a series of programs introducing and promoting

theAMDBprogram. In KFK, children are encouraged

to listen to storytelling that teaches them to like saving

andsharingatschool.Afterthat,thechildrenplaywith

banking-themed educational games and puzzles and

plant trees together in cans using vegetable matter.

During several events, CIMB Niaga invites the KFK

children to pretend to work at a bank taking parts as

tellers, customer service and guest relationship officers

throughminibankingroleplay.

This program is run for students in year 4, 5 and 6 in

elementary schools in large towns across Indonesia,

with enthusiastic participation in all the KFK events.

Sinceitslaunchin2011,until2013,theAMDBprogram

had been successfully implemented in 67 elementary

schools in 11 towns in Indonesia, with 11,224 students

participatingfromKupang,Jakarta,Bandung,Semarang,

Yogyakarta, Surabaya, Malang, Medan, Banjarmasin,

Makassar and Batam through KFK activities. These

activities, with the provision of a series of video games,

suchasRunBankingRun,MiniBankingRolePlay,fund

raisingandplantingtreestogether,havebeenprovenan

effective approach for elementary school students.

At the event, CIMB Niaga also held a joint savings

programwith fundsraisedthroughdonationsmadeby

KFKparticipants.AllthefundswereplacedintheAMDB

account No. 064-01-06000-00-9.

CIMB Niaga hopes that through the KFK activities,

children will understand that saving and sharing with

othersarepositivevalues tobeapplied indaily life,at

school, at home and out in the community.

Early Education Teacher Training in the Semai Benih

Bangsa Program

Donationsmade by KFK participants during the CIMB

Niaga2012AMDBeventwerechanneledtoIndonesian

HeritageFoundation(IHF)fortheirSemaiBenihBangsa

(SBB–NurturingtheNation’sSeeds)Program.IHFthen

conducted training for40EarlyLearning teachersover

two training periods.

TheSBBprogramcreatedanddevelopedbyIHFtargets

thecreationofamoralfoundationasearlyaspossiblein

childrenfromdisadvantagedfamiliesbytraining-selected

teacherstoensuretheyareabletocreateanenjoyable

learning environment.



COMMunITy DEVELOPMEnT AnD EMPOWERMEnT

PROGRAM [G4-SO1]

Improving the welfare of our stakeholders, including

the local communities, is the goal of CIMB Niaga’s

sustainabilityprograms.Therefore,CIMBNiagaisfully

committedtotherealizationofitsseriesofCommunity

DevelopmentandEmpowermentPrograms.Inrelation

to this, CIMB Niaga provides the opportunity for all

parties,betheybranchofficesorrelevantfoundations,

tosubmitworkprogramstorealizetheCompany’ssocial

responsibilitytothecommunity.

CIMB Niaga stipulates guidelines for its programs, which

must, among others, meet the following goals and

generalguidelines:

• becharacterforming,

• empowerthecommunity,

• trainpeopletodeveloptheirownskills,

• supportcommunitiestoprospersustainably,and

• fosterindependence.

Based on the above criteria, CIMB Niaga participates

directly in a variety of programs that provide assistance

to individual communities and on a larger scale, including

through the Community Link Program, Employee

VolunteerProgramandtheformationoftheCIMBNiaga

Cares Community.

Community Link Program

This program was initiated by CIMB Niaga branch

offices to support local communities in the vicinity of

therespectivebranchofficestoimprovetheirqualityof

life,basiccompetenciesandwelfare. TheCommunity

Link Program is carried out across locations adjacent

to various CIMB Niaga branch offices and operational

offices.

In 2013, CIMB Niaga undertook the following main

activitiesinitsCommunityLinkprogram:

• Research themed “Bird Atlas of Yogyakarta,

IncreasingCommunityScience&PublicAwareness

About Bird (Biodiversity) Conservation”, which

took the form of research into the Indonesian

bird population. This program was conducted in

cooperationwithAtmaJayaUniversityYogyakarta.

• ICTLiteracyincooperationwithYayasanOborBerkat

Indonesia(OBI)wasatrainingprogramforthosewho

particularly required ICT training, particularly junior

high school students and school drop outs living in

theTanahMerahareaofNorthJakarta.Throughthe

ICT Literacy program, CIMB Niaga hopes to increase

the number of technology-aware people who can

makeuseof technology to improve theirqualityof

life.

Employee Volunteer Program

This program involvesCIMBNiaga employees in CSR

activities related to the environment and social welfare.

Activitiesarevaried,dependingontheprogramsbeing

implemented and the need for volunteer employees to

supportthem.Severaloftheseactivitiesincluded:

• Leave to Share, which encourages CIMB Niaga

employees to take time off work to dedicate their

timetothechildrenofscavengersinBantarGebang.

The program targets employees mixing with the

children and experiencing their world, while providing

these children the opportunity to try out various work

professions at Kidzania in a social activity entitled

“PlayandLearnwiththeBantarGebangScavengers’

ChildrenatKidzania”.

• Employee Helping Employee, which is a mutual

assistanceprogramwherebyemployeeshelpedtheir

colleagueswhosehomeshadbeenfloodedtoclean

up. CIMB Niaga hoped that through this manifestation

of employees’ care for their colleagues, it would

strengthen the familial bonds of the CIMB Niaga

extended family. Through this program, CIMB Niaga

invitedthoseemployeeswhowerenotaffectedby

floodingtohelptheircolleaguesfromthesamework

unit to clean their rooms, also providing cleaning

equipmenttoachievethis.

• Cleaning the Kali Brantas river, which is an

environmental care program. CIMB Niaga, alongside

RadarMalang, took the “Clean the Brantas River”

action to the banks of Kali Brantas. In addition to

serving as an environmental preservation and

mitigationaction,inanattempttopreventflooding,

the event was also a forum for the people of Malang

to help each other, as one of Indonesian custom.


The Launch of CIMB niaga Care Community

On20April2013,CIMBNiagalauncheditsCIMBNiaga

CareCommunityinPesanggrahanSanggaBuana,Karang

Tengah,LebakBulus,SouthJakarta. TheCIMBNiaga

Care Community is a forum for stakeholders to work with

CIMBNiagaonCSRactivities.Atthelaunch,members

of CIMB Niaga Care Community planted trees together

and cleaned Kali Pesanggrahan river with volunteers

fromNGOsandCIMBNiagaemployees.

PhILAnThROPy

Philanthropy-based CSR activities take the form of

donationsoractivitiesforstakeholdersor thepublic to

help improve their welfare.

These activities are either carried out under people’s own

initiativeor at the requestofotherparties. Donations

can be money, goods or social programs, given to

communities in the vicinity of CIMB Niaga’s network of

branches.

CIMBNiagaprioritizesdonationssupportingeducation,

religious activities, health, arts and culture, economic

welfare, sport and information technology.

Activitiesconductedtoimprovelivesinthecommunity

included:

• Smart Parenting Club, which seeks to balance

lifestyles as a way to build happy and prosperous

families. Events included seminars on family-

orientated topics, such as consultations on family

problems, child growth, family health, financial

solutions, cooking classes and child nutrition,

pregnancyandchildbirth,aswellaseducationonthe

use of clean water and nutritious food for the health

of the whole family.

• JointChristmasCelebration.CIMBNiagaheldjoint

Christmascelebrationsin7citiesthatarehometoits

bankbranches. Theeventwasheld incooperation

with 7 religious foundations.


• Disaster aid which is encompassed in the CIMB

Niaga Care program and covers assistance for the

victimsofnaturaldisasters:

o Flooding in Jakarta and the surrounding areas.

Assistancewaschanneledthrough8aidstations

and took the form of staple foods, help for the

elderly, cleaning supplies.

o EarthquakeinLombokandAceh.Atboththese

locations, CIMB Niaga provided assistance

through two NGOs establishing emergency

stations,aswellasthroughtheFORMULA(Food,

Religion,Medics,LivelihoodAid)program.

o FloodinginWajo,SouthSulawesi.Floodingalso

occurred in three regencies in South Sulawesi,

Wajo, Sidrap andBone. One person died as a

resultoftheflooding,sweptawayinthecurrent,

443 homes were inundated, 85 hectares of

paddy field were swamped, 88 hectares of corn

andbeanfieldsweredestroyed,2schoolsand2

mosqueswereinundatedinwaterover2meters

deep and one house was washed away.

Torelievethesufferingofthoseafflictedbythe

disaster, CIMB Niaga sent 360 blankets, 1,040

packets of instant noodles, 200 kg sugar, 200

boxesoftea,200bottlesofmedicatedpowderto

treat itching, 200 packets of antiseptic soap and

life jackets.

o VolcaniceruptioninSinabung.Sinabungvolcano

is in the highlands of Karo in North Sumatera.

Sinabung and Sibayak are the twomost active

volcanoes in North Sumatera and the highest

mountains in the province. Sinabung erupted

inthe1600s,andbecameactiveagain,erupting

in2010.In2013,onceagain,Sinabungvolcano

erupted.

To alleviate the suffering of those affected, CIMB

NiagacooperatedwithAl-AzharPeduliUmmatto

providehumanitarianaid,buildareliefkitchenin

the evacuation shelter, conduct a trauma healing

program, provide health services and carpets for

the evacuation shelter.

• Idul Adha and Idul Fitri Celebrations. Tomark the

celebration of Idul Adha, CIMB Niaga branches at

several locations across Indonesia purchased animals

for sacrifice.

• BloodDonorProgramswhichwereheldinKarawaci,

Tangerang and Bintaro in cooperation with the

IndonesianRedCrossinSerangandTangerang.

• ChannelingCharity FundsbyCIMBNiagaSharia in

cooperationwith18non-profitorganizations.

• ARamadhanBazaarwhichwasheldtoprovidecheap

packets of staple foods. This was conducted at

GriyaCIMBNiaga,BintaroandMenaraCIMBNiaga,

Karawaci.InadditiontotheRamadhanBazaar,onthis

holy month, CIMB Niaga also held various Month of

SharingeventsconductedbyCIMBNiagaemployees

in several areas. Activities undertaken included

tausiyah, daily provision of takjil for employees, joint

breakingofthefast,aswellasdonationsfororphans

and the poor.

• Free healthcare. In Kudus, free healthcare was

provided in cooperation with Keluarga Sehat

Hospital.

60 Sustainability Report CIMB Niaga 201360 Laporan Keberlanjutan CIMB Niaga 2013


TOTAL FunDS AnD FunDInG SOuRCES

Total funds disbursed through CIMBNiaga’s CSR programs amounted to Rp18.749 billion. A breakdown of these

disbursementsforeachfieldisasfollows:

inRupiah

no PILLAR 2013 2012

1. Education 7,038,553,407 5,949,626,922

2. CommunityDevelopmentandEmpowerment 2,430,170,153 1,499,797,421

3. Philanthropy 1,561,154,656 2,333,163,105

4. Donations 334,900,000 342,850,000

5. Environment 764,530,405 640,649,200

6. QordhulHasanCIMBNiagaSharia 5,466,347,410 2,349,470,288

7. CSRProgram 1,153,222,220 2,100,784,857

Total 18,748,878,251 15,216,341,793

TheseCSR activitieswere funded throughCIMBNiaga profit, funds from the Let’s Save and Share program, and

donationsfromthepublicandCIMBNiagaemployees.

FuTuRE PLAnS

CIMBNiaga isdeterminedto increase itsrole,both intheamountoffundingdisbursedthroughitscorporatesocial

responsibility programs and the quality of the program implementation. Effortswill bemade to improve the fund

disbursement,increasetheinvolvementofcompetentstakeholdersinprogramformulation,implementation,recording

andevaluation,andtofurther improvethelevelofaccountability.CIMBNiagaiscommittedtoincreasingitsrolein

improvingthewelfareofcommunities,asastakeholdergroupwithasignificantroleinthelongtermsustainabilityof

thebank’sbusiness.



CIMB Niaga considers human resources to be one of the most important pillars in the achievement of business success. Therefore, CIMB Niaga is committed to developing the skills of its human resources to facilitate them being reliable and able to compete in the face of all future challenges. In support of the upcoming 2015 ASEAN Economic Community, CIMB Niaga is focused on the importance of creating competent human resources with high morals, who understand and can implement all the Company’s values, which are: Integrity is everything, Always put Customers first and Passion for Excellence.

To achieve this long-term goal, CIMB Niaga has prepared and implemented a sustainable human resource development program.

BuILDInG STROnG InDuSTRIAL RELATIOnS

To ensure the long-term success of its Human Resources development programs, CIMB

Niaga consistently strives to build a healthy relationship with its workforce, provide

a framework of balanced, mutually beneficial benefits and consider employees as work

partners in the achievement of its long-term goals. CIMB Niaga has created a relationship

with its workforce that is conducive and constructive through mutually respectful intensive

discussions with employee representatives, the results of which have become part of the

Collective Labor Agreement (CLA).

CIMB Niaga held discussions with all the Employee Union representatives in the company

and together incorporated the points of agreement in the CLA. To accommodate changes

to employment regulations in the dynamic banking industry, the CLA is reviewed every 2

(two) years and ratified by the Indonesian Manpower Ministry.

CIMB NIaGa’S PeoPle


CIMB Niaga Employee Volunteers on CIMB Classic 2013 in Kuala Lumpur, Malaysia


Throughthe2012-2014CLA,CIMBNiagastrivestobuild

a strong industrial relationship, in accordance with the

purposeofitsexistence,whichis:

• providingcertainty inrelationtothecompany’sand

employees’ rights and responsibilities with regard

to: industrial relations, working conditions and the

Company’sCodeofConduct;

• strengthening cooperation between the company

andtheworkforce;and

• defining the settlement procedure for labor

disputes.

TheCLAalsonotesCIMBNiaga’sresponsibilitiestoits

employees,whichinclude:[G4-LA8]

1. Educationandtraining,

2. Complaints mechanism,

3. The right of employees to reject dangerous work,

4. Facilities for employees in remote areas,

5. Aidattimesofmourning,

6. Retirementpreparationperiod(6months),

7. Personalaccidentprotection,and

8. Legal aid.

CREATInG A COnDuCIVE WORK EnVIROnMEnT

Asaformofself-regulationtobecomeoneoftheforemost

banking institutions in the ASEAN (Southeast Asian)

region, as well as nationally, CIMB Niaga consistently

strives to create a conducive work environment. To

ensure the creation of this conducive work environment,

CIMBNiagamanages its high quality employeeswith

respect for workers’ rights, intensive communications,

compliance with all employment regulations and

implementation of all agreements contained within the

CLA.

CIMB Niaga always informs its employees of all company

policies. However, operational decisions concerning

company management are the prerogative of the

management. Someof thebasicpoliciesconsistently

implemented to create harmony, calm and orderliness

for employees, in accordance with the principles of

Pancasilaindustrialrelations,areillustratedbelow.

• Upholding the principle of equality

CIMB Niaga applies the principle of equality at

every stage of human resource management, from

recruitment, to training program implementation,

performance assessment, career paths determining

and remuneration packages. This is based on the

beliefthatapplyingequalitywilltriggeremployeesto

dotheirbestandstrivetogrowtogether.

Equality is also practiced from the moment an

employee isaccepted into theworkforce. Salaries

awardedtothelowestlevelemployeesaresetabove

theregionalstipulationsfortheminimumwage,both

at provincial and regional level. There is no difference

applied to male and female employees with regard to

amount of salary.

• Respecting freedom of association (G4-hR4)

CIMB Niaga supports the existence of Employee

Unions in recognition of the right to associate

and freedom of speech as protected by the 1945

Constitution. The company also allows employees

tobeEmployeeUnionmanagerstoconductduties

for the organization, provided that it does not

oppose the company’s regulations. TheEmployee

Union represents employees in defining points of

agreementfortheCLAwiththemanagement.

Asoftheendofthereportingyear,therewerefour

EmployeeUnionsformedbyemployeesrecordedas

active within CIMB Niaga.

Trade unions [G4-11]

no name of union number of Members

1 BankCIMBNiagaEmployees

Union

400

2 BankCIMBNiagaWorkers

Union

1,853

3 Niaga Community

Association*

-

4 UnitedNiagaEmployees

Association

4,106

* The Trade Unions are not required to report on updates to their membernumbers.Meanwhile,theNiagaCommunityAssociationisnotincludedinthe2012-2014CollectiveLaborAgreement(CLA)


• Communicating intensively

CIMB Niaga believes that effective internal

communication is the key to successfully achieve

the company’s vision and mission, especially

with over 14,000 employees spread across every

corner of the country. Therefore, CIMB Niaga

strives to make internal communications clear and

transparent, including instilling the CIMB Niaga

culture in employees, as well as providing accurate

information to support the creation of an emotional

and harmonious relationship with employees.

CIMB Niaga provides no less than 9 methods of

InformationTechnology(IT)basedcommunicationto

support transparent and constructive communication

with the management, as well as with other

employees. These nine channels are CIMB

NiagaNet, CIMB NiagaNews, CEO Message, CEO

Hotline,HRHelpdesk,HRInfo,HRe-Manual,e-Pass

andDMS(DigitalMediaSignage),aswellasvarious

facetofaceforums,suchasSafariRamadhan,Halal

Bihalal gathering, Christmas Celebrations, Senior

ManagementWalkabout,ManagementVisit,etc.

• Managing work assessment [G4-LA11]

CIMB Niaga understands employees’ expectations

for a clearly determined remuneration package and

career path in return for their hard work and the

utilizationofalltheirskillstoachievetheCompany’s

goals. Meanwhile, CIMB Niaga always prioritizes

high performance as the management’s practice

and culture, as well as requiring performance

standards to improve, as needed, from time to

time.Tocombinetheinterestsofbothsides,CIMB

Niaga has developed fair performance assessment

management and applies balanced scorecard tools

andKeyPerformanceIndicators(KPI)atindividualand

teamlevels,supportedbyanHRinformationsystem

whichisbasedonthemostrecenttechnology.

CIMBNiagabelievesthat theuseofa transparent,

fair and accountable performance measurement

method will result in all employees striving to give

theirbest.Consideringthatperformanceassessment

is conducted periodically, in the reporting year, all

employees, based on eligibility, have received the

resultsoftheir2013KPIassessments.

• Adhering to employment regulations and points

in the CLA

To ensure the creation of a positive working

environment, CIMB Niaga consistently applies the

pointscontained in theCLA in its relationshipwith

employees and complies with employment legislation

in setting its policies and providing employee rights.

• Measuring employee engagement and internal

customer satisfaction indexes to improve the

work environment

CIMB Niaga is fully committed to improving

the quality of its internal service for the smooth

running of business operations. One of theways

this is achieved bymeasuring the level of service

through direct surveys on the quality of internal

services, which examine the measured indicators

and create benchmarks to improve service in the

coming period. In 2013, CIMB Niaga implemented

this through an Internal Customer Satisfaction

Index (ICSI) conducted by a competent external

party. In addition, CIMB Niaga also conducted an

EmployeeEngagementSurvey(EES)toidentifyhow

engaged employees were with the performance

achievements, as well as the Company’s vision,

business goals and company management. The

EESismandatedforimplementationonceeverytwo

years,whilein2013a‘PulseCheck’wasconducted

tomeasure involvement levels inanumberofcore

EES parameters that had been fully measured in

2011.


ThisvarietyofeffortsbeingimplementedtomaintainthepositiveworkingenvironmentatCIMBNiagahascertainly

impacted on the recruitment of new employees and the level of employee turnover in the reporting year. In 2013, CIMB

Niagarecruited2,417newemployees,comparedto2,457in2012,duetothecontinuedgrowthofcertainbusiness

requirements.Meanwhile,2,299employeesleftthecompanyin2013,comparedto1,817in2012.[G4-LA1]

Classification2013 2012

Men Women Total Men Women Total

new employees 1,401 1,016 2,417 1,383 1,074 2,457

Employees by age group

<25 years 240 399 639 287 477 764

25-34 years 948 532 1,480 937 537 1,474

35-44 years 183 71 254 139 51 190

>45 years 30 14 44 20 9 29

Total 1,401 1,016 2,417 1,383 1,074 2,457

Employees by area of operations

Area1(Jakarta,Lampung) 775 637 1,412 677 604 1,281

Area2(WestJava) 106 66 172 127 64 191

Area3(EastJava,Bali) 171 102 273 170 128 298

Area4(Sulawesi,Papua,Maluku,NusaTenggara)

48 34 82 68 37 105

Area5(Kalimantan) 26 25 51 58 49 107

Area6(SumateraexcludingLampung) 142 80 222 173 106 279

Area7(CentralJava) 133 72 205 110 86 196

Total 1,401 1,016 2,417 1,383 1,074 2,457

number of employees leaving employment

Ownrequest 769 796 1,565 693 761 1,454

Disciplinaryaction 93 37 130 29 43 72

Death 6 4 10 14 6 20

Retirement 56 25 81 51 20 71

Earlyretirement 2 2 4 0 0 0

Othercauses 135 374 509 69 131 200

Total 1,061 1,238 2,299 856 961 1,817

BuILDInG SuSTAInABLE huMAn RESOuRCE COMPETEnCE

Asmanifestation of its sustainable human resource competency development program,CIMBNiaga has designed

itsEmployeeValueProposition(EVP)scheme.Thisstrategyhasbeendesignedandimplementedinresponsetothe

strongcompetitiontorecruittalentedpeopleinthebankingindustry.

CIMBNiaga’sEmployeeValuePropositionisDynamicWorkplace(theroleinachallengingandenjoyableworkplace),

TowardsanASEANChampion(strongconnectivitywiththeASEANnetwork,includingcareeropportunitiesandcustomer

development),ThrivingonDiversity(diversityinnationalandinternationalculture),ObsessedwithTalentGrowth(the

opportunityforsignificantself-development),CompetitiveRemuneration(treatmentthatisequalandcompetitivefor

highperformance-basedremuneration),CorporateResponsibilityLeadership(thebroadopportunitytochannelsocial

welfare).


CIMB Niaga’s long-term strategy to empower its

employeesisbasedon5(five)mainpillars:

• recruit,retainanddeveloptalent;

• promoteacultureofhighperformance;

• establish and develop leadership capability that is

readyfortransformation;

• establish a strong culture, increase organizational

effectivenessanddevelopadynamicworkculture;

• clearandtransparentinternalcommunications.

Recruitment Program

During recruitment, CIMB Niaga provides equal

opportunities to all people to become employees. To

obtain the best talent in the field, CIMB Niaga also

involves independent parties.

Amassiverecruitmentprocessisusuallyprecededbya

notice in certain media and involvement of independent

partiesforinitialassessmentselectiontoobtainthebest

andmosteffectivetalent.Otherstepstakenincludea

brandingcampaign,includingtheimplementationofthe

WayForwardprogramtargetingstudents,incooperation

with several renowned colleges of higher education

to provide banking knowledge, including personality,

through seminars and lectures.

The new employees then undergo a period of adaptation

throughtheOnBoardingorientationprogram.Thegeneral

aim of this program is to ensure the assimilation process

and new employee adaptation, including introductions to

colleagues and the work environment, regulations and

Code of Conduct, as well as understanding of duties that

mustbesmoothlycarriedout.

Toprovideequalopportunitiesandrightstothosewith

disabilities, in 2013, CIMB Niaga worked with Mitra

NetraFoundationandtheSocialMinistry’sRehabilitation

Agency to provide employment opportunities to the

disabled,whowereplacedintheTelesalesunit.During

2013,11personswithdisabilitiesbecameemployeesor

apprentices in this unit.

The 2013 recruitment process resulted in 2,417 new

employees, thus CIMB Niaga saw total employees rise

by0.8%to14,342people.

Training and Education [G4-LA10]

CIMB Niaga follows up its recruitment program with

staged education and training programs, based on

required competencies for each rank. CIMB Niaga

has designed several general and specific training and

education programs to support operational needs for

talented and professional employees. Several of the

mainprogramspresentedareillustratedbelow.

• Developing Key Skills

CIMB Niaga continues to encourage the increased

technical competence of its employees through key

skills development programs, which are divided into

4sections: (1)Sales&Service, (2)Risk,Compliance

&Audit, (3) Credit, and (4)Operation& Information

Technology.SpecialistdevelopmentincludesCorporate

Banking, Merchant Banking, Digital Banking and

Information Technology. For the future, CIMB Niaga

is in the midst of preparing a series of applicative and

structured development programs for Sales, Teller,

Customer Service, Small-Medium Enterprise and

ShariaBanking.

In its efforts to create a risk-aware culture, the Company

has implemented interventional teaching during

2013throughtheThreeLinesofDefenseworkshop,

disseminating the duties and responsibilities of the

DCORO(DesignatedCompliance&OperationalRisk

Officer), R.I.S.K. Forum, Anti-Fraud Management

forum, Operational Risk Awareness program and

ComplianceAwarenessprogram.

In addition, credit knowledge and skills are an essential

competencyforbankersandwereakeyfocusforthe

Company in 2013. Working alongside OMEGA, a

well-knowntrainingconsultantfromtheUnitedStates

of America, the Company successfully developed

internalcapabilitieswithninepeopleawardedCredit

Diploma,5trainersgaininginternationalaccreditation

and 10 selected coaches.


• Certified Training Program

To comply with regulations, CIMB Niaga also provided

compulsory certification training packages for levels

1, 2, 3, 4 and 5 in RiskManagement Certification;

CertificationforMutualFundsSalesAgents(WAPERD);

an examination program for Bancassurance

Certification; Indonesian Life InsuranceAssociation

(AAJI)Certification;andIndonesianGeneralInsurance

Association(AAUI)Certification.

• The Role of Learning & Talent Development (LTD)

to Support the Digital Banking Strategy

TosupporttheDigitalBankingstrategyatCIMBNiaga,

LTDcollaboratedwiththerelevantparticipatingwork

units to compile Branchless Banking development

programs for the vanguard team to equip them

with adequate knowledge and competencies to

introduce Digital Banking products to visitors to

theDigitalLounge. FromNovember2012 todate,

threebatchesofcandidateDigitalBankingManagers

(DBM)hadundertakenthetrainingprogram,provided

to selected employees, prior to assignment to the

respective lounges.

In 2013, the Company also achieved a historical

milestone with the launch of its premier Digital

Banking product, Rekening Ponsel (RP – mobile

phone account), LTD played an active role in

preparing the launch of this product, including a

series of assessments as to the understanding of

AreaManagersandBranchManagerswithregardto

RP,creatingtheRPcampaignforproductawareness,

preparation of the instant guidebooks, as well as

promotingtheRPproductintheleaduptoitslaunch

tothevanguardteamandbranchleaders.

• Branch Manager Entrepreneur (BME)

Development Program

Another milestone achieved in 2013 was the HR

competency development program, Branch Manager

Entrepreneur(BME),whichstartedon1July.Overall,

BMEsuggestschangestothewaybranchesoperate

in relation to organization development based on

business opportunity/market situation, assessment

and selection of the right man in the right place,

formulation of clear career paths and training for

branchmanagers,processsimplification,accelerated

service and delegation of authority.

Inconductingthiseducationalprogram,theLTDunit

workedinsynergywithsubjectmatterexpertsfrom

relevantbusinessunitstodevelopaseriesoflearning

processestoprepareselectedBMEfortheirroleand

responsibilitybasedontheoperatingmodelfornew

branches, with a business focus on holistic cross-

selling,lossofthesilomentalityandminimizingany

possibleoperationalrisk.

Considering that the Branch Manager as an

Entrepreneurprojectresultsinsignificantchangesin

branchesandthat,toachievesuccess,achangeof

attitudeisrequiredfromallthebranch-levelpersonnel,

the ability of a leader to execute the strategies is

of the utmost importance and this underlines the

implementationofthe4ExecutionDisciplines(4DX)

targetedbyallbranchesin2014.

• Talent Management and Developing Leadership

Capabilities

Developing leadership capabilities is an important

initiativeinTalentManagement.Oneoftheinitiatives

to develop young talent is through The Complete

Banker (TCB) program pioneered since August

2010. To this time, CIMB Niaga has recruited 149

TCBparticipantsineightbatches.Ofthese,84have

already graduated from the program and started their

careers inbusinessunits,whileanother38arestill

studying.Onepointthatmakesusproud,isthatof

the 84 TCB graduates, 30 of them were recipients

of the CIMB Niaga Outstanding Achievement

Scholarship.

In addition, to ensure the learning process is

sustainable, for a period of 5 (five) years from

graduating from the TCB program, HR monitors

the performance and career development of the

graduates. TheDirectors andSeniorManagement

also play an active role in the TCB development

processfromtimetotime.Specifically,theymake

time to meet face to face to share their experience

and knowledge in the Learn From The Master event.

TheDirectorsarealsofullycommittedandTCBhas

invaluable direct access through the opportunity

to take part in the mentoring program with the

Directorsforaperiodofonefullmonthwiththeaim

ofhoningtheabilitytointeractattheexecutivelevel,

sharpening business acumen and broader insight,

andbuildingthementalityofaleader.


Inaddition,leadershipqualitiesinseniormanagement

are also developed through participation in programs

like CIMB INSEAD Leadership Program (CILP) and

Accelerated Universal Banker (AUB), a regional

programwithintheCIMBGroupincollaborationwith

NanyangTechnologyUniversityinSingapore.

• Total Leadership Experience

Through the framework of the Total Leadership

Experience,CIMBNiaga has also launched various

learning initiatives, including a core leadership

training program and Leadership series. The core

leadership training program has been designed

to be taken in stages and in accordance with the

requiredcompetenciesatevery levelof leadership,

andisprovidedasFirstLineManagerDevelopment

Program (FLMDP), Middle Manager Development

Program(MMDP)andSeniorManagerDevelopment

Program(SMDP).

During2013,asmanyas216peopleparticipatedin

the pilot FLMDP program and 94 BranchManager

Entrepreneurs(BME)tooktheMMDPprogram.

OnthetopicofLeadership,CIMBNiagaparticipated

in the“EmergingASEANLeaders”EmeraldAward

heldbyCIMBGroup,toimprovethequalityoflifeof

itsmiddlemanagersfromCIMBcompaniesinASEAN

countries and prove their success in achieving peak

performance while developing their subordinates.

Atthisprestigiousevent, linemanagersunderwent

not only 360-degree assessment, but also were

invited to do role play and make a tele-presentation

in front of the jury and external consultants (Tower

Watson).TheCompanyhadsixfinalistsinthisevent

andfourreceivedtheEmeraldAward2013fortheir

achievements.

• Global Employee Mobility (GEM) Program

This program is an attempt to improve competencies

through assignment to various CIMB Group

companies in ASEAN countries. The purpose is

to improve employee competency by developing

a high performance work ethic and exposure to an

international work environment, while also triggering

creativity, innovation and efficiency, especially in the

faceoftheglobalizationera.In2013,therewere26

employees taking part in this program.

• Scholarship Education Program

CIMB Niaga not only provides training in operational

and professional fields, it also runs a program to

improve academic skills for employees with the

potential and the interest to continue their education

to a higher level.

Thisprogramisrunincollaborationwithanumberof

renowned Indonesian and foreign universities. CIMB

Niaga offers these scholarships in cooperation with

theEconomicsFacultyofUniversityofIndonesia,and

Yayasan Khazanah fromMalaysia for the overseas

scholarship program (The National University of

Malaysia,MultimediaUniversity,UniversitiMalaya).

Asoftheendof2013,atotalof38employeesfrom

various directorates had received these scholarships

forBachelor,MasterandDoctorateprograms,while

17 of them had graduated with Bachelor or Master

degrees.

Withall these trainingandeducationprograms,during

2013, totalman-days training rose 6% from90,197 in

2012to95,510.Thenumberofparticipantsrose11%

from 52,402 in 2012 to 58,410. Total events and in-

housetrainingclassesrose14%from1,281in2012to

1,458. Meanwhile, average training man-days reached

6.05 in 2013 and 6.11 in 2012.

In addition to training to develop employees’

competencies and professionalism, CIMB Niaga also

runs special training for employees soon to retire.

Retirement Preparation Training is prepared for every

employee approaching retirement. The training takes

the form of briefings so that after retirement, when

no longer within the CIMB Niaga circle, retirees can

still do productive activities to meet their needs for a

deservingqualityoflife.Thisprogramiscontainedwithin

the regulationP2KNo.A.06.10concerningRetirement

PreparationPeriod.


To run all these training and education programs,

CIMB Niaga allocates an education fund for employees

amountingto5%ofemploymentcostspluseducation

costs. The value of this funding in 2013 amounted to

Rp151.8 billion (including reserved costs of Rp19.1

billion) with a total 764,077 training hours. These

training mechanisms and the amount of the costs are

in accordance with Bank Indonesia regulation SE No.

31/24/UPPBandCIMBNiagapolicies.

Employee Training 2013 and 2012 [G4-LA9]

2013

Explanations / Level/Category of

EmployeeMale Female Total

Total number of Training hours per year (number of hours per

Participant)

number of hours Training per year per Employee * (Average

number of hours per Employee)

Male Female Total Male Female Total

SeniorManagement

118 44 162 7,728 3,314 11,042 65 75 68

Middle Management

866 528 1,394 53,393 33,492 86,885 62 63 62

Executive*) 1,784 1,239 3,023 192,760 179,936 372,696 108 145 123

NonExecutive 4,580 5,183 9,763 134,381 159,073 293,454 29 31 30

Total 7,348 6,994 14,342 388,261 375,815 764,077 53 54 53

*)specialtraining,includingformanagementtrainees

2012

Explanations / Level/Category of

EmployeeMale Female Total

Total number of Training hours per year (number of hours per

Participant)

number of hours Training per year per Employee * (Average

number of hours per Employee)

Male Female Total Male Female Total

SeniorManagement

193 79 272 10,462 5,850 16,312 54 74 60

Middle Management

755 452 1.207 47,488 30,699 78,188 63 68 65

JuniorManagement 4,243 3,998 8,241 272,479 239,753 512,232 64 60 62

Staff 1,420 2,677 4,097 43,344 69,632 112,976 31 26 28

NonStaff 401 6 407 1,811 61 1,872 5 10 5

Total 7,012 7,212 14,224 375,583 345,995 721,579 54 48 51

*)specialtraining,includingformanagementtrainees

Thetrainingincludesanti-corruptionmaterial.Duringthe

reportingperiod,8,921(2012:6,104)employeesreceived

anti-corruption training. Training inHumanRightswas

also provided. During 2013, 1,276employees (2012 :

1,670)tookHumanRightstrainingwithatotalof4,709

traininghours(2012:5,462).

Career Management (G4-LA11)

Following up to the employee competence development

programs, CIMB Niaga has developed employee career

management with career paths closely related to the

provision of remuneration in return for the work provided.

Thebasisfordetermininganindividual’scareerpathand

remuneration is their performance contribution to the

company.

Asalreadystated,CIMBNiagameasuresperformance

through the achievement of individual and team

KPIs with a foundation based on balanced scorecard

tools. Assessment results determine the amount of

remuneration and promotion for individual employees.


In relation to performance management, in 2013, CIMB

Niaga assessed the performance and career development

of all its employees. Based on these assessments,

94.87% (2012: 90.57%) of employees were entitled

to receive a bonus and 9.86% (2012:12.36%) of total

employees received a promotion, rising one level in

position.

BEnEFITS [G4-LA2, G4-EC3]

According to the principles adopted by the Company,

CIMB Niaga considers its employees to be the most

important asset, as well as a key strategic partner, in

the achievement of the Company’s goals. For this

reason, employee welfare always receives Management

attention.Welfareisanimportantaspectintheefforts

to develop a high-performance work culture.

CIMB Niaga applies the principle of internal fairness,

externalcompetitiveness,andtheCompany’sability to

prepare remuneration encompassing salary, allowances,

benefitsandvariousothercomponents.TheCompany

strives to improve employee welfare through attention

to various remuneration components, both fixed and

variable. One manifestation of fixed remuneration

provided to employees is Food and Transport Money to

remain competitive in the market.

In formulating and providing remuneration packages,

CIMBNiaga upholds the principle of equality,with no

differentiation due to gender, religion, race and ethnicity

initsbasicsalarystructureandforotherremuneration.

Positionaldifferencesarebasedpurelyoncompetency,

performance and work experience.

Overall, employment status in the bank consists

of permanent employees (work contracts with an

undetermined timeframe) and contract employees

(with fixed term employment contracts). Generally,

the remuneration structure for permanent and contract

employees is the same, however, a pension facility other

than theOldAgePension andEmployment Insurance

(Jamsostek)isprovidedonlytopermanentemployees.

The various components of CIMB Niaga compensation

are:

1. Salary

2. Allowances/facilities

3. DisabilityInsurance

4. Life Insurance

5. AccidentInsurance

6. Employment Insurance (Jamsostek), covering:

AccidentInsurance,LifeInsurance,Pension

7. EmployeeHealthFacilities

8. HealthFacilitiesforEmployees’Spouses

9. HealthFacilitiesforEmployees’Children

10.AnnualandOtherLeave

11.ReligiousHolidayLeave

12.PensionFund

13.SeverancePay

14.LocationAllowance

In addition to these material compensation elements,

CIMB Niaga also regulates leave for employees, both

male and female, such as annual leave, maternity leave,

leave for employee weddings, menstrual leave (for

femaleemployees)andleaverelatedtofamilydeathin

accordancewith applicable legislation. In 2013, there

were486employees(2012:317)onmaternityleave.

CIMBNiagaregulatesalltheaboveinP2KNo.A.06.08

regardingLeave.Thisregulationstipulates:

1. maternity leave shall not exceed 3 (three)months,

namely1.5monthsbeforebirthand1.5monthsafter

givingbirth;

2. inthecaseofdeviationfromtheabove,theemployee

shall write a statement related to the risks that would

occur which shall be accompanied by a letter of

informationfromadoctor/midwife;and

3. employees suffering natural miscarriage or

termination formedical reasonsshallbeentitled to

leave of 1.5 months, or as stated in a letter from a

doctor/midwife.

Pension Program and Award Program

In the administration of the pension program, CIMB

Niaga employees participate in a defined contribution

and defined benefits plan. For the entire pension

program,CIMBNiagapays9%contributions,with the

remainderofthecontributionbornebytheemployeeas

the participant in the pension program, with a maximum

contribution of 3% from the employee’s basic salary.

For the Award Program, CIMB Niaga expresses its

appreciation to every employee who has worked well

andloyallyfortheCompanybyprovidinganawardand

reward for their tenure for every five year employment

period starting from the first 10 years’ employment.


EMPLOyEE DEMOGRAPhICS [G4-10]

In line with business development, the number of

peopleemployedbyCIMBNiagacontinuestoincrease.

However, implementation of IT-based operational

system means there is not always a direct comparison

betweentherateofgrowth inemployeenumbersand

theincreasingscaleofthebusiness.

In2013,therewasasmallgrowthinemployeenumbers

of 0.8%, from 14,224 employees at the beginning of

theyearto14,342bytheendoftheyear.Asmanyas

2,417newemployeeswererecruited,basedongrowing

businessrequirements.

number of Employee by Status

Status 2013 2012

Permanentemployees 13,176 13,051

Contracted employees 1,166 1,173

Total 14,342 14,224

•ThisnumberdoesnotincludeDirectorsandBoardofCommissioners

Inaddition,CIMBNiagastronglyupholdstheprincipleofequalityinopportunitiesprovidedandawardsgiventobothits

male and female employees.

number of Employees by Gender, Educational Attainment and Age

Classification

number of Employees 2013

Employees by Age Group(Men)

Employees by Age Group (Women)

Men Women Total <25 25-34 35-44 >45 <25 25-34 35-44 >45

SeniorManagement (U1-U3)

118 44 162 5 35 78 1 16 27

Middle Management (U4-U5)

866 528 1,394 121 393 352 1 98 228 201

JuniorManagement (U6-U8)

1,784 1,239 3,023 19 774 667 324 22 559 398 260

Officer(U9) 2,536 2,833 5,369 99 1,460 668 309 142 1,388 941 362

Staff(U10) 1,677 2,345 4,022 148 1,172 248 109 361 1,688 249 47

NonStaff 367 5 372 128 239 5

Total 7,348 6,994 14,342 266 3,532 2,139 1,411 526 3,734 1,832 902

Classification

number of Employees 2012

Employees by Age Group(Men)

Employees by Age Group (Women)

Men Women Total <25 25-34 35-44 >45 <25 25-34 35-44 >45

SeniorManagement (15-18)

193 79 272 9

63

121

1

28 50

Middle Management (12-14)

755 452 1,207 122 351 282 1 82 215 154

JuniorManagement(7-11)

4,243 3,998 8,241 112 2,253 1,298 580 145 1,972 1,335 546

Staff(5-6) 1,420 2,677 4,097 200 964 166 90 573 1,832 237 35

NonStaff 401 6 407 164 237 1 5

Total 7,012 7,212 14,224 312 3,348 2,042 1,310 719 3,887 1,816 790

•ThisnumberdoesnotincludeDirectorsandBoardofCommissioners


CIMB Has Talent, regional event in Jakarta, Indonesia.



Increasingly tight competition is resulting in every bank working hard to improve its service quality to attract new customers, while at the same time holding onto its existing customers. As one of the nation’s leading banks, CIMB Niaga is strongly committed to continually maintaining customer service and providing high quality banking products , both of which can help beat competitors.

CIMB Niaga believes that every product it markets provides maximum benefits to customers, considering that CIMB Niaga products have been designed to satisfy customer demand. With this careful attention to detail, CIMB Niaga believes that its customers understand the added benefits of the Company’s products.

MAInTAInInG PRODuCT quALITy

In the process of launching banking products and services, CIMB Niaga implements a chain

of procedures to ensure that these products and services are acceptable to customers and

provide value in terms of supporting their needs and activities. CIMB Niaga conducts

systematic surveys through questionnaires and through the deployment of competent

third parties to determine the need for the launch of a particular product and the level of

acceptance by the intended customers.

To ensure product suitability for customer needs, CIMB Niaga assigns customer service

officers to explain all details related to the product, its benefits, its uses, the associated

rights and responsibilities, including the position of each party, when the contract ends and

how to settle any dispute should one arise.

IMProvING ServICe QUalITy, PrIorITIZING CUSToMerS



AllnewproductsmustbeapprovedbyBankIndonesia

prior to their launch, with careful examination by the

Business Development Committee, whose duty is to

determineiftheproductinquestionisagenuinebanking

product and whether the Bank is acting as a sales agent

or as a provider. The criteria for the examination of these

productsincludethefollowing:

• Thebenefitsprovidedbytheproductforclientsmust

beclear;

• Theadministrativechargesimposedonusersofthe

productorservicemustbeclear;

• TheBank’spositionmustbeclarified if theproduct

offered is not a banking product and the Bank is

actingasasalesagent;

• Accordingtoapplicableregulations,certainproducts

mustincludeastatementoftheirriskprofile;

• Thetelephonenumberandemailaddressofservice

staff must be recorded clearly so that clients can

makecomplaintsoraskquestionsifneeded;

• ApprovalofBankIndonesiamustbesecured;and

• TheBankmustpresenta report toBank Indonesia

no later than seven days after the launch of the

product.

Marketing Communication

CIMB Niaga conducts its marketing communication

activities in order to ensure that all products and services

thatitoffershavestrongbrandsthatfacilitatemarketing

activities and growth in sales of the products and

services. Through optimum marketing communications,

CIMBNiaga strives to ensure unique, appropriate and

relevant positioning and awareness for all of its products

and services amongst their respective target markets,

thusfacilitatingtheexpansionofitsbusiness.

To achieve this, CIMB Niaga implements a marketing

communications strategy designed to sustainably

conform with industry conditions and with goals for

the development of the Company’s business. Apart

frombeing focusedonproducts thataresubstantively

basedonindividualormassneeds,orretail,intermsof

funding and lending, marketing communication activities

are also intended to develop CIMB Niaga’s image as an

approachablebank.

Providing Facilities to Customers

As part of its endeavors to increase its presence in

potential markets and to draw nearer to its target market,

CIMB Niaga strives to add to, develop, and increase the

qualityofitsworkingnetwork.Thisworkingnetworkis

developedbyprioritizingcustomersatisfaction,including

through the extension of the conventional working

network through means such as mobile banking, biz-

channel and e-banking, all of which are intended to

expand the scope of banking services and to improve

operational efficiency and effectiveness.

In addition to extending its physical network, CIMB

Niagaconductsanumberofotherprogramstooptimize

thequalityandfunctionofitsworkingnetworkthrough

thefollowingmeans:

• Standardizedappearanceandqualityofservicefrom

operational working units, biz-channels andmobile

services to improve clients experience while making

transactions;

• Increasedfrequencyoftrainingforfrontlinestaffso

that they provide a more effective level of service to

micro-clients;

• ImprovementsinthevolumeandqualityofPrivilege

Banking, EmployeeCredit and the Priority Banking

servicecenter;and

• Developments to technological applications to

accelerate the credit approval process for the Mikro

Laju unit.

Serving Customers

CIMB Niaga’s vision is “To become the most trusted

Indonesianbankbymeetingtheneedsofourclients,by

understanding our customers, providing comprehensive,

appropriate financial solutions, and by establishing

sustainablerelationships.”Toachievethisvision,CIMB

Niagaconstantlystrivestoimprovethequalityofservices

it provides to clients in order to increase their level of

satisfaction and loyalty, thus ultimately facilitating the

longtermgrowthofthebusiness.

Focusing on Customer Experience

CIMB Niaga has implemented a number of customer

service-related strategic measures and taken various

initiatives focused on the customer experience, so the

service provided meets customer needs and provides

an experience exceeding their expectations. These

restorative measures have been considered from all

customer activities undertaken in the relationship with

CIMB Niaga, from funding to lending and credit cards.


CIMB Niaga has monitored key service indicators with

a direct impact on customer banking experience in its

efforts to ensure a reliable and enjoyable experience

when dealing with the Bank. In addition, the Bank

also regularly checks on the customer experience

with products/promotions/services to obtain feedback

that will facilitate improvements. Internally, CIMB

Niaga’s commitment to provide the best customer

service is supported by a Committee that specifically

discusses customer experience strategy, initiatives and

improvements.

Customer Satisfaction Survey [G4-PR5]

The voice of our customers is an important source of

learning for CIMB Niaga, facilitating the improvement of

our customer service. To obtain feedback to improve

customerservicequality,CIMBNiagaroutinelyconducts

a Customer Satisfaction Survey, implemented by a

competent independent third party. This survey covers

all CIMB Niaga’s operational and service aspects for

customers, including comparisons with competitors in

thebankingindustry.

The survey involves a sampling of target respondents

fromallsegments,whoareselectedonarandombasis

fromanumberofbackgrounds,includingvaryinglevels

of educational attainment, age, type of business and

type of employment.

Based on the “Service to Care” survey conducted by

Markplus Insight in 2013, CIMB Niaga holds second

place and has achieved an increased customer evaluation

scorefrom73%to78%.

CIMB Niaga uses the feedback resulting from the

survey to improve service quality, become closer to

the customer perception of satisfaction and desire for

bankingservicestoattainlong-termcustomerloyalty.

Resolving Customer Complaints [G4-PR8]

Customer complaints are an important matter for

business growth in a bank as they illustrate customer

needsanddesires. Everybankmusthandlecustomer

complaintsaswellaspossible,thusprovidingapositive

experience for the customer.

Atthistime,CIMBNiagamaintainsaspecificCustomer

Care Center, whose function is to ensure good handling

and management of customer complaints in accordance

with Bank Indonesia regulations. The Bank can receive

customer complaints through a variety of channels and

media, including the print media and social media. The

Customer Care Center is equipped with a bank-wide

complaint handling system, to ensure all recorded

complaints are immediately escalated to the appropriate

unit for handling and settlement.

CIMB Niaga maintains an Automated Complaints

MonitoringandReporting(ACMR)system.Thissystem

is a complaints handling system that integrates all

records of customer complaints reported through all

channels and media, including print and online media.

Through this system, all customers making a complaint

are provided with a complaint registration number as

proof of registration of their complaint and as a means

ofenablingthecustomertomonitortheprogressofits

resolution.

For theBank, theACMRsystemenables it tomonitor

the level of complaints resolution, to monitor the

effectivenessof theServiceLevelAgreement (SLA) in

resolving these complaints, to facilitate the escalation

of client complaints from the receiving channel to the

unit that can resolve the complaint, and as a means for

reporting on the development of customer complaints

related to financial issues to Bank Indonesia.

In 2013, CIMB Niaga recorded a significant increase in

the number of financial transactions, from 104million

in 2012 to 123 million in 2013. This total does not yet

incorporate customer transactions with merchants,

which totalled 18 million transactions.


Customer complaints ratio (per 10,000 transactions)

Total number of financial transactions (in thousands)

2012 2013

1.7

2.4

104,070

123,781

The number of customer complaints was maintained

at a level of 2 bps. On average, there were 2,522

complaints per month related to financial claims and 752

non-financial, or administrative, complaints.

AsofDecember2013,thesettlementlevelforcustomer

complaints was 99.3%, demonstrating CIMB Niaga’s

commitment to improving the quality of service to its

customers. This was an improvement compared to

2012,whichhadasettlementlevelof98.2%.Complaints

were received through a number of channels: branch

offices, phone banking 14041, email through Contact

Us on CIMB Niaga website (www.cimbniaga.com)

and through CIMB Indonesia Facebook and Twitter

@CIMBIndonesia.

The level of resolution of customer complaints throughout 2013

Type of Customer Complaint

number of Customer Complaints Resolved

2013 2012

Financial 99.6% 98.4%

Non Financial 98.9% 98.0%

Total 99.3% 98.2%

As a public entity, the Company is also active in the

Banking Working Group Mediation, collaborating with

Bank Indonesia and the Financial Services Authority

(OJK),alongwithotherbanks,toruncustomereducation

programsintheformofseminarsonbankingandother

activities.

Maintaining Customer Privacy

CIMB Niaga upholds the provisions of Bank Indonesia’s

regulations regarding confidentiality and customer

privacy and strictly and rigorously guards against the

possibilityofinternalviolations.

CIMB Niaga implements firm sanctions, from a

verbalwarning, towrittenwarning, or dismissal as an

employee of CIMB Niaga for violations resulting in the

loss of customer privacy. There were no cases involving

customer privacy infringements made this reporting

year.


CIMB Niaga Video Banking



Corporate management is implemented through the application of best practice principles of universal good corporate governance (GCG). As one of the leading financial institutions active in Indonesia, CIMB Niaga is required to comply with legislation applicable in Indonesia. As a demonstration of its strong commitment to be a good corporate global citizen, CIMB Niaga continues to ensure every policy it formulates and ratifies fulfills the principles of transparency, accountability, responsibility, independence and fairness.

As with the majority of Indonesian companies, the management structure of CIMB Niaga

consists of two bodies with clear separation between the supervisory function of the Board

of Commissioners and the management of the Board of Directors, as stipulated in Law

No. 40/2007 concerning Limited Liability Companies. CIMB Niaga’s governance structure

consists of three main bodies, namely:

1. The General Shareholders Meeting, which is the highest decision-making body of the

Company;

2. The Board of Commissioners acting as a monitoring body and providing input to the

Board of Directors;

3. The Board of Directors, which is responsible for the management of the Company.

umum Pemegang Saham (RuPS)

SUSTaINaBle GoverNaNCe[G4-34]


Graha CIMB Niaga, Jakarta


General Shareholders Meeting (GSM)

The GSM is the highest governance body in CIMB

Niaga.TheGSMisheldatleastonceayear,theAnnual

GeneralMeetingofShareholders(AGM),ormoreoften

if required (Extraordinary GSM). Through the GSM,

shareholders can make recommendations or express

opinions related to efforts to improve the Company’s

performance.Shareholderscanalsostatetheiropinion

on matters related to the Company’s performance in

social, economic and environmental fields, as well as

management decisions related to investment priorities.

Themost recent Extraordinary CIMBNiagaGSMwas

heldon26July2013.

Board of Commissioners and Board of Directors

The duty of the Board of Commissioners is to supervise

andprovideinputtotheBoardofDirectorsonmatters

relatedtotheirdutiesandresponsibilities.TheBoardof

Commissioners is appointed and ratified in accordance

with Bank Indonesia regulations, which, among others,

state:

• thereshallbeaminimumofthreemembersofthe

Board of Commissioners and no more than the total

numberofDirectors;

• atleastonememberoftheBoardofCommissioners

shallbedomiciledinIndonesia;

• aminimumof50%oftheBoardofCommissioners

shallbeIndependentCommissioners.

CIMB Niaga has fulfilled the Bank Indonesia stipulations,

inthatithas4(four)CompanyCommissionersresiding

in Indonesia and 4 (four) members of the board are

IndependentCommissioners. In addition, 50%of the

BoardofCommissionersareIndonesianCitizens.

In accordance with Regulations and the Company’s

Articles of Association, in the implementation of their

dutiesandobligations:

(1) members of the Board of Commissioners may

serve in a position as a member of the Board of

Commissioners, Board of Directors, or Executive

Management of one non-financial institution, or

(2) members of the Board of Commissioners, Board

ofDirectors, or ExecutiveOfficerswho implement

their supervisory functions over one non-banking

subsidiarycompanycontrolledbyabankmaynothold

another executive position in the same company.

TheselectionandappointmentofmembersoftheBoard

ofDirectorsandBoardofCommissionersisconducted

throughtheGSMandanindividualmustfirstpassthrough

aseriesoffitandproper tests. Prior tocommencing

theirofficialduties,membersoftheBoardofDirectors

andBoardofCommissionersmustobtainapprovalfrom

BankIndonesia/theFinancialServicesAuthority.These

requirements, related to integrity, competence and

financial reputation, are stipulated in regulations issued

by Bank Indonesia, the Financial Services Authority

(formerlyBapepam-LK)andtheCompany.

CIMB Niaga’s Board of Directors and Board of

Commissioners conduct their duty in accordance with

the guidelines and work procedures stipulated in the

Charters of the Board of Commissioners and Board of

Directors,which are binding on allmembers of these

boards and prescribe their duties and responsibilities,

memberships, workmechanism, working hours, code

of conduct, together with established procedures

for conducting meetings, reporting, assessment and

performanceresponsibilities.

The value of the remuneration packages and/or

allowancesformembersoftheBoardofCommissioners

andBoardofDirectorsisestablishedbytheGSM,onthe

basis of recommendations, guidance and advice given

bytheRemunerationandNominationCommittee.

To ensure their independence and to avoid conflicts

of interest in decision making, CIMB Niaga reports

any familial, financial, managerial and/or shareholding

relationships between members of the Board of

Commissioner and Board of Directors. Further, more

complete,descriptionsmaybefoundinthe2013Annual

Report.

Commitment to External Initiatives [G4-15, G4-16]

CIMB Niaga always complies with Government

stipulations and applies standards prevailing in the

financial industry in its governance and business

practices, starting from transparency in its financial

and non-financial condition, to the application of risk

management, monitoring and measuring performance

inaccordancewithprevailingapplicableregulationsand

legislationforpubliccompanies,including:

a. BankIndonesia:

i. RiskBasedBankingRating(RBBR),

ii. RiskMitigationSystem;

b. Capital Market Supervisory Agency and Financial

Institution(Bapepam-LK);


c. IndonesianStockExchange(IDX);

d. CorporateGovernancePerceptionIndex(CGPI);

e. Corporate Governance Ranking established by

StandardandPoor’s;

f. BankingServiceExcellence;

g. ISO(technology/audit/recruitment/training);

h. Salary/RemunerationSurvey;and

i. IntrusionDetectionSystem.

CIMBNiagaisalsoamemberoftheNationalCommercial

Banks Association (Perbanas), the Indonesian Bankers

Association(IPI),andtheIndonesianIssuersAssociation

(AEI).

Performance Management

In accordance with Company policy to implement strategy

and monitor employee performance, CIMB Niaga makes

use of the Balanced Scorecard. Thismethod is used

tomeasureachievementandmakeperformance-based

awards or compensation. To ensure this strategy

achieves its intended purpose, it is implemented through

KeyPerformanceIndicators(KPI)agreedwiththeBoard

ofDirectors and implemented through all ranks in the

Bank.

KPIs are compiled to facilitate the Company achieve

its recorded strategies in the four basic areas on the

Balanced Scorecard, namely: finance, customers,

internal processes and employees.

Credit Risk Management [G4-14]

CIMBNiagahasestablishedcreditpoliciesimplemented

in the process of debtor due diligence and credit

assessment to ensure CIMB Niaga is not providing credit

to third parties who do not have official permits or do not

meet government standards and guidelines related to

emissions and environmental management.

In order to be able to maintain its operations, CIMB

Niaga applies strict standards to determine whether

customers have the necessary qualifications and have

analyzed various fundamental environmental risks and

thesubsequentimpactstomitigatecreditrisk.

The risk assessment team monitors the following factors

whenevaluatingapplicationsforcredit:

• Theapplicationanditsbenefits;

• General information and reports concerning the

potentialdebtor;

• Businesssurveyreports;

• Financialreportsrelatedtothedebtor;

• Evaluations of liquidity, ownership rights and the

valueofcollateralpresented;

• Credit assessment and internal and external

investigations, including whether the debtor has

a Red or Black PROPER (National environmental

managementstandard)status;

• Accountprofitabilityratio;and

• Supportingdocumentssuchasgovernmentpermits

andCSRpolicies,EIAandPROPERevaluation.

Mechanism to Submit Opinions to the Board of

Directors

CIMB Niaga has created intensive communication

channels that allow its employees to submit their

opinions, recommendations for improvements and

otherwise, to receive direct and indirect direction from

the Management. These communication channels are

formal meetings through gatherings and work meetings,

and IT-based communication media such as CEO

Message,CEOHotline,SeniorManagementWalkabout,

Internalization of the Code of Conduct and Company

Culture. [G4-56, G4-57, G4-58]

CIMB Niaga always upholds the Company values

integratedinto‘ICE’,namely:

(1) IntegrityisEverything;

(2) AlwaysPutCustomersFirst;

(3) PassionforExcellence.

To ensure the proper internalization of the Code of

Conduct and Company Culture, CIMB Niaga assigns

the senior management to routinely provide direction

and provide an example that can be followed by all

employees. CIMB Niaga also requires the signing of

an IntegrityPact to confirmcompliancewithall points

in the Code of Conduct, as one method of ensuring

internalization.

Managing Stakeholders

[G4-24, G4-25, G4-26, G4-27]

Stakeholders aredefinedas individualsorgroupswho

can influence and/or are influenced by the activities,

products and services, and performance, of the Company,

asdefinedinAA1000StakeholderEngagementStandard

version2006(AA1000SES,2006).Mappingisfocused

on issues of influence,with attention to the strength,

interest, legitimacy, influence,and relevancyof related

issues to CIMB Niaga’s activities, including those related

toCSR.


The focus of the mapping process is a clear and detailed

description of who stakeholders are and how they

influenceorareinfluencedbytheCompany’soperations.

Theresultsofthismappingprocessareusedasabasis

for the formulation of strategies to guide relations with

stakeholders.

CIMBNiaga’sstakeholdersare:

- Shareholders

- Employees

- Customers

- The community

- Non-GovernmentalOrganizations(NGO)

- Investors

- LaborUnions

- Government(includingsupervisoryauthorities)

- Universities

- Media

InaccordancewiththeAA1000SES(2006)framework,

CIMB Niaga has determined four levels of relationship-

buildingapproachesaimedatstakeholdergroups,namely:

1)empowerment;2)collaboration;3)consultation;and

4)communication.

Stakeholderengagementinthesustainabilityframework

implemented during 2013 included the holding of the

AnnualGeneralShareholdersMeeting, thecompilation

of the Company Annual Report, activities related to

investor relations, the customer satisfaction survey,

publicexposes,EmployeeUnionmeetingsandunofficial

meetings.

CIMB Niaga also sought a reciprocal relationship and

expected input from stakeholders on a variety of topics

relatedtosustainability.Allissuesandinputsubmitted

by the stakeholders was carefully studied by the

Management.



Sustainability Report




Independent Assurance Statement Report No.0314/BD/0028/JK

To the management of PT Bank CIMB Niaga Tbk We were engaged by PT Bank CIMB Niaga Tbk (‘Bank CIMB Niaga’) to provide assurance in respect to its Sustainability Report 2013 (‘the Report’). The assurance has been carried out by a multi-disciplined assurance team with a broad range of skills and depth of experience, thus providing a high level of competency for the assurance engagement. Independence We were not involved in the preparation of any key part of the Report and carried out all assurance undertakings with independence and autonomy. We did not provide any services to Bank CIMB Niaga during 2013 that could conflict with the independence of assurance engagement. Assurance Standards We conducted our work in accordance with ISAE3000 ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ issued by the International Auditing and Accounting Standards Board. In addition, we have also planned and carried out our work in accordance with AA1000AS (2008) ‘AA1000 Assurance Standards (2008)’, issued by AccountAbility. Level of assurance and criteria used. Our evidence-gathering procedures have been designed to obtain a limited level of assurance based on SAE3000 and a moderate level of assurance engagement as set out in AA1000AS (2008) in order to provide confidence to readers by reducing risks or errors to a very low but not to zero. Moreover, the AA1000 AccountAbility Principles Standard (2008) of Inclusivity, Materiality and Responsiveness has also been used as criteria to evaluate the Report. We have confirmed that the Report has been prepared in accordance with G4 Core Criteria issued by the Global Reporting Initiative (GRI).

Scope of Assurance We provided Type 2 assurance engagement under AA1000AS (2008). This involved:

1) an assessment of Bank CIMB Niaga’s adherence to the AA1000 AccountAbility Principles Standard (2008) and

2) an assessment on the accuracy and quality of specified sustainability performance information contained within the Report, in relation to the agreed scope. The scope of work consisted of: Community development programme Product responsibilities Human resources.

The assured indicator related to the agreed scope above is marked with the sign at the GRI G4 Core Index section of the Report. Responsibility

Bank CIMB Niaga is responsible for all information and claims contained in the Report, including established sustainability management targets, performance management, data collection and report preparation, etc. Our responsibility in performing this engagement is to the management of Bank CIMB Niaga only for the purposes of verifying its statements relating to its sustainability performance, more particularly as described in the agreed scope. Our responsibility is to express our conclusions in relation to the agreed scope. Methodology

We have assessed several assertions and specified data sets included in the report and the systems and processes used to manage and report these using the following methods:

Reviewed report, internal policies, documentation, management and information systems

Carried out interviews with staff involved in sustainability-related management and reporting

Followed data trails to initial aggregated source and checked sample data to a greater depth during the engagement process.


Limitations

Our scope of work was limited to a review of the accuracy and reliability of specified data and interviews with data providers, persons in charge of data collection and processing, as well as persons in charge of sustainability performance-related information. Conclusions AA1000 AccountAbility Principles Standard (2008)

Findings and conclusions concerning adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality and Responsiveness include: Inclusivity

An assessment has been made to determine whether Bank CIMB Niaga has included all key stakeholders in developing and achieving an accountable and strategic response to sustainability issues.

We found Bank CIMB Niaga demonstrates a strong commitment to stakeholder inclusivity. Bank CIMB Niaga has an effective system in place for key stakeholders to participate in the development of the organization's response in the context of sustainability. This is demonstrated for instance, by conducting needs assessment surveys in relation to the community development programme, and by conducting a Stakeholder Forum Discussion in order to determine the report content.

However, we recommend that Bank CIMB Niaga continues to improve stakeholder inclusivity systems and procedures on a regular basis to maintain their effectiveness.

Materiality An assessment has been made as to whether Bank CIMB Niaga has included in the Report the material information required by its stakeholders in order to enable them to make informed judgements, decisions and actions. We found Bank CIMB Niaga has a strong process in place to determine material issues. Key material issues were adequately reported and were found to provide balanced information about Bank CIMB Niaga's sustainability performance. A range of internal stakeholders are involved in Bank CIMB Niaga's materiality determination process. However, we recommend that Bank CIMB Niaga continues to conduct materiality test on a regular basis in future reports.

Responsiveness

An assessment has been made as to whether Bank CIMB Niaga demonstrates that it responds to its stakeholders and is accountable to them. Bank CIMB Niaga was found to be responsive to key stakeholder concerns and expectations. This was achieved through the organization's allocation of resources to stakeholder engagement, the timeliness and accessibility of reported information, and the types of communication mechanisms regularly employed. However, we recommend that Bank CIMB Niaga continues to improve stakeholder engagement procedures on a regular basis in future reports.

Reliability of Sustainability Performance Information Based on our limited assurance engagement, nothing has come to our attention that causes us to believe that the data of the Report has been materially misstated. All key assurance findings are included herein, and detailed observations and follow-up recommendations have been submitted to Bank CIMB Niaga management in a separate report. Jakarta, 21 March 2014

James Kallman President Director Mazars is an international, integrated and independent organization, specializing in audit and assurance, accountancy, tax, legal and advisory services. Mazars can rely on the skills of 13,000 professionals in the 61 countries that make up its integrated partnership in Europe, Africa, the Middle East, Asia Pacific, North America, Latin America and the Caribbean, whilst in Indonesia is served by PT Mazars, one of the leading sustainability assurance providers.


GRI 4Indicators Explanation Page External

Assurance

Strategy and Analysis

G4-1 StatementfromthePresidentDirector 22

Organizational Profile

G4-3 Organizationname 12

G4-4 Primarybrands,productsandservices 12

G4-5 Locationoftheorganization'sheadquarters 12

G4-6 Operatinglocationsduringthereportingperiod 12

G4-7 Nature of ownership and legal status 12

G4-8 Markets served 12

G4-9 Organizationscale 14

G4-10 Employeeprofile 72

G4-11 Collectivebargainingagreements 64

G4-12 SupplyChain 7

G4-13 Significantchangesduringthereportingperiod 14

G4-14 Precautionaryapproachesorprinciplesaddressed 14, 82

G4-15 Externallydevelopedeconomic,environmentalandsocialcharters,principles, or other initiatives

82

G4-16 Listofassociationmemberships 82

Identified Material Aspects and Boundaries

G4-17 Entitiesincludedintheorganization’sconsolidatedfinancialstatementsthatarecoveredbythereport.

7 √

G4-18 Processfordefiningreportcontentandaspectboundaries,andhowtheorganizationhasimplementedthereportingprinciplestodefinereportcontent.

6 √

G4-19 ListallMaterialAspectsidentifiedinthereportcontentdefinitionprocess 8 √

G4-20 BoundaryAspectswithintheOrganization 8 √

G4-21 BoundaryAspectsoutsidetheOrganization 8 √

G4-22 Effectofanyinformationrestatementsprovidedinpreviousreports 6 √

G4-23 Significantchangesfrompreviousreportingperiodsrelatedtoscopeandboundaryaspects

6 √

Stakeholder Engagement

G4-24 Listofstakeholdergroupsengagedbytheorganization 84

G4-25 Basis for identification and selection of stakeholders 84

G4-26 Organization’sapproachtostakeholderengagement 84

G4-27 Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement.

84

Report Profile

G4-28 Reportingperiod 6

G4-29 Dateofmostrecentpreviousreport(ifany). 6

G4-30 Reportingcycle 6

G4-31 Contactpointforquestionsregardingthereportoritscontents. 9

GRI G4 Content Index

G4-32 The‘inaccordance’optionchosen,GRIContentIndexandcrossreferencetoExternal

6

Assurance 6

G4-33 ExternalAssurance

GRI Index G4 Core Option



Assurance

Governance

G4-34 Governancestructureoftheorganization 80-82

Ethics and Integrity

G4-56 Theorganization’svalues,principles,standardsandnormsofbehavior 5

CATEGORy: ECOnOMIC

Aspect: Economic Performance

G4-DMA ManagementApproachDisclosure 34-35

G4-EC1 Directeconomicvaluegeneratedanddistributed 34

G4-EC3 Coverageoftheorganization'sdefinedbenefitplanobligations 71

Aspect: Indirect Economic Impacts

G4-DMA ManagementApproachDisclosure 50 √

G4-EC7 Developmentandimpactofinfrastructureinvestmentsandservicessupported

46-61 √

G4-EC8 Indirect economic impacts 32-34

CATEGORy: EnVIROnMEnTAL

Aspect: Energy


G4-EN6 Reductionofenergyconsumption 42

Aspect: Emissions


G4-EN99 ReductionofGreenhouseGas(GHG)emissions 42

CATEGORy: SOCIAL

SuB CATEGORy: LABOR PRACTICES AnD DECEnT WORK

Aspect: Employment


G4-LA1 Employeeturnover 66 √

G4-LA2 Benefits provided to full-time employees that are not provided to temporary employees

71 √

Aspect: Occupational health and Safety

G4-DMA ManagementApproachDisclosure 64

G4-LA8 Health and safety topics covered in formal agreements with trade unions 64

Aspect: Training and Education

G4-DMA ManagementApproachDisclosure 67-70 √

G4-LA9 Averagehoursoftrainingperyearperemployeebygender,andbyemployee category

70 √

G4-LA10 Programsthatsupportthecontinuedemployabilityofemployeesandassist them in managing career endings

67-70 √

G4-LA11 Performanceandcareerdevelopmentreviews 65

FS4 Processofimprovingemployeecompetency 70

Aspect: Labor Practices and Decent Work


G4-LA14 Newsuppliersthatwerescreenedusinglaborpracticescriteria 8

SuB CATEGORy: huMAn RIGhTS

Aspect: human Rights


G4-HR4 RighttoexercisefreedomofAssociationandcollectivebargaining 64 √


• Millennium Development Goals (MDGs)isaMillenniumDeclarationwhichhasbeenapprovedbyHeadsofStatesand

Representativesfromover189UNcountries.ThisdeclarationcameintoeffectinSeptember2000witheightgoalstobe

achievedby2015.TheDeclarationaimstoachieveprosperityandcommunitydevelopmentby2015.

• Gross Domestic Product (GDP)isthemarketvalueofallservicesandgoodsproducedbyacountryinadetermined

period of time.

• Capital Adequacy Ratio (CAR) istheratiousedbythebankingsystemregulatorwiththemainobjectivetoidentifythe

healthlevelofaBank,inparticularstheriskofthecapitalstructureofthebank.

• Outstanding Loanisthetotalofloansalreadydistributedtocustomersexceedingtheprescribedlinesofcredit.

• non Performing Loan (nPL)Ratioistheratiobetweenthetotalofloanswhicharenonperformingandthetotalof

outstanding loans.

Glossary


Assurance

Aspect: Supplier human Rights Assessment


G4-HR10 New suppliers that were screened using human rights criteria 8

SuB CATEGORy: SOCIETy

Aspect: Local Communities

G4-DMA ManagementApproachDisclosure 57-59 √

G4-SO1 Local community engagement, impact assessments and development programs

57-59 √

FS13 Accesspointsinlow-populationoreconomicallydisadvantagedareas 37

SuB CATEGORy: PRODuCT RESPOnSIBILITy

Aspect: Product and Service Labeling


G4-PR5 Customer satisfaction survey 77 √

Aspect: Customer Privacy


G4-PR8 Substantiatedcomplaintsreceived 77-78

Aspect: Product Portfolio


FS6 Portfoliobyspecificregion,size 33

FS7 Monetary value of products and services designed to deliver a specific socialbenefit

35

FS8 Monetary value of products and services designed to deliver a specific environmentalbenefit

40

Index GRI G4 Core Option - Continued

Documents

BECOMING A LEADING SUSTAINABLE Becoming a … · Penghargaan Sambutan Bersama ... efforts at “Becoming A Leading Sustainable Bank” can be seen in this report. Becoming ... English