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Page 1: CIMB Niaga Sustainability Report 2012

Laporan Keberlanjutan 2012

Bersatuuntuk Keberlanjutan

Sustainability Report 2012

Unitedfor Sustainability

Bersatu

un

tuk K

eberlan

jutan

Un

ited fo

r Su

stainab

ility

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Laporan Bisnis

Daftar Isi

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Tema : Bersatu untuk Keberlanjutan

Visi

Nilai-nilai Utama

Lingkup Laporan

Ikhtisar Kinerja Keberlanjutan

Target dan Capaian Kinerja Keberlanjutan

Tentang Kami - Profil CIMB Niaga

Jejak Langkah

Rangkaian Peristiwa 2012

Penghargaan

Sambutan Bersama

Presiden Komisaris & Presiden Direktur

Informasi Laporan Keberlanjutan

Laporan Sektor Keberlanjutan

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48

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Bukan Sekedar Bank

Kondisi Ekonomi & Perbankan Indonesia

Pelestarian Lingkungan

Bantuan Kepada Masyarakat

Mengutamakan Sumber Daya Manusia

Mengutamakan Nasabah

Tata Kelola Keberlanjutan

Pernyataan GRI Application Level Check

GRI Index

Glossary

Laporan Bisnis

Contents

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Theme : United for Sustainability

Vision

Core Values

Scope of This Report

Sustainability Highlights

Sustainability Targets and Achivements

About Us - A Profile of CIMB Niaga

Milestones

Significant Events in 2012

Awards

Joint Statement

from the President Commissioner and

the President Director

Information regarding the Sustainability Report

Sustainability Sector Report

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28

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48

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66

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76

77

80

Not Just a Bank

Banking and Economic Conditions in

Indonesia

Environmental Conservation

Community Assistance

Prioritizing Human Resources

Prioritizing Clients

Sustainable Governance

Statement of GRI Application Level Check

GRI Index

Glossary

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1Sustainability Report • CIMB Niaga 2012

Unitedfor Sustainability

CIMB Niaga’s success in improving its sustainability performance is largely due to the role played by its stakeholders. These stakeholders have a significant impact on the Company, and the reverse is also true, with the decisions of the Company having a significant impact on stakeholders. Thus, the management of this mutual relationship was our primary focus in 2012 and will continue to be so in future years.

The professionalism of our employees and improvements to their working conditions through the creation of a conducive working environment are fundamental factors in the achievement of these successes. Increasing the level of the loyalty of our clients and of trust of the community in CIMB Niaga creates strategic value and facilitates the ongoing growth of its business. Increasingly strict banking sector regulations and oversight foster healthy banking practices. Mutually beneficial relationships with business partners, including information technology service providers, create significant value in the development of CIMB Niaga’s business.

CIMB Niaga achieves growth by serving the community and implementing its business activities through the utilization of a number of natural resources. Thus, both the community and the living environment play a significant role in facilitating this growth. We have intensified a number of community and environmental programs, with the full support of the community, of the government, and of all other stakeholders. The achievement of sustainability through the full involvement of all stakeholders has enabled us to achieve excellent results throughout 2012.

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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.

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Core Values

Always Put Customers First Passion for Excellence

Integrity is Everything

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,delegatingauthority

andrequiringresponsibilityforanydecisionmade.• Recognizetheimportanceofcooperationto

attain success, to build trust and mutual respect, and to struggle together within a competitive environment.

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Welcome to CIMB Niaga’s 2012 Sustainability Report.

ThisisthesecondofCIMBNiaga’sSustainabilityReports.

The first report covered 2011 and was published in March

2012. This report complements CIMB Niaga’s 2012 Annual

Report,asstipulatedbyDecisionoftheChairofBapepam-

LKNo.KEP-431/BL/2012,dated1August2012.Thisreport

is published on an annual basis, covering the period from 1

Januaryto31December[3.1,3.2,3.3].

Determination of the Contents of the Report [3.5]

This report contains information related to CIMB Niaga’s

achievement of economic, environmental and social

sustainability. The report has been formulated in accordance

with the Global Reporting Initiative (GRI) Sustainability

ReportingGuidelines version3.1 (GRIG3.1) andwith the

Financial Services Sector Supplement (FS1).

The determination of the contents of this report was

conducted on consideration of the four principles stipulated in

GRIG3.1,thesebeingmateriality,completeness,thecontext

of sustainability, and the inclusiveness of stakeholders.

Thechoiceof topicshasbeenprioritizedon thebasis of

their relevance to sustainability issues, including both local

(Indonesian) sustainability issues and global sustainability

issues, such as the mitigation of carbon emissions and the

Scope of This ReportachievementofMillenniumDevelopmentGoals (MDG’s).

Thus, this report is intended to serve all of CIMB Niaga’s

stakeholders as a basis for making decisions and to

complement the financial information included in the Annual

Report.

To ensure the inclusion of stakeholders, CIMB Niaga conducts

itsStakeholderDiscussionForum.Thisforumprovidesinputs

and views related to a number of issues of importance to

stakeholders and of how these issues impact CIMB Niaga’s

business.TheinputfromthisStakeholderDiscussionForum

is presented in the Materiality Table.

Boundaries and Limits of the Report [3.6, 3.7]

This report covers the economic, environmental and

social performance of CIMB Niaga’s head office and its

branches throughout Indonesia, including its branches in

the conventional banking sector, the Syariah banking sector,

and the microcredit sector. The sustainability performance

of subsidiary companies is not covered by this report,

except in the case of financial data presented through EC1

indicators.

Data Measurement Techniques and Reporting Basis

[3.8, 3.9]

Thequantitativedatapresentedinthisreportispresented

in terms of standard international measurements, including

gigajoules, kilowatt hours, and so on. Some of the data is

based on rational estimations and assumptions. In order to

better enable comparisons, specific data has been presented

for periods of at least two consecutive years. Financial

data, including data related to subsidiaries, is reported

in accordance with the Standard Principles of Financial

Accounting(PSAK).

Significant Changes from Previous Years [3.10, 3.11]

Throughout the period of this report, there were no

significant changes in terms of the report’s boundaries,

scope, or measurement methods compared to the previous

year. Thus, there has been no restatement of data from

previous years in this report.

GRI Index [3.12]

AdescriptionoftheGRI3.1andFSSSIndicesappliedinthis

report is presented on page 77. In order to facilitate readers’

access to information related to these indices, information

relatedtotheindicesispresentedinredtext[inbrackets]

on the relevant pages.

0

3

4

5

3 4 5

Banking Security

Ease of Access to Banking Services

Community Empowerment

EqualityofOpportunity

Remuneration

Carbon Emission Management

EmployeesRights

BankingServicestotheMicro-FinanceSector

Level of Significance for the Company

Less Significant More Significant

Leve

l of

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ce f

or

Sta

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Less

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Mor

e S

igni

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Materiality table

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5Sustainability Report • CIMB Niaga 2012

Assurance [3.13]

For the period covered in this report, CIMB Niaga did not

utilize theservicesofan independentassurer toconduct

assurance over this sustainability report. To improve the

level of reliability of this report, in the future, the services

ofanexternalassurerwillbeutilized.

CIMB Niaga declares that this report has been formulated in

compliancewithLevel“B”GRI3.1andFSSSstandardsand

has been certified by the National Centre for Sustainability

Reporting(NCSR),asstatedonpage76ofthisreport.

Contact Person [3.4]

Readerswithadditionalqueriesconcerningthisreportare

invited to contact:

Corporate SecretaryGraha CIMB NiagaJl. Jend. Sudirman Kav. 58Jakarta 12190, IndonesiaTel. : (62-21)2505252,2505353Fax. : (62-21)2505205Email : [email protected] : CIMB IndonesiaTwitter : @CIMB_Assists

PT Bank CIMB Niaga Tbk

Corporate SecretaryGraha CIMB NiagaJl. Jend. Sudirman Kav. 58Jakarta 12190, IndonesiaTel. : (62-21) 250 5252, 250 5353Fax. : (62-21) 250 5205Email : [email protected] : CIMB IndonesiaTwitter : @CIMB_Assists

www.cimbniaga.com

Sustainability Report 2012

Sustainability Report 2012

Unitedfor Sustainability

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Sustainability Highlights

Economic Performance

33% Growth in CIMB Niaga’s profits in 2012 compared to the previous year

Environmental Performance

Throughout 2012, CIMB Niaga planted bamboo trees across West Java and Bali

Social Performance

10,000

621

Total value of funds provided to stakeholders through the “Let’s Save and Share!” (Ayo Menabung dan Berbagi) program

trees

millionRp

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Economic Performance

73% Growth in disbursement of credit to the SME sector in 2012 compared to the previous year

Environmental Performance

Number of CIMB Niaga employees and members of the community participating in the Bringing Garbage Management to Households Project in the RW 13 section of Pondok Indah, Jakarta

2,428

Social Performance

133Since 2006, CIMB Niaga’s Scholarship Program has provided assistance to beneficiaries to enable them to face the challenges of employment in the Banking sector

students

people

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Sustainability Targets and Achievements

Environmental Performance

Social Performance

Economic Performance ROE CIMB Niaga

Rp 640 million

Rp 2.68 billion

20.88%

Rp 459 million

Rp 1.52 billion

19.09%

2012:

2012:

2012:

2011:

2011:

2011:

Increase in the environmental budget from 2011 to 2012 by 40%

Increase in the social budget from 2011 to 2012 by 76%

Return on equity increased by 179 BPS to 20.88%

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Social Performance

Economic Performance

Environmental Performance

14,560 beneficiaries

15,395 trees

168.44 Per Share

1,608 beneficiaries

7,500 trees

126.77 Per Share

2012:

2012:

2012:

2011:

2011:

2011:

Increase in the number of beneficiaries from 2011 to 2012 by 805%

Increase in the total number of trees planted to achieve environmental conservation from 2011 to 2012 by 105%

Profit per share increased by Rp 41.67 to Rp 168.44

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Head Office Graha CIMB Niaga, Jakarta

A 28-storey high rise building located in the central business district of Sudirman, Jakarta. This building is in operation since June 1993 under the name of Niaga Tower. CIMB Niaga occupies 18 floors, and the Banking Hall that was situated on the ground floor provides a wide range of banking services for clients.

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PTBankCIMBNiagaTbk(hereinafterinthisreportCIMBNiaga/We/theCompany)wasestablishedon26September

1955 under the name PT Bank Niaga. CIMB Niaga’s head office is based in Jakarta, with the Bank operating as a

Commercial Bank, Exchange Bank, and Syariah Bank. [2.1,2.2,2.4]

Scale of the Company [2.8]

2012 2011

NumberofEmployees(Individuals) 14,224 13,612

NetRevenues(BillionsofRp) 12,875 10,373

TotalCapitalization:

- NetDebts(BillionsofRp) 174,670 148,431

-Equity(BillionsofRp) 22,567 18,302

-ValueofAssets(BillionsofRp) 197,412 166,801

StakeofMajorityShareholder(%) 96.92% 96.92%

Composition of Shareholders [2.6]SharesinPTBankCIMBNiagaTbkarelistedandtradedontheIndonesiaStockExchange(IDX)underthetickercodeBNGA.

The composition of the Company’s shareholders can be seen from the following table:

Composition of CIMB Niaga Shareholders

2012 2011

CIMB Group Sdn Bhd 96.92% 96.92%

PT Commerce Kapital 1.02% 1.02%

Public 2.06% 2.06%

Subsidiary Companies and Operational Structure [2.3, 2.5, 2.7] As of 31 December 2012, CIMB Niaga had 974 branch offices, 2257 ATM, 231 CPM, and 225 SST spread throughout

27provincesand110cities/districtsthroughout Indonesia, includingconventionalbankoffices,Syariahbankoffices,and

microcreditoutlets.Theseoperationsweresupportedby14,224employees.

CIMBNiagahastwosubsidiarycompanies,whichoperateinthefieldoffinanceformotorizedvehicles.Thesetwosubsidiaries

arePTCIMBNiagaAutoFinance(CNAF)andPTKITAFinance(KITAF),inwhichtheCompanyownsastakeof99.9%and

51.0%respectively.

Significant Changes [2.9]There were no significant changes in the composition of the Company’s shareholders or other fundamentals throughout

2012.

About Us - A Profile of CIMB Niaga

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of experience with a proven track record for implementing Good Corporate Governance

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

2002

1955

Established as PT Bank Niaga

19731983

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

1987

The first bank that launched ATM services

1989

Initial Public Offering

2005

2006

2008

• Rights Issue Rp1.3 trillion

• Issued Subordinated Bonds USD100 million

Launch of Sharia Banking

2004 Issued Subordinated Bonds USD200 million

Changed name to PT Bank CIMB Niaga Tbk

Effective merger of CIMB Niaga and LippoBank

57years

Milestones

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2010

2009

2011

2012

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

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 Rating

Launched BizChannel and CIMB Clicks

Recorded Net Income of Rp3.2 trillion

Announced interim dividend distribution of Rp200 billion

Issued Senior Bonds of Rp1.5 trillion

Subordinated debt Payment of USD200 billion

Launched Sharia Gold Pawn business

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

Recorded Net Income of Rp4.2 trillion

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Education-graduationfromtheS1localscholarshipprogramandthepresentationofCIMBNiagaoverseasscholarshipsto42studentsparticipatingintheCIMBNiaga S1 Local Scholarship Program and three students participating in the CIMB NiagaS1OverseasScholarshipProgramtoenablethemtocontinuetheirstudiesatuniversities in Malaysia.

Education-officialopeningoftheCIMBNiagaMiniBankingprogramattheUniversityofIndonesia.MiniBankingisapartofCIMBNiaga’sCSRprogram.The program has been conducted in cooperation with the University of Indonesia since 1998. The Mini Banking Program has been relocated from FISIP UI to UI’s VocationalProgramBuilding.

CommunityEmpowermentandDevelopment-CIMBNiagaconducteditsEmployeeVolunteerprogramincooperationwiththePondokIndahGreenCommunity. This activity involved a Garbage Management Program in Pondok Indah, Jakarta.

January - March

Education-accountabilityforthe“Let’sSaveandShare!”Programin2012. FundsraisedintheperiodfromJunetoDecember2011runcharacter-buildingtraining programs at four preschools in Tangerang and Surabaya, in cooperation with the Indonesia Heritage Foundation.

CommunityEmpowermentandDevelopment-EmployeeVolunteerDay. Together with Habitat for Humanity Indonesia, CIMB Niaga conducted its EmployeeVolunteeractivitiesatSentul,Bogor.Themainactivitiesinvolvethedevelopment of housing facilities for families from disadvantaged backgrounds.

Philanthropy-SmartParentingClub. CIMB Niaga launched its Smart Parenting Club program. The goal of the Smart Parenting Club is to serve as a media for employees to achieve a balance between their career and family life through seminars and talk shows.

April - June

CreativeIndustriesCompetitiveTechnologyScholarship(BUTIK)-CIMBNiagaandthe Ministry for Education and Culture conducted a scholarship program for young Indonesian entrepreneurs. This program was launched through a Public Lecture seriesatfiveuniversities(Jakarta,Yogyakarta,JemberandMadiun).Thegoalof this program is to foster knowledge sharing related to communications and entrepreneurship.

Education-AssessmentCampfortheKhazanahAsiaScholarshipProgram.This assessment camp was conducted as a stage in the selection process for theKhazanahAsiaScholarshipProgram,withallcandidatesrequiredtopassthroughanevaluationprocess(PsychologicalTesting,FocusGroupDiscussions,andInterviews).ThreesuccessfulcandidateswerechosentoparticipateintheKhazanahAsiapostgraduatescholarshipprogram.

Significant Events in 2012

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Education-CIMBNiagaScholarshipProgram. CIMBNiagapresentedscholarshipsto31participantsintheBUCIMBNiagaprogram and to 15 participants in the BUTIK CIMB Niaga program. This presentation was conducted by CIMB Niaga and the Ministry for Education and Culture.

Environment-theBambuPertiwiCommunityMovement. CIMB Niaga supported the Bambu Pertiwi Community Movement in Saung Angklung Mang Udjo Bandung. This program was initiated by the Ministry for the Environment and is intended to facilitate the planting of 10,000 bamboo trees in WestJavaandBali.

SustainabilityReportingAwards2012andtheBestCSR2012(Assets>Rp100trillion)-CIMBNiagareceivedaSustainabilityReportingAward2012intheCommendationfortheFirstTimeSustainabilityReportcategoryandtheBestCSR2012categoryforbankswithassetsgreaterthanRp100trillionattheIndonesianBanking Awards 2012.

Philanthropy-DisasterAssistance. IntheperiodfromNovembertoDecember2012,CIMBNiagaprovidedemergencyrelieftothoseafflictedbyfloodsinMamasa,WestSulawesi, Soreang-Bandung,Cilacap,Jakarta,andsurroundingareasandtothoseafflictedbywhirlwindsintheSleman-Yogyakartaarea.

October - December

27

Environment-IndonesiaGreenAwards2012. CIMB Niaga received Indonesia Green Award in the Green Banking category from La Tofi School and the Ministry for Forestry and Ministry for Industry.

Philanthropy-RamadanMarketandActivities. CIMBNiagahelditsRamadan1433HBazaarforthreedaysinBintaroandKarawaci. At the end of this program, CIMB Niaga sold essential foodstuffs at low pricesto620disadvantagedfamiliesinareassurroundingBintaroandKarawaci.

Education-SocialBusinessInnovationAward2012. CIMBNiagawoninthe“DevelopmentofEducationforHumanResources”categoryattheSocialBusinessInnovationAwards2012organizedbyWartaEkonomimagazine.ThisawardwasacceptedbyMrs.L.WulanTumbelaka, Compliance,CorporateAffairs&LegalDirector.

July - September

Education-“Let’sSaveandShare!”Program2012.CIMBNiagare-launchesits“Let’sSaveandShare!”ProgramthroughatalkshowrevolvingaroundthethemeofsharingandsavingamongstchildrenatYasporbiPrimarySchool,Jakarta.Atthesame time, CIMB Niaga also launched its Kit the Kids program with storytelling and tree climbing activities.

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Awards

”Service to Care Award 2012” – The Best of Indonesia Service to Care Champion 2012 in the Saving Account, Conventional Banking category for assets more than Rp75trillionbyMajalahMarketeers

“Indonesian Bank Loyalty Index (IBLI) 2012 (Sharia Bank)”–CustomerSatisfactionIndex(Ranking

1)byInfobankmagazine

“HR Excellence 2012”–DevelopmentCategory(Ranking1)andOverall(Ranking2)bySWAmagazine

”The Asian Banker Achievement Award 2012” – Best Trade Finance Bank in Indonesia by The Asian

Banker

”Banking Efficiency Award 2012” by the Harian Bisnis Indonesia

”Indonesia Best Public Companies 2012” by Majalah SWA

”Banking Service Excellence Awards 2012” – Best ATM(Ranking1)–CommercialBankbyMRI&MajalahInfobank

”Indonesia Green Award 2012” – Green Banking CategorybytheLaTofiSchoolofCSR,theMinistryforForestry and the Ministry for Industry

“Vision Awards (Annual Report Competition) 2011” –BronzeAwardbytheLeagueofAmericanCommunications Professionals

“Rating of 120 Indonesian Banks” –Witharankingof‘Excellent’(capitalaboveRp10-50trillion)byMajalahInfobank

”Indonesian Banking Award 2012” – National Private BankwithAssetsoverRp50trillioncategorybyPERBANASInstituteandTempoMediaGroup

”Consumer Banking Excellence Award 2012” – InternetBankingCategory(Ranking1)byMajalahSWA

”Annual Report Award 2011” – Private Listed Finance Category(Ranking2)byOJK(formerlyBapepam-LK),ISX,BI,theMinistryforState-OwnedEnterprises,the National Indonesian Committee for Governance, the Indonesian Accountants Association, and the DirectorateGeneralforTaxation

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“ASiAMONEY Award 2012” – Best Foreign Provider foroverallFXservicesinIndonesiabyASiAMONEYFXPoll 2012

“Infobank Sharia Finance Award 2012”–Rankingof‘Excellent’(CIMBNiagaSyariah)byMajalahInfobank

“Marketing Award 2012” – The Best in Marketing CampaignbyMarketingMagazine

“IICD Corporate Governance Award 2012” – Best Corporate Governance Financial Sector 2012 by the IndonesianInstituteforCorporateDirectorshipandInvestorMagazine

“Digital Brand of The Year 2012” – The Best Index for UUS Category by Majalah Infobank

“Customer Loyalty Award” – The Net Promoter Score (NPS)GoodforSavingAccountCategorybyMajalahSWA,NetPromoter,andHachiko

“Anugerah Perbankan Indonesia 2012” – The Best Bank 2012 in the Commercial Bank category by BusinessReviewMagazine,WomanReviewMagazine&PERBANASInstitute

“Anugerah Perbankan Indonesia 2012” – The Best Bank2012inHumanCapital(Ranked1)inthecategoryofCommercialBankWithAssetsValuedat>Rp100trillionbyBusinessReviewMagazine,WomanReviewMagazine&PERBANASInstitute

“Anugerah Perbankan Indonesia 2012” – The Best Bank2012inCorporateSocialResponsibility(Ranked1)inthecategoryCommercialBankWithAssetsValuedat>Rp100trillionbyBusinessReviewMagazine,WomanReviewMagazine&PERBANASInstitute

“Anugerah Perbankan Indonesia 2012” – The Best Bank2012inRiskManagement(Ranked1)inthecategoryCommercialBankWithAssetsValuedat>Rp100trillionbyBusinessReviewMagazine,WomanReviewMagazine&PERBANASInstitute

“Indonesia Best Corporate Transformation 2012” – witharankingof‘Excellent’bySWAMagazine

“Indonesia Good Corporate Governance Award 2012”–witharankingofHighlyTrustedbySWAMagazineandTheIndonesianInstituteforCorporateGovernance

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Joint Statement from the President Commissioner and the President Director

Dato’ Sri Nazir RazakPresident Commissioner

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“Through attention to the achievement of economic, environmental and social sustainability, we ensure our growth over the long-term. Sustainable development enables the current generation to meet its needs without preventing future generations from meeting their needs. This principle guides CIMB Niaga in the conduct of its sustainable banking business.”

Arwin RasyidPresidentDirector

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Dear Stakeholders [1.1, 1.2]

CIMB Niaga strives to continue to improve its sustainable

business performance to secure its position as one of

the leading banks in Indonesia. Over the past several

years, we have conducted a transformation program

to strengthen CIMB Niaga’s position within the CIMB

Group’s business network and to make it one of the

foremost universal banks in Southeast Asia.

Indonesia has the largest Gross Domestic Product (GDP)

of all nations in the South-East Asian region, achieving a

consistent rate of growth over the past several years. The

rate of economic growth in Indonesia in 2012 reached

6.23%, one of the highest rates of economic growth in

the world, after China. Indonesia’s economic success

is integrally related to the role of the national banking

industry, in which CIMB Niaga is one of the five largest

national banks.

As part of its efforts to expand its role and contribution

to the national economy, CIMB Niaga strives to manage

its business in accordance with the principles of

sustainability. The success of the implementation of

these principles must be measured in terms of the extent

to which the Company expands its ability to create added

value in terms of economic, social, and environmental

for all stakeholders.

Added Economic Value

In 2012, CIMB Niaga’s operational and financial

performance improved significantly compared to the

previous year. This improvement was achieved through

the implementation of a number of strategic measures,

including an expansion of networks, the development of

products, and refinements to our banking services.

CIMB Niaga recorded a 24% increase in its revenues

compared to the previous year, from Rp 10.40 trillion

in 2011 to Rp 12.94 trillion in 2012. This increase

demonstrates CIMB Niaga successful in expanding and

improving its banking activities for the benefit of its

clients.

In order to ensure the sustainability of its business, CIMB

Niaga strived to increase the added economic value

distributed to stakeholders in 2012, with the total value

of distributed economic value amounting to Rp 10.49

trillion, representing an increase of 18% over the sum

of Rp 8.89 trillion recorded in the previous year. This

includes payments to suppliers, wages to employees,

dividends, taxes and donations and contributions in a

number of forms to the community.

In the next 3 to 5 years, the level of economic sustainability

achieved will increase in line with Indonesia’s economic

growth. CIMB Niaga’s Transformation Strategy, which

will continue to be implemented in future years, will

enable us to achieve this goal. Strong economic growth

benefits not only shareholders, but all other stakeholders,

including employees and their families, suppliers, clients,

the government, and members of the community.

Thus, we must continue to foster harmonious relations

with stakeholders, to increase the level of synergy

and consolidation between affiliated and subsidiary

companies, to develop business units in accordance with

changes in the market, to create innovative products and

technological applications, and to expand the skills and

professionalism of employees.

Added Social Value

In 2012, CIMB Niaga increased the added social

value created through the implementation of a

number of community empowerment programs. Social

performance refers to the ability of the Company to

create added social value for stakeholders, including

both internal and external stakeholders. The Company’s

community empowerment programs are intended to

improve the quality of life of members of the community

and are based on an understanding that the Company

grows in harmony with the community and implements

its business within the community. On this basis, the

management of CIMB Niaga strives to spread benefits

and to enact measures to improve the welfare of the

community.

The results of the scholarship program that CIMB Niaga

has conducted over the past several years have been

extremely positive. By the end of 2012, 133 individuals

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21Sustainability Report • CIMB Niaga 2012

had completed undergraduate study programs through

scholarships provided by CIMB Niaga, while 10

individuals had completed postgraduate programs.

In addition to education, the level of other forms of

assistance that CIMB Niaga provided to the community

throughout 2012 also increased significantly. Amongst

other forms of assistance, CIMB Niaga provided support

to develop vital community infrastructure and to provide

assistance to those afflicted by natural disasters. The

total value of funds allocated for these purposes in 2012

amounted to Rp 2.68 billion, representing an increase

of 76% over the sum of Rp 1.52 billion recorded in the

previous year.

Industrial relations with employees throughout 2012

remained harmonious. Full acknowledgement of the

rights of employees, the provision of competitive

remuneration packages, respect for human rights, the

provision of occupational safety and health benefits,

recognition of the right to participate in collective

action, and the freedom to express opinions were all

characteristics of CIMB Niaga’s endeavors to ensure the

establishment of a conducive working environment.

The total number of the Company’s employees in 2012

stood at 14,224, representing an increase of 4.5% over the

number of employees in 2011, which stood at 13,612. The

total value of remuneration packages paid to employees

in 2012 increased by 29% compared to the previous year,

when this value stood at Rp 2.23 trillion. Management

is committed to maintaining harmonious relations with

employees, whom it regards as the principal asset in

its endeavors to achieve CIMB’s vision of becoming the

foremost bank in Southeast Asia.

Increases in added social value are the principal indicator

by which the social performance of the Company is

assessed. This social performance, which reflects CIMB

Niaga’s accountability for its products and portfolio in

2012, recorded excellent results.

Client complaints related to CIMB Niaga’s products were

resolved in accordance with established procedures.

Management continues to strive to improve the level

of communication in the marketing of its products in

accordance with the regulations, code of ethics, and

generally accepted standards prevailing in the Banking

industry. Our clients represent our most significant

stakeholder group.

Environmental Added Value

The sustainability of the Company’s business is also

determined by the extent to which it creates added

environmental value by ensuring the sustainability

of the ecosystem. As part of management policies,

environmental issues are an integral part of CIMB

Niaga’s policies and strategies for the implementation

of its business.

Environmental sustainability refers to the ability to

maintain and preserve the earth and its ecosystems for

the benefit of future generations. The extent to which

the Company achieves this defines its environmental

performance. Environmental performance also refers to

the added value the Company creates by maintaining the

environment in areas surrounding its operations.

Throughout 2012, CIMB Niaga recorded an even higher

level of environmental performance than in the previous

year. Amongst other measures, the Company enacted

policies to reduce carbon emissions, including the

following: reduced use of electrical power, reduced use

and recycling of paper, limitation to official travels, use

of low capacity motorized vehicles, and development of

green buildings for office use.

The Company’s efforts to improve its environmental

performance involved cooperation with the community

throughout 2012 and have achieved extremely positive

results. Community awareness regarding environmental

conservation has grown and the number of companies

involved in the provision of renewable energy has

increased.

Goods produced in an environmentally friendly manner

have gained increased market acceptance. In light of

these developments, CIMB Niaga continued to develop

a number of banking services that facilitate banking

transactions without requiring visits to bank branches,

thereby reducing the level of carbon emissions created

through these activities.

Other activities to improve our environmental

performance and implemented in cooperation with the

community throughout 2012 include the conservation

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22 Sustainability Report • CIMB Niaga 2012

Dato’ Sri Nazir Razak President Commissioner

Arwin RasyidPresident Director

of bamboo forests, the provision of environmental

education, campaigns to improve the management

of household garbage, and the development of an

Environmental Garden in Sleman, Yogyakarta. The

total value of funds allocated for these environmental

programs reached Rp 640,649,200 in 2012, representing

an increase of 40% over the sum allocated in the previous

year.

Risks, Opportunities, and Impact

Sustainable business management represents an

endeavor to prevent and mitigate the negative impacts

that can arise from the Company’s banking activities.

Banking activities are orientated towards the creation

of added economic value, added social value and added

environmental value, and not merely short-term financial

gain. This ensures the comprehensive, sustainable

development of the Company’s business for the benefit

of all stakeholders.

Measures to improve the sustainability of our business

can also reduce banking risks. The provision of credit to

non-environmentally friendly business entities creates a

high level of banking risk that can have a negative impact

on the overall performance of the Banking sector. Thus,

CIMB Niaga assesses environmental risks through the

risk management system that it implements.

The growth of environmentally friendly business

entities creates opportunities for CIMB Niaga to create

environmentally friendly banking products. In line with

this, there are opportunities to obtain funding from

socially responsible investors and creditors, who are

prepared to support our operations as a sustainable

bank.

Finally, we would like to express our gratitude to all

employees for their hard work, as a result of which CIMB

Niaga’s sustainability performance improved significantly

in 2012. We would also like to express our appreciation to

all other stakeholders who have contributed to improving

CIMB Niaga’s performance throughout 2012. With hard

work and dedication, we will strive together to achieve

even better outcomes in 2013.

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23Sustainability Report • CIMB Niaga 2012

Griya CIMB NiagaBintaro, Tangerang

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24 Sustainability Report • CIMB Niaga 2012

Head Office 2,Menara CIMB Niaga, Karawaci, Tangerang This 21-storey building located on Jl. Raya Diponegoro 101, Lippo Karawaci, was built in 1994. The strategically located office houses many units, including services area on the ground floor, PPAS unit, HR unit, Finance & Accounting, and Internal Audit.

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25Sustainability Report • CIMB Niaga 2012

Not Just a Bank

Sustainable banking business operations are not merely intended to increase the wealth of shareholders, but are also intended to generate broader benefits by creating economic value for all stakeholders, including clients, employees, suppliers, the government, and members of the broader community.

CIMB Niaga’s business operations have grown as a direct result of the contributions of the community and are conducted within the community, many of whose members still live in sub-standard socio-economic conditions. This drives CIMB Niaga to distribute benefits amongst all members of the community.

Each year, CIMB Niaga allocates funds for distribution to the community through a number of philanthropic programs. This policy is intended to improve the quality of life of members of the community and is intended to support the poverty alleviation programs conducted by the government. These philanthropic activities also represent CIMB Niaga’s contribution to the achievement of the Millennium Development Goals (MDG’s) 2015.

CIMB Niaga has grown and developed because of the Earth’s natural resources and conducts its operational activities on the basis of the utilization of these resources. This means that CIMB Niaga must be responsible for the conservation of these natural resources for the

benefit of future generations. The Company fulfils this responsibility through a number of environmental conservation programs which are integrated in the Company’s daily operational activities. Environmental issues are also regarded as an important consideration in the Company’s risk management system.

CIMB Niaga implements its business activities in the context of dynamic community. The business environment in which the Company operates is characterized by rapidly developing information technology, increased community expectations, increased competition, increases in the value of intangible assets, an increasingly tight regulatory environment, an increasingly broad network, and in a context in which an increasingly broad range of Civil Society Organizations (CSO’s) operate. These factors drive CIMB Niaga to conduct ongoing improvements to its business processes and to strengthen its systems of corporate governance in accordance with best practices in the financial and banking sector.

CIMB Niaga believes that we are “Not Just a Bank.” This awareness of our broader role drives us to achieve optimal performance in three areas, these being economic, environmental, and social performance. These three aspects are equally important as financial performance in terms of ensuring the ongoing sustainability of CIMB Niaga. [4.8]

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26 Sustainability Report • CIMB Niaga 2012

Sustainability Sector Report

Mount BromoMount Bromo is an active volcano, located in four regencies in East Java, namely Probolinggo, Pasuruan, Lumajang, and Malang.

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27Sustainability Report • CIMB Niaga 2012

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28 Sustainability Report • CIMB Niaga 2012

Overthepastseveralyears,theIndonesianeconomyhasachievedexcellentgrowth,despiteglobaleconomicshocks.WitharateofgrowthinGDPof4.60%evenattheheightoftheglobalcrisisin2009,Indonesia’seconomygrewby6.20%in2012.Thisisanexcellentachievement,considering that the global economy in 2012 is still under pressure from the ongoing crisis in Europe and North America, particularly the USA.

Over the past several years, Indonesia’s economic growth has been supported by stablemacroeconomic indicators, demonstrating Indonesia’s successful management of the economy in a manner that is both prudent and conducive to expansion. The rate of inflation over the past twoyearshasbeencontrolledatlevelsbelow5%,whiletheBankIndonesiaratehasbeenmaintainedatbetween5.75%to6.75%overthepasttwoyears.

ThemaincontributorstoIndonesia’seconomicgrowtharedomesticconsumptionat54.60%,investmentsat33.20%,exportsat24.30%and importsatminus25.80%.Thegrowthofthe economy resulted in an increase in per capita income of the population of Indonesia to USD3,563in2012,upfromUSD3,498atendof2011.

In 2012, the Banking sector in Indonesia, in which banks play a vital mediating role by providing funding to facilitate economic growth, achieved a high level of stability, enabling it to maintain its intermediary function, despite the incomplete recovery of the global economy. The strength of thedomesticbanking sector is reflectedby theCapitalAdequacyRatioof thenationalbankingsector,whichisconsiderablybetterthantheestablishedminimumof8%,standingatapproximately17.40%.AsofDecember2012,theratioofnon-performingloanswasalsogood,standingat1.90%,considerablybelowthedefinedmaximumrateof5%.

Sustainability Sector Report

Banking and Economic Conditions in Indonesia

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29Sustainability Report • CIMB Niaga 2012

CIMB Niaga is a national private bank with assets reaching a total value ofat the end of 2012.

Rp 197.4 trillion

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30 Sustainability Report • CIMB Niaga 2012

According to Bank Indonesia data, the total value of credit disbursed by the national banking sector in 2012 grew by 23.10%in2012toreachatotalvalueofRp2,708trillion.This growth is only slightly lower than the rate of growth in2011,whichstoodat24.6%,withthetotalvalueofdisbursedcreditinthatyearreachingRp2,200trillion.

The Role of CIMB NiagaAs a national private bank whose assets reached a value of Rp197.4trillionin2012andwhichhasanetworkreachingalmost all the principal cities of Indonesia, CIMB Niaga plays a significant role in facilitating national economic growth and the growth of the Banking sector.

Strategy for Participation in Economic Growth (FS1)CIMB Niaga is continuing to transform itself to become the most prominent and trusted bank with the widest network in Southeast Asia. This transformation has been achievedthroughtheTransformation2(T2)strategiesfirstimplemented in 2010 and continued throughout 2012.

As part of its endeavors to achieve its vision of becoming the most trusted bank in Indonesia, CIMB Niaga has implemented a number of short-term and long-termstrategies, including the following:• Short-Term Strategic Plans In the short term, CIMB Niaga will continue to

focus on six priority pillars, which include the expansionofmicro-financefacilities;ofcreditcards;ofloans;ofmortgages;ofmotorizedvehicleloans;

improvements in the efficiency of and developments of alternate channels; and developments of thebusiness value chain for clients of commercial and corporate banking services.

• Long-Term Strategic Plans In the long term, CIMB Niaga will continue to focus

on six priority pillars, which include selectivity;diversificationofsourcesoffunding;expandedlow-costfunding;atransformationinsalesandservices;improvementsinefficiency;andthedevelopmentofhuman resources. These strategies form the basis for the achievement of growth by the Company’s principal business units and will therefore drive the overall growth of CIMB Niaga.

At the same time, CIMB Niaga will also leverage synergies with subsidiary companies of the CIMB Group through increased collaboration at the regional level.

In 2012, CIMB Niaga conducted a number of initiatives that were aligned with the strategies described above, including the development of high margin products and services, such as credit cards, personal loans, Syariahpawnbrokingandmicro-financeproducts.Italsodeveloped a number of products and services offered by subsidiary companies, such as CIMB Niaga Auto Finance (CNAF),withtheseproductsincludingtheMotorLaju.Inorder to increase its CASA, CIMB Niaga also promoted itse-channelservices,includingCIMBClicksforInternetbanking, and GoMobile for mobile banking services.

Ribka Mappetumiur PratiwiFashion EntrepreneurFaculty of Economics,University of Indonesia

“I learnt about the CIMB Niaga BUTIK program from the Internet. As an entrepreneur who was still also a university student, I needed funding to grow my business. I was extremely proud to be included in the CIMB Niaga BUTIK program. I was chosen as a finalist, after which I met a number of other young, inspiring entrepreneurs. These meetings motivated all of us. Not only that, I also had the opportunity to consult with a number of senior entrepreneurs with established experience in their field. From this, I learned a lot that I could use to develop my career. Because I was selected as a winner, I was provided with financial facilities and support to finish my education and with capital to expand my business. This has been an unforgettable experience. I always thank God for being included in the CIMB Niaga BUTIK program. Such an unforgettable moment in my life.”

Banking and Economic Conditions in Indonesia

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31Sustainability Report • CIMB Niaga 2012

Strategic Focus on 2012In 2012, CIMB Niaga implemented a number of strategic initiatives in each of the business segments that it serves, as follows:• Retail Banking TheRetailBankingUnitcontinuedtofocusonthe

development of a range of products and on improving thequalityofitsservice.TheRetailBankingUnitisoptimistic regarding the performance of its credit products, particularly mortgages and MotorizedVehiclefinancing.Intermsofitscreditcardbusiness,RetailBankingwillstrivetoconsolidateitsexistingproducts,toconductcross-sellingactivitiestocreditcard holders, and to encourage the overall increased use of credit cards.

• Commercial Banking In line with the positive expectations for economic

growth in 2012, the Commercial Banking unit, which servesthehigh-endcommercial,SMEcommercialand micro-finance sub-segments, is expected toexpand as a result of the growth of the backbone industrial sector and of the trade sector, including agricultural, mining, manufacturing, infrastructure and tourism.

• Corporate Banking The Corporate Banking unit will strive to increase the

volume of its transactional business by expanding its provision of cash management services, import export financing, and treasury services. The principaltargetmarketincludesclientswhorequireinvestmentbankingservices(syndication,advisoryandmarketcapital)andlargecorporateclientswhooperate at the regional level. The Corporate Banking unit will also strive to increase the level of synergy between business units.

• Syariah Banking In order to expand the activities of its Syariah Business

unit, CIMB Niaga will continue to implement its dual banking concept through the development of the dual banking model throughout operational and supporting business units, including all branch offices of CIMB Niaga. In cooperation with the Human ResourcesandLearning&CapabilityDevelopmentGroup, CIMB Niaga Syariah will continue to improve the level of understanding of all employees regarding Syariah banking products and services offered by CIMB Niaga. Priority will be placed on improving the

capacitiesofemployeestoeffectivelyconductcross-selling of CIMB Niaga’s products and services.

CIMB Niaga will continue to develop brand images

for its Syariah banking services through the implementation of effective marketing strategies, including cooperative promotion programs, product bundling, the sale of financing products, third party funding, and other services through the Syariah branch office network and through the Syariah office channeling system at CIMB Niaga branches throughout Indonesia.

• Transaction Banking Transaction Banking will focus on innovating and

improving the packaging of Cash Management and Trade Finance services throughout the Company’s business chain by creating solutions to connect corporate and commercial clients to suppliers, distributors, and employees through distribution networks of their own choosing.

• Private Banking CIMB Niaga Private Banking is a pioneer in the

PrivateBankingsectorinIndonesia.Ourextensiveexperience has won us the trust of high net worth individualclientswhorequireproductsandservicesthat meet their financial needs and support their investments.

In addition to the strategic focus on the provision of credit and other banking services described above, CIMB Niaga is also preparing to implement strategic actions related to funding, the expansion of branches and networks, the treasury and capital market, risk management, and other matters related to banking operations.

Capacity training program at the Indonesia Heritage Foundation.

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32 Sustainability Report • CIMB Niaga 2012

REALIzED DISBURSED CREDIT BY SEGMENT [FS6]CIMB Niaga’s credit disbursement strategies focus on the commercial, retail, corporate, and Syariah segments. Through the provision of credit to these principal segments, CIMB Niaga played an active role in developing Indonesia’s economy by providing necessary banking services. In 2012, CIMB Niaga disbursed funds to corporate and individual clients with the total value of outstandingloansreachingRp145.4trillion,representinga 16% increase over the sum of Rp 125.7 trillion in2011.

A description of CIMB Niaga’s credit portfolio according tosegmentasofDecember2012canbeseenfromthefollowing table:

Total Credit by Segment (Rp trillion)

39.1 42.7

45.855.8

37.5

3.3

7.6

39.3

10 11 12

32.8

37.3

32.9

1.9

Corporate

Commercial

Consumer

Sharia

The composition of the Banking business portfolio according to credit activities and treasury services can be seen from the following pie chart:

Corporate Banking

Commercial Banking

Sharia

RetailBanking

Treasury

24%

28%

18%

26%

4%

Trade Portfolio (%)

As with other operators in the Banking sector, CIMB Niaga also implements a number of strategies to increase its operational efficiency; to protect the quality of itscredit assets; to access low-cost funding; to increasethe level of services it offers to clients through the opening of branches and through the extension of its electronicnetwork;todevelopadditionalproducts;andto improve features of existing products to meet the needs of clients. All of these endeavors are intended to ensure that the provision of banking services results in substantial margins and enables CIMB Niaga to develop its business by increasing its disbursements and by expanding its area of operations through the opening of branches and by expanding its network of information technology based services.

These measures have been highly successful, as demonstrated by CIMB Niaga’s increased net profits after tax in the 2012 financial year, the value of which reachedRp4.23trillion.

In 2012, CIMB Niaga distributed interest-generatedrevenues to owners of leased property, fees for the operation of utilized systems and group operationalfundingtoatotalvalueofRp5,945billion.Inaddition,CIMB Niaga distributed revenue to employees, in the form of salaries, to a total value of Rp 2,745 billion.The Company contributed to national revenues by the paymentoftaxesofRp1,537billion.ThetotalvalueoffundsallocatedtoCIMBNiaga’sCSRprogramsstoodatRp15.47billion.

CIMBNiagaretainedfundstoatotalvalueofRp2.38billion for the future development of its business. The value of these disbursed funds can be seen from the following distribution of economic value table:

Banking and Economic Conditions in Indonesia

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33Sustainability Report • CIMB Niaga 2012

Distributed Economic Value [EC1]

(InMillionsofRupiah)

Achieved Economic Value 2010 2011 2012

TotalOperatingRevenues-BeforeTax 8,919,850 10,373,000 12,875,000

DistributedEconomicValue

OperatingExpenses 4,173,000 5,231,000 6,056,000

EmployeeSalariesAndOtherBenefits 1,991,000 2,228,000 2,882,000

Dividends In 2010, no dividend were paid

199,800 NoDividendPayment,Recordedasretained

earnings

Tax Expenses 826,951 1,214,822 1,537,066

Corporate Social Responsibility 13,136 13,396 15,216

By the end of 2012, Mikro Laju had recorded significant progress. It expanded its physical network from 233outlets in 2011 to 350 outlets in 2012, with the totalvalueofdisbursedcreditincreasingfromRp1.2trilliontoRp2.1trillionoverthesameperiod.Thetotalnumberof micro and small businesses availing themselves of credit through the Mikro Laju program increased to more than14,000.

The Mikro Laju unit implemented a number of empowerment programs for micro and small businesses in Java and Sumatra throughout 2012. In 2011, CIMB Niaga implemented its Mikro Laju Goyang Pasar program, through which traditional cultural performances were stagedtoattractyoungregionalentrepreneurs;toprovideinformationrelatedtofinancialissues;andtointroducethe concept of modern financial services to members of the community. In addition, an educational program to provide skills training for new entrepreneurs was also implemented. This program involved cooking and automotive technology skills training.

As part of its community empowerment program, CIMB Niaga launched its Mikro Laju Scholarship Program in 2010 to educate and encourage micro and small businesses to develop their activities. Candidate recipients of scholarships took part in the Success Camp program in 2012, with those passing through the selection process eligible for scholarships which provide facilitation for six monthsandsubsidizedworkingcapital.

CONTRIBUTIONS TO STATE REVENUESThrough the Banking activities conducted by CIMB Niaga, the Company makes significant direct and indirect contributions to State revenues. As shown in Table EC1, CIMB Niaga makes direct contributions to State revenues through the payment of Corporate Tax, the value of which stoodatRp1,537billion in theperiod coveredby this report, an increaseof27%over thesumpaidin the previous year. CIMB Niaga also pays taxes on a number of its investment activities, including the supply of goods to support operations and through other physical investments.

In addition to these direct contributions in the form of tax, CIMB Niaga also contributes indirectly by enabling its clients to expand their businesses through the provision of credit. The expansion of these businesses will generate additional income, which in turn will increase the value of taxes that they pay to the State.

IMPROVING SMALL-SCALE ECONOMIC PERFORMANCE [FS7, FS14]CIMB Niaga also plays a significant role in expanding theeconomicperformanceofthesmall-scalebusinesssector by providing banking products designed to assist small-scale entrepreneurs, including its Mikro Lajuproduct. In addition to the Mikro Laju product, for the last several years, CIMB Niaga has also introduced a number of Syariah banking products to support the economic activities of small to medium scale businesses who would like to develop their business in accordance with religious principles.

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The Syariah Business Unit also recorded significant successes with the total value of Syariah based outstandingfinancegrowingby133%toreachatotalvalue of Rp 7.63 trillion, up from a value of Rp 3.27trillion in 2011.

CIMB Niaga conducted a number of finance and empowerment programs for micro, small and medium enterprises in 2012 with the assistance from staff with expertise in the area of developing community entrepreneurship. These programs are intended to facilitate economic growth throughout Indonesia. In this sector, CIMB Niaga sees that the volume of transactions will increase over the future, to the mutual advantage of all parties.

CREATING SUSTAINABLE BUSINESS GROWTH [FS7]CIMBNiagabelievesthatoverthelong-term,byfosteringdirect relationships with its clients and with potential clients, it will establish strong ties that will ensure the ongoing sustainability of its business. Thus, in order to increase the number of its clients and to provide education related to banking and to establish deeply rooted ties, CIMB Niaga has developed a range of attractively packaged banking programs and products to attract potential clients.

Junior Savings [FS8]Oneproductdesignedtoencouragethehabitofsavingfrom an early age is the Junior Savings product, a savings product specially designed for children below theageof18.With thisproduct, accountholdersarenotchargedadministrativefeesandtherequiredinitialdeposit is relatively small. Account holders also receive attractively designed debit cards that are not subject to card fees, and also enjoy attractive interest rates and freeaccidentinsurancewithamaximumcoverageofRp200 million. Junior CIMB Niaga debit cards can be used for commercial banking transactions, such as to make payments and to withdraw funds.

The total number of participants in the Junior Savings programstandsat603,707.Wehopethatmoreyoungchildrenwillutilizethisproducttodevelopthehabitofsaving for their future.

Since June 2011, Junior Savings accounts have been includedwiththe“Let’sSaveandShare!”CSRprogram,which is intended to assist children from underprivileged backgrounds to improve their education and to participate in higher education. This program is implemented in Jakarta, Bandung, Semarang, Surabaya, and Medan.

Another program intended to encourage saving and to provide community benefits is the Kit for Kids program. This activity is specially intended to benefit primary school students. For this activity, CIMB Niaga conducts visits to a number of primary schools to raise the awareness of students regarding the benefits of saving and of demonstrating concern for the welfare of others. Students are given the opportunity to watch videos, to listen to songs, and to plant trees as a means of raising their awareness of environmental issues and of issues related to poverty.

Children are provided with a Kit for Kids packet containing vegetable seeds and water to care for their plants. The philosophy behind the provision of these packets is that cultivating and caring for plants is similar to saving. In order for plants and trees to grow healthy, the children must be diligent in attending and caring for them, and that the skills they develop by doing so are similar to the skills they must develop if they want to achieve financial security through routine saving to increase the value of their savings accounts.

Children who hold CIMB Niaga Junior Savings accounts may also participate in Junior Camps with their parents. Young account holders are invited to participate in anumber of fun activities with children from orphanages, withtheseactivitiesincludingoutdooractivities,story-telling and ‘Sharing Competitions’ to benefit those from disadvantaged backgrounds.

Banking and Economic Conditions in Indonesia

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Studying and Playing through Kit for Kids

All children without exception have the right to study and to play. Thus, the government is obliged to create space for Indonesian children to create, play, socialize, andstudy through a number of media and facilities. School is one such media and facility, serving as a second home to children and playing an important role in building their character so that they can serve their community. Thus, CIMB Niaga strongly believes that schools are a suitable environment to plant positive values amongst children.

OnWednesday,25July2012,CIMBNiagaconducteda visit to Yasporbi Primary School in Jakarta to plantpositive values through its Kit for Kids program, which is anintegralpartoftheCompany’s“Let’sSaveandShare!”Program in 2012. Through the Kit for Kids program, students are invited to listen to stories that encourage children to save and share at school. After this, children are invited to play with clay and to take part in tree

planting activities. Approximately 200 students from the fourth, fifth, and six grades enthusiastically took part in this Kit for Kids program.

Through CIMB Niaga’s Kit for Kids program, children will become aware of the value of saving and sharing and consider these to be positive values that they can implement in their daily lives, at school, at home, or amongst the community.

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Re-launching the “Let’s Save and Share!” Program in 201225July2012.CIMBNiagaagainconductedits“Let’sSaveandShare!”programfor2012.AtYasporbiPrimarySchool,

Pancoran, South Jakarta, this program began with Kit for Kids activities and a talk show on the theme of “Let’s Save

andShare!”withanumberofbloggersandexpertsintheeducationalfield,includingRatihIbrahim,AinunChomsun

(TheSharingAcademy),IdaAkmal(IndonesianGardens)andDikDoank.Thespeakersfocusedonthevalueofsaving

and sharing to foster social awareness and character.

L.WulanTumbelaka,theDirectorforCompliance,CorporateandLegalAffairs,statedthatthe“Let’sSaveandShare!”

Program was a manifestation of CIMB Niaga’s commitment to its corporate social responsibility, particularly in the area

ofeducation.2012wasthesecondyearinwhichthisprogramwasheld,withasimilarprogramendinginDecember

2011.

The“Let’sSaveandShare!”ProgramisalsoinaccordwithBankIndonesia’sBusySavingsDayprogramwhichis

intended to encourage saving by members of the community. Through active participation in banking, it is hoped that

members of the community will become familiar with banks and that a culture of saving will grow.

Theinaugurationofthe“Let’sSaveandShare!”Programwasconcludedwiththehandingoutofdoorprizesand

withthehandingoverandplantingofatreefromCIMBNiagatoYasporbiPrimarySchool.Thehandingoverofthis

tree was intended to be symbolic of CIMB Niaga’s commitment to serving the community, particularly in the area of

education.

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CIMB Preferred, Private Banking and Wealth Management (PPWM)ThroughtheCIMBPreferred,PrivateBankingandWealthManagement(PPWM),CIMBNiagacontributestothedevelopment of the national economy by providing services that satisfy the financial and investment needs ofindividualclientsfromthemiddleclasses(uppermassaffluent) throughCIMBPreferredandof theneedsofhigh net worth individuals through CIMB Niaga Private Banking. These banking services were designed to provide facilities that meet the needs of upper middle income groups within the community, with the numbers of this group growing in proportion with the growth of the Indonesian economy over recent years.

Products developed in 2012 include both closed end and open end investment products from a number of fund managers, including Asuransi Xtra Premier InvestasiSeries1,2,and3,andthetreasuryproductsMLDXtraGrowthUSDandMLDXtraFixedRateUSD.

Remittance Facilities for Indonesian Workers AbroadCIMB Niaga also pays attention to meeting the financial needs of lower income members of the community who are working abroad. Through remittance services for Indonesian Workers Abroad (TKI), CIMB Niagacontributes to the development of rural communities or small towns where most of the TKI come from. These remittance facilities are offered to enable TKI contracted toworkoverseastoeasily,quicklyandsafelysendtheirearnings to their family at a low cost.

This facility was first opened in Hong Kong in the 1980’s by Niaga Finance Company which was a subsidiary of Bank Niaga. In the end of the 90’s and beginning of the year 2000, this service was extended to reach more customers and with this in mind CIMB Niaga cooperated with a number of large banks and money transfer services in the Middle East and Asia Pacific region and formed an alliancewithMoneyGramandWesternUnion.

ThemajorityofIndonesianWorkersAbroaddonothavea high level of knowledge of modern financial services. Thus, CIMB Niaga conducts campaigns to provide them with a practical guide to sending money through banking facilities in a timely fashion and without risk of loss. The provision of information regarding these products is conducted in cooperation with a partnering company that operates in the field of remittances from abroad. In 2012, CIMBNiagafacilitated313,025remittancetransactions(2011:300,405)fromMalaysia,HongKong,theUSA,theUnited Arab Emirates, Bahrain, and a number of other nations.

Considering that Indonesia is a high population nation with a large number of members of the community who are not familiar with banking services. CIMB Niaga strives to build awareness amongst members of the community regardingtheuseofbankingservices(financialinclusion).Data releasedbyPerbanasat theendof2012showsthat approximately 120 million Indonesians still do not use modern banking services. This is ironical considering thatthelevelofcapitalizationoftheIndonesianeconomyis amongst the highest of ASEAN nations. This also demonstratesthesizeoftheopportunityfortheBankingsector in general and CIMB Niaga in particular to develop and expand in line with the growth of the Indonesian economy into the future.

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Environmental ConservationCIMB Niaga is strongly committed to environmental conservation. The biggest challenge for humanity at present is to live in harmony with the surrounding environment. CIMB Niaga is fully committedtoworkingtogetherwithcitizensfromacrosstheworldtofacethischallenge.

Riskmanagementisanimportantfunctionofanybank,withenvironmentalriskbeingoneofthe risks that must be managed. CIMB Niaga has established bank policies governing the credit assessment process to prevent the provision of loans to third parties that do not have official permits or that do not comply with government established standards regulating emissions and environmental management.

Inordertocontinueouroperations,CIMBNiagarigorouslyexaminestherequireddocumentationof potential clients toensure that they are fully awareof their requirement to adequatelymanage environmental risks.

CIMB Niaga’s commitment to the environment is also manifested through a number of healthful,beneficialactivitiesconductedthroughtheCIMBNiagaBicycleClub.Onanumberof occasions, this club has conducted activities to promote environmental conservation and rehabilitation, including the rehabilitation of land affected by natural disasters, such as floods in Pantai Indah Kapuk, Jakarta, which destroyed plant life in surrounding areas. In addition to activities conducted through the Bicycle Club, CIMB Niaga manifests its commitment to the environment through the manner in which it conducts its operational activities.

Sustainability Sector Report

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For CIMB Niaga, the biggest challenge for humanity is to live in harmony with the surrounding environment.

Bamboo ForestA bamboo forest on village lands located at Pupuan Village, Tabanan Regency, Bali.

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Beyond BankerThe traditional business of the Banking sector is to act as a financial intermediary, aggregating and disbursing funds. CIMB Niaga implements its role with sufficient attention to environmental considerations. Funds are dispersed selectively, with particular attention paid to the environmental impact of their use. CIMB Niaga strives to achieve full compliance with all regulations governing the Banking sector and related to environmental management,particularlyBankingLawNumber10/1998andaBankIndonesiaregulationissuedin2004thatstatesthat one of the criteria for the selection of applications for credit is the commitment of the borrower to appropriate environmental management. Although policies related to the implementation of the principles of Green Banking have not yet been fully developed, the formulation of related regulations and policies is ongoing.

CIMB Niaga is committed to implementing Green Banking in Indonesia in full compliance with globally accepted standards and guidelines and with policies issued by the National Indonesian Council for Climate Change, by the United Nations Framework Convention on Climate Change, by the United Nations Environment Program,andbyEquatorPrinciples(EP).

Indonesia strongly supports steps to reduce carbon emissions,withPresidentSusiloBambangYudhoyonohimself announcing that the government plans to reduce levelsofemissionofcarbongasesby26%fromtheircurrent levels by 2020.

EquatorPrinciples’standardsforcreditriskmanagementare applied to infrastructure development projects and large-scale industrialprojectswithavaluegreater

than USD 10 million. The term ‘Equator’ was chosento reflect the principle that the standards may be implemented by entities in both the northern and southern hemispheres. The 10 defined principles were established in2003following IFCstandardsrelatedtocommunitysustainabilityandtheenvironmentandWorldBank guidelines related to the environment, health, and security.

Institutions that implement this standard will not provide credit to debtors who are not willing or able to comply with the established standards. At present, there are at least 73financialinstitutionsin27nationsthathaveofficiallyimplementedtheEquatorPrinciplesstandards.

As one of the most prominent private banks in Indonesia, CIMB Niaga will continue to monitor and play a role in the formulation of the Green Banking concept in order to ensure that its business activities are conducted in full compliance with internationally accepted procedures and policies,withup-to-dateinformationrelatedtothisissuepresented to shareholders through reports that will be published in the future.

The Conservation of the Environment through Operational ActivitiesIn the conduct of its daily operational activities, CIMB Niaga implements a number of programs as a manifestation of its concern for the environment. Programs of this sort were successfully implemented in 2012. These programs to preserve the environment are conducted through structural activities and established as an integral part of the Company’s operational activities. These programs include the following:

Environmental Conservation

CIMB Niaga supports the Pertiwi Bamboo Community Movement, which was initiated by the Ministry for the Environment, the KEHATI Foundation, Saung Angklung Mang Udjo, and the Love Bamboo Community. The Pertiwi Bamboo Community Movement is a community action conducted to supports the conservation and cultivation of Bamboo. CIMB Niaga has supported this movement by planting ten thousand Bamboo trees throughout West Java (Jatinangor and Cirebon) and Bali (Gianyar and Tabanan).

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Environmentally Friendly Credit Policies [FS1, EN26]In its provision of credit for investment and working capital and in its provision of other banking services to potential commercial clients in the industrial, agricultural, mining, and large-scale infrastructure sectors, CIMBNiagaimplementscreditpoliciesthatrequireapplicantsto commit to the implementation of measures to ensure environmental protection. CIMB Niaga has formulated a policy that allows it to assess debtors’ business prospects in these terms in the processing of applications for credit.

Oneoftheprincipalcriteriausedintheassessmentofadebtor’s business prospects is the extent of measures implemented by the debtor to manage environmental issues, particularly in the case of large-scale debtorswhose operations may have a significant impact on the environment. These policies are in accord with Section 8, LawNumber7Year1992,concerningBanking,asrevisedbyLawNumber10Year1998,whichstatesthatcreditshould be provided on the basis of a consideration of an Environmental Impact Analysis (AMDAL), particularlyin the case of applications by large-scale companiesor those with high risk factors. The obligation to prepare an AMDAL is also stipulated in Law Number23Year1997,concerningEnvironmentalManagement,and Government Regulation Number 27 Year 1999,concerningEnvironmentalImpactAnalysis(AMDAL).

An AMDAL involves an analysis of any significantand material impacts of a particular planned business endeavor or activity on the environment and is used as a basis for decision making related to the implementation of that business endeavor or activity. An AMDAL isrequiredtodetermineanyenvironmental impactsofaparticular project. Large-scale activities implementedwithout conducting an AMDAL can have significantnegative impacts because of the lack of an adequateenvironmental management plan, indicating that the debtor may be unaware of the potential environmental impact of their activities. This can have an impact on the sustainability of the business operation and on the ability of the debtor to repay the loan.

Smart Spending Policy [EN6, EN22, EN29]CIMB Niaga implements a Smart Spending Policy, which is intended to improve efficiency through the implementation of environmentally friendly operational policies and to reduce waste. This policy sets out clear operational procedures to reduce the use of fuel, electrical power and paper. Some of the points stipulated

by the policy include the following:a. CarRentals:Allstaffshouldendeavortousesmall-

engined motor vehicles that are capable of carrying a large number of passengers and which are no more than four years old. In this manner, the emission of gasescanbecontrolledandthenumberofmotorizedvehiclesrequiredforoperationalpurposesmaybereduced.

b. The use of paper in standardized dimensions toenable the reuse of all paper on both sides and to enable its packaging and processing for recycling by third parties.

c. Reports to clients (account statements, creditcardbills,etc.)shouldbedelivered in the formofe-documents,therebyreducingthevolumeofpaperutilized, the cost of sending the documents, andemissions related to the sending process.

d. Restrictions on the use of electrical power to nomore than two hours beyond official office hours: The use of electrical power beyond this point must beauthorizedbytheGroupHead/AreaManagerinorder to reduce the use of electrical power.

e. A requirement to use energy-efficient electricalapplications, including lights, zoning, and thepositioning of light sources.

f. The imposition of a charge on the use of air-conditioning after office hours to encourage efficient work practices and to reduce the amount of overtime.

Green Office Policies [EN26]CIMB Niaga has formulated and implemented Green OfficepoliciesasanintegralpartoftheCompany’splansto implement Green Banking throughout its operations in the future. The Smart spending policies described above have been implemented to support these Green Officepolicies.

The Green Office program final goal is to enhancethe Company’s productivity and taking care of the stakeholders awareness towards the environment.

ThegoalsoftheGreenOfficeprogramareasfollows:• To manifest CIMB Niaga’s commitment to

environmentalconservation;• To improve productivity and Smart spending

efficiency;• Toeducateemployeestotakemeasurestopreserve

the environment both in the workplace and at home;

• Toensuretheimplementationofaunique,beneficial,and sustainable corporate strategy.

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The Green Office Program involves three principal activities, as follows:• Recycle Program [EN2] o Cooperation with third parties to manage office

waste in the form of paper waste, organic waste, andnon-organicwasteforfurtherrecycling.

o Management of organic waste and its processing into compost for use by the Company or for sale.

o The program is implemented in stages both at the Company’s head office and its branches.

• Less Paper Office Program [EN2] o Optimal use of multifunction printers for

scanning or sending fax or email directly without printing or multiplying documents and photocopies.

o Units and groups that utilize multifunctionprinters are required to return or reallocateconventional photocopiers, fax machines, scanners, and printers.

o Gradual implementation of an e-statement/e-billing system, starting with internal CIMB Niaga stakeholders who do not yet utilize ane-statement system and extending to theimplementation of such a system for all products that require the sending of reports or bills toclients.

o Reduction in the use of paper through theoptimalre-useofwastepaperfortheprintingofdocuments or for the photocopying of internal documents.

o Optimalreductionintheprintingofbrochures,andnewsandcompanymagazinesforinternalcommunications, which should instead be facilitated through the use of scanning, email, and the internal corporate website.

o Printing on both sides of paper, if printing facilities enable this.

o Printingofdocumentsindraftqualitymodetoreduce the use of printer toner.

• Energy Reduction Program [EN7] o Turning off lighting and electrical appliances that

are not used outside office hours. o Use of energy saving features on computers and

other electrical appliances, such as screensaver modeorpowersavermodeforcomputers,LCD,projectors,air-conditioningandothers.

o Useofenergy-efficientvehicles. o Use of teleconferencing and videoconferencing

facilities to facilitate meetings in cases where participants are widely dispersed.

Internal promotional material for Green Office

Internal promotional material for Green Office

Environmental Conservation

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GREEN GARBAGE MANAGEMENT PROGRAM IN PONDOK INDAH

On13February2012,asamanifestationofCIMBNiaga’s

commitment to the concept that “CIMB Niaga grows as

part of the community, by the community, and for the

community”, at the grand opening of the iconic Pondok

Indah branch, CIMB Niaga announced its intention

to work with the Pondok Indah Green Community to

implement a Household Garbage Management Program

inthefirstquarterof2012intheperiodfromFebruary

toApril2012inthreecommunitysectionsinResidential

Section13(RW)inPondokIndah,SouthJakarta.

This household garbage management program is

intended to 1) socialize the appropriate management

oforganicandnon-organicgarbagebymembersofthe

community;2)socializeanawarenessofthedifference

between organic waste, which can be disposed of at

rubbish tips and which includes household wastes such

as food waste, and non-organic waste, which should

not be disposed of at rubbish tips and which should be

separated from organic waste, including plastic, iron and

similar materials, amongst those employed in garbage

disposal;3)theinstallationoftwocompostingfacilities

inapublicparkinRW13,PondokIndah,Jakarta.

Wehopethattheappropriatemanagementofgarbage

facilitated through this program will be beneficial for all

of us.

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INAUGURATION OF THE SLEMAN KEHATI PARK, YOGYAKARTA20June2012.CIMBNiagahasmanifesteditsconcernfortheenvironmentthroughaprogramorganizedinadisaster

zone,neartheMountMerapiNationalParkMuseum,locatedinthevillageofHargobinangun,Sleman,Yogyakarta.

WiththeinvolvementoftheKEHATIFoundation,CIMBNiagaplayedanactiverolesupportingthedevelopmentofthe

KEHATI Park. Planting activities have been conducted to restore agricultural conditions in Hargobinangun following

the eruption of Mount Merapi through the establishment of KEHATI Park and of bamboo arboretum in front of the

museum, with members of the community establishing a community forest in August 2011.

The purpose of the KEHATI Park is to encourage biodiversity through the collection of a range of species of plants

foundinSleman,particularlyrareplantsornear-extinctplantsandtoenabletheMountMerapiMuseumtoservean

educational purpose. The KEHATI Park has been established to facilitate edutourism, serving both educational purposes

and as an alternative tourism venue.

TheinaugurationoftheprogramwasattendedbySriPurnomo,Sleman’sDistrictHeadandbymembersofYogyakarta’s

Provincial Environmental Board and by officials from the district of Sleman.

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In order to promote CIMB Niaga’s environmentally friendly operational initiatives, the Company has produced banners and posters and engaged in an email blast to ensure the involvement of all parties. A number of the materialspreparedtoconductthisinternalGreenOfficecampaign are displayed in this report.

To demonstrate commitment to environmental conservation, CIMB Niaga has implemented a number of activities through several of its work units, under the theme ‘Conscientious Consumption, Cost Saving’. The goal of these activities is to reduce the use of electricity in offices and branches, to control the use of electricity for outside lighting, to reduce the use of paper, to encourage the recycling of paper, to encourage the use of buses, and to encourage the use of telephones to conduct meetings to reduce the need for employee travel. All of these activities are conducted within the framework of CIMB Niaga’s Green Banking policies.

Environmental Conservation through CSR ProgramsIn addition to promoting environmental conservation through its operational activities, CIMB Niaga also manifests its commitment to environmental conservation through the implementation of a number of community empowerment programs. These activities are conducted aspartoftheCompany’sCSRprogramandtakeanumberof forms, including the planting of trees, the provision of Green education, facilitation of garbage management programs, and the development of the KEHATI Park.

CIMB Niaga’s commitment to participating in endeavors toconservetheenvironmentthroughitsCSRactivitiesisemphasizedthroughanumberofprogramstrategiesthat build on the concept that “as the global population rises, CIMB Niaga will work with all entities to guard and preserve the living environment and the natural resources that belong to us all.”

Internal promotional material for Green Office

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“With assistance from CIMB Niaga in the form of seedlings and training in the use of bamboo, as bamboo cultivators, we have received a great deal of benefits, as bamboo can be used for a number of purposes, including the production of handicrafts and as a replacement for wood.

“We hope that with the well-organized planting of bamboo, bamboo will provide not just economic value but also technological value for members of our community.”

Ni Made LakirHead of the Bamboo Shoot Processing Female Farmers’ Group Padangan, Pupuan, Tabanan, Bali

I Nyoman TarkaHead of the Resilient Bamboo Farmer’s GroupTaro, Gianyar, Bali

“The planting of bamboo in our village has been very beneficial, not just in terms of its usefulness, but also from the ecological and cultural standpoint. We can see for ourselves that the water debit in the village river has been reduced, while we need this water to meet our daily needs. Thus, we understand that planting bamboo is part of the answer to the ethological challenges facing our village.

“We hope that the government will be able to provide assistance to farmers, given that agriculture is the foundation of the economy, not just in our village, but in other villages as well.”

“As the head of the women’s farmers’ group in Padangan, I feel that as women, we have derived significant benefits. In the past, we didn’t have work, but now we have the skills to generate an income of our own. We have gained experience in various bamboo products, including bamboo sprouts, while previously we only sell bamboo sticks. The bamboo sprouts can also be packaged for sale in supermarkets and hotels throughout Bali. Through knowledge of the proper packaging of bamboo sprouts, our bamboo sprouts product can survive for quite a long time”.

“We hope that CIMB Niaga will continue to provide assistance in the form of machinery and other resources to enable us to better process our bamboo sprouts for exports.”

Environmental Conservation

I Nyoman AdnyanaHead of the Resilient Bamboo Farmer’s GroupBanjar Patas, Gianyar, Bali

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PRESERVING BAMBOO THROUGH THE PLANT 10,000 BAMBOO TREE MOVEMENT

CIMB Niaga’s Corporate Affairs (CAA) conducted anemployeevolunteeractivityonSaturday,24November2012 in Tabanan, Bali. This activity involved the planting of bamboo trees as part of the “Preserving Bamboo through the Plant 10,000 Bamboo Tree Movement”. This movementhasoperatedinBaliandWestJavaonthebasis of an understanding of the importance of preserving bamboo, considering the number of beneficial uses to which it can be put.

In addition to learning about the science and philosophy of bamboo, colleagues from CA were given instruction in relaxationtechniques,includingselfmassagetechniques,and in the use of plants for making traditional medicines. At this activity, participants were introduced to traditional local foods, such as purple tubers, which can be made into juice and wine. These tubers contain high levels of antioxidants and promote good health.

So, let’s all do something together to preserve the Earth for our grandchildren. No matter how small our endeavors are, they will certainly generate benefits for future generations.

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Indonesia has achieved a high level of stability, and its economy is continuing to grow. The country has made significant achievements in terms of poverty alleviation over the past decade, withtheproportionofpeoplelivingbelowthepovertylinedecliningfrom27%in1999to12%in 2012. However, despite these promising results, many members of the community have not experienced the benefits of economic growth, continuing to live below the poverty line, with theirincomesbarelysufficienttomeettheirneeds.AccordingtoareportbytheWorldBank,overthepastthreeyears,theproportionofpeoplelivinginpovertyreachesalmostaquarterofthepopulation.Thereportstatesthat12.6millionpeoplewhoin2009hadrisenabovethepoverty line fell below the line in 2010.

As we all know, Indonesia has both a large population and vast sources of natural wealth. At the same time, Indonesia faces significant challenges, including difficulties in creating sufficient employmentopportunities.Thechallengeistooptimizebothofthecountry’smajorpotentialsby increasing the value of the goods and services it produces and its ability to compete in global markets through trade and through investment of capital.

CIMB Niaga’s Corporate Social Responsibility (CSR) program focuses on strengtheningeducational programs, including basic primary school education and skills training to enable graduatestoacquirethenecessaryskillsto improvetheir livelihoods.ForCIMBNiaga,theprovision of education and guidance is an extremely important means of facing the challenges into the future.

Community Assistance

Sustainability Sector Report

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“Together with CIMB Niaga Peduli, we want to achieve growth, from the community, with the community and for the community ...”

Emergency ReliefAid for flood victims in Bekasi

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With the Company’s successful growth to becomeone of the most prominent operators in the financial services industry, CIMB Niaga’s responsibilities have also increased. Thus, CIMB Niaga goes as far as it can to provide sustainable assistance to those in need through the organization of educational and empowermentactivities to improve the livelihoods of members of communities.

In 2012, CIMB Niaga established a number of additional community empowerment programs as a manifestation of its commitment to social responsibility to the community through the provision of education as a means ofimprovingthesocio-economicconditionsofmembersof the community in areas surrounding the Company’s operations.

CIMB Niaga believes that its community empowerment programs have been established on the principle that “the elimination of poverty can be achieved by expanding the knowledge of disadvantaged members of the community and enabling them to use this knowledge for the benefit of themselves and others”, with improved knowledge opening the door for the progress of the nation.

CSR IMPLEMENTATION STRATEGIESIn2012,CIMBNiagaconsistentlyimplementeditsCSRprograms with a focus on four main areas of activity, these being education, community development and empowerment, humanitarian assistance, and environmental management. Our goal was to identifyactivities that can be developed sustainably and that provide benefit to disadvantaged members of the community, enabling them to rise out of poverty.

Raditya.Fifth Grade at Primary SchoolHarapan Community LibrarySahabat Island, Jakarta

“We are very happy that CIMB Niaga gave books to the Harapan Community Library on Sahabat Island. We use these books for study, to read and to learn. All those at the Harapan Community Library hope that CIMB Niaga continues to assist children throughout Indonesia. Thank you, CIMB Niaga!”

As a national bank that represents the interest of a large number of individuals and widely ranging industrial sectors, in the implementation of its CSR program,CIMB Niaga maintains a strictly neutral stance in the implementation of community activities that may be influenced by political parties or interests.

CIMBNiagaemphasizesthatitsCSRprogramisintendedto enable members of the community in need to overcome the deprivations they face, and not to promote any other sectoral interests. Thus, the Company tightly monitors and establishes systems of accountability for itsCSRprograms,fromtheplanningstagetothepost-implementation stage. [SO5,SO6]

Thereare fourprincipal focusesof theCSRprogramsthat we implement, as follows:• Education and Character Development: For the

young, for businesses, and to build a brighter future.

• TheCommunity:Throughempowerment,increasedautonomy.

• HumanitarianAssistance:Assistingthoseafflictedbynatural disasters, misfortune, and other difficulties.

• EnvironmentalManagement:Withthegrowthintheglobal population, we must all strive to maintain and preserve the environment and the natural resources that we own together.

Community Assistance

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EDUCATIONCIMB Niaga regards education as an investment for a better future. Thus, to realize its CSR programs inthe field of education, CIMB Niaga has established a program to provide educational assistance, with the goal of encouraging good study habits at an early age and developing the character of children so that they take responsibility for the future. Projects include the provision of scholarships, educational activities to promote savings from an early age, leadership skills, improvements to the qualityofteachers,andtraininginentrepreneurship.Thedetails of a number of the programs conducted by the Company as a manifestation of its social responsibility are as follows:

Scholarship Program: Improving Academic Competencies Each year, CIMB Niaga provides scholarships for senior high school students from disadvantaged backgrounds who have recorded a high level of academic achievement to continue their education through undergraduate programs. CIMB Niaga creates opportunities for recipients of these scholarships to continue their education to postgraduate level, either in Indonesia or abroad. Considering the timeframe and the goals of the scholarship program, CIMB Niaga has created a range of scholarship programs, including the following: the CIMB NiagaOutstandingAchievementsscholarshipprogram(ProgramBeasiswaUnggulanCIMBNiaga), theCIMBFoundationscholarship,KhazanahAsiaScholarship,theUniversity of Indonesia Faculty of Economics scholarship, and the CIMB Niaga Sampoerna Academy scholarship.

C I M B N i a g a O u t s t a n d i n g A c h i e v e m e n t s Scholarship Program (Program Beasiswa Unggulan CIMB Niaga)Firstimplementedin2006,theCIMBNiagaOutstandingAchievements Scholarship Program is intended to benefit high achieving university students enrolled in undergraduate programs. At the end of 2012, this program was benefiting 255 recipients, including 31new recipients in 2012. Of the three first intakes ofthisprogram,26recipientsfromtheintakein2006,42recipients from the intake in 2007, and 48 recipientsfrom the intake in 2008, have now graduated. In 2012, 139 University students were receiving scholarshipsthrough this program.

Class of 2008

Class of 2011

Class of 2012

Class of 2007

Class of 2010

Classof2006

Class of 2009

14%

17%

12%

12%10%

Beneficiaries of CIMB Niaga Outstanding Achievement (%)

16%

19%

CIMB Foundation Scholarship ProgramThis program was first implemented in 2008 in cooperation with the CIMB Foundation. This scholarship is intended to benefit recipients with a high level of academic achievement who aspire to continue their studies through an undergraduate program in Malaysia. In 2012, CIMB Niaga provided scholarships of this sort to 15 students to study in the University of Malaya and the Universiti Kebangsaan Malaysia, Kuala Lumpur. This scholarship provides full support for university fees, health insurance, accommodation, cost of living, books, computers, and travel expenses from the student’s point of origin.

Class of 2010

Class of 2009

Class of 2008

Class of 2011

13%

33%

20% 34%

Beneficiaries of CIMB Niaga overseas undergraduate program (%)

The University of Indonesia Faculty of Economics ScholarshipThis program is available to employees of CIMB Niaga who have achieved a high level of educational attainment and who aspire to continue their academic education at the undergraduate, postgraduate, or doctoral levels. This scholarship program is implemented in cooperation with the Faculty of Economics of the University of Indonesia. The program was first implemented in 2009, with 23employees having received benefits under this program by 2012. In 2012, 10 of these students completed postgraduate programs.

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S3FEUIscholarship

S2 FEUI scholarship

S1 FEUI scholarship

Internal scholarship0%

31%

65%

4%

CIMB Niaga Employee scholarship (%)

The Khazanah Asia ScholarshipThe Khazanah Asia Scholarship is intended to benefitstudents with a high level of educational entertainment who aspire to proceed to postgraduate level studies in Malaysia. By 2012, seven high achieving university students had passed through the selection process for this scholarship. The selection process is conducted regularly, with 13 candidates in 2012, of whom threewere selected.

Class of 2012

Class of 2011

Class of 2010

14%

43%

CIMB Niaga Overseas Postgraduate Program (%)

43%

The CIMB Niaga Sampoerna Academy ScholarshipIn cooperation with the Putera Sampoerna Foundation (PSF),CIMBNiagaalsoprovidesscholarshipsforchildrenfrom disadvantaged backgrounds with high academic potential to complete their education at the Bali Mandara State Senior High School I in Singaraja, Bali.

The CIMB Niaga Outstanding Achievement Creative Industrial Technology (BUTIK) ScholarshipIn cooperation with the Ministry for Education and Culture (KEMDIKBUD RI), in 2012, CIMB Niaga launched anewscholarshipprogram,theCIMBNiagaOutstandingAchievement Creative Industrial Technology (BUTIK)Scholarship. This program is intended specifically to benefit student entrepreneurs who are currently completing at

least their fifth semester of an undergraduate program ortheirthirdsemesterofathree-yeardiplomaprogramand who are already active actively running a business based on the principles of social entrepreneurship. The businessinquestionmusthavebeenestablishedforatleast six months.

This scholarship is granted on the basis of the selection processconductedincooperationwithKEMDIKBUDRI.In the first year of its implementation, the scholarship was provided to 15 students undertaking undergraduate programs or vocational courses who had already establishedmicro,small,ormedium-sizedenterprises.The recipients of this scholarship were provided with support for their university fees, their living allowances, and working capital subsidies. CIMB Niaga will provide them with skills training involving the development of a number of business skills, from financial management to optimizingtheuseoftheiravailableresources.

CIMB Niaga grants high achieving recipients of this scholarship a number of benefits, including a study tour to a number of sites abroad, including CIMB bank Malaysia, the Indonesian embassy in Malaysia, and the Air Asia - Low Cost Carrier Transport Airport (LCCT),Malaysia. In Singapore, the study tours conducted visits to sites including CIMB Bank Singapore and Nanyang Technological University (NTU), Singapore. In additionto company visits, these recipients also took part in city tours in Malaysia and Singapore, including a visit to Singapore’s universal studio. The cost of these study tours is borne by CIMB Niaga.

Cooperative Endeavors to Improve Banking Knowledge To improve the quality of academic education, CIMBNiaga works in cooperation with the Faculty of Economics at the University of Indonesia to implement a number of applied programs. These programs take a number of forms, from the provision of banking applications, field visits for students, and various others. A number of events have been conducted to improve knowledge of the Banking sector, including the following:• AseminaronTreasury,RiskManagement&Syariah

Banking for students enrolled in the Faculty of Economics at the University of Indonesia

• Aknowledgesharingsessionwithstudentsenrolledin the Faculty of Economics at the University of Indonesia at Graha CIMB Niaga on the theme of “Treasury and Risk Management in BankPractice”.

Community Assistance

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KHAzANAH ASIA SCHOLARSHIP ASSESSMENT CAMP 2012In2012,CIMBNiagaandtheKhazanahFoundationagainprovidedopportunitiesforIndonesianstudentstoparticipate

inpostgraduateMastersprogramsatuniversitiesinMalaysia.Intheperiodfrom23to28May2012,attheCrowne

Plazahotel,13candidaterecipientsenthusiasticallytookpartinanAssessmentCamp,whichwasthesecondstage

ofaselectionprocessfortheKhazanahAsiaScholarshipprogramin2012.Thefirststageofthisprocessincludeda

psychologicaltest,workinggroupdiscussion,andinterview.Atthefinalinterview,candidaterecipientswererequired

toengageinadebateinfrontoftwooftheCompany’sdirectors,thesebeingIbuL.WulanTumbelaka(Compliance,

Corporate Affairs & Legal Director) and Tan Sri Dato’ Azman Hashim (Managing Director of Khazanah Nasional

Berhad).

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In addition to its cooperation with the Faculty of Economics at the University of Indonesia, CIMB Niaga also engages in cooperative activities with a number of other universities, including Al-Azhar University ofIndonesia (Jakarta), Atma Jaya University (Jakarta),Sanata Dharma University (Yogyakarta), Jember StatePolytechnic and Merdeka University of Madiun, to conduct a public lecture series on entrepreneurship, with a presentation on the theme of “Becoming an EntrepreneurandTipsforApplyingforCreditbyMicro-Entrepreneurs.”

Provision of Educational Facilities [EC8]As a manifestation of its commitment to improving the quality of education, CIMB Niaga also provideseducational materials to support the operation of educational institutions. Programs that involve providing facilities to educational institutions and others include the following:

Mini Banking Laboratory at the University of Indonesia’s Vocational ProgramIn 2012, CIMB Niaga inaugurated the new Mini Banking Laboratory on the second floor of the Administration and VocationalProgram(previouslytheDiplomaIIIprogram)Building. The new mini banking lab covers an area of 8x18sq.m,considerably largerthantheoldFISIPUIBuilding.

In addition to the laboratory installation, CIMB Niaga has also facilitated a number of renovations and provided additional facilities for the mini banking lab, including hardware and software, new lab layout and design, and upgrades to lecture materials, which initially covered only frontline activities, but now includes materials related to back office/support administration and micro-finance.These facilities are fully supported by a teaching staff, who are composed of CIMB Niaga employees. In addition,

a number of work placement programs for students in their final semester have also been prepared.

CIMB Niaga has also developed a Mini Banking Lab at the CIMB Niaga Learning Centre in Gunung Geulis, Bogor. Through these study facilities, which “resemble theoriginal”,CIMBNiagahopestodevelophighqualitypotential employees with the necessary skills to take up positions in the Banking industry.

Assistance for the Kartini Emergency SchoolCIMB Niaga also manifests its commitment to the provision of education for disadvantaged members of the community through the provision of assistance in the form of school uniforms and study materials, such as globes and maps, to the Kartini Emergency School, which conducts its activities beneath the overpass in LodanRaya,Ancol.

The Million Books ProgramThis program involves the provision of books to foundations engaged in education. The goal of the program is to develop interest in reading amongst young children and to assist the government in its program to eliminate illiteracy throughout Indonesia. Foundations that have received assistance in this form from the Million Books Program include Yayasan Kesejahteraan AnakIndonesia (YKAI)andRumahBacaHarapan, located inMaros, Makassar and Semarang.

Non-Formal Education AssistanceIncooperationwiththeBandungRayaLionsClub,CIMBNiagahasprovidedequipmenttosupportskillstrainingprograms, such as sewing machines, manikins, and other equipmentrequiredinthegarmentindustrytoYayasanBuana Mekar, which manages the Community Study Centre for disadvantaged members of the community inDayeuhKolot,Bandung.

Inauguration of the relocated Mini Banking Lab Million Books Program for YKAI and Rumah Baca Harapan

Community Assistance

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Kit for Kids, Socialization of the “Let’s Save and Share!” ProgramAll children without exception have the right to study and play. Thus, the government must provide space for Indonesianchildrentocreate,play,socialize,andstudythrough a range of media and facilities. Schools act as the second home for children, playing an important role in building their character of students so that they become smart, willing and able to serve their country and their community. In recognition of this, CIMB Niaga has launched its primary education initiative through Kit forKids,asetofprogramstointroduceandsocializetheconceptof“let’ssaveandshare!”

Through Kit for Kids, young students are invited to listen to stories which are intended to foster a desire to save and share at school. Following this, these children are invited to play with clay and plants by participating in a group tree planting program activity. This program is conducted for primary school students in the fourth, fifth, and six grades at a number of large cities throughout Indonesia, with participating students expressing a high level of enthusiasm for the activities involved. Throughout 2012, Kit for Kids was conducted in Jakarta, Semarang, Yogyakarta,Malang,Surabaya,MedanandBandung.

At these activities, CIMB Niaga also introduced a group savings initiative, with donations collected from the children participating in the Kit for Kids activity. All the funds collected were entered into a special “Let’s Save andShare!savingsaccountwherecontributionsforCSRprograms from primary school to university students are deposited.

CIMB Niaga hopes that through its Kit for Kids program, children will be encouraged to regard saving and sharing as positive activities that they can implement in their daily lives, either at school, at home, or in the community.

Other Educational ProgramsBusiness Facilitation ProgramThrough the CIMB Niaga Scholarship Beneficiary Alumni Association, CIMB Niaga also manifests its commitment to the growth and development of micro, small and medium-sizedenterprisesthroughthe implementationofits50SuperDaysProgram,afacilitationprogramforsmall to medium scale entrepreneurs in Jakarta. This program is conducted through the provision of facilitation to entrepreneurs in the jewelry display business.

The Complete BankerThis development program is intended for young talented individuals aspiring to become leaders at CIMB Niaga through the provision of capacity building activities involving the development of comprehensive banking knowledge and through the development of leadership skills.

Teachers Seminar in West SumatraAsmanyas150teacherstookpartintheCommunity-BasedTeacherTrainingandDevelopmentProgramfor7(Seven)ElementarySchoolheldinWestSumatra,withthe theme of this program being Training Classroom Actions. This program was implemented by the Institute fortheDevelopmentofQualityEducationattheStateUniversity of Padang.

The program was intended to improve the level of competencies of teachers by improving their ability to express their thoughts through academic writing. This activity aimed to reinforce the programs conducted by the Ministry for Education and Culture. CIMB Niaga provides assistance not just in the form of physical infrastructures, but also in the form of the necessary soft skills.

Beneficiaries of domestic undergraduate scholarships 2008 Outstanding Scholarship Program and BUTIK program for 2012

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COMMUNITY EMPOWERMENT PROGRAMFor CIMB Niaga, the community is one of its most important stakeholder groups. Therefore, endeavors to improvethesocio-economicpositionofthecommunitymeansimprovingthesocio-economicconditionsofoursignificant stakeholder group. Improvements to the welfare of stakeholder groups are one of the major goals of CIMB Niaga’s sustainability programs. Thus, CIMB Niaga also pays full attention to implementing a number of community empowerment programs. In this context, CIMB Niaga creates opportunities for all parties, including branch offices and independent foundations, to proposeworkprogramstorealizetheCompanysocialresponsibility in the field of community empowerment.

CIMB Niaga has set guidelines for the establishment of such programs, including the following targets:• Developcharacter• Empowerthecommunity• Trainthecommunitytodevelopskills• Assist the community to achieve sustainable

welfare• Developcommunity’sindependence

On the basis of these criteria, CIMB Niaga hasimplemented a number of community empowerment programs, including the following:

Health ProgramThrough a number of health programs, CIMB Niaga strives to improve the health of the community and to ensure its level of productivity. Health issues can cause a decline in working productivity, with some members of the community unable to return to work because of their limited ability to seek medical care. A number of programs conducted in this field include blood donor programs, stitchless cataract surgeries, and glass-cupping andincision method of treatment in the Bintaro area.

To express empathy with disabled members of the community, CIMB Niaga offers special parking facilities for users of wheelchairs in principal branches, i.e. Menara CIMB Niaga – Karawaci, Griya CIMB Niaga – Bintaro and at its iconic Pondok Indah branch, Jakarta.

Sports ProgramCIMB Niaga actively supports a number of sporting activities as a means of encouraging sport and to establish closer relations with members of the community. These programs included the Fun Bike event at the Indonesian BankingExpo2012,theCIMBJuniorGolfDevelopmentProgram 2012, and the international golf tournament, CIMB Niaga Indonesian Masters 2012.

Employee Volunteer Day: CIMB Niaga Build [EC8]This program involves the construction of infrastructure and general facilities and housing units for disadvantaged members of the community and is implemented with the involvement of employees of CIMB Niaga. This activity invites employees to take part in specific activities in Sentul, Bogor including the construction of housing, improvements to schools and the donation of educational materials, including books, globes, maps and atlases to the Karang Tanah State Primary School (BabakanMadang).

This action is also intended to encourage other volunteers to volunteer their time to others.

Religious Celebrations and Community DonationsCIMB Niaga plays a role in improving the quality ofreligious life through its participation in the celebration of religious holidays and through a number of other religious activities. In addition, CIMB Niaga also actively assists in improving the welfare of disadvantaged members of the community. Activities of this sort include the following:• ReligiousHolidays:Sahuron the road, thesaleof

cheap basic foodstuffs on Idul Fitri, and support for the sacrifice of animals on Idul Adha and Christmas.

• Communityassistance:Theprovisionofassistanceto orphans and the provision of basic foodstuffs.

Other Community ActivitiesA number of other activities implemented to improve the social welfare of members of the community include the following:• CIMBNiagaSmartParentingClub:Thisactivity is

implemented on the understanding that lifestyles are one means of raising happy, prosperous families. This activity is implemented through seminars on

Community Assistance

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topics related to family life, including childhood development, family health, financial solutions, cooking and nutrition for children, pregnancy and delivery. This program is intended for the benefit of the employees of CIMB Niaga.

• Breastfeeding education and the provision of lactation rooms: This activity is conducted in compliance with and in support of Government Regulation Number 33, 2012 concerning theProvision of Exclusive Breastfeeding. The program also involves campaigns to promote breastfeeding for the growth of infants under the age of five.

HUMANITARIAN ASSISTANCECIMB Niaga operates as an integral part of the community, with its growth assured by the growth in the socio-economicstandingofthecommunityinIndonesia.Thus, when the community faces difficult challenges, CIMB Niaga is happy to offer assistance to alleviate the suffering of the afflicted. Community activities of this sort implemented in 2012 include the following:• January:Assistanceforthoseaffectedbyfloodsin

Lebak,Banten,in12sub-districts.• July:Assistanceforthoseaffectedbyfloodsinseven

sub-districtsofPadang,WestSumatra.

• August:Assistanceforthoseaffectedbyfloodsandlandslides in the city of Ambon, which resulted in the deaths of 10 individuals.

• August: Assistance for those affected by fires inKaretBivak,CentralJakarta,whichdestroyed480family houses and which resulted in 565 familieslosing their places of residence.

• August: Assistance to those affected by theearthquakeinSigi,CentralSulawesi,whichmeasured6.2 on the Richter scale and which resulted inminor to severe damage to homes of thousands of residents.

• November: Assistance to victims of floods inMamasa–WestSulawesi.

• November:Assistancetothoseaffectedbyfloodsand landslides inSoreangdistrict,Bandung,WestJava.

• November:Assistancetothoseaffectedbyfloodsin Cilacap, Central Java.

• November:Assistancetothoseaffectedbyfloodsin Kampung Melayu and Pesanggrahan, Jakarta.

• December: Assistance to those affected bywhirlwindsinSleman,Yogyakarta.

CSR FUNDINGThe total value of funds disbursed for CSR activities throughout 2012 reached Rp 15.22 billion, representing anincreaseof13.58%comparedtothepreviousyear,whenthefigurestoodatRp13.40billion.Abreakdownofthesedisbursements is included in the following table:

(inRupiah)

Pillar 2010 2011 2012

Education 7,063,049,255 9,409,935,857 5,949,626,922

Community development and empowerment

641,223,000 232,029,167 1,499,797,421

Environment 366,224,196 459,207,058 640,649,200

Philanthropy 2,386,882,878 1,234,118,917 2,333,163,105

Donations 377,707,250 284,850,000 342,850,000

QardhulHasanCIMBNiagaSyariah n.a 1,283,661,328 2,349,470,288

Communication program 2,301,804,133 492,548,294 2,100,784,857

Total 13,136,890,712 13,396,350,621 15,216,341,793

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AWARDSCIMB Niaga has been granted a number of awards for its commitment to its implementation of its corporate social responsibility programs, including the following:• TheIndonesiaGreenAward2012• The Social Business Innovation Award 2012, in

theBankingIndustryHumanResourcesEducationcategorybyWartaEkonomimagazine.

• The Indonesia Sustainability Reporting Award2012, in the Commendation for the First Time SustainabilityReportcategorybytheNationalCentreforSustainabilityReporting(NCSR)

• TheBestBank2012inCorporateSocialResponsibilityforbankswithassetstoavalueofgreaterthanRp100 trillion, at the Indonesian Banking Awards 2012 ceremony.

FUTURE PLANSCIMB Niaga plans to expand the role it plays in funding corporate social responsibility programs and to improve thequalityoftheimplementationoftheseprograms.Thiswill be achieved through improvements to the system of disbursements, with the increasing involvement of other competent stakeholders and through improved formulation, implementation, and monitoring and evaluationoftheprograminordertoimprovethequalityof accountability for the disbursement of funds. CIMB Niaga is committed to expanding its role in improving the welfare of the community as a stakeholder group that plays a significant role in facilitating the sustainability of itsbusinessoverthelong-term.

Community Assistance

“If the best of God’s creatures are those who benefit others,

then use your time for the benefit of your fellow men.

Share the goodness that joins us together.

You don’t need to be perfect to share with others. In time, God will perfect it for you.”

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Prioritizing Human ResourcesEmployee Profile [LA1]To ensure the growth of the Company’s business, CIMB Niaga’s human resources are its most valuable asset. By the end of 2012, the total number of CIMB Niaga’s employees stood at14,224,representinganincreaseof4.5%overthefigureinthepreviousyear,whenthetotalnumberofemployeesstoodat13,612.ThisgrowthisinlinewiththedevelopmentofCIMB Niaga’s business, with employees falling into two categories, permanent employees and contracted employees.

Number of Employees by Status

2012 2011

Permanent employees 13,051 12,583

Contracted employees 1,173 1,029

Total 14,224 13,612

Sustainability Sector Report

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“The number of CIMB Niaga employees in 2012 increased by 4.5% compared to the previous year”

Olympi CIMB Indonesia 2012CIMB Indonesia employee sports competition

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Number of Employees by Gender, Educational Attainment and Age [LA13]

Classification

Number of Employees in 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

Senior Management

193 79 272 9 63 121 1 28 50

Middle Management

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

Junior Management

4,243 3,998 8,241 112 2.253 1.298 580 145 1.972 1.335 546

Staff 1,420 2,677 4,097 200 964 166 90 573 1.832 237 35

Non Staff 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

Industrial Relations [LA4]CIMB Niaga guarantees the rights of its employees to freedom of speech and freedom of association in accordance with current laws and regulations. As a forum for the expression of employees’ aspirations and in order to create harmonious industrial relations, employees joined together in an industrial trade union. The rights and obligations of employees and the regulation of industrial relationsaredefinedbyaJointLaborAgreement(JLA)which has been approved by the Ministry for Labor.

The JLA regulates the rights of employees and the obligations of the Company towards these employees, with these including the following: education and training, complaints handling mechanisms, the right of employees to refuse dangerous work, facilities for workers in remote areas, bereavement assistance, a six-monthpension preparation program, accident insurance, and legal assistance.

In the period covered by this report, employees participated in three trade unions, these being the Bank CIMB Niaga Employees Union, the Bank CIMB NiagaWorkersUnion,andtheUnitedNiagaEmployeesAssociation. In recognition of the right to participate in unions and to express opinions, CIMB Niaga supports the presence of all of these trade unions. Information related to the proportion of employees participating in each of these trade unions respectively is included in the following table:

Trade Unions

No Name of Union Number of Members %

1 Bank CIMB Niaga Employees

Union

400 2.8

2 BankCIMBNiagaWorkers

Union

1,553 10.9

3 United Niaga Employees

Association

4,106 28.8

All employees have the right to choose which trade union they would like to enroll in, although membership in these unions is not obligatory. The rights of those who choose not to join a union are protected. Employee Turnover [LA2]The number of new employees inducted into the Company and the employee turnover rate in 2012 compared to the previous year is as follows:

Prioritizing Human Resources

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Employee Turnover Rate

Classification2012 2011

Men Women Total Men Women Total

New employees

Employees by age group

<25 287 477 764 295 673 968

25-34 937 537 1,474 1,049 606 1,655

35-44 139 51 190 216 79 295

>45 20 9 29 16 8 24

Total 1,383 1,074 2,457 1,576 1,366 2,942

Employees by area of operations

Area1(Jakarta,Lampung) 677 604 1,281 810 714 1,524

Area2(WestJava) 127 64 191 144 131 275

Area3(EastJava,Bali) 170 128 298 136 129 265

Area 4 (Sulawesi, Papua, Maluku, Nusa

Tenggara)

68 37 105 57 54 111

Area5(Kalimantan) 58 49 107 75 55 130

Area6(SumatraexcludingLampung) 173 106 279 224 167 391

Area7(CentralJava) 110 86 196 130 116 246

Total 1,383 1,074 2,457 1,576 1,366 2,942

Number of employees leaving

employment

Ownrequest 693 761 1,454 643 728 1,371

Disciplinaryaction 29 43 72 17 8 25

Death 14 6 20 8 3 11

Pension 51 20 71 39 9 48

Early retirement 0 0 0 0 0 0

Othercauses 69 131 200 61 90 151

Total 856 961 1.817 768 838 1,606

Human Resources PoliciesCIMB Niaga implemented a number of strategic policies related to the rights of employees in 2012, including the following:

Employee Performance Evaluations [LA12]Employee performance evaluations are conducted periodically, principally as a tool for the development of employee careersandasameansofdeterminingemployeeremunerationpackages.Theperformanceofallemployees(100%)is assessed regularly. Management also conducts performance evaluations and career development programs for all employees.In2012,90.57%ofemployeeswereentitledtobonuses,while12.36%receivepromotions.

Basic Salary Ratios by Gender and Regional Minimum Wage [EC5, LA14] CIMB Niaga strives to achieve full compliance with all prevailing laws and regulations concerning minimum wages for new employees. The salaries of all employees, including both female and male employees, meet or exceed the MinimumRegionalWageineachprovinceanddistrict.Thereisnodifferenceinthebasesalariesofmaleandfemaleemployees.

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Remuneration of Contract Employees [LA3]Compared to permanent employees, remuneration packages of contract workers are as follows:1. Allowances and facilities2. Workplaceaccidentanddisabilityinsurance3. Workplacelifeinsurance4. Accident and disability insurance outside the

workplace5. Non-workplacelifeinsurance6. Healthinsuranceforemployees7. Holiday allowances8. Maternity leave9. Menstrual leave10. Leave for religious pilgrimages11. Allowances for religious holidays12. Jamsostek pension fund.

Maternity Leave [LA15]The right of female employees to take maternity leave is regulatedbyP2KNo.A.06.08concerningleave,whichstipulates the following:1. A total of three months of maternity leave is allowed,

including 1.5 months prior to giving birth, and 1.5 months after giving birth.

2. Notwithstanding this provision, employees are obliged to present a declaration together with a certificate by a doctor or midwife.

3. Employeesexperiencinganunintentionalmiscarriageresulting from medical causes have the right to 1.5 months of leave or as prescribed by a doctor or midwife certificate.

In2012,317 femaleemployees tookmaternity leave,withallof theseemployees (100%)returningtoworkfollowing this period of leave.

Training and Education [LA10]CIMB Niaga is aware that the level of professionalism of employees must be improved through education and training programs that facilitate career development. Participation in training forms part of each employee’s key performance indicators and is conducted both internally and externally. The type of training provided to employees includestechnicalskills(suchassalesandservice,corebanking system, credit, IT schools, risk and compliance, universalbanking)andsoftskills(includingleadershipandmanagementandpersonaldevelopment).

Duringtheperiodofthisreport,CIMBNiagaallocated5%of the total fundingallocated tohumanresourcesto training and education programs. The total value of thesefundsamountedtoRp143.4billion,withatotalnumber of hours of training provided reaching 721,579 hours. Matters related to training mechanisms and the value of funding are conducted in accordance with Bank IndonesiaRegulationSENo.31/24/UPPBandwithCIMBNiaga’s internal policies. [LA10]

Employee Training 2012 - 2011

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

Senior Management

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

Junior Management*)

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

Non Staff 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

Note :*)specialtrainingincludingtrainingformanagementtrainee

Prioritizing Human Resources

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2011

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

Senior Management

169 64 233 6,648 2,436 9,084 39 38 39

Middle Management

712 413 1,125 28,792 19,876 48,668 40 48 43

Junior Management*)

3,828 3,859 7,687 213,168 197,212 410,380 56 51 53

Staff 1,377 2,766 4,143 48,572 85,392 133,964 35 31 32

Non Staff 418 6 424 856 8 864 2 1 2

Total 6,504 7,108 13,612 298,036 304,924 602,960 46 43 44

Note: - AnnualReport2011:thetotalnumberofhoursoftrainingwas667,304(83,413days)includingBOD/BOC/DPSandoutsourcers - *)specialtrainingincludingtrainingformanagementtrainee

Anti Corruption and Human Rights Training [HR8, SO3]In order to create honest human resources who are able to refrain from engaging in bribery, fraud and corrupt practices, CIMBNiagaobligesemployees to takepart inanticorruption training. In theperiodcoveredby this report,6,104employees took part in such training.

In2012,1670employeestookpartinhumanrightstraining,withthetotalnumberoftraininghoursamountingto5,462.This training includes training provided to security guards.

The health of their darling children brings joy to parents ...

In addition to supporting Government Regulation Number 33, 2012, concerning Exclusive Breastfeeding, CIMB Niaga provides lactation rooms out of a desire to assist a number of employees who are still breastfeeding their infants after returning to work

following the birth of these infants, as many of these previously used toilets for this purpose. We are all aware of the risks associated with breastfeeding in toilets, as breast milk can be contaminated by germs that may endanger the health of the child.

Thus, lactation rooms were prepared for employees and equipped with facilities such as sofas, air conditioning, and fridges to store bottles of milk. It is hoped that these lactation rooms will accommodate the needs of mothers who are breastfeeding by providing them with a sterile, secure, and comfortable environment in which to care for their children.

“Since the lactation rooms have been set up, I benefit from being able to pump milk in a comfortable environment, which enables me to produce a higher volume of milk. In addition, I feel happy to be in a cleaner environment, without the risk of contamination by viruses or bacteria that can be found in toilets (where breastfeeding was previously conducted). With these lactation rooms, I hope that the number of women who breastfeed will increase and that the lactation rooms can serve as a meeting point for breastfeeding mothers so that we can swap tips about our beloved children.” (Dona Yolanda - Corporate Banking Group and a user of the lactation room at Graha CIMB Niaga, Jakarta)

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Prioritizing ClientsGuarding the Quality of Products and Portfolios [PR3]As one of the foremost banks in Indonesia, operating in an increasingly competitive environment, CIMBNiagaisstronglycommittedtoguardingthequalityofitsbankingproducts.CIMBNiagahopes that all of its products provide maximal benefits to clients. CIMB Niaga is convinced that clients are fully aware of and understand the value of the Company’s products in terms of meeting their needs.

CIMB Niaga offers a customer service facility to explain all matters related to the Bank’s products and their benefits, with officers to explain the use of products, the rights and obligations associated with these products, including their positioning, period of contract and means of termination in cases of disputes.

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 clients and provide value in terms of supporting their activities. CIMB Niaga conducts systematic surveys through questionnairesandthroughthedeploymentofcompetentthirdpartiestodeterminetheneedfor launching a particular product and the level of acceptance by the intended clients for each of its products.

All new products must be approved by Bank Indonesia prior to their launch, with careful examinationby theBusinessDevelopmentCommittee,whoseduty is todetermine if theproductinquestionisagenuinebankingproductandwhethertheBankisactingasasalesagentor as a provider. The criteria for the examination of these products include the following:• Thebenefitsprovidedbytheproductforclientsmustbeclear;• Theadministrativechargesimposedonusersoftheproductorservicemustbeclear;• Writtenexplanationsmustbeprovidediftheproductofferedisnotabankingproductand

iftheBankactsasasalesagent;• Accordingtoapplicableregulations,certainproductsmustincludeawrittenstatementof

theirriskprofile;

Sustainability Sector Report

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“CIMB Niaga has a firm commitment to maintain the quality of its banking products at all times …”

Products and ServicesSome examples of CIMB Niaga’s products and services for the satisfaction of customers

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• Thetelephonenumberandemailaddressofservicestaff must be recorded clearly so that clients can makecomplaintsoraskquestionsifneeded;

• ApprovalofBankIndonesiamustbesecured;• AfterobtainingtheapprovalfromBankIndonesia,the

Bank must present a report to Bank Indonesia no later than seven days after the launch of the product.

Marketing CommunicationCIMB Niaga conducts its marketing communication activities in order to ensure that all products and services that it offers have strong brands that facilitate marketing activities and the growth in sales of the products and services. Through optimal marketing communications, CIMBNiagastrives toensureunique,appropriateandrelevant positioning and awareness for all of its products and services amongst its target market, thus facilitating the expansion of its business.

To achieve this, CIMB Niaga implements a marketing communications strategy that conforms with industry conditions and with goals for the development of the Company’s business. Apart from being focused on products that are substantively based on individual or mass needs in terms of funding and lending, marketing communication activities are also intended to develop CIMB Niaga’s image as a trustworthy bank.

Providing Facilities to Clients [FS13, FS14]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.Thedevelopmentofthisworkingnetworkisconductedbyprioritizingcustomersatisfaction, including through the extension of the conventional working network through means such as mobilebanking,biz-channelande-banking,allofwhichare intended to expand the scope of banking services and to improve operational efficiency and effectiveness.

In addition to extending its physical network, CIMB Niaga conductsanumberofotherprogramstooptimizethequalityandfunctionofitsworkingnetworkthroughthefollowing means:• Standardized quality of service from operational

working units, biz-channels and mobile servicesto improve clients experience while making transactions.

• Increasedfrequencyoftrainingforfrontlinestaffsothat they provide a more effective level of service to micro-clients.

• ImprovementsintheVolumeandQualityofPrivilegeBanking, Employee Credit and the Priority Banking service centre.

• Developments to technological applications toaccelerate the credit approval process for the Mikro Laju unit.

Serving ClientsCIMBNiagaconstantlystrivestoimprovethequalityofservices it provides to clients in order to increase their level of satisfaction and loyalty and thus facilitate the long term growth of the business. This is in accord with CIMB Niaga’s vision which is “To become the most trusted Indonesian bank and to become an integral part oftheleadinguniversalbankingnetworkinSouth-EastAsia by meeting the needs of our clients, by providing comprehensive, appropriate financial solutions, and by establishing sustainable relations.”

CIMB Niaga has implemented a number of strategic measurestoimprovethequalityofitsservice,includingthe implementation of a service level agreement (SLA) and the establishment of a system to rate theperformance of all operational units. This program has been accompanied by a service quality campaign toimprove the level of service provided to clients.

In addition to improving the competencies of staff to enable them to provide a higher quality of service,CIMB Niaga provides certain benefits to frontline staff who fulfill the criteria defined by the SLA, with these benefits including accelerated career advancement and the provision of attractive rewards and recognitions. The goal of providing these benefits is to encourage frontline staff to provide the best possible service in order to maintain and increase the level of loyalty of customers, thus creating opportunities for the Bank to expand its businessoverthelong-term.

Customer Satisfaction SurveyIn order to obtain feedback to improve the quality ofservice provided to its clients, CIMB Niaga routinely conducts a Customer Satisfaction Survey. This survey is conducted by a competent independent party and covers all aspects of CIMB Niaga’s operations and services, including benchmarking with the level of service provided by competitors within the banking sector. This survey involves a sampling of target respondents from all segments, who are selected on a random basis from a number of backgrounds, including varying levels of educational attainment, age, type of business, and type of employment.

Prioritizing Clients

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CIMB Niaga uses the feedback derived from this survey toimprovethequalityofitsservices,andtomeettheneeds of clients for banking services and to foster their long-termloyalty.

Resolving Client ComplaintsToimprovethequalityofitscomplainthandlingprocesses,CIMB Niaga maintains a Customer Care Centre, whose function is to handle client complaints through the use of abank-widecomplainthandlingsystem.Improvementsto the function of the Customer Care Centre have been implemented through a Complaint Management and Process Improvement system in order to ensure that client complaints are resolved as satisfactorily as possible and within the timeframe stipulated by Bank Indonesia regulations.

CIMB Niaga also endeavors to enable clients to offer feedback or to make complaints through a number of easily accessible means, through their branches, through PhoneBanking14041,byemail,throughtheCIMBNiagawebsite, through CIMB Indonesia’s Facebook page or through the CIMB_Assists Twitter account. Educating clients concerning banking sector mediation processes is also conducted through brochures distributed at branches. These brochures explain the customer complaint handling system and banking sector mediation processes, with

contact details for banking sector mediators included on the Company’s website.

CIMB Niaga has also engaged in cooperative activities with Bank Indonesia and banks involved in the Bank Indonesia Banking Sector Mediation Working Group,including participation in seminars related to banking mediation and fun bike programs with clients conducted as part of the Indonesian Banking Expo.

CIMB Niaga maintains an Automated Complaints MonitoringandReporting(ACMR)system.Thissystemis 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 clients making a complaint are provided with a complaint registration number as proof of registration of this complaint and as a means of enabling the client to monitor the progress of its resolution. For the Bank, the ACMRsystemenablesittomonitorthelevelofresolutionof complaints, to monitor the effectiveness of the 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 client complaints related to financial issues to Bank Indonesia.

The level of resolution of client complaints throughout 2012 was as follows:

Type of Client Complaint

Number of Client Complaints

Number of Client Complaints Resolved by December 2012

2011 2012 2011 2012

Financial 11,184 17,336 10,366 17,061

Non-financial 16,837 12,110 15,114 11,864

Total 28,021 29,446 25,480 28,925

CIMBNiagahasalsoimplementedanumberofotherinitiativestodevelopthequalityofservicesitprovides,includingthe following:• Followingupon client complaints through a singleentrypoint and themonitoringof the resolutionof client

complaints. Client complaints can be made through the “Customer Care Centre” program, enabling the best possible resolution of these complaints.

• Conductingastandardizationofservicesandimprovingclientsatisfaction.• Improvingserverskillsandserviceleadershipthroughtheprovisionoftrainingtofrontlinestaff.• EstablishingCentersofExcellenceforqualityofservice.

Ensuring the Privacy of Clients [PR8]CIMB Niaga is strongly committed to compliance with Bank Indonesia regulations governing the confidentiality and privacy of clients and to tightly guarding against the possibility of infringements of this confidentiality by internal parties. CIMB Niaga implements strong sanctions, from verbal warnings, written warnings to termination of employment if such infringements result in breeches to client confidentiality. Throughout the period covered by this report, no cases involving such infringements of client confidentiality were recorded.

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Sustainable GovernanceCIMB Niaga is managed professionally and strives to achieve full compliance with all government regulationsandwiththeuniversalprinciplesofGoodCorporateGovernance(GCG).CIMBNiagastrives to ensure that all policies that it formulates and implements adhere to the principles of fairness, independence, accountability, transparency and responsibility. CIMB Niaga’s managementstrategyadherestothestipulationsofActNo.40,2007,concerningLimitedLiability Companies, including the following: [4.1]

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

2. The Board of Commissioners acts as a monitoring body and provides input to the Board ofDirectors.

3. TheBoardofDirectorsisresponsibleforthemanagementoftheCompany.

GENERAL SHAREHOLDERS MEETINGThrough the GSM, shareholders, including both majority and minority shareholders, can make recommendations or express opinions for the improvement of the Company’s performance. The GSMisconductedatleastonceayear(annualGSM)ormoreoftenasrequired(extraordinaryGSM).AnextraordinaryGSMwasheldon29October2012.[4.4]

Board of Commissioners and Board of DirectorsThe duty of the Board of Commissioners is to supervise and provide input to the Board of Directorsonmattersrelatedtotheirdutiesandresponsibilities.Intheimplementationoftheirdutiesandobligations,1)membersoftheBoardofCommissionersmayserveinapositionasamemberoftheBoardofDirectors,BoardofCommissioners,orExecutiveManagementofonenon-financialinstitution,or2)membersoftheBoardofCommissioners,BoardofDirectors,orExecutiveOfficerswhoimplementtheirsupervisoryfunctionsoveronenon-bankingsubsidiarycompany controlled by a bank. [4.2]

Sustainability Sector Report

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“CIMB Niaga strives to ensure that all policies that it formulates and implements adhere to the principles of fairness, independence, accountability, transparency and responsibility.”

Branch Office in Kuta Graha, BaliLocated at Jl. By Pass, Ngurah Rai No. 88, Kuta Bali, the branch was established in 1997, and stands in a strategic area nearby the statue of Dewa Ruci, one of the Icons in Bali. Other than its conventional services, the branch also provides CIMB Preferred.

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The Board of Commissioners are appointed and determined in accordance with the prevailing legal requirements,includingthefollowing:• The Board of Commissioners must consist of at

least three members, but no more than the number ofmembersoftheBoardofDirectors.

• AtleastonememberoftheBoardofCommissionersmust be domiciled in Indonesia.

• At least 50% of the members of the Boardof Commiss ioners must be Independent Commissioners.

CIMB Niaga complies with these Bank Indonesia regulations, having four Commissioners who are domiciled in Indonesia and four Commissioners who serveasIndependentCommissioners.Inaddition,50%of the members of the Board of Commissioners are Indonesiancitizens.[4.3]

BeforeappointmenttotheBoardofDirectorsorBoardof Commissioners, an individual must pass through a fit and proper test and obtain the approval of Bank Indonesia before commencing their duties at CIMB Niaga. These requirements are stipulated by regulations issued byBankIndonesia,theFinancialServicesAuthority(formerlyBapepam-LK).[4.7]

CIMB Niaga’s Board of Directors and Board ofCommissioners conduct their duty in accordance with the guidelines and work procedures stipulated in the Charters oftheBoardofCommissionersandBoardofDirectors,which are binding on all members of these boards and prescribe their obligations, duties, authorities, rights, and code of ethics, together with established procedures for conducting meetings and to define the working relationship between the Board of Commissioners and BoardofDirectors.[4.10]

The value of the remuneration packages and allowances of members of the Board of Commissioners and Board ofDirectorsisestablishedbytheGeneralShareholdersMeeting, on the basis of recommendations, guidance andadvicegivenbytheRemunerationandNominationCommittee.[4.5]

In addition, members of the Board of Commissioners are prohibited from having familial, financial, managerial and/orshareholdingrelationshipswithmembersoftheBoard of Directors. Further descriptions of the scopeand nature of the two boards may be found in the 2012 AnnualReport.[4.6]

Commitment to External InitiativesThe Compliance and Governance functions assist CIMB Niaga in monitoring and measuring its performance under laws and regulations applicable to public companies, including the following rules and policies: [4.12]a. Bank Indonesia: i. Risk-BasedBankingRating ii. RiskMitigationSystemb. Capital Market Supervisory Agency and Financial

Institution(Bapepam-LK)c. Indonesian Stock Exchanged. CorporateGovernancePerceptionIndex(CGPI)e. Corporate Governance Ranking established by

Standard and Poor’sf. Banking Service Excellentg. ISO(Technology/Audit/Recruitment/Training)h. Salary/RemunerationSurveyi. IntrusionDetectionSystem

CIMB Niaga is also a member of the National Commercial BanksAssociation (Perbanas), the IndonesianBankersAssociation(IPI),andtheIndonesianIssuersAssociation(AEI).[4.13]

Risk ManagementIn the implementation of its business strategies and in the oversight of the performance of its employees, CIMB Niaga utilizes the Balanced Scorecard. This supportsthe Company’s policy of measuring achievement and providing rewards on the basis of performance. In order to ensure that this strategy achieves its intended purpose, it is implemented through Key Performance Indicators (KPI),whichareestablishedbytheBoardofDirectorsand applied to all employees of all ranks.

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, Clients, Internal Processes, and Employees. [4.9]

In addition, policies established by the Bank and related to the 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 related to emissions and environmental management. In order to be able to maintain its operations, CIMB Niaga must apply strict standards to determine whether clients have the necessary qualifications and level ofawareness concerning fundamental environmental risks. [4.11][FS1]

Sustainable Governance

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The risk assessment team monitors the following factors when evaluating applications for credit:• 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 environmentalmanagementstandard)status;

• Accountprofitabilityratio;• Supporting documents such as government

permits and CSR, AMDAL policies and PROPERevaluation.

Stakeholders’ EngagementCIMB Niaga conducts a mapping of stakeholders to involve them in the identification, understanding and management of sustainability issues, in the reporting and exposure of information, and as a manifestation of its responsibility in relation to the decisions, actions and performance of CIMB Niaga.

For this mapping, stakeholders are defined as individuals orgroupswhocaninfluenceand/orareinfluencedbytheactivities, products and services, and performance of the Company, as defined in AA1000 Stakeholder Engagement StandardVersion2006(AA1000SES,2006).Themappingis focused on issues of influence, with attention to the strength, interest, legitimacy, influence, and relevancy of related to CIMB Niaga’s activities, including those relatedtoCSR.

The focus of the mapping process is a clear and detailed description of who stakeholders are and how they influence or are influenced by the Company’s operations. The results of this mapping process are used as a basis for the formulation of strategies to guide relations with stakeholders.[4.15]

CIMB Niaga’s stakeholder groups are as follows:[4.14]• Shareholders• Employees• Clients• Thecommunity• Non-governmentorganizations(NGOs)• Investors• Unions• Government• EducationalInstitutions• Themedia

Following AA1000 SES (2006), CIMB Niaga hasestablishedfourrelationship-buildingapproachesaimedatstakeholdergroups,asfollows:1)empowerment;2)collaboration;3)consultation;and4)communication.

Communication activities throughout 2012 that involved important stakeholder groups include the Annual General Shareholders Meeting, the preparation of the Company’s AnnualReport,communicationwithinvestors,customersatisfaction surveys, public exposes, meetings with trade unions, and informal meetings.[4.16]

CIMB Niaga also strives to establish reciprocal relations with stakeholder groups by welcoming input from these groups. All issues raised by stakeholder groups are carefully considered by the management.[4.17]

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Information regarding the Sustainability Report

Raja Ampat IslandsRaja Ampat Islands is a series of four adjacent group of islands located in the western part of the Bird’s Head (Vogelkoop) Papua Island, one of the 10 best diving destinations in the world.

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Statement of GRI Application Level Check

Statement GRI Application Level Checked Laporan Pengecekan Tingkat Aplikasi GRI

The National Center for Sustainability Reporting (NCSR) hereby states that PT Bank CIMB Niaga Tbk has presented it’s Sustainability Report to NCSR Application Level Check Services, which have concluded that the report fulfills the requirement of Application Level B. Application Levels communicate the extent to which the content of the GRI G3.1 guidelines and Financial Services Sector Supplement has been used in the submitted sustainability reporting. The Check confirms that the required set and number of disclosures for that Application Level have been addressed in the reporting and that the GRI Content Index demonstrates a valid representation of the required disclosures, as described in the GRI G3 Guidelines. Application Levels do not provide an opinion on the sustainability performance of the reporter nor the quality of the information in the report. Jakarta, 18 March 2013 Drs. Elmar Bouma, CSRA Director

National Center for Sustainability Reporting (NCSR) dengan ini menyatakan bahwa PT Bank CIMB Niaga Tbk telah mempresentasikan Laporan Keberlanjutan kepada NCSR Application Level Check Services, dan menyimpulkan bahwa laporan telah memenuhi persyaratan Level Aplikasi B . Tingkat Aplikasi memberi gambaran tentang sejauh mana pedoman GRI G3.1 serta Financial Services Sector Supplement telah diterapkan dalam laporan yang disampaikan. Kami menyatakan bahwa laporan tersebut telah memuat seperangkat pengungkapan yang disyaratkan dalam Level Aplikasi tersebut, dan indeks GRI telah disajikan dalam laporan tersebut secara memadai, sesuai dengan Pedoman GRI G3. Tingkat Aplikasi ini bukan merupakan opini atas kinerja keberlanjutan maupun kualitas informasi yang dimuat dalam laporan tersebut. ------------------------------------------------------------- The National Center for Sustainability Reporting (NCSR) is an independent and non-for profit organization, established in 2005 to promote sustainability reporting in Indonesia, Malaysia and Thailand. NCSR is registered as an organizational stakeholder member of the Global Reporting Initiative (GRI) since 2006.

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GRI Index

GRI 3.1 Indicators Explanation Page Level of

ApplicationSTRATEGY AND ANALYSIS

1.1 ReportfromtheBoardofCommissionersandBoardofDirectors 181.2 Descriptionofkeyimpacts,risks,andopportunities 18

ORGANIzATIONAL PROFILE2.1 Nameoftheorganization 112.2 Primarybrands,products,and/orservices 112.3 Operationalstructureoftheorganization 112.4 Locationoforganization’sheadquarters 112.5 Numberofcountrieswheretheorganizationoperates 112.6 Nature of ownership and legal form 112.7 Markets served 112.8 Scaleofthereportingorganization 112.9 Significant changes during the reporting period 11

2.10 Awards received in the reporting period 16PARAMETERS OF THE REPORT

3.1 Reportingperiod 43.2 Dateofmostrecentpreviousreport 43.3 Reportingcycle 43.4 Contact point 53.5 Process for defining report content 43.6 Boundary of the report 43.7 Limitations on the scope or boundary of the report 43.8 Basis for reporting on joint ventures, subsidiaries, etc. 43.9 Datameasurementtechniques 43.10 Effect of any restatements of information 43.11 Significant changes from previous reporting periods 43.12 TableidentifyingtheStandardDisclosuresinthereport. 77-793.13 Policy and current practice on external assurance 5

GOVERNANCE, COMMITMENTS, AND ENGAGEMENT4.1 Governancestructureoftheorganization 704.2 Status of the Chair of the Board 704.3 Independentand/ornon-executiveBoardmembers 724.4 Linking compensation and performance of the Board 704.5 Linking compensation and performance of the Board 724.6 Avoiding conflicts of interest 724.7 QualificationsandexpertiseoftheBoard 724.8 Mission, values, codes of conduct, and principles 25

4.9 Adherence with internationally agreed standards, codes of conduct, and principles 72

4.10 Processes for evaluating the Board’s performance 724.11 Addressing the precautionary approach or principle 73

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives 72

4.13 Memberships in associations 724.14 List of stakeholder groups 734.15 Basis for identification and selection of stakeholders 734.16 Approaches to stakeholder engagement 73

4.17 Key topics and concerns that have been raised through stakeholder engagement 73

ECONOMIC PERFORMANCEEC1 Directeconomicvaluegeneratedanddistributed 33EC2 Financial implications due to climate changeEC3 DefinedbenefitplanobligationsEC4 Financial assistance received from governmentEC5 Standard entry level wage compared to local minimum wage 63EC6 Spendingonlocally-basedsuppliersEC7 Senior management hired from the local communityEC8 Infrastructure investments and services provided for public benefit 54EC9 Indirect economic impact

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GRI 3.1 Indicators Explanation Page Level of

ApplicationENVIRONMENT PERFORMANCE

EN1 Materials usedEN2 Recycledmaterialsused 42EN3 DirectenergyconsumptionEN4 Indirect energy consumptionEN5 Energy saved due to conservation and efficiency improvementsEN6 Initiativestoprovideenergy-efficientorrenewableenergy 41EN7 Initiatives to reduce indirect energy consumption and reductions achieved 42EN8 Total water withdrawal EN9 WatersourcessignificantlyaffectedbywithdrawalofwaterEN10 Percentage and total volume of water recycled and reusedEN11 Location of area of high biodiversity value EN12 Impacts on biodiversityEN13 Habitats restored EN14 Strategies, current actions, and future plans for managing impacts on biodiversity EN15 RedListspeciesEN16 Total direct and indirect greenhouse gas emissions EN17 OtherrelevantindirectgreenhousegasemissionsEN18 Initiatives to reduce greenhouse gas emissions and reductions achievedEN19 Emissionsofozone-depletingsubstancesEN20 NOx,SOx,andothersignificantairemissionsEN21 TotalwaterdischargebyqualityanddestinationEN22 Wasteanddisposalmethod 42EN23 Total number and volume of significant spillsEN24 HazardouswasteEN25 Biodiversity value of water bodies EN26 Initiatives to mitigate environmental impacts 41EN27 Percentage of products sold and their packaging materials that are reclaimed EN28 Finesandnon-monetarysanctionsEN29 EnvironmentalimpactsoftransportationproductsAspect:Overall 41EN30 Total environmental protection expenditures

LABOR PRACTICES AND DECENT WORK PERFORMANCE INDICATORSLA1 Profil of workforce 60LA2 RecruitmentandEmployeeturnover 62LA3 Benefitsprovidedtopart-timeemployeesLA4 Collective bargaining agreements. 64LA5 Notice period for operational changes 62LA6 Health and safety committeesLA7 RatesofinjuryandfatalitiesLA8 Education,training,counseling,prevention,andrisk-controlprogramsinplaceLA9 Health and safety topics covered in formal agreements with trade unionsLA10 Average hours of training per year 64LA11 Training Programs to support the continued employability of employeesLA12 Employees’ performance and career development reviews 63LA13 Employees’ diversity 62LA14 Ratioofbasicsalaryofmentowomen 63LA15 Parental leave 64

Performance Indicators: HUMAN RIGHTSHR1 Agreements with Human rights clauses or screeningHR2 Human right screening of suppliers and contractorsHR3 Employee training concerning aspects of human rights HR4 Incidents of discrimination HR5 RightsoffreedomofassociationHR6 Child labor HR7 Forced or compulsory labor HR8 Security personnel trained human rights issues 65HR9 ViolationsinvolvingrightsofindigenouspeopleHR10 EvaluationofHumanRightsinOperationalLocationsHR11 MechanismsfortheResolutionofHumanRightsCases

X

X

XXX

X

X

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GRI 3.1 Indicators Explanation Page Level of

ApplicationSOCIETY PERFORMANCE INDICATORS

SO1 Impacts assessment and development programSO2 BusinessunitsanalyzedforrisksrelatedtocorruptionSO3 Employeestrainedonanti-corruptionpoliciesandprocedures 65SO4 Actions taken in response to incidents of corruptionSO5 Participation in public policy development 50SO6 Contribution to political parties, politicians, and related institutions 50SO7 Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypractices

SO8 Finesandnon-monetarysanctionsfornon-compliancewithlawsandregulations

SO9 Negative impact on local communitySO10 Prevention and mitigation measures implemented

PRODUCT RESPONSIBILITY PERFORMANCE INDICATORSPR1 Lifecyclestages;healthandsafetyimpacts

PR2 Incidentsofnon-compliancewithregulationsandvoluntarycodesconcerning health and safety impacts of products and services

PR3 Productandserviceinformationrequiredbyprocedures 66

PR4 Incidentsofnon-compliancewithregulationsandvoluntarycodesconcerning product and service information and labeling

PR5 Practices related to customer satisfaction

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications

PR7 Incidentsofnon-compliancewithregulationsandvoluntarycodesconcerning marketing communications.

PR8 Substantiated complaints breaches of customer 65

PR9 Monetaryvalueofsignificantfinesfornon-compliancewithlawsand regulations concerning the provision and use of products and services

FINANCIAL SERVICES SECTOR SUPPLEMENT INDICATORS

FS1 Policies with specific environmental and social components applied to business lines 73

FS2 Procedures for assessing and screening environmental and social risks in business lines.

FS3 Processes for monitoring clients’ implementation of and compliance with environmentalandsocialrequirementsincludedinagreementsortransactions

FS4 Processes for improving staff competency to implement the environmental and social policies and procedures as applied to business lines.

FS5 Interactionswithclients/investees/businesspartnersregardingenvironmentaland social risks and opportunities.

FS6 Percentageoftheportfolioforbusinesslinesbyspecificregion,size(e.g.micro/SME/large)andbysector 32

FS7 Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose 33

FS8 Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken down by purpose 34

FS9 Coverageandfrequencyofauditstoassessimplementationofenvironmentaland social policies and risk assessment procedures

FS10Percentage and number of companies held in the institution’s portfolio with whichthereportingorganizationhasinteractedonenvironmentalorsocialissues

FS11 Percentage of assets subject to positive and negative environmental or social screening

FS12 Votingpoliciesappliedtoenvironmentalorsocialissuesforsharesoverwhichthereportingorganizationholdstherighttovotesharesoradvisesonvoting.

FS13 Accesspointsinlow-populatedoreconomicallydisadvantagedareasbytype 68FS14 Initiatives to improve access to financial services for disadvantaged people 68FS15 Policies for the fair design and sale of financial products and servicesFS16 Initiatives to enhance financial literacy by type of beneficiary

CompleteReport

NotReported,UnderConsideration

PartialReport

Not Material

InapplicableX

X

X

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• Millennium Development Goals (MDGs) isaMillenniumDeclarationwhichhasbeenapproveduponbyHeadsof

StatesandRepresentativesfromover189UNcountries.ThisdeclarationcameeffectiveinSeptember2000witheight

goalswhichneedtobereachedin2015.TheDeclarationaimstoachieveprosperityandcommunitydevelopmentin

2015.

• Gross Domestic Product (GDP) is the market value of all services and goods produced by a country in a determined

period of time.

• Capital Adequacy Ratio (CAR) is the ratio used by the banking system regulator with the main objective to identify

the health level of a Bank and in particular the risk of the capital structure of the bank.

• Outstanding Loan is the total of loans already distributed to customers exceeding the prescribed lines of credit.

• Non Performing Loan (NPL) is a ratio between the total of loans which are non performing and the total of

outstanding loans.

Glossary

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Laporan Bisnis

Contents

1

2

3

4

6

8

11

12

14

16

18

Theme : United for Sustainability

Vision

Core Values

Scope of This Report

Sustainability Highlights

Sustainability Targets and Achivements

About Us - A Profile of CIMB Niaga

Milestones

Significant Events in 2012

Awards

Joint Statement

from the President Commissioner and

the President Director

Information regarding the Sustainability Report

Sustainability Sector Report

25

28

38

48

60

66

70

76

77

80

Not Just a Bank

Banking and Economic Conditions in

Indonesia

Environmental Conservation

Community Assistance

Prioritizing Human Resources

Prioritizing Clients

Sustainable Governance

Statement of GRI Application Level Check

GRI Index

Glossary

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PT Bank CIMB Niaga Tbk

Corporate SecretaryGraha CIMB NiagaJl. Jend. Sudirman Kav. 58Jakarta 12190, IndonesiaTel. : (62-21) 250 5252, 250 5353Fax. : (62-21) 250 5205Email : [email protected] : CIMB IndonesiaTwitter : @CIMB_Assists

www.cimbniaga.com

Sustainability Report 2012

Sustainability Report 2012

Unitedfor Sustainability

Un

ited fo

r Su

stainab

ility


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