BRI's 2008 Annual Report

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ANNUAL REPORT 2008

SERVING

FROM ALL WALKS OF LIFECUSTOMERS

OVER PRODUCTS AND SERVICES50113EXPERIENCE OF YEARS

Table of Contents

01 BRI in Brief and Milestones

02 Vision, Mission, Objective & Company

Values

04 Financial Highlights

05 Information to Shareholders

11 Ratings of BRI in 2008

12 2008 Significant Events

14 Awards 2008

15 Thirty Million Customers of BRI,

Growing and Prospering Over Time

18 Report of the President Commissioner

21 Board of Commissioners

22 Report of the Board of Directors

29 Board of Directors

30 Organisational Structure

34 Comparative Data between BRI and the

National Banking Sector

36 Management Discussion and Analysis

of the Company’s Results of Operations

and Financial Condition

44 Report on Corporate Governance

72 Press Release 2008

73 Corespondence with the Indonesia

Stock Exchange in 2008

76 Business Target Achievements in 2008

76 Micro, Small and Medium Sized

Business

82 Consumer Business

86 Commercial Business

88 Institutional Business

90 International Business And Treasury

94 Risk Management

100 Human Resources Management

104 Information Technology

106 Network and Services

108 Corporate Social Responsibility

114 Profile of the Board of Commissioners

118 Profile of the Board of Directors

123 Senior Managers

125 Products and Services

126 Networks

128 BRI Network and Addresses

144 Statement of Responsibility for Financial

Reporting

147 Financial Statements

273 Subsidiary Company

274 Corporate Information

275 Contact Address

Annual Report 2008 Bank Rakyat Indonesia

1.

BRI in Brief and Milestones

PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI” or the

“Bank”) is one of the largest and oldest banks in Indonesia,

founded on 16 December 1895.

Starting from an association that managed simple saving-

and-loan fund of a Mosque for the local community, a

small financial firm by the name of De Poerwokertosche

Hulp en Spaarbank der Inlandsche Hoofden was formed

on that date in Purwokerto, Central Java, as the embryo

that would eventually evolve into Bank Rakyat Indonesia.

Over time, the small firm that was the brainchild of Raden

Aria Wiriaatmadja continued to flourish, meeting the

needs of the community. Over the course of its existence,

the name of the firm had been changed several times,

from the Hulp-en Spaarbank der Inlandsche Bestuurs

Ambtenareen to De Poerwokertosche Hulp Spaar-en

Landbouw Credietbank (Volksbank), Centrale Kas Voor

Volkscredietwesen Algemene in 1912 and Algemene

Volkscredietbank (AVB) in 1934. During the Japanese

occupation, AVB was changed into Syomin Ginko.

Upon the independence of Indonesia, the Indonesian

Government changed the name back into Bank Rakyat

Indonesia (taken from Volksbank) on 22 February 1946.

Based on Government Regulation No. 1 of 1946, BRI

became the first state-owned bank of the Government of

the Republic of Indonesia.

As a state-owned bank, BRI played a central role in

pursuing the vision of the government to develop the rural

economy. In 1960, the government changed the name

of BRI into Bank Koperasi Tani dan Nelayan (Farms and

Fisheries Cooperative Bank). Pursuant to Law No. 21 of

1968, the government restored the name of Bank Rakyat

Indonesia which by then had become a commercial bank,

and pursuant to the Banking Law No. 7 of 1992, BRI

changed its name and legal entity into PT Bank Rakyat

Indonesia (Persero). With a focus on the Micro, Small

and Medium Enterprise (MSME) segment, BRI has since

inspired others to the MSME economic sector as the

backbone of the national economy.

On November 10, 2003, BRI became a publicly held

company with the listing of 30% of its shares in what is

now the Indonesia Stock Exchange (IDX), with the ticker

code of BBRI, which is currently part of the LQ45 equity

index, making it one of the shares that are included in the

measurement of the IDX composite shares price index, the

Jakarta Composite Index (JCI).

During the past two years, through the committed efforts

and aggressive marketing programs throughout BRI’s

vastly extensive branch network, BRI was able to grow

rapidly in terms of total assets, loans outstanding, third

party funds, profit from operations, with assets quality that

are well-maintained.

As of 31 December 2008, the BRI’s customer base

reached approximately 30 million accounts that comprised

of individual customers, micro and small-scale businesses,

medium to large-scale businesses, and private as well as

government institutions. The growth of credit was 41.36%

in 2008, whereas third party funds grew by 21.70%. As

at year-end 2008, BRI had more than 5,400 Operating

Units that comprised of Regional Offices, Branch Offices,

Sub-branch Offices, Cash Offices, and BRI Units (Micro

Outlets). In several of its Branch Offices, BRI also provides

the BRI Priority service for preferred customers.

For its electronic banking network, BRI currently operates

a proprietary network of 1,796 ATM plus more than 35,000

ATM through the ATM LINK, ATM Bersama and ATM

Prima networks, as well as the 24-hour phone banking and

SMS Banking services.

As of 31 December 2008, the Government of Indonesia

held 56.79% shares of BRI with the remaining shares

held by public investors. The shares capitalisation of BRI

as at year-end 2008 was Rp55.85 trillion, accounting for

approximately 5.56% of the total market capitalization of

the Indonesia Stock Exchange.


2.

VisionTo Become a Leading Commercial Bank that Always Prioritises Customer Satisfaction

MissionTo achieve the vision, BRI has decided on three missions that have to be undertaken,

namely:

• BRI provides the best banking operation by prioritising services for Micro, Small and

Medium Businesses in order to support people’s economy.

• BRI offers premium services to customers through a network that are spread all over

Indonesia and supported by professional human resources who implement Good Corporate

Governance.

• BRI creates value and produces optimal benefits to all stakeholders.

Vision, Mission, Objective & Company Values


3.

Corporate Cultures

BRI espouses the corporate values that form the

foundation for the thinking, action and behaviour of

every individual at BRI, inherent in a corporate culture

and projecting a solid and strong character of the Bank.

These values are integrity, professionalism, customer

satisfaction, leadership, and respect for the individual.

As a publicly held company, BRI is fully committed

to comply with all prevailing laws and regulations

pertaining to banking and the capital markets. This

has induced BRI to always champion the cause

for prudential banking as well as the interests of

stakeholders.

This commitment is also manifested in the form of

Corporate Governance as follows:

• Intensifying the program to instil awareness of risk

and a culture of compliance for every employee at

all BRI Operating Units.

• Intensifying improvements to service quality in all

Operating Units;

• Extrapolating and monitoring each progress made

by the bank into an activities log book that are

easily measurable and accountable for all Operating

Units;

• Implementing a policy of rewards and punishments

that is firm and just.

Business Strategy

BRI has formulated the Bank’s Business Plan for

the period of 2009-2011, as parts of its long-term

development plan. The business strategy of BRI in the

short and medium term is broken down as follows:

• The business development of BRI that is supported

by the increase in the quantity and quality of

professional personnel, product features, services,

and the support of an information technology

system that is reliable and for the following

applications:

- The growth of credit that focuses on the

financing of the MSME sectors while still

adhering to prudential banking principles.

- The growth of third party funds that are

dominated by low-cost funding with a minimum

composition 60%.

• Instilling a risk-aware culture and implementing a

micro management system that is effective among

all the Operating Units of BRI.

• Strengthening of the Banks equity base to support

business growth.

• Expanding the service networks by adding Branch

Offices, Sub-Branch Offices, Cash Offices, BRI

Units as well as electronic channels, such as the

Automated Teller Machines (ATM), Cash Deposit

Machines (CDM) and Electronic Data Capture

(EDC) in order to extend the reach of services.

• Enhancing the marketing communications for

each product and service category in line with the

corporate marketing strategy such that BRI will

also be able to increase its sales and create the

corporate image of BRI in the public minds.


4.

2008 2007 2006 2005 2004

Balance SheetsTotal Assets

Total Earning Assets

Loans – Gross

Government Recapitalisation Bonds

Third Party Funds

- Demand Deposits

- Savings

- Time Deposits

Other Interest Bearing Liabilities

Equity

246.07

228.78

161.11

16.35

201.54

39.92

88.08

73.54

7.60

22.36

203.74

169.09

113.97

18.22

165.60

37.16

72.30

56.14

6.26

19.44

154.76

139.04

90.28

18.45

124.47

27.86

58.31

38.30

6.04

16.88

122.78

111.48

75.53

17.72

97.05

17.38

49.37

30.29

5.60

13.35

107.04

97.96

62.37

22.69

82.40

13.36

44.57

24.47

6.38

12.45

Profit/LossInterest Income:

- With Government Recap Bonds Interest

- Without Government Recap Bonds Interest

Net Interest Income

- With Government Recap Bonds Interest

- Without Government Recap Bonds Interest

Other Operating Income

Other Operating Expenses

Total Provision for Possible Losses

Income Before Tax

Net Income

Earnings per Share (Rp)

28.10

26.15

19.65

17.70

2.54

(11.00)

(2.84)

8.82

5.96

497.00

23.24

21.22

16.70

14.68

1.82

(9.02)

(1.94)

7.78

4.84

403.64

21.07

18.73

13.77

11.43

1.51

(7.65)

(1.85)

5.91

4.26

355.62

17.25

15.08

12.43

10.25

0.73

(7.44)

(0.40)

5.61

3.81

307.00

15.53

12.69

11.26

8.41

1.45

(6.09)

(1.33)

5.73

3.63

307.00

Financial Ratio (in percentage)Capital

Capital Adequacy Ratio (CAR)

Fixed Assets to Capital

Earning Assets

Non-Performing Earning Assets

Non-Performing Loans (NPL)

Allowance for Possible Losses for Earning Assets

Compliance for Allowance for

Possible Losses for Earning Assets

Profitability

ROA (Return on Assets)

ROE (Return on Equity)

NIM (Net Interest Margin)

Operating Expenses/Operating Income

Liquidity

LDR (Loan to Deposit Ratio)

Compliance

Violation on Legal Lending Limit (LLL)

- Related Parties

- Third Parties

Excess of Legal Lending Limit (LLL)

- Related Parties

- Third Parties

Statutory Reserve

Net Open Position

13.18

24.13

2.18

2.80

3.75

150.20

4.18

34.50

10.18

72.65

79.93

0.00

0.00

0.00

0.00

5.57

13.55

15.84

26.14

2.22

3.44

4.05

161.20

4.61

31.64

10.86

69.80

68.80

0.00

0.00

0.00

0.00

22.09

7.90

18.82

29.03

3.06

4.81

4.80

155.97

4.36

33.75

11.16

74.38

72.53

0.00

0.00

0.00

0.00

12.34

5.41

15.29

32.11

3.20

4.68

4.85

176.62

5.04

38.00

12.18

70.83

77.83

0.00

0.00

0.00

0.00

9.55

5.23

16.19

31.73

2.76

4.19

5.28

225.24

5.77

42.76

12.16

68.86

75.69

0.00

0.00

0.00

0.00

9.39

10.77

Note:• Including market risk since 2004• Year 2007 : Balance Sheet is a consolidated financial statement with subsidiary (PT Bank Jasa Arta)• Year 2008 : Balance Sheet and Profit-and-Loss data are consolidated with those of PT Bank Syariah BRI (formerly PT Bank Jasa Arta)

Financial Highlights

(in trillion Rupiah, except earnings per share)


5.

Information to Shareholders

BRI’s Share Performance in 2008

In 2008, in line with the collapse of the world’s stock

markets due to the global financial crisis, BRI shares,

which opened at Rp7,400.00 per share and closed the

year at Rp4,575.00 per share, declined by 38.18%.

However, this declined was still below that of the

Jakarta Composite Index, which felt by as much as

Quarterly Share Price

50.58% from 2,731.51 on 2 January 2008 to 1,355.41

on 30 December 2008. Throughout 2008, the price of

BRI share moved in a broad range, reaching its peak of

Rp7,800.00 on 9 January and 14 January 2008, and its

lowest level of Rp2,400.00 on 21 November 2008.

Movement of Price and Transaction Volume of BRI Shares in 2008

Calendar Year

Share Price Number of Shares

Outstanding(share)

Transaction Volume(share)

Frequency(times)

Transaction Value

(Rp trillion)

Market Cap

(Rp trillion)Open(Rp)

High(Rp)

Low(Rp)

Close(Rp)

2007

Quarter I

Quarter II

Quarter III

Quarter IV

5,150

5,150

5,050

5,750

6,600

8,700

5,450

6,500

7,050

8,700

4,400

4,400

5,050

5,100

6,600

7,400

5,050

5,750

6,600

7,400

12,317,800,500

12,287,616,500

12,303,602,500

12,309,493,500

12,317,800,500

3,352,241,000

857,282,500

796,783,500

960,342,500

737,832,500

103,589

28,704

21,851

24,154

28,880

19.93

4.29

4.47

5.56

5.61

90.27

61.46

70.07

80.47

90.27

2008

Quarter I

Quarter II

Quarter III

Quarter IV

7,400

7,400

6,300

5,100

5,400

7,800

7,800

6,950

6,450

6,325

2,400

5,250

4,650

4,575

2,400

4,575

6,300

5,100

5,400

4,575

12,325,299,500

12,318,935,500

12,319,892,000

12,322,809,000

12,325,299,500

4,735,576,500

736,724,500

1,204,170,500

1,120,328,500

1,674,353,000

230,412

31,385

55,078

52,644

91,305

23.9

4.98

6.76

6.20

5.96

55.85

76.87

62.23

65.91

55.85

90,000,000

80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Volume (left) Price (right)


6.

Dividend Policy

In the Annual General Meeting of Shareholders (AGMS)

2008, the amount of cash dividends paid out for

the accounting year of 2007 was set at Rp2,419.00

billion or Rp196.34 per share, which was paid to the

shareholders on 7 July 2008.

Cash dividends in 2007 increased by 13.63% from

those of 2006, which amounted to Rp2,128.78 billion

or Rp173.04 per share. The dividend payout ratio for

2007 was 50% of net profit.

BRI Dividend Payments

Accounting Year

Net Income(Rp Billion)

Dividend(Rp Billion)

Dividend per

Share (Rp)

Dividend Payout

Ratio (%)

2003

2004

2005

2006

2007

2,579

3,633

3,808

4,257

4,838

990.47*

1,816.61

1,904.29

2,128.78

2,419.00

84.19

152.93

156.18

173.04

196.34

75.01

50.00

50.00

50.00

50.00

*) from the net income of second semester (1 July 2003 - 31 December 2003) amounting to Rp1.32 trillion, first semester profit was capitalized into equity.

Shareholder Information

Corporate Action of 2008

The BRI Annual General Meeting of Shareholders

(AGMS), held on Monday, 26 May 2008, have decided

the following issues:

First Agenda

Approved and Ratified:

1. The Bank’s 2007 Annual Report which includes the

report of the Board of Directors, the supervisory

duties of the Board of Commissioners and the

Financial Statements for the year ending 31

December 2007 which had been audited by the

Public Accounting Firm of Prasetyo, Sarwoko

and Sandjaja, and gave full release and discharge

(acquit et de charge) to the Board of Directors and

the Board of Commissioners for their management

and supervision during the financial year ending

31 December 2007 provided that their actions are

not categorized as a criminal act and are reflected

in the Company’s financial report.

2. Report on the Partnership and Community

Development Program (Program Kemitraan dan

Bina Lingkungan/PKBL) for the financial year

ending 2007 which had been audited by the Public

Accounting Firm of Herman Dody Tanumihardja

& Rekan and gave full release and discharge

(acquit et de charge) to the Board of Directors and

Board of Commissioners for their management

and supervision of the PKBL, provided that their

actions are not categorized as a criminal act and

are reflected in the Company’s reports on the

Partnership and Community Development Program.

Second Agenda

1. To determine the appropriation of net profit of

the Company for the period of 1 January to 31

December 2007 as follows:

- 50% or Rp2,419,000,552,302 will be

distributed as cash dividends to the

shareholders in accordance with the prevailing

regulations. With the MSOP phase I, II and III,

provided that stock options from the MSOP

phase I, II and III have all been exercised

before or on the date at which the shares can

be included in cum dividend shares, with a

minimum cash dividend per share of Rp195,82.

- 20% or Rp967,600,220,921 will be for the

Company’s general reserves pursuant to Law

No 40 of 2007 on Limited Liability Company.


Company’s specified reserves.


7.


Community Development Program (Program

Bina Lingkungan)

- 6% or Rp290,280,066,276.31 will be allocated

to Retained Earnings.

2. To grant the rights and authorities to the Board

of Directors to determine the schedule and the

procedure of cash dividend payments for the

year 2007 in accordance with prevailing laws and

regulations.

Third Agenda

1. Ratified the Tantiem (Bonus) for the Board of

Directors, the Board of Commissioners and the

Secretary of the Board of Commissioners for the

year ending 31 December 2007, amounting to

0.81% of the net profit for said financial year which

will be paid from the allowance for Tantiem in the

year 2007 based on the Indonesian Accounting

Standard no. 24. The authority to distribute

the Tantiem will be determined by the holder of

Dwiwarna series A share (Golden Share). Tax of the

Tantiem will be paid by tantiem’s receivers.

2. Ratified an increase of salary/honorarium for the

Board of Directors, the Board of Commissioners

and the Secretary of the Board of Commissioners,

amounting to 21.95% of the salary/honorarium

which had been ratified in the General Meeting of

Shareholders on 22 May 2007, rounding up to the

nearest million. The proportion of salary/honorarium

for the Directors, the President Commissioner, the

Commissioners and the Secretary of the Board of

Commissioners are 90%, 40%, 36% and 15% of

the salary of the President Director, respectively,

effective 1 January 2008.

Fourth Agenda

1. To appoint the Public Accounting Firm of

Purwantono, Sarwoko & Sandjaja to audit the

Company’s financial statements for the financial

year ending 31 December 2008, and to grant

the authority to the Board of Commissioners to

determine the fees of the Public Accountants and

other requirements in accordance with prevailing

regulations.

2. To appoint the Public Accounting Firm of Herman

Dody Tanumihardja & Rekan to audit the financial

statements on the PKBL for the financial year

ending 31 December 2008, and to grant the

authority to the Board of Directors to determine

the fees of the Public Accountants and other

requirements in accordance with prevailing

regulations.

3. To grant Power of Attorney:

- To the Board of Commissioners to

appoint another Public Accounting Firm in

place of the appointed Public Accounting Firm

to audit the Company’s financial statements

for the year 2008 including fees and other


regulations should the appointed Public

Accounting Firm could not perform its audit

duties for whatever reasons.

- To the Board of Directors to appoint another

Public Accounting Firm in place of the

appointed Public Accounting Firm to audit

the Company’s PKBL financial statements

for the year 2008 including fees and other


regulations should the appointed Public

Accounting Firm could not perform its audit

duties for whatever reasons.


8.

Fifth Agenda

To give the authority to the Board of Commissioners

to approve additional paid-up capital of the

Company with regards to the exercise of the

Management Stock Option Plan (MSOP) that had

been decided on the Company’s General Meeting

of Shareholders.

Sixth Agenda

a. To approve all changes in the Company’s Articles

of Association including but not limited to the

amendment of Law No. 40/2007 on Limited Liability

Company and Bapepam-LK’s Regulation No. IX.J.I

on the principles of the Articles of Association

of Company’s that undertake public offering of

equities and public listed companies.

b. With respect to the above changes in the Articles

of Association, to give the power and authority to

the Board of Directors collectively or individually

using substitute rights to ask for the approval of,

and report the changes in the Company’s Articles

of Association to, the relevant authorities, and

subsequently state and arrange the amendments,

changes or improvement needed with authentic

notarial deed before a notary, if required by the

relevant authorities and/or prevailing laws and

regulations, to make or request the making

of, and sign all of the certificates, letters and

documents needed, being present before the

relevant authorities, submitting a request to the

relevant authorities or reporting the above matters

to the relevant authorities pursuant to the laws and

regulations and undertake all necessary steps that

are deemed useful in connection with the changes

in the Company’s Articles of Association.

Chronology of Share Listing

Shares issued by BRI are the Dwiwarna Series A Share

(Golden Share) and the Series B Shares. Bank BRI

only issues 1 (one) Golden Share possessed by the

Republic of Indonesia, which is not transferable to any

other party.

The special rights granted to the holder of the Golden

Share are:

1. Nominate members of the Board of Directors and/

or members of the Board of Commissioners of the

Company.

2. Approve the appointment and termination of

members of the Board of Directors and/or the

Board of Commissioners.

3. Approve amendments to the Articles of Association,

including changes in capital.

4. Approve the consolidation, merger, acquisition and

spin off of the Company, bankruptcy filing, and the

liquidation of the Company, and/or

5. Request report and explanation on certain issues

from the Board of Directors and the Board of

Commissioners with due consideration to prevailing

rules and regulations, especially those of the Capital

Market.

By virtue of the Decree of the Chairman of the Capital

Market Supervisory Agency No. S-2646/PM/2003

dated 31 October 2003, the Statement of Registration

by BRI in the event of its Initial Public Offering of Shares

became effective. The IPO pertained to the offering

of 2,047,060,000 (two billion forty-seven million and

sixty thousand) of Series B Shares, which represent

the divested shares of the Republic of Indonesia, in

addition to 1,764,705,000 (one billion seven hundred

sixty-four million seven hundred and five thousand) of

newly issued Series B Shares by the Company, at a

nominal value of Rp500 (five hundred rupiah) per share.


9.

The shares began to be traded on 10 November 2003;

and were simultaneously listed on the Jakarta and

Surabaya stock exchanges.

Subsequently, options on over subscription amounting

to 381,176,000 Series B Shares and over allotment

amounting to 571,764,000 Series B Shares, both

belonging to the Republic of Indonesia (divestments)

at the strike price of Rp875 (eight hundred seventy-five

rupiah) per share had been exercised on 10 November

2003 and 3 December 2003, respectively.

Management Stock Option Program (MSOP)

In the Extraordinary General Meeting of Shareholders

on 3 October 2003, the Company decided to carry

out a Management Stock Option Program (MSOP).

In this program the number of stock issued reached

588,235,250 with the following allocation:

Phases

of

MSOP

Number of

Shares

MSOP

(share)

Percentage

Date of

Option

Issuance

Exercise Price

per Share

Phase I 235,294,100 40% 10 Nov 2003 Rp962.50

Phase II 235,294,100 40% 10 Nov 2004 Rp1,750.00

Phase III 117,647,050 20% 10 Nov 2005 Pursuant to

Bapepam-LK

& IDX

Total 588,235,250

MSOP Execution

The MSOP was executed in 3 (three) phases: MSOP I,

MSOP II and MSOP III. The execution of MSOP I

and MSOP II were based on earlier Capital Market

Supervisory Board and JSX (now IDX) regulations; while

MSOP III was based on the Regulation of the Capital

Market Supervisory Board No. IX.D.4 and Regulation

on Securities Listing Procedures No. 1-A Attachment.

The Decree of the Board of Directors of the Jakarta

Stock Exchange No. Kep-305/BEJ/07-2004. The

vesting period for all MSOPs were up to one year after

the commencement date. MSOP I and MSOP II could

be exercised at any time following the vesting period,

up until the maturity date of each MSOP phase.

The exercised MSOP shares up to 31 December 2008,

amounted to 560,594,500 shares.

MSOP

Phases

Number of

MSOP

Shares

(share)

Shares

Exercised

in 2007

(share)

Shares

Exercised

in 2008

(share)

Shares

Exercised

up to end of

2008

(share)

Phase I 235,294,100 230,201,000 798,000 230,999,000

Phase II 235,294,100 225,734,000 1,207,500 226,941,500

Phase III 117,647,050 97,160,500 5,493,500 102,654,000

Total 588,235,250 553,095,500 7,499,000 560,594,500

The exercise period of MSOP I ended on 9 November

2008. As at the end of the exercise period, a total of

4.3 million shares had not been exercised.

Specific to the exercise of Phase III of the MSOP, which

runs until the end of 2008, the details are as follows:

Periods of MSOP III

Exercise PeriodExercised Price (Rp)

Number of Shares Exercised

(share)

Period 1

Period 2

Period 3

Period 4

Period 5

15 Nov - 27 Dec 2006

8 Jun - 19 Jul 2007

15 Nov - 19 Jul 2007

10 Jul - 14 Aug 2008

3 Dec - 24 Dec 2008

4,450

5,188

6,385

4,572

2,907

76,478,000

13,581,000

7,939,000

2,828,500

1,827,500


10.

Shares Ownership

Compared to 2007, as at year-end 2007, the number

of BRI’s shares outstanding increased by 0.061%, from

12.32 billion to 12.33 billion shares. The increase was

attributed to the subscription of additional shares from

the exercise of the MSOP during the year. Along with

the increased number of outstanding shares, there was

a dilution of the Government shareholding of BRI, from

56.83% as at year-end 2007 to 56.79% at year-end

2008.

Share Ownership of BRI

Category ofShareholders

Number of Shareholders Number of Shares Percentage

2008 2007 2008 2007 2008 2007

The Government of the

Republic of Indonesia

1 1 7,000,000,000 7,000,000,000 56.79% 56.83%

Public

Domestic Investor

Individual

Employee

Regional Government

Institution

Foreign Investor

Individual

Institution

10,574

9,943

3,988

5,529

1

425

631

25

606

8,845

8,331

2,201

5,755

1

374

514

9

505

5,325,299,500

1,129,266,422

66,975,650

86,169,500

159,000

975,962,272

4,196,033,078

1,778,000

4,194,255,078

5,317,800,500

762,530,967

50,852,650

87,260,000

159,000

624,259,317

4,555,269,533

287,000

4,554,982,533

43.21%

9.16%

0.54%

0.70%

0.00%

7.92%

34.04%

0.01%

34.03%

43.17%

6.19%

0.41%

0.71%

0.00%

5.07%

36.98%

0.00%

36.98%

Total 10,575 8,846 12,325,299,500 12,317,800,500 100% 100%

Note: In 2008 there were no public shareholders that held more than 5% of BRI shares.

Use of the Proceeds from Initial Public Offering

The following information sets forth the details of the

use of the proceeds from the Bank’s Initial Public

Offering (IPO) of shares in the amount of Rp1.47 trillion,

pursuant to what was stated in the IPO prospectus, as

follows:

• A total of 60% or approximately Rp883 billion

was allocated for the upgrading of the Bank’s

information reporting system and the roll-out of the

core banking application system;

• A total of 30% or approximately Rp441 billion for

the expansion of the Bank’s branch office and BRI

Unit network;

• A total of 10% or approximately Rp147 billion for

the financing of future growth prospects, research

and development, loan disbursement and other

financing.

As at year-end 2008, a total of 89.14%, or

approximately Rp1.31 trillion of the IPO proceed

allocation had been realised, as follows:

• A total of Rp723.36 billion for the upgrading of the

information reporting and core banking systems;

• A total of Rp441.63 billion for the expansion of

branch office and BRI Unit network;

• A total of Rp147.21 billion for the development of

future growth prospects.


11.

MOODY’S

National Rating

- National Scale Rating Aaaid

Global

- Outlook Stable

- Domestic Currency Long Term Deposit Baa2

- Foreign Currency Long Term Deposit B1

- Foreign Currency Sub Debt Ba2

FITCH

National Rating

- Long Term AAA (idn)

Global

- Long Term Foreign Currency BB

- Short Term Foreign Currency B

- Outlook Stable

- Individual C/D

- Support Rating 3

- Support Rating Floor BB-

PEFINDO

Corporate ID AAA

Sub-Ordinated Bond ID AA+

The following table shows the ratings of BRI by three rating agencies: Moody’s, Fitch and PEFINDO.

Ratings of BRI in 2008


12.

JULY

2008 Significant Events

Date Events

23 January 2008(Jakarta)

BRI and Holcim signed an MOU on providing the benefit of banking products and services for the business of home solutions.

22 February 2008(Jakarta)

Launch of BRI’s Micro KUR products

23 March 2008(Jakarta)

Social Donation by BRI in the form of 32,000 staple good packages for fishermen in the coastal areas of Jakarta, Bekasi and Karawang.

25 March 2008(Jakarta)

BRI cooperated with the Department of Forestry on the management of a revolving funds for the development of industrial forests.

11-18 May 2008(Jakarta)

BRI became the main sponsor of the Thomas-Uber Cup Championship event at the Istora Senayan stadium, Jakarta.

22 May 2008(Semarang)

To provide convenient service for the management of tuition fees of university students, BRI undertakes a cooperation with the State University of Semarang for the processing of student tuition via online banking.

26 May 2008(Jakarta)

Convening of the Bank’s Annual General Meeting of Shareholders in 2008.

28 May 2008(Jakarta)

Signing of the Working Agreement between the Financial and Development Supervisory Board (BPKP) and BRI in the management of the Expenditure Fund from the BPKP State Budget.

12 July–31 August 2008(Wonosobo)

The Simpedes Folks Festival commenced on the 12th of July, carried out in turns in 282 Branch Offices throughout Indonesia.

25

26

JAN

UA

RY

23

11-18

28

22FEB

RU

AR

Y

12

23MA

RC

H

22MA

Y

MA

RC

H

MA

Y

MA

Y

MA

Y


13.

Date Events

15 August 2008(Jakarta)

Signing of the MOU between the State Ministry for the Empowerment of State Apparatus and BRI on the Management of Data on State Apparatus through Banking Services and the launch of the “Red and White” ATM Card.


Signing of the Working Agreement between PT Sumber Alfaria Trijaya (AlfaMart) and BRI for investment credit facilities to the franchisees of Alfamart.


Signing of the Working Agreement between the Department of Defence of RI with BRI in the management of funds of the State Budget for defence through the use of banking services.

11 September 2008(Jakarta)

BRI cooperated with PT Timah Tbk. in the use of banking products and services.

23 October 2008(Cirebon)

Founding of the Training Centre of Batik from the Royal Court of Kanoman Cirebon, in cooperation with the Nurani Budaya Indonesia Foundation as one of the programs of the BRI Platinum Credit Card, reflecting BRI’s commitment to promote the “Indonesia Heritage”.

25 November 2008(Jakarta)

Public Expose by BRI during the Investor Summit 2008 event at the Ritz Carlton Jakarta, Pacific Place.

17 November 2008 – 16 March 2009 (Jakarta)

Prize Draw of the Untung Beliung BritAma program, with the grand prize of a Range Rover and weekly prizes of 120 All New Nissan X-trail and 680 cash checks of Rp20 million each.

30 November 2008(Surabaya)

BRI together with Perum Perumnas undertake the socialization program for the subsidized KPR/KPRS home financing.

2 December 2008(Jakarta)

BRI organized an Exclusive Talk Show, the Andy F. Noya Forum, entitled “Facing the Impact of Second Waves Global Crisis”, at Ritz Carlton Hotel, Pacific Place.

27 28

12

15

11

17

23

230

AU

GU

ST

AU

GU

ST

AU

GU

ST

SEPT

EMB

ER

OC

TOB

ER

NO

VE

MB

ER

25

NO

VE

MB

ER

NO

VE

MB

ER

DE

CE

MB

ER


14.

AWARDS 2008

Infobank Magazine

Best Performing Bank

Investor Magazine

Best Bank of 2008

Bisnis Indonesia Daily

Banking Efficiency Award,

SOE Bank Category

SWA Magazine

In Cooperation with Perbanas

& Synovate Consultants:

Consumer Banking Excellence

Award

Asiamoney

Best Domestic Bank in

Indonesia

ABFI Banking Award &

Perbanas

Best Banking Performance

2008

SWA & Stern Steward & Co

Best Public Companies Based

on Wealth Added Index,

Method, First in Banking

Category

Forbes Magazine:

Asian Fabulous 50

Bank BRI, the only company

from Indonesia to make it into

the Forbes Fabulous 50 list

Alpha Southeast Asia

Best Bank in Indonesia

MRI & Infobank Magazine

Third Best SMS Banking

Finance Asia

Best Bank in Indonesia

SWA and MARS Magazines

Indonesian Best Brand Award

and Prospective Brand

MRI & Infobank Magazine

The Rising Star Bank in Service

Excellence


15.

Thirty Million Customers of BRI, Growing and Prospering Over Time

There are at least four key reasons why BRI has

approximately 30 million customers who rely on its

banking services that are truly rooted in the daily lives

of a broad segment of the public - much broader and

deeper than the banking service of any other major

bank in the country today - whether private or state-

owned banks.

First, BRI is deeply concerned about the economic

welfare and growth of the low-to-middle income group

people that still account for the majority of Indonesia’s

population of some 240 million people. This concern

is manifested among other things by the strong

emphasis that BRI places on the micro, small and

medium-sized enterprise (MSME) banking segment,

as well as the Bank’s active role in supporting the KUR

(People Business Loan) program that has recently been

promulgated by the government.

Second, BRI has been entrusted as one of the

state-owned banks to implement the government

cash management system through the Treasury

Single Account that aims to increase the efficiency of

managing the state budget cash flows through a single

bank account. This trust once again places BRI in the

forefront of public finance policies and implementation

that are beneficial to the interest of the general public.

Third, BRI has committed itself to be the primary

transactional banking conduit - the National Payment

Gateway bank of Indonesia - by relying on advanced

banking technology that is constantly upgraded, a

banking network that stretches to the far corners of

Indonesia, and a customer base that is unmatched by

any bank in the country today.

Fourth, BRI continues to expand and enhance the

service quality of its banking network which as at year-

end 2008 had comprised more than 5,400 Operating

Units, and counting. With a network of such breadth

and depth, BRI continues to solidify its position among

the 10 largest banks in Indonesia today, climbing to

being the second largest bank in terms of assets, and

the number one bank in terms of profitability in 2008.

BRI continues to develop and improve the service quality of its banking network which as at year-end 2008 had

comprised more than 5,400 Operating Units, and growing.

Big

and

Bou

ntifu

l

Micro, small and medium-sized enterprise (MSME)

businesses are the backbone of the national economy. It

is estimated that roughly half of the nation’s population

or approximately 120 million people depend their

livelihoods in one form or another to economic activities

related these MSME businesses.

Statistical data indicates that the total number of

MSME throughout Indonesia is approximately 48 million

business units. Merely 35% of that figure have access to

bank loans.

The growth potential of the MSME itself is actually

extraordinarily significant. The potential of this segment

to absorb the national workforce is also considerable,

and accounting for an estimated contribution of 53% to

the national Gross Domestic Product (GDP) output.

The problem is that so many of these MSMEs are

feasible businesses in their own right, but are not

bankable because they lack adequate collaterals, do not

maintain proper accounting or even rudimentary book-

keeping, or has no grasp whatsoever of the concept of

bank credit much less attaining one.

Aware of all this, the government has initiated a

breakthrough through the development of the People

Business Loan scheme, otherwise known as KUR. The

scheme is aimed at supporting the growth of Micro and

Small Businesses and Cooperatives, through bank loans

that are partially covered by credit insurance agencies.

As at year-end 2008, the nationwide disbursement of

KUR had reached over Rp12.6 trillion, encompassing a

total of 1,671,668 individual debtors. Of those figures,

BRI disbursed more than Rp9.2 trillion of KUR to

1,615,973 debtors. This means that, disbursement-

wise, BRI accounted for 73% of the KUR market share,

whereas in terms of number of debtors, BRI’s share

exceeded 95%.

KUR offers so many benefits to grass root economies,

strengthening the backbone and joints of the national

economy, generating income and growth for millions of

families, as well as profitability to the banking sector.

KUR - People Business Loan

Prior to the enactment of Law No. 1 of 2004 on State

Treasury, the government receipt and expenditure

accounts are scattered in numerous banks throughout

the country. This poses a problem for the government

to account for the exact amount of treasury at any given

time, makes it almost impossible to manage treasury

effectively, and increases administrative cost from having

so many bank accounts.

Pursuant to the above Law, all of government receipt

and expenditure have since been made through a

single account, namely State General Cash Account (or

Rekening Kas Umum Negara/RKUN) or the Treasury

Single Account (TSA) The opening of this single account

is subsequently tendered to appoint the implementing

banks or the so-called Operating Bank.

From a number of banks that participated in the tender

to become the Operating Bank to serve 30 Regional

Offices of the General Directorate of Treasury of the

Ministry of Finance, BRI won the tender and was

appointed as Operating Bank One (OB1) for 27 Regional

Offices comprising of 162 State Treasury Service Offices

throughout Indonesia.

There are numerous business opportunities that can

be derived from being the TSA operational bank, such

as benefitting from the low-cost funds on the deposits

of state treasury that is remitted via the TSA with BRI.

Furthermore, BRI can provide loans to projects that are

funded by the state budget, the expenditure of which

will be made through the TSA. More importantly, the

largest benefit that can be derived from the TSA is the

opportunity that it affords BRI to become a National

Payment Gateway bank in the near future.

Treasury Single Account

For a bank with the scale of operations as huge as

BRI’s - with a customer base of more than 30 million

accounts, tens of thousands of proprietary or joint

ATM networks, and e-Banking delivery channels such

as phone banking or SMS banking services - the

opportunity to serve as a National Payment Gateway is

wide open.

A national payment gateway system aims to facilitate

quick, reliable and beneficial financial payment

transactions. With customers numbering in the tens

of millions, equally robust ATM and branch networks,

and the support of advanced banking technology, BRI

is poised to achieve its goal of becoming a National

Payment Gateway bank. By serving as national

payment gateway, the Bank will not only be able

strengthen its customer base further, but also increase

its fee-based income.

To that end, BRI continues to invest in information

technology, enhance the integration of its banking

network, service and infrastructure, while also preparing

its people accordingly in order to support a truly

effective platform for the payment gateway operations.

National Payment Gateway

With a strong focus on the MSME business segment,

BRI has the largest banking network of any bank in

Indonesia. In 2008 alone, BRI added more than 400

Operating Units, which means that for each day of the

year, the Bank opened more than one new Operating

Unit to serve its customers.

As such, as at year-end 2008, BRI has had more than

5,400 Operating Units that are spread throughout

Indonesia, comprising of 14 Regional Offices, 372 Branch

Offices, three Overseas Offices, 337 Sub-branch Offices,

179 Cash Offices, 4,417 BRI Units, 76 Service Posts, and

45 Sharia Banking Branch Offices. Of these, a total of

3,879 BRI offices have been linked on-line and real-time.

The electronic links of BRI’ network will continue until all

of the Bank’s Operating Units are linked on a real-time

and on-line basis.

BRI will continue to expand and develop its banking

network, reaching more areas that are potential for the

Bank to grow its business sustainably over the long-term.

Banking Network


18.

Report of the President Commissioner

Bunasor SanimPresident Commissioner


19.

As an integral part of the national banking sector, Bank Rakyat Indonesia successfully navigated through

2008 with encouraging results compared to those of the previous year.

Assalamu’alaikum Wr. Wb.

With the good grace of God Almighty, BRI was able to

improve its performance in 2008 compared to that of

2007, despite the global economic crisis, the impact

of which was beginning to be felt by the Indonesian

banking sector during the closing months of 2008.

The benchmark interest rate of Bank Indonesia at

year-end 2007 was 8.00% and in line with the policy of

Bank Indonesia in anticipation of the impact from the

global economic crisis, the interest rate was increased

to 9.25% as at year-end 2008. The increase was

obviously responded by the banking sector through

interest rate adjustments for deposits and loans that

suit the conditions of the respective banks.

Board of Commissioners expresses its appreciation

and gratitude to the Management of BRI and each and

every employee of the Bank for their tireless efforts

and support in 2008. We hope that these efforts and

support will continue to accompany the Bank in order

to maintain and increase the Bank’s sustainable growth

in the future.

The macro economic conditions of Indonesia in 2009

are expected to be clouded by the impact of the

global economic crisis, such as declining exports and

lower economic growth compared to those of 2008.

As an integral part of the national banking sector, Bank

Rakyat Indonesia successfully navigated through 2008

with encouraging results compared to those of the

previous year, evident among other things through the

increase in total assets by 20.78%, growth of credit

by 41.36%, a rise in Loan to Deposit Ratio to 79.93%,

a decline of gross NPL to 2.80% as well a net NPL

to 0.85%. The Bank’s operating efficiency ratio was

also managed at around 48.83%. In terms of credit,

the growth of credit in 2008 was among other things

attributed to the growth of Kredit Usaha Rakyat (people

business credit) that accounted for 18.24% of the

Bank’s total credit growth.

The improved performance as indicated above,

resulted in an impressive achievement of net profit

amounting to Rp5.96 trillion in 2008, an increase of

23.16% from that of the previous year.

This achievement was undoubtedly the fruits of

hard work involving the Bank’s management and

employees with the support of stakeholders. The

The potential adverse effects of the global crisis,

should be anticipated Bank-wide by taking all efforts

and fully implement the principles of good corporate

governance (GCG) and risk management effectively.

In that regard, the Board of Commissioners remains

committed to directing the Bank to produce maximum

shareholder value that is also sustainable. The Board

of Commissioners expects that GCG could be an

integral part of the Bank’s culture and awareness

that is inherent in the day-to-day activities of the

organisation. In addition to the effective implementation

of GCG and risk management, the impact of the global

economic crisis could be anticipated or even mitigated

by accurately assessing future events and from there,

formulate the right business strategy, considering that

a turbulent external conditions are likely to influence the

Bank.

Credit expansion in 2009 should remain focused

on new product innovation in the field of credit,

in order to support the government’s program

including Kredit Usaha Rakyat and implementing the


20.

Bunasor Sanim

President Commissioner

Agriculture Revitalising Program in agriculture, project

management, fisheries and food security. The Program

is carried out by maintaining the prudential principles as

well as focusing on the productive MSME sector, and

a minimum total of MSME loan component of 80%. In

funding, the strategy for market penetration to increase

funds accumulation to complement the Treasury Single

Account of which BRI is an Operating Bank needs

to be sharply formulated in the face of tough market

competition.

The Board of Commissioners will continue to undertake

its supervisory duties over the Bank with the help of

Committees under the Board of Commissioners, which

comprise of the Audit Committee, the Nomination and

Remuneration Committee and the Risk Management

Monitoring Committee. Supervision by the Board of

Commissioners begins with a formulating discussion

on the goals and strategies of the Bank to be adopted

in 2009, followed by the periodical monitoring of

the implementation of work plans that represent the

elaboration of the respective strategies. On the basis of

the goals and strategies that have been set for 2009,

the Board of Commissioners is optimistic that the

Bank’s performance in 2009 will be able to meet its

growth targets despite the macro economic turbulence

that may arise as a result of the continuing global

economic crisis.

Several key points that require the full attention of the

Bank in 2009 and beyond, are as follows:

1. Business growth should be complemented by

the availability of high quality human resources

as well as adequate supporting systems and

infrastructures;

2. The achievement of financial performance or results

should be followed by social responsibilities and

care for the broader community that encompasses

education, health care, and the environment;

3. Innovation and adoption of new technology and

new ways should be applicable for the MSME

business through continuing research and

development;

4. The international reputation of BRI in micro banking

should be enhanced continuously; and

5. The commitment towards the development of Bank

BRI Syariah should be maintained.

The optimism of the Board of Commissioners

is also based on the Bank’s strength in terms of

competent personnel, an extensive branch network,

a large customer base, a solid and stable business

fundamental that is supported by a reliable information

technology. Allow me to take this opportunity to report

that there has been no change in the composition of

the Board of Commissioners in 2008 as presented

herein.

May God Almighty blesses and guides us all in our

future endeavours.


21.

Board of Commissioners

1. Bunasor Sanim

President/Independent Commissioner

2. Agus Pakpahan

Commissioner

3. Agus Suprijanto

Commissioner

4. Saifullah Yusuf

Commissioner

From left to right : B.S. Kusmuljono, Baridjussalam Hadi, Saifullah Yusuf, Bunasor Sanim, Aviliani, Agus Suprijanto, Agus Pakpahan

5. B. S. Kusmuljono

Independent Commissioner

6. Baridjussalam Hadi


7. Aviliani



22.

Sofyan BasirPresident Director

Report of the Board of Directors


23.

Assalamu’alaikum Wr. Wb.

With gratitude towards God Almighty for His

benevolence, allow me on behalf of the Board of

Directors of Bank Rakyat Indonesia to report to the

Bank’s shareholders and other stakeholders, some of

the key highlights and results of BRI for the year ending

31 December 2008.

The national banking sector grew rapidly during the first

semester of 2008, boosted by the considerable pace

of economic growth, the soaring prices of Indonesia’s

main commodities in world markets, and stable macro-

economic conditions that were reflected in relatively

low bank interest rates, controllable inflation rates, and

a strong Rupiah currency due to the growing foreign

currency reserves.

However, the pace of economic growth retreated

somewhat in the second half of the year, as a result

of a widening global financial crisis that was sparked

by the sub-prime mortgage crisis in the USA, which

ultimately blew up into a monetary crisis and economic

recession of global proportion, and the worst ever since

the Depression Era of 1929-1931.

As a result of the global financial crisis, the annual

Gross Domestic Product (GDP) growth rate of

Indonesia declined from 6.3% in 2007 to 6.1% in

2008. The prime bank interest rate of Bank Indonesia

rose from 8% to 9.25%. The Rupiah depreciated by

approximately 20% to the US dollar and the nation’s

foreign currency reserves dipped to around US$50

billion; whereas inflation went up as high as 12.14%

(year on year) mainly due to the price of crude oil

which reached its peak of US$147 per barrel. Inflation

receded to 11.9% by year-end 2008 as oil price also

subsided.

This development had a negative impact on Indonesia’s

national banking sector, which among other things

had to contend with declining net interest margins,

tightening credit liquidity and decreasing bank

profitability.

Despite the unfavourable economic conditions, BRI

achieved sterling results in 2008, supported by the

efforts of more than 58,000 personnel, which led to

several improvements in the Bank’s standing among

some of the largest banks in Indonesia. For instance, in

the disbursement of credit, BRI rose from second rank

in 2007 to first as at year-end 2008.

In terms of total assets, BRI climbed from third to

second position. Whereas in terms of net profit, BRI

has since 2005 maintained the distinction of being the

most profitable bank in the country.

“In terms of total assets, BRI climbed from third to second position. Whereas in

terms of net profit, BRI has since 2005 maintained the distinction of being the most

profitable bank in the country.”


24.

In addition to improving our position in the league table

of the ten largest banks in Indonesia today, we also

made progress in our services, information technology,

product development, risk management as well as

in good corporate governance. All of this was aimed

at achieving our vision and mission to serve as the

premier bank in the country.

With the improvements, BRI has succeeded in

building a more solid foundation while also increasing

the momentum for sustainable long-term growth as

mandated by our shareholders and the Bank’s other

stakeholders.

During the past several years, BRI has arisen and

made great efforts to harness and integrate the Bank’s

resources in order to maximize our opportunities to

capture market growth. These resources include a

service network that comprises of 5,400 Operating

Units reaching out to the far corners of Indonesia, an

ATM service network that covers tens of thousands

of ATM units at home and abroad, and other forms of

electronic banking services that are at par with those

provided by other major banks in the country.

Of no less importance has been the strategic step

taken by BRI over the past several years to increase

its banking penetration in the 14 largest cities of

Indonesia. Several lending and funding products that

are more suited to urban communities were developed

in 2008, with encouraging results. The move has

positioned BRI as a bank that is highly regarded by

Indonesian from all walks of life, among rural and urban

communities. This is because the Bank had been

equally successful in strengthening both its rural and

urban banking franchises, establishing a truly solid

platform that would support sustainable growth over

the long-term.

We are indeed humbled and thankful for being able to

report to our valued shareholders that BRI has been

able to achieve all of its business targets set out in

the Company’s Budget and Work Plan of 2008, as

approved by the Board of Commissioners on

18 December 2007.

For the year ending on 31 December 2008, BRI posted

a net income of Rp5.96 trillion, an increase of 23.16%

from that of 2007. The net income was mainly derived

from a 17.70% increase in net interest margin and net

Sharia margin amounting to Rp19.65 trillion in 2008,

compared to Rp16.70 trillion in 2007. In addition,

other operating income also increased significantly by

39.17% from Rp1.82 trillion in 2007 to Rp2.54 trillion

in 2008.

An equally healthy growth was also recorded by BRI

in the figures of total assets, earning assets, and

third-party funds, which grew in the order of 20.78%,

35.30% and 21.70% to Rp246.08 trillion, Rp228.78

trillion and Rp201.54 trillion, respectively, in 2008.

BRI succeeded in enhancing its financial intermediary

role, as reflected in our total outstanding loans as at

year-end 2008, which amounted to Rp161.11 trillion,

increasing by 41.36% from Rp113.97 trillion in 2007.

In addition to being above the national average credit

growth rate of 30.5% in 2008, our growing credit

increased the Bank’s loan-to-deposit ratio (LDR) from

68.80% to 79.93% as at year-end 2008.

Our credit disbursement remains focused on the MSME

(micro-small-medium-sized enterprise) sector that to

this day constitutes the core strength of BRI with its

overreaching service network, in addition to the fact

that this sector represents the backbone of the national


25.

economy that touches the lives and livelihoods of most

of Indonesia’s current population of approximately 240

million people.

More than half of this population rely their livelihoods

on the agricultural, plantation, traditional markets,

retail trade and the micro, small and medium-sized

businesses that constitute BRI’s primary credit

portfolio. Indeed, our involvement in the MSME market

today has become even more crucial in the wake of a

global economic recession that is presently upon us.

With the anticipated decline in global export-import

activities in 2009, we believe that economic growth

dynamics will depend largely on the domestic market.

This is where the role of BRI becomes key as we

continue to support the business activities of MSME

that largely cover the domestic market.

One of the more prominent roles of BRI in the MSME

market segment was our successful drive in the

disbursement of the Kredit Usaha Rakyat (KUR) -

People Business Loan - that has been in progress

since 2007. KUR is a credit program that is aimed at

micro and small businesses that are feasible but not

yet bankable. As at year-end 2008, BRI had disbursed

a total of Rp9.2 trillion of KUR and reached out to

1.5 million new debtors, the largest figures among

any other KUR-disbursing bank in the market today.

Backed by a credit guarantee that covers 70% of the

credit value, the KUR scheme has become an effective

means of providing credit to the micro and small

business sector that is previously beyond the reach of

bank financing.

In line with an ever growing presence in the micro,

small and medium-sized businesses, BRI has forged

a strong alliance with several financial institutions of

national-scale as well as with state-owned enterprises.

These efforts are being led by the Bank’s Directorate

of Institutional Business that was formed in 2007. In

hindsight, the move proved to be beneficial as we now

seek to harness our collective strengths and resources

to counter the unwanted effects that a global economic

recession may have on the national economy.

Meanwhile, in the commercial banking sector, BRI also

participates actively in various credit syndications to

finance major infrastructure projects such as toll roads,

power plants and others. Large-scale infrastructure

projects tend to produce broad trickle-down effects

that also benefit small and medium-sized businesses

that represent our core target market. Moreover, these

projects open cross-selling opportunities for BRI to

offer services - such as cash management - that are of

strategic value to the Bank.

“BRI has disbursed a total of Rp9.2 trillion of KUR and reached out to 1.5 million

new debtors. Backed by and adequate loan guarantee, the KUR scheme has

become an effective means of providing credit to the micro and small business

sector that is previously beyond the reach of bank financing.”


26.

BRI is also making headway in generating third-party

funds, primarily as a source for cost-effective funding.

Fuelled by the success of our marketing ploy, “Untung

Beliung BritAma” (or literally the “BritAma Winds of

Fortune”) in 2007, we followed up on that success

by launching the more powerful Britama-Second-

Phase program, ”berkali-kali menangnya”, (“winning

more than once”), which succeeded in gaining new

depositors, bringing the total number of savers to 4.5

million, and generating more than Rp30.65 trillion in

total deposits for BRI as at year-end 2008.

In line with our resolve to position the Bank at par with

the leading service provider of the banking industry, BRI

continues to improve its banking services. A tangible

result of the service improvements undertaken by the

Bank in 2008 was the recognition from Marketing

Research Indonesia that acknowledged BRI as The

Rising Star in Service Excellence from its Bank Service

Excellence Monitoring (BSEM) of 19 banks in Indonesia

for the period 2007/2008. The Award was given for

BRI’s successful drive to climb from 18th place in the

2006/2007 period to 12th currently. In the coming

“The year 2008 proved to be a fast-paced growth and rewarding year for the

management and employees of BRI. Undoubtedly, the resilience of Indonesia’s

national banking sector will be tested in 2009, including that of BRI’s.”

For the other leading savings product of BRI, namely

the Simpedes that cover the rural areas throughout

Indonesia, we successfully staged the “Pesta Rakyat

Simpedes” (Simpedes Folks Festival) from early July to

late August to coincide with the harvest season. These

parties involved below-the-line activities in 282 branch

offices and 14 regional offices of BRI throughout

Indonesia. These parties succeeded in generating both

depositors and deposits with the Simpedes savings

account. As at year-end 2008, there were in total

18.7 million Simpedes account holders with savings

amounting to Rp56.28 trillion.

years, we aim to place BRI among the leading banks in

Indonesia in terms of customer service.

In order to build our business and quality of service,

BRI continues to take several initiatives, including the

expansion of Operating Units. In 2008, we added 400

BRI Operating Units to our already extensive service

network, which was akin to opening more than one unit

each day throughout the year.

To complement such growth, we develop our human

capital on a continuous basis, quantity as well as


27.

quality-wise. In 2008, BRI recruited 881 permanent

employees and more than 17,000 out-sourced

personnel, most of whom were slated for marketing

duties.

Our strong performance is reflected in the strength of

our key financial ratios, which have consistently been

above average. Returns on assets (ROA) and on equity

(ROE) were 4.18% and 34.50%, respectively. Whereas

the Bank had gross nonperforming loan (NPL) ratio

of 2.80% as at year-end 2008, and buttressed by a

capital adequacy ratio (CAR) of 13.18% in 2008.

Not to be outdone is the implementation of good

corporate governance (GCG) through the engagement

of rules and standard operating procedures that

have also been improved. Faced with a banking

environment that will require greater prudence with

respect to uncertainties in the global economy, BRI

has prepared itself in optimising the functions of

corporate governance, risk management and internal

controls. BRI has and will always adhere to all prevailing

laws and regulations, uphold the principles of good

corporate governance encompassing transparency,

accountability, responsibility, independency and

fairness; and enhance the roles of committees in taking

important decisions of the Bank. A more detailed

discussion on the Bank’s corporate governance is

presented in the chapter on Corporate Governance of

this Annual Report.

Risk management is implemented holistically across

every organisational line, on credit risk, market risk,

liquidity risk and operational risk, leading to the

implementation of risk management pursuant to the

Basel II recommendations. In addition, BRI also refers

to the guidelines of Bank Indonesia on managing

the eight risks associated with a commercial bank

within the scope of the above-mentioned holistic risk

management.

The year 2008 proved to be a fast-paced growth and

rewarding year for the management and employees of

BRI. However, the year 2008 was also ominous for the

global economic crisis that it brought. Undoubtedly, the

resilience of Indonesia’s national banking sector will be

tested in 2009, including that of BRI’s. Nevertheless,

we remain highly confident of the Bank’s ability to

maintain a sustainable growth and achieve its goal of

being the largest and best bank in Indonesia, with a

significant role in the national economic development.

On behalf of the Board of Directors, allow me to

express our gratitude to all of our customers and the

people of Indonesia for the trust and support that

they have given BRI over the years. We also express

our appreciation to the Government of Indonesia,

shareholders, the Board of Commissioners and the

Sharia Supervisory Board, as well as to all of our

business partners with whom BRI has continued to

forge beneficial relationships. Last but not least, we

owe a big debt of gratitude to all of our employees,

for their tireless efforts and contributions to the

advancement of BRI.


28.

Sofyan Basir

President Director

On the occasion, we would also like to report that

there has been no change in the composition of the

Board of Directors during the year under review. I

am also pleased to emphasize that the Directors of

BRI work effectively as a team, and maintain good

working relations with one another, as well as with the

employees and Labour Unions of the Bank.

In my opinion, the highly conducive working

environment at BRI was a key factor behind our

achievements in 2008, and God Willing, in the years to

come.


29.

Board of Directors

1. Sofyan Basir

President Director

2. Sarwono Sudarto

Director of Operations

3. Abdul Salam

Director of Finance

4. Sudaryanto Sudargo

Director of Commercial Business

5. Sulaiman A. Arianto

Director of Micro, Small and Medium Enterprises Business

From left to right : Lenny Sugihat, Suprajarto, Sudaryanto Sudargo, Sofyan Basir, A. Toni Soetirto, Asmawi Syam, Sarwono Sudarto,

Bambang Soepeno, Abdul Salam, Sulaiman A. Arianto

6. A. Toni Soetirto

Director of Consumer Business

7. Lenny Sugihat

Director of Credit Risk Control

8. Bambang Soepeno

Director of Compliance/ Risk Management

9. Asmawi Syam

Director of Institutional Business

10. Suprajarto

Director of Network and Services


30.

Organisational Structure

Shareholders Meeting

President Director (CEO)

Sharia SupervisoryBoard

Director of MSME

Business


Micro Business Division

Sharia Branch Offices

Director of Commercial

Business


Director of Network and

Services

Retail LoansDivision

Program Business Division

Sharia Business Unit

Funds Services Division

Credit Card Division

Consumer Loans Division

Marketing Communications

Division

General Business Division

AgribusinessDivision

Institutional Relations Division

SOE BusinessDivision

Retail Business Network Division

Micro Business NetworkDivision

ServicesDivision

Regional OfficesSpecial Branch

Office

Branch Offices

Board of Commissioners

Board of Directors

CashManagement

Desk


31.

COMMITTEES*

COMMITTEES**

Director of Finance

Director of Credit Risk

Management

Director of Compliance/Risk

Management


TreasuryDivision

Financial & Management Accounting

Division

International Business Division

Overseas Offices

Credit Risk Analysis Division

Loans Restructuring &

Recovery Division

Credit Administration

Division

Risk Management

Division

Strategic Planning Division

Legal Division

Compliance Division

Operations Cen-tre Division

Information System and Technology

Division

Logistics &Fixed Assets Management

Division

InternalAudit

Corporate Secretariat

Division

Human Resources

Management Division

*) Committees under BoC : Audit Committee, Nomination & Remuneration Committee, Risk Management Monitoring Committee

**) Committees under BoD : Risk Management Committee, Credit Policy Committee, Credit Committee, ALCO,

Human Resources Committee, IT Committee

Education & Training Division

Ser

ving

from

Sab

ang

to M

erau

ke

More than 5,400 BRI Operating Units serve approximately 30 million customers across Indonesia from Sabang to Merauke,

making BRI as a bank that operates the largest banking network in Indonesia. Millions of banking transactions are carried out

by BRI each day. In 2008, all of BRI’s Operating Units generated interest income of Rp28.10 trillion, net interest income of

Rp19.65 trillion, and net income of Rp5.96 trillion. As at year-end 2008, BRI had disbursed loans totalling Rp161.11 trillion and

generated third-party funds totalling Rp201.54 trillion.


34.

Comparative Data between BRI and the National Banking Sector

Loan Market Share

Banking Sector

Aggregate loan outstanding by the banking sector in

Indonesia grew by 30.51% to Rp1,307.7 trillion as at year-

end 2008.

BRI

Lending by BRI has grown significantly over the years, its

loan market share to 12.32%. In 2008, BRI loans rose by

41.36% to Rp161.1 trillion from Rp113.9 trillion in 2007.

Loan to Deposit Ratio (LDR)

Banking Sector

As at year-end 2008, the LDR of the national banking

sector reached 74.58% with a growing trend.

BRI

In line with national banking trend, BRI’s LDR rose to

79.93% as at year-end 2008. This indicates that BRI was

able to fulfil its financial intermediary role effectively to fuel

the growth of grass root economies.

Ratio of Low-Cost Funds

Banking Sector

In 2008, the ratio of low-cost funds within the national

banking sector reached 52.96%.

BRI

BRI has been able to maintain the composition of its

low-cost funds to account for more than 60% of total

deposits, in order to sustain a level of NIM that is targeted.

As at year-end 2008, savings and demand deposits at BRI

accounted for 63.15% of total deposits.

2003

1,500

1,000

500

0

440.

5

2004 2005 2006 2007 2008

10.00%

5.00%

0.00%

47.6 55

9.5

62.4

695.

675

.5

792.

390

.3

1,00

2.0

113.

9

1,30

7.7

161.

1

10.81

11.15

10.86

11.40

11.36

12.32

CommercialBank

BRI % to CommercialBank

Deposit Market Share

Banking Sector

Total deposits of the national banking sector grew by

16.05% from Rp1,510.8 trillion to Rp1,753.3 trillion as at

year-end 2008

BRI

As at year-end 2008, BRI’s market share of its deposits

had increased to 11.49%. During the year, third-party

deposits at BRI reached Rp201.5 trillion, an increase of

21.70% from Rp165.5 trillion in 2007.

75.6

9

77.8

3

72.5

3

68.8

0

79.9

3

2004 2005 2006 2007 2008

100

50

0

49.9559.66 61.56

66.3274.58

%

BRI Commercial Bank

2003

2,000

1,600

1,200

800

400

0

888.

6

2004 2005 2006 2007 2008

12.00%

7.00%

2.00%

-3.00%

76.3 96

3.1

82.4

1,12

7.9

97.0

1,28

7.1

124.

5

1,51

0.8

165.

5

1,75

3.3

201.

5

8.59

8.56

8.609.67

10.9611.49

CommercialBank

BRI % to CommercialBank

BRI Commercial Bank

2004 2005 2006 2007 2008

70.3

1

68.7

9

69.2

3

66.1

0

63.5

1

56.2949.91 52.21 55.87

52.96

80

60

40

20

0

%

Rp

billio

nR

p bi

llion


35.

Net Interest Margin (NIM)

Banking Sector

The average NIM within the national banking sector in the

past five years was in the range of 5% to 6%. In 2008, the

average NIM was 5.66%.

BRI

The Net Interest Margin of BRI in the past five years had

been consistently above 10%, backed by a business

model and a composition of third-party funds that are

more than adequate.

Return on Assets (ROA) Capital Adequacy Ratio (CAR)

Banking Sector

ROA of the national banking sector reached 2.33% in

2008. The relatively low ROA was mainly due to the decline

in profitability of national banks as a result of the global

economic crisis.

BRI

Over the past five years, BRI had consistently

outperformed the ROA of the banking sector.

In 2008, the ROA of BRI was 4.18%.

Non Performing Loan (NPL) Ratio

Banking Sector

The loan quality within the national banking sector has

continued to improve, marked by the decline in non

performing loans to just 3.2% in 2008.

BRI

Over the past five-year period, the rate of NPL at BRI had

always been below the NPL of the national banking sector.

In 2008, BRI had a lower NPL of 2.80%.

Banking Sector

During the past three years, the CAR of the national

banking sector has shown a declining trend. In 2008, the

average CAR of national banking decline to 16.76% from

19.3% in 2007.

BRI

In 2008, BRI posted a CAR level of 13.18%, a decline from

the previous year due to the fact that the pace of business

growth of BRI was faster than that of capital accumulation.

BRI Commercial Bank

2004 2005 2006 2007 2008

19.42 19.3021.27

19.3016.76

25.00

20.00

15.00

10.00

5.00

0

16.1

9

15.2

9

18.8

2

15.8

4

13.1

8

%

BRI Commercial Bank

3.46

2004 2005 2006 2007 2008

5.77

5.04

4.36

4.61

4.18

2.55 2.64 2.782.33

7.006.005.004.003.002.001.00

0

%

2004 2005 2006 2007 2008

5.88 5.63 5.80 5.705.66

12.1

6

12.1

5

11.1

6

10.8

6

10.1

8

BRI Commercial Bank

15

10

5

0

%

4.5

7.56

2004 2005 2006 2007 2008

8.007.006.005.004.003.002.001.00

0

4.19

4.68

4.81

3.44

2.80

6.07

4.073.2

BRI Commercial Bank

%


36.

General Overview of the Company

Committed to Micro, Small and Medium

Enterprises (MSMEs)

BRI is strongly committed to supporting

the growth of Micro, Small and Medium

Enterprises. This can be seen from BRI’s range

of diverse financial products and services be

they savings or loan products, a major portion

of which is intended to serve the Micro, Small

and Medium Enterprises sector.

On the savings side, BRI is committed to

maintaining its composition of low cost funds,

which are savings and demand deposits.

Simpedes and BritAma are BRI’s premier

savings products. Simpedes is a product

for the middle to low income groups to save

their money in the bank. Whereas BritAma

is targeted at the more affluent members of

society. National marketing programs have

been held for both of BRI’s leading savings

products namely “Simpedes Folks Festival”,

which was held in 282 cities across Indonesia

for the Simpedes savings product, alongside

the “Untung Beliung BritAma” (BritAma Winds

of Fortune) program, held in major cities

nationwide. Whereas for demand deposits,

the role of BRI in the Treasury Single Account

program gives BRI a broad opportunity to

improve its demand deposits performance be

it nominally or in terms of the total amount of

demand deposits.

On the lending side, BRI offers premier

products such as Kupedes and Kredit

Usaha Rakyat (KUR). Kupedes is BRI’s

leading product of great interest to micro-

entrepreneurs, either for investment needs,

Management Discussion and Analysis of the Company’s Results of Operations and Financial Condition

financing working capital or other purposes.

KUR is a new loan product launched in late

2007 aimed at eligible small businesses that

are unable to meet banking requirements. KUR

is a platform offering loans of up to Rp500

million with loan guarantees of 70% from

credit insurance institutions. As of the end of

December 2008, BRI has been able to serve

approximately 1.6 million new KUR customers.

In terms of BRI’s total loans, nominal micro-

credit loans constitutes approximately 30% of

the total credit portfolio, but if seen in terms

of total debtors, the proportion of micro-

borrowers represents more than 70% of total

customers. In addition to micro-credit, BRI

also has diverse commercial loan schemes to

support small, medium and large enterprises.

Whereas in the consumer segment, BRI

provides salary-based, mortgage loans (KPR),

motor vehicle loans (KKB), multi-purpose loans

(KMG) and other loan schemes.

In general, the distribution of loans to the

Micro, Small and Medium Enterprises

(MSMEs) sectors, always constitutes a high

portion year-on-year (above 80%) as shown in

the table below:

Percentage of Loans per Business Segment in the Years 2004 – 2008

BUSINESS SEGMENT

2004 2005 2006 2007 2008

Micro

Small/Retail

- Commercial

- Consumer

Medium

30.77

51.08

28.02

23.06

4.59

30.17

50.42

28.01

21.90

6.25

30.22

48.27

27.05

21.22

8.22

28.60

46.69

27.38

19.30

7.33

26.54

46.61

27.66

18.95

7.73

Total MSMEs 86.44 86.83 86.71 82.62 80.88

Corporation 13.56 13.17 13.29 17.38 19.12

BRI’s marketing efforts and customers are

CAGR: 20.66%

40

20

0

14.4

6

15.9

7

19.0

3

24.8

8

30.6

5

Growth of BritAma

2004

2005

2006

2007

2008

Rp

trilli

on

Growth of Simpedes

CAGR: 21.04%

2004

60

40

20

0

26.2

2

29.7

6

38.6

8

46.6

0

56.2

8

2005

2006

2007

2008

Rp

trilli

on

Growth of Micro Loans

CAGR: 22.17%

Dec

-04

50

40

30

20

10

0

19.1

9

22.7

8

27.2

8

32.6

0

42.7

6

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Rp

trilli

on


37.

supported by a very wide network

In developing its business growth, BRI has a

distinct competitive advantage in having the

widest network and operations as compared

to other banks in Indonesia. BRI has more

than 5,400 offices located throughout the

country, both in major as well as minor cities,

and even in rural areas.

In addition to its branch network, BRI has, as

of the end of 2008, 1,796 ATMs (Automated

Teller Machines). BRI is a partner in the ATM

Link, ATM Bersama and ATM Prima network,

which has more than 35,000 ATMs across

Indonesia. BRI is also a member of the

Cirrus and Maestro ATM network, therefore

BRI customers can use their ATM card in

machines that have the Cirrus and Maestro

logos around the world. Apart from ATMs, BRI

has, in 2008, added to its electronic network

in terms of Kiosk BRI, Cash Deposit Machine

(CDM) and Electronic Data Capture (EDC),

which is intended to make it easier for its

customers to access BRI’s banking services.

In order to improve the company’s image and

to introduce more of its products, BRI has

conducted promotional and public relations

activities, either through electronic media,

print media, and media rooms. With effective

marketing campaign efforts, BRI is able to

maintain its customer base.

Conversion of Bank Jasa Arta to PT Bank

Syariah BRI

Besides undertaking conventional banking

business, BRI operates sharia banking

activities through its Sharia Business Unit

(UUS). In order to optimise the growth of its

sharia business and in anticipation of the

sharia banking development in Indonesia, BRI

has seen the need for a Sharia Bank and has

therefore spun-off its Sharia Business Unit into

the aforementioned Sharia Bank.

The Extraordinary General Shareholders

Meeting convened on 5 September 2007,

approved the acquisition of BRI Bank Jasa

Arta. The acquisition process was completed

on 19 December 2007. Following the

acquisition, Bank Jasa Arta was converted

into a commercial sharia bank in accordance

with Deed No. 45 on 22 April 2008 by

Notary Fathiah Helmi, SH with the name

PT Bank Syariah BRI (BSB). Based on the

Letter of Decree by the Governor of Bank

Indonesia. 106/KEP.GBI/DpG/2008 on 16

October 2008, BSB obtained permission to

change its commercial banking activities from

conventional banking into sharia banking,

whose business activities are carried out

based on the Islamic sharia principles.

On 19 December 2008, BRI carried out a spin-

off of its sharia banking unit, by integrating it

into PT Bank Syariah BRI as per the notarial

deed No. 27, dated 19 December 2008 by

Notary Fathiah Helmi, SH with the effective

date of separation on 1 January 2009.

Operational Performance Review

The figures below, with exception of the ratios,

includes the subsidiary, PT Bank Syariah

BRI (BSB), with total assets of PT BSB as of

31 December 2008 amounting to Rp483.15

billion.

Net Interest Income

Loans Disbursement by Regional Office

Jakarta I & II 28.77%

Bandung 7.56%

Semarang 5.06%

Jogyakarta 6.36%

Surabaya 14.17%

Banjarmasin 3.84%

Denpasar 5.00%

Makasar 7.38%

Manado 4.17%

Banda Aceh 1.63%

Medan 5.45%

Padang 3.87%

Palembang 6.73%


38.

In the financial year ended 31 December 2008,

BRI recorded a net interest income of Rp19.65

trillion, an increase of 17.70% compared to

Rp16.70 trillion from the corresponding period

in 2007.

The growth in interest income, from Rp23.24

trillion in 2007 to Rp28.10 trillion in 2008, or

an increase of 20.89% was due to an increase

in interest income, investment securities and

sharia financing. The increase in net interest

income in 2008 was contributed by the growth

in lending granted as a result of the credit

expansion, which improved the loan quality

and increased other interest income.

On the other hand, there is an increase in

interest expenses and sharia financing from

Rp6.54 trillion in 2007, to Rp8.45 trillion in

2008, or a rise of 29.06%. The increase in

interest expenses was caused by the tight

liquidity conditions in the second semester

of 2008, which increased competition for

funding, and resulted in the increase of the

proportion of BRI’s high-cost funds to total

Third Party Funds from 33.90% in 2007 to

36.49% in 2008. On average, BRI’s cost of

funds in 2008 increased to 4.69%, compared

to 4.52% in 2007.

On its net interest income in 2008, BRI

recorded a net interest margin (NIM) of

10.18%, slightly below 10.86% in 2007. This

decrease was mainly due to the unfavourable

interest rate climate during the second half

of 2008. Loans still represent the largest

contributor to interest income, accounting for

80.15% of total interest income. While the

contribution of income from interest on bonds

in respect to total interest income declined

from 8.69% in 2007 to 6.95% in 2008.

Other Operating Income

During 2008, other operating income reached

Rp2.54 trillion, up by 39.17% compared to

Rp1.82 trillion in 2007. The largest contribution

to other operating income was fee-based

income, which rose 21.38% from Rp1.46

trillion in 2007 to Rp1.77 trillion in 2008. The

various components of fee-based income

include, among other things, administrative

fees from savings deposits, trade finance,

remittances and credit cards.

Earning Assets Provision

While the provision for possible losses from

earning assets and other assets amounted

to Rp1.94 trillion in 2007, BRI posted

provisions for earning assets and other assets

of Rp2.84 trillion in 2008, thereby incurring

an increase of 46.38%. The increase in the

provisioning expense was due to BRI’s large

credit expansion during 2008. In addition,

the increase in said costs also reflects BRI’s

cautious attitude.

Other Operating Expenses

In 2008, other operating expenses rose

by 21.92%, from Rp9.02 trillion in 2007 to

Rp11.00 trillion in 2008. This resulted in an

increase of the ratio of operating expense

to operating revenue to 72.65% in 2008

compared to 69.80% in 2007. However, the

Composition of Earning Assets 2007 – 2008

2007

180.00

160.00

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0

Loans

113.

97

18.2

2 36.9

0

2008

161.

11

16.3

5

Recap Bonds

51.3

2

(in Rp trillion)

Other Earning Assets


39.

increase in the ratio was still within reasonable

limits, because of BRI’s significant business

expansion with the opening of approximately

400 new offices in 2008.

Net Profit

With the increasing scale of business

operations, supported by efforts to

maintain growth in net interest income and

management fees, BRI’s net profit grew

by 23.16%, from Rp4.84 trillion in 2007 to

Rp5.96 trillion in 2008.

Financial Performance Review

General Responsibility and Management of

Assets-Liabilities

There were no fundamental changes to BRI’s

management policies on assets and liabilities

in 2008 from previous years, whereby BRI

gave emphasis to the policy of sustainable

earning assets; the allocation of earning assets

based on the comparison of commensurate

returns against risks; and in terms of liabilities,

the policy of maintaining the ratio of low cost

funds (savings and demand deposits) to at

least 60% of the third party fund reserves.

In order to anticipate the likely decrease in

liquidity in the banking sector in general, as

a result of the global economic recession, in

2008 BRI also set its policies on asset and

liability management with the goal of securing

BRI’s liquidity.

Timely and prudent asset and liability

management will ensure BRI’s ability to meet

all financial obligations at maturity, and with

adequate liquidity, BRI has the ability to pursue

every business opportunity that exists.

Therefore, BRI has empowered the ALCO

Committee (Asset-Liability Committee) to

monitor, measure and anticipate the risks

associated with the balance of its assets and

liabilities, in the management of the Bank’s

balance sheet.

Assets

BRI’s total assets as of 31 December 2008

reached Rp246.08 trillion, an increase of

20.78% compared to Rp203.73 trillion

in 2007. The increase was mainly due to

the expansion of loans and the increase

in other earning assets in 2008. The total

assets comprise of net earning assets (net

of provisioning) of 89.39%, and non-earning

assets of 10.61%. The percentage of earning

assets to total assets was much higher in

2008 than that of in 2007 (79.52%), and

reflected the successful implementation of the

earning assets policy, as mentioned above.

Earning assets include loans, placements with

Bank Indonesia and other banks, securities,

Government Bonds, receivables, and equity

investments. Meanwhile, non-earning assets

include cash, reserves with Bank Indonesia,

fixed assets and other assets.

Earning Assets


40.

Total earning assets before provisions as of

31 December 2008 amounted to Rp228.78

trillion, a 35.30% growth from Rp169.09 trillion

in 2007. Loans (including sharia financing)

represented the largest component of earning

assets, accounting for 70.42% of earning

assets, increasing from 67.40% in 2007.

The portion of Government Bonds declined

from 10.78% in 2007 to 7.15% in 2008, due

to maturity. Meanwhile, the proportion of

other earning assets to total earning assets,

including Bank Indonesia Certificates (SBI),

rose from 21.82% in 2007 to 22.43% in 2008.

The accumulated allowance for possible

losses on earning assets as of 31 December

2008 increased by Rp1.74 trillion, or 24.60%,

to Rp8.81 trillion, in line with the growth of

earning assets of 35.30% during the year.

Loans

Loan disbursement, including sharia financing,

posted significant growth of 41.36%. Total

outstanding loans as of 31 December 2008

reached Rp161.11 trillion, significantly higher

than Rp113.97 trillion in 2007. Of the total

outstanding loans in 2008, 26.54% was

disbursed as Micro Loans, 46.61% as

Small Loans/Retail, 7.73% as Medium-Sized

Business Loans, and 19.12% as Corporate

Loans. Small/Retail Loans consist of Small

Commercial Loans of 27.66% and Consumer

Loans, including salary-based loans,

amounting to 18.95%.

From the composition of loans disbursed, it

is evident that the portion of loans to Micro,

Small and Medium Enterprises (MSME)

segment declined slightly from 82.62% in

2007 to 80.88% at the end of 2008.

One of the strengths of BRI’s loan portfolio is

its diversity in which loans are spread broadly

and equitably across Indonesia. This reduces

the concentration of credit risk in any particular

region.

Loan Quality

Loans with Current category rose 41.34%

from Rp105.04 trillion in 2007 to Rp148.46

trillion in 2008, while loans in the Special

Mention category increased by 62.98% from

Rp4.99 trillion to Rp8.13 trillion, and Non

Performing Loans increased by 14.52% from

Rp3.94 trillion to Rp4.52 trillion.

The Non Performing Loans (NPL) ratio

improved, from 3.46% in 2007 to 2.80% in

2008. The decline in NPL occurred in the

Micro Loan segment from 1.19% to 1.02%,

Small Commercial Loans from 5.77% to

3.52%, Small Consumer Loans from 1.67%

to 1.08% and Corporate Loans from 4.62%

to 4.53%. However, the NPL for Medium-

Sized Loans experienced a slight increase

from 5.67% to 6.33%. The NPL net ratio also

improved from 0.88% at the end of 2007 to

0.85% at the end of 2008. The improvement in

the NPL ratio was mainly due to the increase

in the amount of current loans by as much as

Rp43.42 trillion, compared with the increase

of NPL of Rp0.58 trillion in 2008. On the other

hand, NPL Coverage Ratio in 2008 increased

slightly to 177.27% from 176.45% a year ago.

Government Recapitalisation Bonds

As of 31 December 2008, the portfolio of

Recap Bonds totalled Rp16.35 trillion, down

by 10.26% from Rp18.22 trillion in 2007. The

decrease in the amount of bonds was due to

the maturity of Rp1.2 trillion of these bonds in

Growth of Corporate Loans

CAGR: 38.13%

Dec

-04

40

30

20

10

0 8.4

6

9.94

12.0

0

19.8

1

30.8

0

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Rp

trilli

on

Growth of Medium Loans

CAGR: 44.43%

Dec

-04

15

10

5

0 2.86

4.72

7.42

8.35

12.4

5

Dec

-04

Dec

-04

Dec

-04

Dec

-04

Rp

trilli

on

Growth of Small Commercial Loans

CAGR: 26.34%

Dec

-04

50

40

30

20

10

0

17.4

7

21.5

5

24.4

2

31.0

9

44.5

2

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Rp

trilli

on

Growth of Consumer Loans

CAGR: 20.70%

Dec

-04

40

30

20

10

0

14.3

8

16.5

4

19.1

5

22.0

0

30.5

3

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Rp

trilli

on


41.

2008. The proceeds from the Recap Bonds

were mainly used to finance the Bank’s loans

to productive business sectors, providing

direct benefits to the people of Indonesia.

The proportion of the Recap Bonds to total

assets decreased from 8.94% in 2007 to

6.65% in 2008. Similarly when compared

against total earnings assets, the portion of

these Recap Bonds declined from 10.78% in

2007 to 7.15% in 2008.

Of the total amount of Recap Bonds in 2008, a

total of Rp11.08 trillion, or 67.77%, were fixed-

rate bonds, while a total of Rp5.27 trillion, or

32.23%, were floating rate bonds.

Other Earning Assets

The position of other earning assets as

at year-end 2008 amounted to Rp51.32

trillion, an increase of 39.10% from that of

2007. This growth was mainly due to BRI’s

increased liquidity which were placed on Bank

Indonesia’s instruments. Other components

of earning assets include Non-Recap Bonds,

Bank Indonesia Certificates (SBI), Bank

Indonesia Facility (FASBI), placements in other

banks, and marketable securities such as

stocks, export bills and commercial notes.

Third Party Funds

Third Party Funds (TPF) represent funds

mobilized from the public savings deposits

in the form of Savings, Demand Deposits

and Time Deposits (including Certificates

of Deposits). Included in Third Party Funds

are sharia compliant savings products, such

as Giro Wadiah, Mudharabah Savings and

Mudharabah Time Deposits.

As of 31 December 2008, total Third Party

Funds generated reached Rp201.54 trillion,

up by 21.70% compared to Rp165.60 trillion

in 2007. The growth was mainly due to the

significant increase in the number of BRI

branches in 2008, and an active marketing

program. Third Party Funds accounted for

BRI’s largest liability, accounting for 90.08% of

the Bank’s total liabilities as of 31 December

2008.

Demand deposit is a source of low-cost funds

in addition to savings, and at the end of 2008,

the total amount of demand deposits reached

Rp39.92 trillion, up by 7.43% from Rp37.16

trillion in 2007. While Savings increased by

21.82% from Rp72.30 trillion in 2007 to

Rp88.08 trillion in 2008, the ratio of savings to

Third Party Funds increased from 43.66% to

43.70%. This increase in savings position was

mainly attributed to the success of the Bank’s

promotions of its savings programs as well the

development of various features of savings

products that attracted the public to bank with

BRI.

Time Deposits posted a significant increase,

i.e. from Rp56.14 trillion in 2007 to Rp73.54

trillion in 2008, or a 30.99% increase. This

resulted in the increase of the portion of Time

Deposits to Third Party Funds from 33.90%

in 2007 to 36.49% in 2008. The growth in

Time Deposits was due to the aggregate rise

in total bank deposits, the “flight to quality”

tendency, and the rise of the interest rates of

Time Deposits.

Subordinated Debts

Growth of Savings

CAGR: 18.57%

2004

100

80

60

40

20

0

44.5

7

49.3

7

58.3

1

72.3

0

88.0

8

2005

2006

2007

2008

CAGR: 31.47%

2004

50

40

30

20

10

0

13.3

6

17.3

8

27.8

6

37.1

6

39.9

2

Growth of Demand Deposits

2005

2006

2007

2008

Growth of Time Deposits

CAGR: 31.67%

2004

80

60

40

20

0

24.4

7

30.2

9

38.2

9

56.1

4

73.5

4

2005

2006

2007

2008

Rp

trilli

onR

p tr

illion

Rp

trilli

on


42.

Subordinated debts were issued in order to strengthen

BRI’s capital structure (especially Tier II capital). Total

subordinated debts amounted to Rp710 billion as of

31 December 2008, down from Rp2.14 trillion in the

previous year. This significant decrease in subordinated

debts was due to BRI’s execution on the option

to redeem the subordinated debts amounting to

US$150 million on 30 October 2008. A more detailed

explanation about the subordinated debts can be seen

in Note 26 of the Notes to the Company’s Consolidated

Financial Statements that is presented in this annual

report.

Equity

As of 31 December 2008, BRI’s equity position

amounted to Rp22.36 trillion, an increase of 15.02%

from Rp19.44 trillion in 2007. The increase in equity

was derived mainly from the appropriation of the net

profit for 2007 as stipulated in the Bank’s 2008 Annual

General Meeting of Shareholders and the current year

profit of 2008.

Capital Adequacy

BRI’s Capital Adequacy Ratio (CAR) at the end of

2008 stood at 13.18%, lower than 15.84% in 2007.

The decrease in CAR was due to the growth of risk-

weighted assets (total loans and other earning assets),

which rose faster than the growth of profit in order to

strengthen the Bank’s capital.

The following table shows the calculation of BRI’s

capital adequacy ratios at the end of 2008 and 2007.

(in Rp billion)

Description 2008 2007

Core Capital (Tier 1)

Additional Capital (Tier 2)

Placement

Total Available Capital

Total Risk Weighted Assets (RWA)

Capital Adequacy Ratio (CAR)

17,796

1,945

(553)

19,188

145,581

13.18%

15,448

1,819

(209)

17,059

107,711

15.84%

Returns

The Return on Assets (ROA) before tax in 2008 was

4.18%, slightly less than ROA of 4.6% in 2007. The

Return on Equity (ROE), which reflects returns to

shareholders, increased from 31.64% in 2007 to

34.50% in 2008.

Capital Expenditure

In 2008, BRI’s capital expenditure amounted to

Rp633.96 billion, consisting of Rp190.05 billion for

information technology, and Rp443.92 billion in non-IT

purchases. The capital spending in 2008 was higher

than that of 2007, which reached Rp390.55 billion,

consisting of Rp40.79 billion for IT spending and

Rp349.77 for non-IT spending.

Loan Write-offs

Loan write-offs (principal) by BRI in 2008 amounted to

Rp1,544.23 billion, a decrease of 27.31% compared

to Rp2,124.36 billion in 2007. Loans which had been

written-off before the financial year 2008, but recovered

during the year, amounted to Rp473.99 billion, down

by Rp110.59 billion, or 23.30%, from 2007.

Tax Contribution

Other than the contribution of dividends, BRI pays

taxes to the government. In accordance with

Government Regulation No. 81/2007 on Income Tax

Rates Reduction for Public Limited Liability Companies,

BRI obtains tax incentives in the form of a 5% reduction

in corporate income tax, from the highest prevailing

tax rate. However, with BRI’s increasing scale of

operations, its tax contribution in 2008 still showed a

7.34% increase compared to that of 2007.

Tax Contribution of BRI from 2004-2008


43.

(in Rp billion)

Description 2004 2005 2006 2007 2008

I. Head OfficeA. Income Tax (PPh)

1. PPh Article 4 (2) Final

2. PPh Article 15

3. PPh Article 21

4. PPh Employees

Article 21 (WAPU)

5. Corporate Tax (PPh

Badan)

a. PPh Badan Article25

b. PPh Badan

Article 29

6. PPh Article 22

7. PPh Article 22 (WAPU)

8. PPh Article 23 (WABA)


10. PPh Article 25


B. Value Added Tax (VAT)

1. VAT Goods and Services

a. Outgoing

b. Incoming

2. VAT for Luxury Goods

(PPnBM)

C. Land and Building

Tax (PBB)

D. Customs and Excise

E. BPHTB

F. Other Taxes*

SUBTOTAL

472.25

319.90

2,208.61

5.98

82.64

2.98

4.62

3,096.88

519.80

417.18

1,829.25

7.71

34.80

2.46

5.24

2,816.43

945.08

397.62

1,831.88

5.04

35.44

2.68

6.14

3,223.88

940.11

407.95

3,310.97

4.00

41.04

1.97

6.98

4,713.02

1,082.53

539.25

3,382.85

4.35

39.85

3.85

7.38

5,060.06

II. RegionA. Motor Vehicle Tax

B. Motor Vehicle Transfer

Tax

C. Fuel Tax

D. Others *

SUBTOTAL

TOTAL (I + II)

12.99

12.99

3,109.87

13.57

13.57

2,829.99

13.55

13.55

3,237.43

9.07

9.07

4,722.08

8.73

8.73

5,058.80

* Detailed is according to the tax paid by the company

Financial Ratios with Respect to Transparency

The table below shows BRI’s financial ratios which are

related to aspects of transparency in accordance with

the provisions set forth by Bank Indonesia.

(in %)


CapitalCAR with Credit Risk CAR with Credit Risk and Market RiskFixed Assets/Capital

Assets QualityClassified Earning AssetsProvisioning for Earning Assets/Earning AssetsProvisioning Coverage on Earning AssetsProvisioning Coverage on Non-Earning AssetsNPL GrossNPL Net

CompliancePercentage of Violation of Legal Lending Limit

Related Parties Non Related Parties

Percentage of Excess of Legal Lending Limit Related Parties Non Related Parties

Minimum Reserves Requirement in Rupiah Net Open Position

13.6713.1824.13

2.183.75

150.20100.66

2.800.85

0.000.00

0.000.005.57

13.55

16.6615.8426.14

2.224.05

161.20100.00

3.440.88

0.000.00

0.000.00

22.097.90

Minimum Reserves Requirement

In accordance with the regulation of Bank Indonesia,

the Minimum Reserves Requirement for BRI is

5%. At the end of 2008, BRI’s Minimum Reserves

Requirement was 5.57%. The position at the end of the

previous year was 22.09%.

Net Open Position

Based on Bank Indonesia’s regulation, the Net Open

Position (NOP) of the Bank is capped at a ceiling of

20% of capital. At the end of 2008, BRI’s NOP ratio

was 13.55%.

As of 31 December 2008, BRI had met all statutory

mandatory ratios, as determined by the laws and

regulations of Bank Indonesia. In addition, a significant

number of the key financial ratios as presented in

the table above, indicates BRI’s strong financial

fundamentals, its outstanding performance, and the

financial intermediary role that the Bank carries out in a

professional, transparent and responsible manner.


44.

Report on Corporate Governance

For the purpose of enhancing the company’s

performance, protecting stakeholders’ interests,

and improving compliance with the existing laws,

regulations, and ethical values common in banking

industry, it is indispensable to implement Good

Corporate Governance (GCG).

Through its Commissioners, Directors, and employees,

Bank Rakyat Indonesia is committed to implementing

GCG principles on the basis of the core values stated

in the BRI Corporate Culture, consisting of integrity,

professionalism, customer satisfactions, role model,

and human resources appreciation. The core values,

which are intended to build BRI Codes of Conduct,

have been implemented by BRI’s employees of all

layers. These values provide clear and measurable

references for their way of thinking and behaving,

and are expected to take BRI to the objectives of

implementing Good Corporate Governance.

In relation to BRI Commissioners’ and Directors’

commitments, BRI has designed the Board Manuals

specifying clearly the roles and responsibilities of

Commissioners and Directors. In addition to the Board

Manuals, the implementation of Good Corporate

Governance is also based on other internal regulations

that are in line with the existing laws and regulations

and the principles of Good Corporate Governance.

To meet the regulations of Bank Indonesia while

simultaneously boosting BRI’s performance that would

result in enhanced investor trust, Bank BRI has an

obligation to disseminate GCG Report, one of the

indicators in the implementation of Good Corporate

Governance.

The following information shows the implementation of

GCG in BRI in 2008.

Corporate Governance Structure

General Meeting of Shareholders

The General Meeting of Shareholders (GMS) has the

authority to appoint and terminate members of the

Board of Commissioners and Board of Directors,

approve changes to the Articles of Association,

endorse the Annual Report of the Bank, appoint the

external independent auditors, and determine the type

and amount of remuneration for members of the Board

of Commissioners and Board of Directors.

The resolutions of the Annual GMS of BRI on 26 May

2008 are presented in full in the Shareholder Information

section of this Annual Report starting from page 7.

I. Board Of Commissioners:

Structure, Composition, and Independency of Members

of the Board of Commissioners (BOC)

BRI‘s BOC comprises of seven members, four of

whom are Independent Commissioners. The number

and composition of the BOC are in accordance with

the regulation, in that it does not exceed the number

of Directors of the Bank (10 Directors), and that

Independent Commissioners account for more than

half (50%) of the members of the BOC. All of the

Commissioners are based in Indonesia.


45.

Plan and Annual Budget as well as other plans

that are submitted by the Directors, pursuant to the

letter of the Bank’s Articles of Association. Other

liabilities include among other things to propose

at the General Meeting of Shareholders on the

appointment the Public Accounting Firm that will

audit the financial statements of the Bank.

In accordance with its authority, the Board of

Commissioners has provided the followings:

1. Approval for the Bank’s Business Plan and Budget

2008

2. Approval for the Bank’s Business Plan 2008-2010.

3. Approval for Organisational Restructuring.

4. Approval for the Revision of the General Credit

Policy.

5. Approval for the Spin-off Execution of the Sharia

Business Unit and its consolidation into Bank BRI

Syariah that has been decided by the GMS.

6. Recommendations and Advisories in connection

with the site visits of the Commissioners to several

BRI Operating Units.

Committees of the Board of Commissioners

Audit Committee:

Structure, Membership, Expertise, and Independency of Audit Committee’s Members

Audit Committee consists of one chairperson-an

Independent Commissioner-and four members. The

chairman as well as all members of the committee

has adequate expertise, background knowledge, and

experience. The following is the composition of the

Audit Committee in 2008:

Composition of the Board of Commissioners 2008

No Name Position

1.

2.

3.

4.

5.

6.

7.

Bunasor Sanim

Agus Suprijanto

Agus Pakpahan

Saifullah Yusuf

B.S. Kusmuljono

Baridjussalam Hadi

Aviliani

President Commissioner/Independent

Commissioner

Commissioner

Commissioner

Commissioner




The Board of Commissioners has adequate integrity

and competencies, pursuant to the requirements of the

fit & proper test of Bank Indonesia. BRI Commissioners

do not hold concurrent positions as Commissioners,

Directors or Executive Officers in any other bank or

financial institution, and do not have familial ties with

other members of the Board of Commissioners and

Board of Directors.

Duties and Responsibilities of the Commissioners.

1. The Board of Commissioners is responsible

for overseeing the policies and management in

general, whether of the Bank or of its business that

is under the management of the Board of Directors

(BOD), and to provide advise to the BOD including

oversight on the execution of the Bank’s Business

Plan and Budget, rules under the Articles of

Association, resolution of the GMS, and prevailing

laws and regulations, in line with the interest of the

Bank as well as its goals and objectives.

2. In undertaking the above duties, the Board of

Commissioners is authorised to among other things

request clarification from the Board of Directors

and /or other officials on issues pertaining to the

Bank, and to form Committees to support the

effective discharge of the Commissioners’ duties

and responsibilities. The Commissioners have

established three committees:

a. The Audit Committee;

b. The Risk Management Monitoring Committee;

c. The Nomination and Remuneration Committee.

3. The Board of Commissioners is expected to

provide an opinion and approval over the Business

Name Membership Position

Aviliani

Bunasor Sanim

Saifullah Yusuf

H.C. Royke Singgih

Dedi Budiman Hakim

Syahrir Nasution

Chairperson

Member

Member

Member

Member

Member


President Commissioner/


Commissioner

Non Commissioner

Non Commissioner

Non Commissioner


46.

Profiles of Audit Committee Members

The profiles of Aviliani, Bunasor Sanim, and Saifullah

Yusuf are presented in the brief resume of the

Commissioners on pages 114 to 117 of this Annual

Report.

H.C. Royke Singgih – born in Jakarta, 13 March 1960.

Appointed as a member of the Audit Committee

since October 2005. A certified public accountant,

he previously served with Bank IFI, PT Pan Indonesia

Bank, Jakarta and PT Krakatau Steel. He earned a

degree in Accountancy from University of Gajah Mada,

Yogyakarta (1986) and a Master in Management

degree in Finance and Banking from University of

Indonesia, Jakarta (2000), in addition to obtaining

a Specialty Certification for Strategic Management

Studies, Pre Doctoral Program, University of Indonesia,

Jakarta (2004).

Dedi Budiman Hakim – Born in Sumedang, 22 October

1964. Appointed member of the Audit Committee since

2005. Currently serving as a Faculty Member of the

Bogor Agricultural University (IPB) and a Researcher

at the Centre for Applied Finance and Economics

(interCAFE) IPB. He is also an active newspaper

columnist and scientific journal writer. He holds a

degree in Agronomics Science from IPB (1988), a

Master of Arts degree in Agriculture Social Economics

from Massey University, Palmerston North, New

Zealand (1994), and a Doctorate in Agriculture from

Georg-August-Universitaet, Goettingen, Germany.

Syahrir Nasution – born in Pematang Siantar, 21

September 1952. Appointed member of the Audit

Committee since 2008. Previously a career banker with

BRI (1990-2008) in the fields of Inspection and audit.

He holds a degree Economics and Accountancy, from

Institute of Finance Sciences, Jakarta (1981).

Duties and Responsibilities of Audit Committee

In 2008, Audit Committee undertook their functions,

duties, and responsibilities in accordance with

the Audit Committee Charter. In conducting its

meetings with other Operating Units, this committee

through Commissioners asked some subordinating

managements to attend the meetings and provide

necessary relevant information.

The Audit Committee has convened meetings with

the subordinates of Management and external parties

including with the Public Accounting Firm of Ernst &

Young and the Consulting Firm, Delloite Consultants.

The Audit Committee undertakes the active oversight

duties of the Board of Commissioners through regular

meetings with the Internal Audit Unit.

Frequency of the Audit Committee Meetings

The Audit Committee convened Meetings for a total

of 17 times in 2008, with the following attendance

records:

Name Membership Attendance (%)

Aviliani

Bunasor Sanim

Saifullah Yusuf

H.C. Royke Singgih

Dedi Budiman Hakim

Syahrir Nasution

Chairperson

Member

Member

Member

Member

Member

100.00

100.00

58.82

100.00

88.24

88.24

No Date Agenda

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

4 Jan 2008

21-23 Jan 2008

12 Feb 2008

25 Feb 2008

26 Feb 2008

19 Mar 2008

10-11 Apr 2008

22 Apr 2008

29 Apr 2008

12 May 2008

9 Jul 2008

17 Jul 2008

22 Jul 2008

23 Jul 2008

6 Aug 2008

9 Sep 2008

24 Sep 2008

Kick Off General Audit for 2007.

Internal Audit Coordination Forum.

Enhacing the Internal Audit Function

Progress of General Audit in 2007.

Vision, Mission and Strategy of the SOE Busi-

ness and Institutional Relations Division

Discussion on the Preliminary Findings of Perti-

nent Matters of Bank Indonesia.

Discussion on the BRI GMS of 2007

Elevation of the Compliance Desk into the

Compliance Division

Report of the Audit Findings for Fourth Quarter

of 2007 and quarterly audits for 2008.

IT personnel in the implementation of BRINets

Issues related to IT

Discussion on the Independent Financial Report,

Management Letter of 2007, and management

Information System

Report of the Audit Findings for First Quarter of

2008 and Internal Control Sysytem

Issues, Challenges and Strategies of IT

Review on the progress of BRINets.

Report of the Audit Findings for Second Quarter

of 2008

General Audit Plan for 2008

The agenda of the Audit Committee meetings in 2008

were as follows:


47.

Realization of Audit Committee Work Program

The Audit Committee conducted its working programs

in 2008 as follows:

1. Internal Activities

a. Design Audit Committee’s plans and work

programs as per the Audit Committee Charter.

b. Convene meetings with Internal Audit (IA) to

discuss internal control system, and the audit

findings especially those which are deemed to

have potential risks that could compromise the

business continuity of the Bank.

c. Convene meetings with the Accounting and

Financial Management Division and other

related divisions to discuss the Bank’s financial

performance and other financial information.

d. In addition to the above divisions, meetings

were also held with other divisions, including

Strategic Planning Division, Procurement

and Fixed Assets Management Division, and

Credit Administration Division to discuss issues

related to the functions of those respective

organisational units and BRI performance.

e. Convene regular meetings (weekly) with the

Nomination and Remuneration Committee,

Risk Management Monitoring Committee and

the Secretary of the Board of Commissioners

to discuss important issues related to the

effectiveness of Commissioners’ functions,

roles, and responsibilities.

f. Evaluate and provide written reports to

the Commissioners on every meeting and

assignment given to Audit Committee.

g. Attend meetings concerning the formulation of

BRI GCG guidelines, evaluate the performance

of the Internal Audit Unit and communication

forum, and visit several Regional Audit Offices,

Regional/Branch Offices in an attempt to obtain

direct information on the problems of the

respective Operating Units.

h. Present materials in the trainings conducted by

the Regional Audit Office.

i. Undertake research on the transformation

of Internal Audit’s functions as a Strategic

Business Partner in the implementation of

Risk-Based Audit by distributing questionnaires

and conducting in-depth interviews

2. External Activities

a. Participate in the seminars related to Audit

Committee’s functions, such as those

conducted by The Institute of Internal Auditor

(IIA) Indonesia Chapter, and the Indonesian

Audit Committee Association in order to

boost competencies and capabilities of Audit

Committee

b. Hold discussions with external auditors, either

before or after the investigations regarding

findings in the financial statements of the Bank.

c. Hold discussions with other parties, especially

those related to the effectiveness enhancement

of the internal audit function

2. Nomination and Remuneration Committee

(NRC)

Structure, Memberships, Expertise, and

Independency of NRC’s Members

Nomination and Remuneration Committee

is chaired by an Independent Commissioner

comprising 5 members with adequate expertise

and independency.

The composition of the nomination and

Remuneration Committee as of 31 December 2008

were as follows:


B.S. Kusmuljono

Aviliani

Agus Pakpahan

M. Jarot Eko Winamo

Eko Boedi Soelistiyo

Indira A. Suleiman *

Chairman

Member

Member

Member

Member

Member



Commissioner

Non Commissioner/Executive Officer

Non Commissioner

Non Commissioner

*) Resigned from NRC membership effective 30 September 2008.


48.

Profiles of The Members of the Nomination and

Remuneration Committee

The profiles of B.S. Kusmuljono and Agus

Pakpahan, and of Aviliani, are stated in the

Commissioners’ Curriculum Vitae in pages 114-

117 of this Annual Report. Indira A. Suleiman

resigned as a member of the Nominations and

Remunerations Committee of BRI on 30 September

2008.

M. Jarot Eko Winarno – born in Sleman, 9

January 1959. Member of the Nominations and

Remunerations Committee since August 2007.

Climbed his career at BRI since 1983 in various

positions, currently he is the Head of Human

Resources Management Division. Obtained his

Bachelor in the Social Economics of Agriculture,

IPB (1982) and his MBA in Marketing from Drexel

University, United States (1992).

Eko Boedi Soelistiyo – born in Brebes, 16

May 1968. Member of the Nominations and

Remunerations Committee since 2007. Climbed

his career at BRI since 1993 in various positions,

currently he is a staff in the HR Welfare Department,

Human Resource Management Division Head

Office. Obtained his Bachelor in Civil Laws,

Diponegoro University, Semarang (1992) and his

M.Si in Agribusiness from Gadjah Mada University,

Yogyakarta (2007).

Duties and Responsibilities of NRC

On the basis of the Guidelines on the Duties of

the Commissioners and Committees as well as

the Charter of the Nomination and Remuneration

Committee of 21 June 2008, the Nomination and

Remuneration Committee is a committee that

has been formed by the Board of Commissioners

in order to support the effectiveness of

Commissioners’ duties and responsibilities,

especially those related to nomination and

remuneration policies.

A. The Nominating Function

1. Analyse, compose and give recommendations

concerning the system and procedures of

election and/or replacement of members of the

Boards of Commissioners and Directors to the

Board of Commissioners;

2. Recommend candidates for Commissioners

and/or Directors to the Board of

Commissioners;

3. Monitor the execution and analyse the criteria

and procedures of selection for Officers one

level below that of the Directors;

4. Compose performance evaluation system of the

Boards of Commissioners and Directors;

5. Recommend the number of members of the

Boards of Commissioners and Directors;

6. Give opinions or advice to the Board of

Directors on the transfer and/or appointment

decisions of non-Bank workers to becoming

officers one level below that of Directors;

7. Analyse the data of officers one level below that

of Directors submitted quarterly by the Board of

Directors and on each change occurring;

8. Recommend to the Board of Commissioners

concerning Independent Parties that will be

members of the Audit Committee or the Risk

Management Monitoring Committee.

B. The Remunerative Function

1. Evaluate prevailing remuneration policies for

the Board of Commissioners, the Board of

Directors, and the Employees of BRI;

2. Recommend to the Board of Commissioners

the followings:

a. Remunerative policies for the Board of

Commissioners and the Board of Directors;

b. Overall remunerative policies for the

Executive Officers and employees of BRI to

be submitted to the Board of Directors.

3. Recommend the granting of options to


49.

the Board of Commissioners, the Board of

Directors, and the employees of BRI, among

others the stock option;

4. Recommend the pension plan for BRI

employees;

5. Recommend the system of compensation

and other benefits in the matter of employee

reductions in BRI.

C. Miscellaneous

1. Evaluate and provide recommendations to

the Board of Commissioners on employment

policies and other functions in HR management

that may have a significant impact on financial

and/or legal risks to BRI;

2. Provide recommendations to resolve internal

and/or external audit findings and the results of

Bank Indonesia monitoring activities, specifically

for policies in HR management;

3. Execute the administer documents related

to the duties and responsibilities of the

Committee.

Procedures for Setting Remunerations of Directors,

Commissioners, and Secretary to Commissioners

NRC composes the salary/honorarium formulas for the

Board of Directors, the Board of Commissioners, and

the Secretary of the Board of Commissioners based on

the Circular of the Secretary of the Ministry of State-

owned Companies No. S-326/S.MBU/2002 dated

3 May 2002. This salary/honorarium formula is then

submitted to the Board of Commissioners for approval

of the Board of Commissioners and the Board of

Directors, then submitted for consultation to the holder

of the Golden A Share to be decided later in the AGMS.

Procedures for Determining Other Facilities/Benefits for

the Board of Commissioners, the Board of Directors,

and the Secretary of the Board of Commissioners

Based on the decision of the AGMS dated 22 May

2007, the AGMS grants authority to the Board

of Commissioners to determine the granting of

other facilities and/or benefits to the Board of


B.S. Kusmuljono

Aviliani

Agus Pakpahan

M. Jarot Eko Winamo

Eko Boedi Soelistiyo

Indira A. Suleiman *

Chairman

Member

Member

Member

Member

Member

100,00

100,00

88,89

100,00

100,00

100,00

*) Resigned from NRC membership effective 30 September 2008.

The Agenda of the NRC meetings in 2008 were as

follows:

No Date Agenda

1.

2.

3.

4.

5.

6.

7.

8.

9.

18 Jan 2008

19 Feb 2008

15 Apr 2008

6 May 2008

24 Jun 2008

4 Jul 2008

14 Aug 2008

2 Sep 2008

7 Nov 2008

Discussion on the activities and the work

agenda of NRC for 2008.

Discussion on the progress of the spin-off

project and HR treatment of BRI Sharia unit.

Discussion on preparation of BRI GMS for

financial year 2007.

Discussion on the follow-up of the letter from

BRI’s Labor Union pertaining to wage increase.

Discussion on the BOD proposal on facilities for

Directors, Commissioners and Secretary to the

Commissioners.

Discussion on the facilities provided to the

Directors, Commissioners and Secretary to the

Commissioners

Discussion on the remuneration for Directors

and Commissioners.

Discussion on the resignation of Indira A.

Suleiman from the Committee

Discussion on the results of interviews of

candidates to the Board of Directors and Board

of Commissioners of Bank Syariah BRI.

Commissioners, the Board of Directors, and the

Secretary of the Board of Commissioners after prior

consultation with the holder of the Golden Series A

Share.

Frequency of NRC Meetings

NRC meetings are conducted at least once a month

and at any time necessary. The decisions in the

committee meeting are made on consensus basis. If

consensus cannot be reached, decisions are made on

majority voting basis.

Meeting attendance records of members of the NRC in

2008:


50.

Action Plans and Realization of the Nominations and

Remunerations Committee

NRC has executed the following action plans

throughout 2008:

1. Improve Guidelines and Work Procedures of NRC

(NRC Charter) in the form of the Guidelines on

the Duties of the Board of Commissioners and its

Committees pursuant to Bank Indonesia Regulation

No. 8/4/2006 on the Implementation of Good

Corporate Governance for Commercial Banks;

2. Evaluate the facilities and benefits for the Boards

of Directors and Commissioners, and give inputs

concerning the remunerative policies for the Board

of Directors and the Board of Commissioners

in accordance with current market practice and

conditions;

3. Recommend candidates for the membership to the

Board of Commissioners or the Board of Directors

to the Commissioners for statement in the Annual

General Meeting of Shareholders of BRI;

4. Provide analysis and recommendations for post-

official pensions for the Board of Directors, Board

of Commissioners and Secretary of the Board of

Commissioners;

5. Provide recommendations to the Board of

Commissioners and interviewing candidates for

membership in the Audit Committee of BRI;

6. Evaluate personnel cost through both internal

analysis and comparison with other major banks;

7. In cooperation with the Audit Committee, the

Risk Management Monitoring Committee and the

Secretary of the Board of Commissioners assist the

Board of Commissioners in reviewing the evaluation

and approval of BRI’s Budget for the year 2008;

8. In cooperation with the Audit Committee, the

Risk Management Monitoring Committee and the

Secretary of the Board of Commissioners assist

the Board of Commissioners in reviewing the

evaluations and approvals of the Business Plan of

BRI for the years 2008-2010;

9. Provide opinion and evaluation concerning the

policies of HR management, among others:

a. Benefit policy for the Officers and Committees

of BRI;

b. HR policy concerning Personnel Grade,

Dismissal Policy, Labour Recruitment and

Outsourcing;

c. HR policy for BRI Sharia Business Unit;

10. Provide inputs and recommendations related

to the improvement of the organization of the

Commissioners’ Institutions of BRI, including the:

a. Commissioner Manuals (Manuals and

Procedures of Commissioners’ Duties) that

have been standardized in the working manuals

of the Board of Commissioners;

b. Duties and responsibilities of the Secretary of

the Board of Commissioners.

11. Prepare and plan the annual budget of the Board

of Commissioners and the annual budget for

the Board of Commissioners’ Institutions and

Committees.

12. Attend the Board of Directors and the Board of

Commissioners Meetings that discuss the monthly

performance progress of BRI.

13. Undertake other duties as requested by the Board

of Commissioners.

3. Risk Management Monitoring Committee (RMMC)

Structure, Memberships, Expertise, and Independency

of RMMC Members

RMMC is chaired by an Independent Commissioner

with a number of RMMC members who have financial

and risk management expertise so as to properly

support their duties and responsibilities.

The composition of the Risk Management Monitoring

Committee as of 31 December 2008 was as follows:


Baridjussalam Hadi

Agus Suprijanto

Ridwan Darmawan Ayub

Pamuji Gesang Raharjo

Chairman

Member

Member

Member


Commissioner

Non Commissioner

Non Commissioner


51.

parties that must be approved by the Board of

Commissioners.

5. Provide opinions and/or recommendations on the

granting of credit above a certain amount which

needs a consult with the Board of Commissioners.

6. Provide opinions and recommendations to

the Board of Commissioners in approving the

annual budget, business plan and the long term

development plan of the Bank.

7. Evaluate and analyse the reports of the realization

of the Bank’s annual budget, business plan and

long-term development plan.

Frequency of RMMC Meetings

In view of the wide range and number of the issues

related to risk management in BRI that must be

evaluated, it is agreed that some of the meeting agenda

of the committee - such as the discussion of legal

risks, operational risks etc. - are included in the weekly

Commissioners’ Meeting.

Meeting attendance records of members of the RMMC

in 2008 were as follows:


Baridjussalam Hadi

Agus Suprijanto

Ridwan Darmawan Ayub

Pamuji Gesang Raharjo

Chairman

Member

Member

Member

100

100

100

100

The agenda of the RMMC meetings in 2008 were as

follows:

No Date Agenda

1.

2.

3.

4.

23 Jul 2008

5 Aug 2008

9 Sep 2008

23 Sep 2008

Issues, challenges and strategies in information

technology and system.

Issues and management of legal risk (collateral

pledging and assets write-off, legal assistance

to management and employees of BRI, handling

of law suits from third parties).

Working relations between Internal Audit and

Risk Management Division of BRI.

Progress of the credit risk management

implementation by the Basel II Project Office

Team.

Profiles of the Members of the RMMC

The profiles of Baridjussalam Hadi and Agus Suprijanto

are presented in the Commissioners’ Curriculum Vitae

on pages 114-117 of this Annual Report.

Ridwan Darmawan Ayub – born in Bogor, 7 July

1962. Member of the Risk Management Monitoring

Committee since 2006. Member of the Risk

Management Task Force of Bank Indonesia for

the implementation of Basel II. Previously the Vice

Chairman of the Operational Risk Division, Bank

International Indonesia (2002-2005). Bachelor’s

Degree in Social and Political Sciences from the

Parahyangan Catholic University, Bandung (1985) and

a Master’s Management degree in Finance from Mercu

Buana University, Jakarta (2008).

Pamuji Gesang Raharjo – born in Jakarta, 10 April

1968. Member of the Risk Management Monitoring

Committee since 2007. Previously had careers at BNI,

Bank Danahutama, and Bank International Indonesia

in various positions. Holds the Bachelor of Economy

Degree from the Prof. Dr. Moestopo University, Jakarta

(1996) and an MM in Risk Management from the

University of Indonesia, Jakarta (2003).

Duties and Responsibilities of RMMC

1. Regularly evaluate and analyse the adequacy of risk

management policies and give opinions in the form

of suggestions and/or recommendations to the

Board of Commissioners concerning the necessary

improvement and perfection of risk management.

2. Review and analyse quarterly risk profiles of

the Bank and provide opinions in the form

of suggestions and/or recommendations for

necessary improvement and perfection of risk

management.

3. Monitor the adequacy of the process of

identification, measurement, monitoring, controlling

and management system.

4. Evaluate and analyse the suggestion packages of

the Board of Directors for fund provision for related


52.

RMMC has executed the following action plans

throughout 2008:

1. Compose the 2008 action plan.

2. Evaluate the operational risk management tools at

BRI (Incident Management, Major Risk Indicators,

Risk and Control Self-Assessments).

3. Review the results of the Risk Management

Committee of BRI meetings.

4. Evaluate the Performance Report of the Credit

Portfolio of BRI.

5. Evaluate the internal and external compliances of

BRI.

6. Evaluate the General Credit Policies of BRI.

7. Review the quarterly report on the risk profile of

BRI.

8. Give recommendations (suggestions and opinions)

on the Credits proposal consulted with the Board of

Commissioners.

9. Review and evaluate the budget of BRI for 2008,

including suggestions for its amendments.

10. Accompany the Commissioners in work visits to

several Regional Offices and Branch Offices of BRI.

11. Attend the Board of Commissioners’ and Board

of Directors’ Meetings that discuss the monthly

performance progress of BRI.

12. Attend the Commissioners’ Meetings and

Managing Directors in discussing the issues related

to duties of the Managing Directors

13. Undertake other duties as requested by the Board

of Commissioners.

II. Board of Directors

A. Directors’ Duties and Responsibilities

1. Number, Composition, Criteria, and

Independency The Board of Directors:

The Board of Directors consists of 10 people,

every one of whom is experienced in banking

operations as Bank Executives for more than 5

(five) years.

All of BRI Directors have domicile in Indonesia.

They have adequate competency and integrity

in accordance with the fit & proper test

requirements.

BRI Directors do not have double positions as

the Commissioners, Directors, or Executive

Officers in other banks/institutions, and do not

have familial relationships with other members

of Board of Commissioners or Board of

Directors.

The composition of the Board of Directors of BRI are as

follows:

No. Name Position

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Sofyan Basir

Sarwono Sudarto

Abdul Salam

Sulaiman Arif Arianto

Sudaryanto Sudargo

A. Toni Soetirto

Lenny Sugihat

Bambang Soepeno

Asmawi Syam

Suprajarto

President Director


Director of Finance

Director of MSME Business

Director of Commercial Business


Director of Credit Risk Control

Director of Compliance/Risk Management


Director of Network and Services

2. Duties and Responsibilities of the Directors

In undertaking their main duties and

responsibilities in managing the company,

in accordance with the decision of General

Meeting of Shareholders, the fields of each

Director was determined as indicated the table

above; and each Director is responsible for his/

her field to the President Director.

General Responsibilities

1. Being responsible for the coordination, monitoring

and leading of the Bank’s management as well

as that of individual duties and responsibilities in

accordance with the Bank’s interests;

2. Maintaining and managing the assets of the Bank.

Realisation of the RMMC Work Program


53.

Compliance to Rules and Regulations

1. Loyal and responsible in undertaking duties in

accordance with prevailing rules and regulations;

2. Each member of the Board of Directors is

individually responsible for his/her own errors or

neglect in the undertake of his/her duties;

3. Executing the processes of compliance and

ensuring that all obligations have been satisfied in

accordance with the Articles of Association and the

AGMS based on prevailing rules and regulations.

Relations with the Commissioners and Shareholders

1. Ensuring the implementation of the decisions made

by the AGMS, the Board of Commissioners and the

Articles of Association;

2. Providing information to the Commissioners and

the Shareholders; arranging communication with

Shareholders, Commissioners, and other interested

parties, including the duties and responsibilities of

the Board of Directors and each member of the

Board of Directors;

3. Being responsible to Shareholders and responding

to the suggestions of the Commissioners and

Shareholders;

4. Preparing regular reports on time in accordance

with prevailing rules and regulations and other

reports in accordance with the request of

Shareholders;

5. The Board of Directors is obligated to hold AGMS

based on the written request of one or more

Shareholders who have valid voting rights and who

represent at the very least 1/10 (one tenth) of the

number of shares issued;

6. Composing and maintaining a List of Shareholders

and a Special List containing the possession of

shares in the hands of the members of the Boards

of Commissioners and Directors and their families

both in the Bank and in other companies;

7. Consulting the granting of credit above a certain

amount with reference to prevailing regulations;

8. In relation with the above paragraph 7, the Board

of Directors must ensure that the credit granted

will not be divided into amounts smaller than the

regulated credit granted that must be consulted

about;

9. Setting the vision, mission, values and corporate

culture of the Bank;

10. Keeping the Bank’s activities in line with the

business activities and the objectives of the Bank;

11. Making work plans, annual budgets, and other

plans related to the business of the Bank;

12. Approving the remunerations for senior

management and key personnel, and maintaining

the consistency of these remunerations with the

culture, objectives, strategies, and other duties

and responsibilities stated in prevailing Regulations

and the Articles of Association of the Bank and the

environs of the Bank;

13. Balancing the interest of all of the stakeholders of

the Bank.

Financial Accounting and Annual Reports

1. Maintaining the bookkeeping and administration of

the Bank in accordance with accepted practices of

a company;

2. Composing an accounting system that matches

the Accounting Standards of Indonesia and the

principles of internal control, especially in terms of

recording, archiving, monitoring and management;

3. Preparing Annual Reports, including Financial

Reports, and to account for those reports in the

AGMS.

Risk Management and Control

1. Maintaining the following processes of risk

management:

a) Ensuring that the Bank has the proper and

systematic processes in identifying, measuring,

and controlling the risks;

b) Ensuring that proper systems and processes

have been executed in monitoring and reporting

the main risks faced by the Bank;


54.

c) Monitoring and evaluating the existence of

good management processes in assessing the

adequacy of the risk management system and

the internal control, the financial reporting and

the compliance;

d) Ensuring the existence of an effective control

system in order to ensure:

i. the reliability and integrity of the information;

ii. the compliance with the prevailing policies,

plans, procedures, rules and regulations;

iii. the maintenance of the assets of the Bank;

iv. the economic and efficient use of resources;

v. the achievement of the determined

operational objectives and targets.

e) Executing annual evaluations for making public

statements concerning internal control at the

Bank, to ensure that all significant aspects of

internal control have been considered for the

evaluated year up to the date of the approval

of the annual report.

2. Creating clear organisational, duty, and

responsibility structures, including the appointment

of the management;

3. Effectively making use of the audit results of both

the Internal and External Auditors.

Specific Responsibilities

President Director:

Representing the bank in coordinating and monitoring,

and acting as the Head of the Board of Directors.

Members of the Board of Directors:

1. Developing the action plans for each field of

responsibility and each Operating Unit lead by each

Director;

2. Coordinating and monitoring each allocation of

responsibility and Operating Unit;

3. Taking all necessary actions to ensure that the

decisions taken by the Board of Directors are in line

with prevailing rules and regulations;

4. The delegation of the duties and authorities of each

member of the Board of Directors is determined

by the AGMS. If the AGMS does not determine

this delegation of duties and responsibilities, then

the delegation of duties and responsibilities among

the Board of Directors is determined based on the

decision of the Board of Directors.

Compliance Director

The main responsibilities of the Compliance Director

are:

1. Determining the necessary steps to ensure

that the Bank complies with the Regulations of

Bank Indonesia and with the prevailing rules and

regulations;

2. Monitoring and maintaining the business activities

of the Bank from deviating from prevailing

regulations;

3. Monitoring and maintaining the compliance of the

Bank with all agreements and commitments made

by the Bank with Bank Indonesia;

4. Ensuring that the Board of Directors does not

make decisions that violate the regulations of Bank

Indonesia and other prevailing rules and regulations;

5. Submitting reports as regulated in Bank Indonesia

Regulation No. 1/6/PBI/1999 dated 20 September

1999 concerning the Appointment of the

Compliance Director and the Implementation of the

Standards for the Execution of the Internal Audit

Function of Commercial Banks.

Other Duties

Other duties and responsibilities are as stated in

prevailing rules and regulations and in the Articles of

Association of the Bank.

Directors’ Meeting

The Directors regularly hold internal meetings to

discuss issues that require Directors’ consideration and

to discuss other strategic plans.


55.

Secretary I : Head of Risk Management Division

Secretary II : Head of Credit Administration

Division

Permanent Members with voting rights are

RMC members who have the voting rights

when the decision of an issue is not unanimous,

which would render a vote necessary.

Permanent Members with voting rights are all

members of the Board of Directors.

Permanent Members without voting rights are

officers of one level below the appointed Board

of Directors, comprising of:

(i) All Heads of Divisions,

(ii) Regional Managers of Jakarta I and II

Regional Offices,

(iii) Manager of Special Branch Office.

Duties and Responsibilities of RMC

a. Provide recommendations to the President

Director in formulating the General

Policies of Risk Management, as well as

amendments if necessary; and suggesting

these to the Boards of Commissioners and

Directors for approval.

b. Provide recommendations to the President

Director in formulating Risk Management

Strategies, including the setting of limits

which overrides the authority of the Head of

the Operating Units, and the formulation of

contingency plans for abnormal conditions

(worst case).

c. Evaluate overall risk composition in the

portfolio of the bank.

d. Determine (justify) issues related to business

decisions which deviate from normal

procedures (irregularities).

e. Evaluate proposals related to new activities/

products and judging the ability of BRI to

The attendance records of the Directors at the Board of

Directors meetings in 2008, were as follows:

NameNumber of Meetings

AttendancePercentage

(%)

Sofyan Basir

Sarwono Sudarto

Sulaiman A. Arianto

A. Toni Soetirto

Abdul Salam

Lenny Sugihat

Sudaryanto Sudargo

Bambang Soepeno

Asmawi Syam

Suprajarto

21

21

21

21

21

21

21

21

21

21

17

17

19

17

17

16

19

19

18

15

80.95

80.95

90.48

80.95

80.95

76.19

90.48

90.48

85.71

71.43

The attendance records of the Directors at the Board

of Directors meetings with the Commissioners in 2008,

were as follows:

NameNumber of Meetings

AttendancePercentage

(%)

Sofyan Basir

Sarwono Sudarto

Sulaiman A. Arianto

A. Toni Soetirto

Abdul Salam

Lenny Sugihat

Sudaryanto Sudargo

Bambang Soepeno

Asmawi Syam

Suprajarto

6

6

6

6

6

6

6

6

6

6

6

6

6

3

5

4

6

5

5

4

100.00

100.00

100.00

50.00

83.33

66.67

100.00

83.33

83.33

66.67

B. Completeness and Execution of Committees’

Duties

Committees formed in order to support the

effectiveness of the execution of the Directors’

duties and responsibilities are:

1. The Risk Management Committee (RMC)

Structure, Memberships, Expertise, and

Independency of RMC Members

Chairman : President Director (CEO)

Chairman I : Director of Compliance

Chairman II : Director of Credit Risk Control


56.

execute these new activities/products from

the risk aspect, and evaluating proposals

for changes in the system and work

procedures.

f. Monitor the adequacy of BRI capital

against described risks in accordance with

prevailing regulations.

g. Evaluate the effectiveness of the applied

risk management system.

h. Grant authority to the Sub-committees of

RMC (Credit Risk Management Committee,

Operational Risk Management Committee

and Market Risk Management Committee)

to discuss specific issues that need

immediate handling and do not require the

involvement of all members of RMC.

Frequency of RMC Meetings

RMC conducts meetings regularly, at least 1

(once) in 3 (three) months. Besides this regular

meeting, RMC may conduct unscheduled

meetings to discuss urgent matters.

Schedule and agenda of RMC meetings in 2008:

No Date Agenda

1. 15 Feb 2008 a. Follow-up Report on RMC IV of 2007

b. Report on Risk and Capital

c. Report on Risk Management Implementation

d. Report on Test Planning Switch Over 5 and

Evaluation on Testing of Alternate Site for

Clearing System

e. Profile of BRI Credit Card

f. Kick Off Meeting of Micro KUR

2. 4 Jun 2008 a. Follow-up Report on RMC I of 2008

b. Report on Risk and Capitalisation

c. Report on Risk Management Implementation

3. 22 Sep 2008 a. Effects on implementation of PSAK 50 and 55

b. Follow-up Report on RMC II of 2008

c. Report on Risk and Capitalisation

d. Report on Risk Management Implementation

e. Condition of floor load capacity of BRI Data

Centre

4. 19 Dec 2008 a. Effects of the global crisis and anticipative

measures by BRI

b. Follow-up Report on RMC III of 2008

c. Report on Risk and Capital

d. Report on Risk Management Implementation

RMC’s Action Plans and Realization

The RMC Action Plan for 2008 was as the

above topics and agenda, and the realization of

these plans are as stated In the Follow Through

Report of RMC.

2. Assets and Liabilities Committee (ALCO)

Structure, Membership, Expertise, and

Independency of Assets and Liabilities

Committee Members

The organization structure of the Assets and

Liabilities Committee is as follows:

Chairman (as well as Member): President

Director

Ad interim Chairman I (as well as Member):

Director of Finance

Ad interim Chairman II (as well as Member):


Secretary (as well as Member): Head of

Treasury Division

Members:

1. Directors

2. All Heads of Business Divisions

3. Head of Funds Services Division

4. Head of Credit Card Division

5. Head of Consumer Loans Division

6. Head of Institutional Relations Division

7. Head of Financial and Management

Accounting Division

8. Head of Credit Risk Analysis Division

9. Head of Loans Restructuring and Recovery

Division

10. Head of Credit Administration Division

11. Head of Risk Management Division

12. Head of Strategic Planning Division

13. Regional Managers


57.

Roles and Responsibilities of the Assets and

Liabilities Committee

This committee is in charge of determining

the integrated management policies of BRI’s

assets and liabilities, and ensuring that the

management of assets and liabilities are

executed in accordance with the policies set. In

a broader sense, ALCO is also responsible for

managing the Bank’s liquidity, setting interest

rates, determining the policies for mismatch

and net open position, and managing and

determining the financial and capital balance

structures.

Frequency of Committee Meeting

ALCO holds a meeting periodically, at

least once a month in order to discuss the

management of assets and liabilities of BRI

related to the Directors’ policies and strategies.

Realization of the Assets and Liabilities

Committee’s Action Plans.

Throughout 2008, ALCO has held 13 meetings.

The issues discussed in the ALCO meetings

were among others the conditions of the money

market and capital market, the bank interest

rates, and the balance of the asset and liability

positions.

3. The Credit Committee


Independency of Credit Committee Members

(1) Based on the memberships and inherent

authority, the Head Office Level Credit

Committee is divided into:

a. BRI Credit Committee

b. Credit Committee at Directors Level

c. Credit Committee at Divisional Head

Level

d. Credit Committee at Divisional Deputy

Head Level

(2) Structure of BRI Credit Committee

Apart from the Credit Committee at the Head

Office, BRI also has Credit Committees at the

Regional Office level. For credit decisions, BRI

applies the principle of prudence by ensuring

that each credit decision satisfies the Four Eyes

Principle, which involve the Credit Officer and

the Credit Risk Control Officer.

For decisions in credit restructuring - apart from

the Four Eyes Principle in the application of the

principle of prudence - decision-making must

apply the principle of independence between

the initial decision maker and the restructuring

decision maker, as well as keeping in mind the

existence of a regulation that states that the

decision must be taken by an officer or credit

committee of one level higher.

Duties and Responsibilities of the Credit

Committee

The duty of the Credit Committee is to approve

or reject credits, including the loan addition,

extension and additional terms of credit in

accordance with the limits of authority set by

the Board of Directors; and coordinating with

ALCO in funding for certain amounts of credit

set by ALCO.

Meetings of the Credit Committee are convened

when new credit decisions or credit extensions

are needed. Specific to decisions of the Credit

Committee of BRI and the Credit Committee

of the Board of Directors, these are executed

Credit Comitee Members Chairperson

BRI Credit Committee (for loan approval)

Director of Commercial BusinessDirector of Institutional BusinessDirector of MSME BusinessDirector of Consumer BusinessDirector of Credit Risk Control

President Director

BRI Credit Committee (for money market line and treasury product approval)

Director of FinanceDirector of Commercial BusinessDirector of Institutional BusinessDirector of MSME BusinessDirector of Consumer BusinessDirector of Credit Risk Control

President Director


58.

based on the majority principle, while the

decisions of other Credit Committees are taken

unanimously, or the decision is taken when all

members of the Credit Committee agree to it.

Apart from that, a credit with a minimum total

exposure of Rp300 billion, both for individual

debtors and business groups, must be

consulted with the Board of Commissioners.

Specific for agribusiness credits and credits to

State-owned Companies, a consultation with

the Board of Commissioners is required when

the total exposure of the credit is at least Rp600

billion and Rp500 billion respectively.

4. Credit Policy Committee


Independency of the Credit Policy Committee

Members

Chairman: President Director

Members:

1. Director of Credit Risk Control

2. Director of MSME Business

3. Director of Commercial Business

4. Director of Finance

5. Head of Credit Administration Division

6. Head of Internal Audit

7. Head of Credit Risk Analysis Division

8. Head of Loans Restructuring and Recovery

Division

9. Head of Micro Business Division

10. Head of Retail Credit Division

11. Head of Consumer Credit Division

12. Head of Program Business Division

13. Head of Agribusiness Division

14. Head of General Business Division

15. Head of Treasury Division

16. Head of International Business Division

17. Head of Strategic Planning Division

18. Head of Legal Division

The Roles and Responsibilities of Credit Policy

Committee are as follows:

1. Provide inputs to the Board of Directors in

composing the General Credit Policies of

BRI;

2. Monitor the Credit Policy of BRI in that it

is applied and implemented consequently

and consistently;

3. Monitor and evaluate:

a. The overall progress and quality of the

credit portfolio;

b. The correctness of the exercise of the

credit decision authority;

c. The correctness in the granting,

progress and quality processes of

credits granted to parties related to the

bank and to certain large debtors;

d. The correctness of the implementation

of Legal Lending Limit regulations;

e. The compliance with rules and

regulations and other stipulations in

granting credits;

f. The settlement of problem loans in

accordance with the stipulations of the

General Credit Policy of BRI;

g. The adequacy of the amount of

reserves for loan loss provision;

h. Certain large debtors and credits listed

in the Special Mention Loans.

4. Execute regular reviews to judge the

effectiveness of the Internal Credit Control

System once every 12 (twelve) months.

5. Monitor and provide suggestions for the

planning and implementation of credit

trainings.

6. Submit written reports regularly and

provide suggestions for improvements to

the Board of Directors.

7. Analyse and evaluate the portfolio to

support the achievement of Annual

Budget.


59.

5. Information Technology Steering Committee

In line with the regulations outlined by Bank

Indonesia through the Regulation of Bank

Indonesia No. 9/15/PBI/2007 dated 30

November 2007 and the Circular of Bank

Indonesia No. 9/30/DPNP dated December

12th, 2007, both concerning the Application

of Risk Management in the use of Information

Technology by Commercial Banks, BRI has

formed two Information Technology Steering

Committees called the Information Technology

Steering Committee of BRI. The internal

regulations of BRI that form the basis of

formation of these two committees are:

1. Decree of the Board of Directors of BRI

NOKEP: S.10-DIR/TSI/02/2003 concerning

the Steering Committee of the Policies and

Management of Information Technology

and System (ITS) of Bank Rakyat

Indonesia; and

2. Decree of the Board of Directors of BRI

NOKEP: S.11-DIR/TSI/02/2003 concerning

the Technical Steering Committee of

Information Technology and System of (ITS)

of Bank Rakyat Indonesia.

Structures, Membership, Expertise and

Independence of the Members of the

Information Technology and System Steering

Committee

Steering Committee

The Policies and Management of Information

System and Technology comprise of:

1. Chairman as well as member: President

Director

2. Vice Chairman as well as member: Director

of Operations

3. Secretary: Head of Technology and

Information System Division

4. Members:

- Head of Strategic Planning Division

- Head of Funds and Services Division

- Head of Micro Business Division

- Head of Retail Loans Division

- Head of Agribusiness Division

- Head of General Business Division

- Head of Program Business Division

- Head of Treasury Division

- Head of International Division

- Head of Internal Audit

- Head of Credit Card Division

The Technical Information Technology and

System Steering Committee comprises of:

1. Chairman as well as member: Director of

Operations

2. Vice Chairman as well as member: Head

of Technology and Information System

Division

3. Secretary: Group Head of ITS Planning and

Strategies

4. Members:

- Head of Strategic Planning Division

- Head of Consumer Loans Division

- Head of Micro Business Division

- Head of Retail Loans Division

- Head of Agribusiness Division

- Head of General Business Division

- Head of Program Business Division

- Head of Logistics and Fixed Assets

Management

- Head of International Business

- Head of Financial and Management

Accounting Division

- Head of Internal Audit

- Deputy Heads of Technology and

Information System Division

- Senior System Analysts and Senior

Business Analysts

- Department Head of Budget Planning

and Management Information

System for Accounting and Financial

Management


60.

As we can see from the above memberships

and structures, both committees have

representatives from the Business Divisions,

users of information technology with skills

and experience in their respective fields of

professions. This condition will certainly

support the objectivity and independence of

the two steering committees, so that they can

execute their duties effectively and efficiently.

Duties and Responsibilities of Committees

The duties, responsibilities and authorities of

the Policies and Management of the Information

Technology and System Steering Committee of

BRI are as follows:

1. Determine the direction, policies, and

targets for the development of the

Information Technology and System of

BRI for both medium term (three years)

and long term (five year) periods stated

in the Planning and Strategies for the

Development of Information Technology

and System (ITS) Guidelines of BRI.

2. Set priorities for information technology and

system in accordance with the business

strategic plans that will be executed by BRI

management in both medium- and long-

term.

3. Form and determine the Information

Technology and System Technical

Steering Committee that has the main

duty of steering the development and

implementation of BRI’s information

technology and system project for the short

term (annual).

4. Monitor the implementation of the

development of information technology

and system, with the intent that the

development will always stay in line with

the set Information Technology and System

Development Planning and Strategies

Guidelines of BRI.

5. Redefine the ITS guideline, plan and

strategy for the development for medium

to long term as a result of changes in the

business policies and strategies of BRI.

6. Decide on the ITS development strategies

that are not in line with the previously

set strategies due to extraordinary

circumstances, as long as it is still in

the general scope of the Information

Technology and System Development

Planning and Strategies Guidelines of BRI.

The duties, responsibilities, and authorities

of the Information Technology and System

Technical Steering Committee of BRI are as

follows:

1. Determine the priorities in developing and

implementing the information technology

and system of BRI for the short term

(annual), with references to Information


Planning and Strategies Guidelines of BRI.


61.

2. Determine the Work Plan and the ITS

Investment and Exploitation Work Plan

Budget for the development, operation,

and maintenance of ITS in the short term

(annual).

3. Determine office management programs

for ITS projects that will be developed and

implemented, which would include:

a. The scope of the project;

b. The methodology of the project;

c. The organization of the project;

d. The team(s) for the project;

e. The budget of the project;

f. The time frame of the project; and

g. The quality assurance of the project.

4. Monitor and evaluate the execution of the

development project to ascertain that it is

still in-line with the previously set scope,

time frame, budget, and quality.

5. Redefine the ITS Work Plan and

Budget Work Plan due to extraordinary

circumstances with reference to the

previously set Information Technology

and System Development Planning and

Strategies Guidelines of BRI.

6. Submit ITS development projects that are

not wholly in line with the set Information


Planning and Strategies Guidelines of

BRI for decisions to the ITS Policy and

Management Steering Committee of BRI.

7. Submit reports to the Information

Technology and System Policy and

Management Steering Committee regularly

on the realization of the ITS development

programs managed by the Information

Technology and System Division.

Frequency of Committee Meeting throughout 2008

The Information Technology and System Steering

Committee of BRI has held three meetings. The dates

for these meetings are as follows:

No Date Topic/Meeting Agenda

1. 14 Feb 2008 • Organisation and realisation of budget for IT system in 2007

• Progress of IT system development • Operations of Data Centre and Disaster

Recovery Centre• Issues: Capacity Planning and Switch-Over

Simulation of DC-DRC

2. 29 Aug 2008 • Organisation and realisation of budget for IT system in 2008

• Progress of IT system development • Operations of Data Centre and Disaster

Recovery Centre• Issues on Infrastructure Readiness for Opening

of New Operating Units, Status on Trade Finance System, Status on Core Banking Sharia, HR Deficiency in the IT Division, Software Licences, Changes in the Priority for Application Development

3. 18 Dec 2008 • Brief on the Offline Incident of 2-5 Dec 2008• Follow-up on the Finding Result #3 of 2008 on

18 Dec 2008• Organisation and realisation of budget for IT

system in 2008• Capacity Planning• Readiness of Disaster Recovery Centre• Value Delivery and Development of IT• Issues with respect to the Construction of Data

Centre and IT Building, Maintenance of Gen-set and UPS, IT Plan 2008 and 2009, Follow-up Action on Bank Indonesia Audit Findings, Status on the Recruitment of IT Personnel

• Demonstration of Portal Data Warehouse

Action Plans of the Information Technology and

System Steering Committee and Realization

The action plan of the Information Technology

and System Committee is to discharge its

duties and authorities in accordance with the

materials in the Committee’s Meetings’ agenda.

6. The Human Resources Policy Committee

This committee was formed in 2008 with the

goal to improve the effectiveness, efficiency,

objectivity and transparency in decision making

concerning human resources; and to reassure

the stakeholders that the determination of HR

policies have been executed in line with the

principles of Good Corporate Governance.


62.

The membership of the Human Resource Policy

Committee is as follows:

1. Chairman: President Director

2. Members: all members of the Board of

Directors

3. Secretary: Head of Human Resources

Management Division

4. Vice Secretary: Deputy Head of Human

Resources Management Division

The Authority of the Human Resources

Management

The authorities of the Human Resource Policies

Committee are as follows:

1. Human Resources (HR) Policy, including

among others HR planning, recruitment and

selection, career development, performance

management, prosperity, industrial,

assessment, and HR management

information system.

2. HR operations includes transfers

(promotions, rotations, demotions) of

Echelons 1 and 2 officers, performance

evaluations of Echelons 1 and 2 officers,

and disciplinary sanctions to Echelons 1

and 2 officers.

Ill. Implementation of Compliance, Internal

Audit, and External Audit Functions

1. Compliance Function

For the sake of upholding compliance to the

relevant laws and regulations, the compliance

function was undertaken through the following

activities:

a. Undertake testing and monitoring of

follow-up actions to test results.

b. Review of policy

c. Monitor agreement and commitment of BRI

to Bank Indonesia and other government

institutions.

d. Dissemination of external regulations to

related Operating Units for guidelines and

references in decision or policy making.

Compliance with prevailing regulations in the

framework of prudential banking is assured

by taking stock and reviewing of all prevailing

regulations.

BRI compliance policies as stipulated by the

Board of Directors are as follows:

- The policy for reviewing BRI’s existing rules

and regulations and making adjustments as

needed with changes in the prevailing rules

and regulations.

- Policy on examining prudential principles

regarding Directors’ policy and or decision

undertaken by BRI Compliance Director.

- Policy on meeting BRI obligation pertaining

to compliance with contracts and

commitment initiated by BRI Directors

with Bank Indonesia and other authorized

institutions.

- Policy on operational guidelines for

Compliance Desk and policy on Know

Your Customers (KYC) to comply with KYC

regulations.

2. Internal Audit Functions

BRI implemented an audit methodology called

Risk-Based Audit (RBA) which was gradually

implemented in accordance with the maturity

level of corporate risk management. With

this methodology, business process and

business units predicted to have significant

risks in achieving company’s objectives are

given priority to be audited, ensuring the

entire potential risks to be minimized to the

acceptance risk levels.

In 2008, BRI Internal Audit audited areas which

were predicted to be significantly potential


63.

line with Audit Committee in the form of

coordination or regular audit findings reporting.

Internal Audits have evaluated the sufficiency

and effectiveness of internal control

and performance of line management

units. Besides, they also have evaluated

the sufficiency and effectiveness of risk

management process as well as corporate

governance of all aspects and elements of the

Bank businesses.

Internal Audit function is reviewed periodically

every 3 year by External Auditors for its

effectiveness and compliance to the Role of

Bank’s Internal Audit Function Standard. The

results showed that BRI Internal Audit Function

has played its role following the standards

given and continuously attempted to make

adjustment with the current standard best

practices. In the future, BRI Internal Audit

will do its best to make it perfect through

benchmarking and attending either national or

international seminars.

for disturbing the achievement of company’s

objectives. The role of BRI Internal Audit as

the catalyst for the growth of management

awareness of the significance of risk

management was well undertaken in relation to

the role of Internal Audit as a Strategic Business

Partner (SBP) of BRI Line Management.

In order to maintain the quality of audit findings,

sustainable quality development programs

are continuously held, both externally and

internally (using Internal Review Program). This

is conducted by examining all Internal Audit

Operating Units every year, or through quality

standard testing using international standard

ISO 9001 2000 based on samples from several

Regional Audit Offices.

In undertaking their duties, Internal Audits

are independent from operational Operating

Units, without pressure from any party in the

organization. They are directly accountable to

President Director and have communication


64.

3. External Audit Functions

BRI has appointed the Public Accounting Firm

(PAF) that is registered with Bank Indonesia,

using GMS’ approval and Audit Committees’

recommendations. The selection of PAF was

in accordance with the existing laws and

regulations.

The appointment of PAF considered such

aspects as:

a. Capacity of PAF

b. Contract legality

c. Audit coverage

d. Standards of professional public

accountants

e. The communication between BRI and PAF

have been professional and independent.

IV. Risk Management Implementation,

including Internal Control System

Commissioners and BOD are quite active in

supervision through the committee created at

Directorate/Commissioner level (Risk Management

Committee, IT, Credit Committee, ALCO, etc.) for

monitoring and strategic decision making.

In accordance with the complexity and business

size as well as the Bank business targets, risk

management in BRI is implemented for all risks (8

types of risks), which is in line with BI regulations

built-in and widespread throughout the entire

operational Operating Units. The implementation

of risk management comprises risk identification,

major risk indicators, risk profiles, and formulation

of follow-up actions which are reported to the

management for its risk monitoring/control over

significant risks.

BRI has adopted policies, operational procedures,

risk management, and risk limits parameter/

indicators which are used in the measurement

and monitoring of risks for maintaining healthy

internal bank condition. In addition, information

and date management to support the process of

risk measurement and monitoring are continuously

updated and made perfect to support the Bank

business.

V. Related-Party Lending and Large Exposure

Loans

BRI has implemented prudential banking practices

through its diversified portfolio of lending; such that

there has been no violation against the legal lending

limit as per BI regulation in terms of either lending

to related parties or the provision of loans of large

exposure.

Furthermore, to ensure the independency of the

Bank’s management to possible intervention from

related parties with respect to deciding on loan

approvals, BRI has implemented the four eyes

principles for more than five years.

Below is total loans outstanding provided to related

parties and large exposure loans as of December

31, 2008.

No. Loans provided toNumber of

DebtorNominal Amount (Million Rupiah)

1.

2.

Related Party

Major Debtor

a. Individual

b. Group

6

25

25

749,905

18,229,942

20,898,417

Fund provision for related party and prime debtors

above has been given based on Good Corporate

Governance principles, which was proven by

the decision to provide funds in accordance with

the Bank General Credit Policies made by Credit

Committee as they are authorized.


65.

VI. Bank Rakyat Indonesia Strategic Plans

For the implementation of GCG, BRI has developed

a system of corporate planning and control which

is systematically arranged, realistic, and integrated

without neglecting external and internal factors as

well as prudential banking practices as stipulated

in BI Regulation No. 6/25/PBV2004 dated October

22, 2004 and BI Circular No. 6/44/DPNP dated

October 22, 2004.

BRI has devised a Corporate Plan that is

divided into short-term planning (1 year) which is

manifested in the Annual Budgeting, a medium-

term planning (3 years) that is manifested in the

Business Plan, and long-term planning (5 years)

that is manifested in the Corporate Plan.

In order to realize those plans, BRI has formulated a

number of programs and strategies in business and

support sides, which are

- Focus on MSM businesses (Micro, Small, and

Medium)

- Expand network operations

- Strengthen risk management

- Utilize Information Technology for operational

efficiency and speed of services.

The management accountability regarding

the implementation of each planning is done

through the mechanism of General Meeting of

Shareholders, which includes an evaluation of

company organisational structure, system and

procedures, human resources, performance

appraisal system, as well as internal audit function

at every layer and unit in organisational structure.

VIl. Transparency of the Bank Financial and

Non-Financial Condition Not Stated in Other

Reports

BRI has disclosed all required financial and

non-financial information in line with the existing

regulations to its Shareholders, among others are:

No. Type of Report Addressee

1. Financial Report a. Central Bank of Indonesia

b. Bapepam-LK (Financial Institution

and Capital Market Supervisory

Board)

c. Indonesia Stock Exchange

d. State Audit Board

e. Ministry of SOE

f. Ministry of Finance

g. Deposit Insurance Institution

h. Directorate General of Taxation,

Ministry of Finance

2. Annual Report a. Central Bank of Indonesia

b. Bapepam-LK

c. Indonesia Stock Exchange

d. Indonesian Consumers Foundation

e. Indonesia Institute of Bankers

f. Indonesian Rating Agencies

g. Indonesian Banking Association

i. Finance and Economic Research

Institutions

j. Finance and Economic Magazines

3. Deposits Report Deposit Insurance Institution

4. Commercial Bank Report Central Bank of Indonesia

5. Risk-Weighted Assets

and Minimum Capital

Requirement Report

Central Bank of Indonesia

6. Use of IPO Proceed Report Bapepam-LK

7. Realization of Bank

Business Plan Report

Central Bank of Indonesia

8. Bank Ratings Report Central Bank of Indonesia

9. GMS Report a. Bapepam-LK

b. Indonesia Stock Exchange

10. Public Expose Report a. Bapepam-LK

b. Indonesia Stock Exchange


66.

VIII. Shares Ownership of Commissioners and BOD

As of 31 December 2008 none of the

Commissioners and Directors of BRI hold shares

amounting to 5% of the paid-in capital of the

Bank, other banks, non-bank financial institutions,

and other companies located in Indonesia and

overseas.

The statement regarding the shares ownerships

has been stated in a Letter of Statement by each

Commissioner and Director.

IX. Financial and Familial Relationships of

Commissioners and Directors with other

Commissioners, Directors, and/or Controlling

Shareholder of the Bank.

All members of the Board of Commissioners

and Board of Directors do not have financial and

familial relationships with other members of the

Board of Commissioners, Board of Directors, and/

or Controlling Shareholders. The statement of not

having financial and familial relationships among

members of the Board of Commissioners and

Board of Directors has been stated in a Letter of

Statement.

X. Remuneration Policy/Package and other

Facilities for Commissioners and Directors

The Commissioners and Directors are entitled to

remuneration and facilities stated in the following

table. This is the amount that the Commissioners

and Directors may receive within a year.

No.Remunerationand Facilities

Amount Received in a Year

Commissioners Directors

Person Rupiah Person Rupiah

1. Remuneration 7 15,360,000,000 10 54,600,000,000

2. Facilitiesa. Ownershipb. Non

Ownership

7

7

1,222,700,000

1,605,552,000

10

10

4,196,233,333

6,185,700,000

TOTAL 18,188,252,000 64,981,933,333

The amount of remuneration per person in a year

No.Amount of Remuneration per

Person in a YearNumber of Directors

Number of Commissioners

1. above Rp2 billion 10 7

2. above Rp1 billion up to Rp2 billion - -

3. above Rp500 million up to Rp1 billion - -

4. Rp500 million and below - -

XI. Share Options

BRI has declared its internal policy pertaining

to share options provision by referring to the

Regulation of Capital Market Supervisory Agency

No.: Kep-44/PM/1 998, dated August 14, 1998.

The Share Option provision was executed in three

phases within 3 years as follows:

1. MSOP I was given during BRI Initial Public

Offering (IPO) on November 10, 2003.

2. MSOP II was carried out in the second year

after IPO.

3. MSOP III was carried out in the third year after

the IPO.

The shares owned by the Board of Directors

(except the President Director) were given while

they were the Executives of the Bank.


67.

Details of Salary Ratio: The Highest and the

Lowest

The ratio consists of total cash=12-month salary

+ Paid Leave + Religious Allowance + Incentive +

Bonus.

a. Ratio of highest employee salary over lowest

employee salary = 18.83

b. Ratio of highest over lowest Director’s salary =

1.11

c. Ratio of highest over lowest Commissioner’s

honorarium = 1.11

d. Ratio of highest Director’s salary over highest

employee salary1 = 6.13

e. Ratio of highest Director’s salary over highest

employee salary2 = 2.88

Note: 1) Based on total annual cash (including tantiem) 2) Based on monthly salary

XIII. Meetings of the Board of Commissioners

In accordance with letters of the Articles of

Association of the Bank, meetings of the Board

of Commissioner are convened periodically at

least once a month, or at any time as required. In

those meetings, the Board of Commissioners may

invite members of the Board of Directors to attend

the meetings. Board of Commissioners Meetings

are officially legal and eligible for making binding

resolution if more than 1/2 (one-half) of the number

of Commissioner are in attendance or represented

by proxy. Resolution of the meetings are binding for

all members of the Board of Commissioners, and

decided upon the basis of consensus.

If a consensus could not be reached, the

resolutions are therefore subject to consenting

votes that exceed one-half part of the eligible votes

that are cast upon the meeting.

Description / Name

Number of

Shares Held

(shares)****

Number of Options

Option Price (Rp)

TimePeriod(year)Issued

(shares)Exercised (shares)

Commisioners Bunasor SanimAvilianiB.S. KusmuljonoBaridjussalam HadiAgus PakpahanAgus SuprijantoSaifullah Yusuf

-------

-------

Directors Sofyan BasirSarwono Sudarto *)Sudaryanto Sudargo *)Bambang Soepeno *)Lenny Sugihat *)Abdul Salam **)Sulaiman Arif Arianto *)A. Toni Soetirto **)Suprajarto *)Asmawi Syam *)

-160,500

1,000470,500630,000

65,000300,000

--

140,000

3,115,500836,500836,500668,500802,500

-805,500

-581,000836,500

3,115,500836,500836,500528,500802,500

-805,500

-581,000836,500

Pursu-ant to

IDX rules

55555

5

55

SeniorExecutives

17,025,000 14,491,500 Pursu-ant to

IDX rules

5

*) Option on shares that were given to the Directors with the exception of the President Director, representing shares allocated during which time the Directors were serving as the Bank’s Senior Executive, and in line with Bapepam-LK regulation.

**) Mr. Abdul Salam and A. Toni Soetirto do not own an MSOP in PT. Bank Rakyat Indonesia (Persero) Tbk

***) Senior Executives comprise of Echelon 1 and 2 officials of the level of Divisional Head, Deputy Divisional Head, Regional Manager, Deputy Regional Manager and Branch Manager

****) As per data from the Shares Registrar on 31 December 2008

Number of Options

XII. Salary Ratio: The Highest and The Lowest

For the purpose of attracting, motivating, and

retaining its best employees, BRI has formulated a

salary system that is based on the best practices

in the banking industry and constantly reviews

and updates the system to suit with business

development as well as changes in the banking

employment market practices. This is carried out

with due consideration for the Bank’s capability as

well as prevailing laws and regulations.

The salary of BRI employees is comprised of

principal salary, premium benefits, and transition

benefits, which are formulated to give appreciation

and recognition so as to achieve internal fairness

on the basis of:

a. Role and contribution of the positions

b. Relevant and proven working experience

c. Required expertise/skills and competencies

d. Performance achievement


68.

XV. Litigation Cases

In running its business, BRI is not precluded

from legal actions which represent part of Bank’s

operations. In 2008, the number of litigation cases

with material claims value of more than Rp1.0

billion, were as follows:

Litigation CasesNumber

Civil Case Crime Case

Settled with a permanent legal verdict 0 0

Under due process 16 0

Total 16 0

Litigation cases still in due process are those at the

level of the First Instance Court, Appellate Court,

and the Supreme Court.

XVI. Transactions with Conflicting Interests

In 2008, the Commissioners and Directors did not

have conflicting interests when making decisions

and taking actions in the Bank’s best interest. All

regulations regarding the implementation of GCG

were formulated in a Joint-Decree between the

Commissioners Directors on the GCG Policy of PT

Bank Rakyat Indonesia (Persero), Tbk. and internal

Regulations on the Disclosure of Parties with

Particular Relationship.

In order to enhance the prudential aspects of

the Bank and avoid a conflict-of-interest among

decision-making officers of the Bank, the decision

on credit over a certain amount need to be

decided by several officers who are part of the

Credit Committee, and upon consultation with the

Commissioners. Moreover, the provision of credit to

a related party requires approval from the Board of

Commissioners.

In cases where a potential conflict-of-interest

is indicated, the instigating Operating Unit will

The following table shows the meeting attendance

record of the Commissioners in 2008:

Board of Commissioners Meetings:

Name Position Attendance %

Bunasor Sanim

Agus SuprijantoAgus PakpahanSaifullah YusufB.S. KusmuljonoBaridjussalam HadiAviliani

President Commissioner/Independent CommissionerCommissionerCommissionerCommissionerIndependent CommissionerIndependent CommissionerIndependent Commissioner

33

191217313128

100.00

57.5836.3651.5293.9493.9484.85

Joint Board Meetings:

Name Position Attendance %

Bunasor Sanim

Agus SuprijantoAgus PakpahanSaifullah YusufB.S. KusmuljonoBaridjussalam HadiAviliani

President Commissioner/Independent CommissionerCommissionerCommissionerCommissionerIndependent CommissionerIndependent CommissionerIndependent Commissioner

6

432455

100.00

66.6750.0033.3366.6783.3383.33

XIV. Number of Internal Frauds and Efforts to

Resolve Frauds

On the basis of data on fraudulent activities with

resulting loss of more than Rp100,000,000,- (one

hundred million Rupiah), there were no instances of

frauds committed by the Management of the Bank,

as presented below:

Internal Fraudin a Year

Number of Fraud Cases Committed by

Bank Management

Permanent Employees

Contract Workers

2007 2008 2007 2008 2007 2008

Total Frauds• Settled cases• In process of

settlement internally

• Have not undergone settlement process

• Being settled through legal proceedings

00

0

0

0

00

0

0

0

5235

11

1

5

3924

14

0

1

00

0

0

0

11

0

0

0


69.

engage an independent Operating Unit to discuss

the matter such that any transaction that may not

be in the interest of the Bank could be avoided

altogether.

Based on tests carried out on decision-to-be-taken

on either credit or non-credit transactions as well

as on working agreements that had been signed by

the Directors, in 2008 there were no transactions

that could be categorised as a transaction that is

associated with a conflict of interests.

No.

Name and

Position

of Persons

with Conflict

of Interest

Name and

Position

of

Decision

Maker

Type of

Transaction

Transaction

Value

(Million

Rupiah)

Description

N I L

XVII. Buy Back Shares and/or Bonds

BRI has redeemed its Subordinated Notes,

designated as “US$150,000, 7.75% Subordinated

Notes due 2013”. The redemption was in

accordance with the stipulations in the Offering

Circular and Fiscal Agency Agreement and

requirement on redemption as stated in the Circular

Letter of Bank Indonesia No.26/1/BPPP of 29 May

1993. The early redemption was exercised on the

outstanding Notes in full at a strike price of 100% of

the nominal principal value of US$ 150,000 on 30

October 2008, including all accrued and accruing

interest up to said date. Bank Indonesia did not

have any objection to the early call option exercised

by BRI in this case.

XVIII. Fund Allocation for Social and Political

Activities, the Nominal Amount and Fund

Beneficiaries.

Fund allocation for Political Causes

In 2008, PT BRI (Persero) Tbk did not participate in

any funding for political activities.

Fund Allocation for Social Charities

In 2008, BRI expended charitable funds for the

following activities:

Activity Nominal Sum (Rp)

Corporate Social Responsibility (CSR) Rp54,535,000,000

TOTAL Rp54,535,000,000

XIX. Self-Assessment on GCG Implementation

In 2008, PT. Bank Rakyat Indonesia (Persero), Tbk.

conducted self-assessment on the implementation

of Good Corporate Governance (GCG), covering

such things formulated in the Bank Indonesia

Regulations. The result of this self-assessment was

categorized “VERY GOOD”. The followings is the

summary of the self-assessment:

Summary of Composite Scores of Good Corporate

Governance Self-Assessment:

No. ComponentWeight

(a)Rating

(b)Score

(a) x (b)Description

1. Execution of Roles and Responsibilities of the Board of Commissioners

10.00% 1 0.1 Number, composition, roles and responsibility of the Board of Commissioners have been executed effectively and efficiently in compliance with all regulations.

2. Execution of Roles and Responsibilities of the Board of Directors

20.00% 1 0.2 Number, composition, roles and responsibility of the Board of Directors have been executed effectively and efficiently in compliance with all regulations.

3. Adequacy and Execution of the Duties of Committees

10.00% 1 0.1 The composition and duties of the Committees have been executed in line with prevailing regulation and undertaken effectively and efficiently

4. Management of Conflict of Interest

10.00% 2 0.2 Bank BRI has implemented an internal policy on transaction containing a conflict of interest. There has been no transaction between BRI and related parties that contain any conflict of interest.


70.

No. ComponentWeight

(a)Rating

(b)Score

(a) x (b)Description

5. Implementation of Bank Compliance

5.00% 2 0.1 Implementation of Bank compliance is considered Good. The execution of the duties and responsibilities of the Director of Compliance and the Compliance Division has been effective. Guidelines, systems and procedures are available in adequate scope.

6. Implementation of Internal Audit

5.00% 1 0.05 Execution of internal audits has been extremely effective, in line with internal guidelines and the minimum standards of SPFAIB.

7. Implementation of External Audit

5.00% 1 0.05 The Bank has appointed the Public Accounting Firm with due consideration on prevailing rules and regulations. The appointed PAF and public accountants have done their duties professionally and independently, and forwarded their audit results within the agreed scope of assignments.

8. Implementation of Risk Management and Internal Control

7.50% 3 0.225 Identification and mitigation of all Bank risks are considered effective to maintain an internally sound condition of the Bank. Procedures on the implementation of internal control are adequately comprehensive and in line with the objective, scale and complexity of the businesses of the Bank.

9. Lending and Fund Provision to Related Parties and Large Debtors

7.50% 1 0.075 BRI has written policies, systems and procedures that are updated a highly comprehensive, to ensure that decision making for funds placement is taken independently, and that funds are fully diversified in order to prevent the possibility of breaching/violating the Legal Lending Limit.

10. Transparency on the Bank’s Financial and Non-Financial Conditions, GCG Implementation Report and Internal Report

15.00% 2 0.3 BRI submits financial and non-financial information in adequate scope, in line with regulations governing dissemination of information to stakeholders that should also be readily accessible. The report on GCG has been submitted in accordance with requirement.

11. Strategic Plan 5.00% 1 0.5 The formulation and implementation of the Bank Business Plan are based on the Bank’s vision and mission statements.

Composite Score

100.00% 1.450

Description of the Composite Score

Composite Score Predicate

Composite Score < 1.5

1.5 < Composite Score < 2.5



4.5 < Composite Score < 5

Very Good

Good

Fair

Bad

Very Bad

Follow-up Plans

Component Action PlanCompletion

PeriodObstacle

Implementation of Risk Management and Internal Control

a. Improving the risk database management system

b. Developing IT and MIS that support the implementation of an integrated risk management

c. Procuring the market risk management application to support effective daily monitoring and reporting to Management.

Throughout 2008

-

Strengths and Weaknesses of the GCG Implementation

at BRI

Strengths

Commissioners and Board of Directors have strong

commitment to implement GCG in every BRI business

activities by building understanding, concerns, and

commitment of all company’s organs in all layers. To

support this condition, BRI has adopted:

a. Corporate Values (Core Values), which are

continuously implemented and developed by

means of performance improvement program in all

BRI Operating Units

b. Corporate Codes of Conduct, which have been

agreed upon to be the behaviour and action

guidelines in undertaking daily tasks

c. Policies on evaluating and completing a number

of company’s regulations for complying with GCG

principles

d. Socialization programs by related Operating Units

regarding the implementation of GCG


71.

Weaknesses

There was no significance weakness which hindered

the implementation of GCG. However, with networks

widely spread all over Indonesia, it is necessary to have

a much better coordination and adequate IT supports,

through which the quality of information presented -

either financial or non-financial - can be improved and

easily accessible by the stakeholders.

The Function of Corporate Secretary

The Corporate Secretary of a public listed company

plays a very important role. It functions as the

spokesperson of the company, determines the public

perception and image of the company.

One of the effective and efficient means of building

understanding and managing public perception of

BRI is by maintaining relationship/cooperation and

communication with the media. In 2008, there were

a number of visits and discussions involving BRI

and journalists as well as the editorial staff of several

leading national media in order to maintain and build

understanding between BRI and the press community.

In those discussions, BRI reiterated its position in

championing MSME lending.

Furthermore, especially for financial journalists, BRI

conducted the “News Tour Program” by inviting

journalists to visit BRI MSMEs’ clients and providing

training for a broader understanding of the key aspects

of banking and the capital markets.

As a publicly listed company, BRI maintains good

communication with the capital markets community

and regulator.

In maintaining and developing relationships and

communicating with the capital markets communities,

BRI participated in a number of programs, such as

road shows initiated by leading securities companies in

Jakarta, targeting major financial centres of the world in

Asia, Europe, and the United States of America.

Other initiatives taken for maintaining communications

with investors/ investment managers and analysts

include discussion and briefings on BRI’s performance

and latest business progress through regular company

visits and conference calls. Several other media were

also used in disseminating information about the

Bank to key stakeholders, such as quarterly analysts

meetings, and annual public exposes.

In addition, BRI also conducted field visits, especially

to BRI Units. This is expected to be able to provide

investors and analysts with first-hand experience with

BRI solid micro business, which in turn, will build up

their confidence in the strength of BRI business.

All of the communication programs are meant to

providing up to-date and objective information, while

responding appropriately to the investors’ concerns.

By doing so, it is expected that investors’ perception

will be built objectively, enhancing their confidence

level towards BRI future performance and business

prospects.

Currently, the Corporate Secretary of BRI is served by

Hartono Sukiman. He was born in Yogyakarta on 5

November 1957 and has been with BRI since 1985.

Appointed as the Bank’s Corporate Secretary on 1 July

2006, having previously served in various positions in

the Bank. He holds a degree in Business Economics

from University of Pembangunan Nasional, Yogyakarta

(1984).


72.

Press Releases 2008

Date Activities

8 Jan 2008 BRI donates 112 motorcycles to patrol the land borders of Indonesia.

19 Jan 2008Bank BRI Syariah launches the card-based savings product with the brand name of Tabungan BritAma Syariah (Sharia BritAma Savings) on the occasion of the Sharia Economy Festival.

23 Jan 2008 BRI and Holcim sign a cooperation for the house solution business.

4 Feb 2008 BRI inaugurates 29 office units in the BRI banking network within the BRI Medan Regional Office Group.

5 Feb 2008 BRI signs a number of Memorandum of Understanding (MOU) with a number of SOE.

6 Feb 2008BRI provides loan to PT Bosowa Energy in support of the infrastructure development program of the 2 x 125 MW power plant in Jeneponto.

13 Feb 2008BRI signs a cooperation for the KPR and KPA (house and apartment loan) facilities with the PAKUWON GROUP.

18 Feb 2008BRI signs an MOU with IPB and the Regency of Tanah Bumbu Kalteng on the Development and Revitalisation of Palm Oil Plantations through the Nuclei-Plasma Partnership Scheme.

23 Mar 2008 BRI provides 32,000 packages of staple goods to the fishermen of Jakarta, Bekasi and Karawang.

29 Mar 2008 BRI organises the a Customer Gathering event at the Marketing Galery, Gandaria Heights.

8 Apr 2008 BRI combines donation of staple goods with KUR in Indramayu and Pekalongan.

17 Apr 2008 BRI KUR in Purworejo.

19 May 2008 BRI Unit in Jakarta undertakes pilot testing of EDC (Electronic Data Capture) service.

14 Jul 2008 BRI launches a special program for rural communities, naming it the Simpedes Folks Festival.

14 Aug 2008 BRI undertakes a cooperation with the National Construction Service Development Institute.

30 Aug 2008 BRI carries out the BRI BritAma Savings Prize Draw, ”GELEGAR BRITAMA MERDEKA 1 MILYAR”.

18 Sep 2008 BRI organises a fasting break for 2,500 orphans of Jabodetabek.

22 Sep 2008BRI sends 3,000 customers of KUPEDES & SIMPEDES on their home-coming trip during the Ied Celebration.

17 Oct 2008 BRI donates 20 motorcycles to West Java Regional Police Force.

25 Oct 2008 BRI organises the BRI SHOPPING PRIZES event.

30 Oct 2008 BRI redeems its Subordinate Notes amounting to US$150,000,000.

31 Oct 2008 BRI publishes its third-quarter financial performance report.

12 Nov 2008 BRI provides aid for the development of the Islamic School Ummul Quro in Bogor.

16 Nov 2008 BRI launches the BritAma Untung Beliung Lucky Draw Program for the 2008-2009 period.

24 Nov 2008BRI strengthens the synergy in the disbursement of KPR/KPA for housing, apartments, shop houses and home-office projects that are developed by Perum Perumnas.

27 Nov 2008BRI organises the prize draw for the first period draw of the BritAma Untung Beliung Lucky Draw in 2008-2009.

11 Dec 2008BRI signs an MoU on the benefits of banking services with the Indonesian Association of Young Entrepreneurs (HIPMI).

16 Dec 2008 BRI celebrates its 113th anniversary.

26 Dec 2008BRI covers the medical expenses of in-patients in the economy wards of 30 General Hospitals throughout Indonesia.


73.

Month Report

Jan Information on media news regarding the plan on the sale of shares

Mar BRI’s Financial Report for Fourth-Quarter 2007

Apr

Announcement of BRI GMS

Invitation to BRI GMS

Revision on the Agenda of BRI GMS

Financial Report for First-Quarter 2008

May

Amendment of invitation to BRI GMS

Summary of spin-off plan

Report on the Resolutions of BRI GMS

Notice of schedule and means of Dividends payment

Jun Announcement of cash dividends per share

Jul Financial Report for Second-Quarter 2008

Aug Amendment of BRI’s Articles of Association

Sep Information on media news regarding acquisition of Bukopin

Oct Financial Report for Third-Quarter 2008

Nov

Material disclosure on the redemption of BRI’s US$150 million Subordinated Notes

Plan for Public Expose

Report on the Outcome of Public Expose

Corespondence with the Indonesia Stock Exchange in 2008


74.

Ele

ctro

nic

Ban

king

Ser

vice

BRI provides electronic banking service that as at year-end 2008 comprised of 1,796 proprietary BRI ATM locations

and more than 35,000 other ATMs from the ATM Link, ATM Bersama, ATM Prima dan BankCard networks. In addition,

BRI also provides the Electronic Kiosks network of Cash Deposit Machines and Electronic Data Capture. The electronic

banking service of BRI also includes the 24-hour phone banking and SMS banking services.


75.


76.

MICRO, SMALL AND MEDIUM SIZED BUSINESS

Business Target Achievements in 2008

The Micro, Small and Medium Enterprise

segment forms the core strength of BRI. This

strength rests in the scale of BRI’s business

which is substantially large. BRI’s business

strategy in the Micro, Small and Medium Sized

Enterprise (MSME) segment is to continue to

support its scale of business, expanding a

service reach capable of penetrating remote

corners of the country, with greater depth

particularly to highly populated areas - a

vertical and horizontal development by BRI

that is made possible by its economies of

scale.

Micro Business

The micro sector may serve as one of the

pillars of the national economy that has

proven to be resilient in the face of global

economic fluctuations. Viewed from this

perspective, BRI plays an important role in

supporting the national economy in facing the

global economic recession that is currently

threatening global economic growth.

BRI continues efforts to defend its position

as a market leader in the micro banking

business as well as serving as a micro-

finance consultant that is widely recognized

internationally. BRI develops savings and

loan products that are in line with the specific

needs of micro-entrepreneurs and customers

from all walks of life.

Loan Products

Micro Credit is mainly comprised of the

Kupedes loan products with limit of up to

Rp100 million, and are divided into three

loan categories: working capital, fixed assets

financing and salary-based loans. BRI has

enhanced the features of Kupedes that

now include the Kupedes Housing Solution


77.

(in cooperation with Holcim), Kupedes for

Indonesian Migrant Workers and micro-scale

Kupedes. In addition to Kupedes, micro loans

also include the micro KUR (People Business

Credit) with limits of up to Rp5 million that is

progressing encouragingly.

Description 2008 2007 %

Outstanding (Rp billion)

Total Debtor

42,756

4,460,580

32,602

3,515,812

31.15

26.87

the stipulation of the Debtor Information

System (SID) of Bank Indonesia, and other

new customer credit criteria governing

Micro KUR

- Electronic Data Capture (EDC)

The EDC is used to support collection of

payments and increase service quality

provided by BRI Units. EDC will facilitate

transactions without requiring customers

to visit BRI unit offices.

Savings Product

Currently BRI’s micro-business savings

product is the BRI Simpedes savings, and

its variant products that target specific

customer groups comprising of Simpedes

for Indonesian Migrant Workers (TKI),

Simpedes for Pensioners; and Simpedes for

army personnel (TNI AD). Aside from savings

product, BRI also offers demand deposits and

time deposits.

Simpedes is mainly targeted at entrepreneurs,

workers and housewives from the middle- and

low-income group living in rural and suburban

areas. During the last five years, Simpedes

have grown on average by 21.04% per year

from Rp26.22 trillion in 2004 to Rp56.28 trillion

in 2008. As of 31 December 2008, the total

number of Simpedes customers reached more

than 18 million, contributing significantly to

BRI’s fee-based income.

The success of Simpedes is attributable to

its relevant product features that are suitable

for its target groups, as well as to the active

marketing and promotional programs such

as the Simpedes Folks Festival, and the

development of the Simpedes in cooperation

with TKI and TNI-AD.

Micro loans have continued to grow in 2008,

as follows:

This growth has also been supported by the

rapid growth of the Micro KUR throughout

2008.

A variety of initiatives with promising growth

potential have continuously been rolled out by

BRI over the course of 2008. Among others

are the following:

- Micro KUR

Through the strategic development of

Micro KUR, BRI Unit can now market loan

with a ceiling of Rp5 million more broadly

and flexibly, because 70% of the loan

amount is guaranteed by credit insurance

from PT Askrindo and PT Jamkrindo.

Debtors of these micro credits are

embryos that could develop into debtors

of the Kupedes with higher ceiling, in line

with the growth of their businesses, and

thereby broadening the market potential

for Kupedes.

- Micro-Scale Kupedes (KSM)

Micro-scale Kupedes are intended to

serve debtors who wish to obtain credit

below Rp5 million but are constrained by


78.

and BriGuna Purna, as loans for both active and retired

individuals, respectively.

During 2008 BRI developed several market penetrating

products which include:

- Construction Loan for the BTS Tower

The telecommunications sector has a high growth

potential for BRI to provide financing in the

construction of BTS towers as well as expansion

of BTS networks that can be leased out to several

cellular telecommunications operators.

- Increased competitiveness of BRIGuna

In order to increase the competitiveness of

BRIGuna loan, BRI regularly evaluates customer

needs, changes in the competition landscape as

well as in economic conditions.

Development Plans for Micro Business

The plan to develop micro savings and loan products

especially focuses on efforts to capitalize on growth

opportunities. For this BRI will endeavour to maximize

the advantages of the BRI Unit networks in order to

generate new customers.

On the funding side, the Simpedes products will

continue to be developed through several programs,

especially through the development of card-based

Simpedes which uses a private label card; development

of the Simpedes Student programs and Simpedes

Savings Plan; and the promotional programs of the

Simpedes Prize Draw and Simpedes Folks Festival.

Retail/Small Business

BRI continues to make efforts to develop its retail

banking and products in order to strengthen the Bank’s

position and market share in MSME banking which

continues to be very promising.

In order to anticipate and accommodate challenges

and evolving business conditions so that retail loan is

able to grow and expand in line with set targets, BRI

continues to enhance product policies, strategies and

marketing programs, as well as the development and

monitoring of the loan portfolio.

Retail loans encompass Small Commercial Loans up

to Rp5 billion and Consumer Loans. At present, Small

Commercial Loan comprises of working capital and

fixed assets financing, express loan, construction loan

under the BO1 framework, PPTKI (migrant workers

agency) loan, franchise loan, warehouse receipt loan,

petrol station loan, and base transceiver station (BTS)

loan. Whereas Consumer Loan includes BriGuna Karya


79.

Description 2006 2007 2008

Commercial Loan

Consumer Loan

- BRIGuna Karya

- BRIGuna Purna

21,355

15,068

11,945

3,123

25,877

17,651

14,214

3,381

35,322

23,998

19,395

4,603

(in Rp billion)

Program loans are often disbursed in the form of

interest-subsidized loan from the Government as well

as commercial program loans. The source of funds are

supplied by BRI or channelled from the government,

in which the associated risks are borne by the fund

owners. The types of Program Loans include among

others:

People Business Credit (KUR)

Retail KUR constitutes working capital and/or

investment loan with ceilings ranging from Rp5 million

to Rp500 million. The facilities are given to small

businesses and cooperatives that are productive and

feasible, yet not bankable. With the loan guarantees

provided by Askrindo and Jamkrindo, the Retail KUR

becomes a Program Loan that can fulfil the needs of

the small business and cooperatives segment.

Loans for Members of Primary Cooperatives (KKPA)

The KKPA Loan includes working capital and

investment loans that are provided to members of

primary cooperatives to continually finance productive

businesses in partnership with nucleus companies

(patron). KKPA financing is funded by BRI as well as PT

Permodalan Nasional Madani (PNM) and Government

Notes.

Loans for the Development of Bio Fuels and

Revitalization of Plantations (KPEN-RP)

Investment loans to accelerate the development

of small-holder plantations through expansion,

rejuvenation and rehabilitation of the plantation has

been supported by government subsidies on interest

payments. This may be executed with or without

involving partner companies in developing and

managing the plantations and marketing the produce.

Efforts are also being made to increase the productivity

of these plantations in order to produce the raw

- Biometrics fingerprint technology

BRI and PT Taspen have signed a Working

Agreement for the remittance of pension pay

through BRI in the amount of approximately Rp1

trillion per month. To ensure that pension payments

are appropriately made to the rightful recipient, BRI

uses the latest Biometrics technology that scans

client fingerprints.

- Transactions in connection with Operating

Bank/BO1

In connection with the appointment of BRI as the

Operating Bank I for the Government Treasury

Single Account, BRI provides a facility scheme

for Construction Working Capital with the BO1

proceeds as the source of repayment, in addition

to Bank Guarantees against the pledged BO1

proceeds.

From its successful marketing, BRI was able to post

significant Retail Loan growth in 2008, as can be seen

from the following table.

Program Business

The Program Loan is a loan that is channelled to

productive projects for either working capital or

investment loans in support of Government programs,

as well as in the framework of providing banking

access to MSME, and in support of the food security

program, revitalization of plantations and the supply of

raw materials for bio-fuel.


80.

material for bio-fuel as a source of alternative energy.

Especially for rubber and cocoa, the KPEN-RP uses

BRI commercial funds on a non-partnership basis,

which is directly served by BRI branch/sub-branch

offices.

Loans to Small Business Group (KKUK)

Loans to Small Business Group include working capital

and or investment loans provided to small businesses

that have previously obtained loans from BRI in the

form of P4K/ KPKU/ KPTTG-Taskin/ KPKM, and

have maintained a good track record for repayment.

KKUK is also provided to small businesses that had

never received loans from BRI but are productive and

require additional capital to grow the business further.

The source of funds for KKUK originates from BRI

commercial funds.

Small and Micro Business Loans – Government

Notes (KUMK-SUP)

KUMK-SUP is a loan that is funded by the Government

Notes (SUP). Since 2005 BRI has obtained funds

allocated by SUP in the amount of Rp500 billion, and

must repay the fund in five bi-annual instalments.

Presently the outstanding balance of the funds is

Rp200 billion.

Loans for Food and Energy Security (KKPE)

KKPE includes investment or working capital loans

that are provided to support the implementation of the

National Food Security Program, and the Development

of Plantations for Bio-fuel Program. The source of funds

for KKPE is BRI commercial funds with an interest

subsidy from the Government.

Loans for the Economic Empowerment of Coastal

Communities (PEMP)

The PEMP Loan is the outcome of the cooperation

between BRI and the Ministry of Maritime and Fisheries.

The loan is provided to cooperatives of coastal

communities in order to support the working capital for

the savings and loans program of the cooperatives.


81.

Sharia Business Unit

The Sharia Business Unit began with the operation

of two branch offices of BRI Syariah in Jakarta and

Serang on 14 April 2002. By year-end 2008, BRI

Sharia had expanded to 27 BRI Sharia branch offices

and 18 BRI Sharia sub-branch offices that are spread

throughout Indonesia.

In anticipation of the development of the Sharia banking

business in the future, to enhance its performance and

competitiveness in the sharia banking market, and in

recognition of the need to manage the sharia banking

business in a more focused light, the Management of

BRI has resolved to spin off the BRI Sharia Business

Unit (BRI-SBU). Through the spin-off, BRI-SBU will be

merged into Bank Sharia BRI (BSB), which was formed

by converting Bank Jasa Arta (BJA), which BRI had

acquired previously, to become a Sharia Bank.

The said conversion has already obtained the permit

from Bank Indonesia on 16 October 2008. Henceforth

BSB will become a wholly-owned subsidiary of BRI.

Furthermore it is hoped BSB can grow more rapidly,

and make its contribution to the solid growth of sharia

banking in Indonesia.

Going forward, in line with its vision to become a

leading modern Sharia retail bank, BSB will create

positive synergies with BRI by capitalizing on the

extensive network of BRI as office channelling, to

develop its business by focusing on the micro, small

and medium-sized enterprise segment.


82.

CONSUMER BUSINESS

The Consumer Business segment provides BRI with

growth opportunities by capitalising on BRI’s extensive

network. BRI focuses on penetration of consumer

banking products in urban areas.

BRI’s business strategy in the consumer segment is to

penetrate urban centres throughout Indonesia, without

neglecting the strength and commitment of BRI in rural

areas. In 2008, penetration to urban areas was marked

by an increase in BRI presence in 14 major cities:

Jakarta, Surabaya, Medan, Yogyakarta, Semarang,

Bandung, Palembang, Balikpapan, Banjarmasin,

Makassar, Manado, Denpasar, Ambon and Jayapura.

The penetration of these large cities is complemented

by an ongoing strategy to deliver banking services to

other residential areas or satellite towns of major cities.

BRI implements a strategy of expanding both vertically

and horizontally in order to reach markets from rural

areas to highly populated satellite towns and the

commercial centres of metropolitan cities.

Consumer lending represents a banking segment that

has a high level of growth in Indonesia, in connection

with the continuing growth of the middle-class income

population that has given rise to the formation of a

consumer class with a lifestyle and purchasing habit

that begets consumer lending on an ever growing

scale.

Loan Products

Loan products for consumers are comprised of credit

cards, multi-purpose loan (KMG), home mortgage loan

(KPR) and motor-vehicle loan (KKB).

The total sales volume of BRI credit cards increased

by 90% to Rp1.12 trillion, while total outstanding

credit rose from Rp260.14 billion to Rp396.57 billion.

Whereas KPR and KKB increased by 67.56% and

28.65% to Rp3.01 trillion and Rp449.00 billion,

respectively.


83.

Description Dec 2008 Dec 2007Growth

(%)

Number of Credit Cards

Sales Volume (Rp billion)

Credit Outstanding (Rp billion)

Fee Income (Rp billion )

207,090

1,120.00

427.00

44.22

112,614

592.67

260.30

21.30

83.57

89.42

64.11

107.61

In supporting the development of the consumer

business in 2008, BRI opened 13 consumer loan

centres in six large cities across Indonesia. BRI will

continue to open more of these centres. In addition

to broadening its network of consumer loan centres,

BRI has also developed product features that are

attractively packaged and well-coordinated with

business partners (developers, motor-vehicle dealers,

and insurance) such as the lowering of down payments

for credit purchases, the maintenance of competitive

interest rates and more flexible options on instalment

payments.

BRI Credit Card

BRI Credit Cards - Standard and Gold - are available

to all BRI customers with the brand positioning of

“Family Life Style” and the brand tag line of “Lighten

Your Life”. Additionally BRI offers the Platinum Card for

select BRI customers, which uses the brand positioning

“Indonesia Heritage” and the brand tag line “For Your

Lifetime Achievement”.

BRI Credit Card Performance

Home Mortgage Loan (KPR)

KPR is a loan facility for the purchase of houses,

apartments, flats, home offices and shop-front houses;

new as well as old. In addition to the purchase of

houses, KPR BRI can also be provided for renovation

as well as construction of homes. BRI’s KPR comprises

of the commercial KPR and the government subsidised

KPR. The subsidised KPR is marketed to support the

Government’s program in providing affordable housing.

KPR can be provided up to Rp5 billion with a term

of up to 20 years and a minimum deposit of 20% of

the value of the property. In line with the continuing

development of the KPR line, total outstanding KPR

debt has continued to increase, reaching over Rp3.01

trillion by 31 December 2008.

Motor-Vehicle Loans (KKB)

KKB is a loan for the purchase of new and used motor

vehicles comprising of both cars and motorcycles.

The down payment for this loan starts from 10% of

the purchase value with a maximum term of five years.

KKB loan is divided into two types: KKB Direct which

is direct financing to end users (whether through a

reference from the dealers or involving the walk-in

customers themselves); and KKP Joint Financing which

is financing to end users that is channelled through a

multi-finance company. Total KKB outstanding as of

31 December 2008 was Rp449.00 billion.

Multi-purpose Loan (KMG)

KMG is a loan that meets the needs of consumers that

cannot be served with KPR or KKB. The KMG loan

has a range from Rp100 million to Rp1 billion with a

maximum tenor of 10 years. As at year-end 2008, the

total KMG outstanding amounted to Rp417.55 billion.

The increasing number of BRI credit card holders is due

to the success of the marketing activities undertaken

by BRI business units through cross selling programs

to customers, telemarketing, direct sales to new

customers as well as an internal marketing program.

The increasing volume of sales and outstanding loans

are supported by credit card activation programs,

promotional initiatives which match customer

behaviour; as well as an increase in the total number of

card holders. This is also supported by an improvement

in service quality that increases customer satisfaction.


84.

Funding Product

The consumer segment provides significant

contributions for the development of third-party funds.

Supported by financial products that are designed

specifically for attracting middle to upper class, the

savings product BritAma represents BRI’s response

to generate third-party funds in large cities that are

beyond the reach of BRI’s Simpedes funding program.

BRI initiatives in the development of the savings

product, BritAma, have produced encouraging results

over the years. During the past 5 years, the averaged

annual growth of BritAma was 20.66%, growing from

Rp14.46 trillion in 2004 to Rp30.65 trillion as at year-

end 2008. In 2008 alone, BritAma grew by 23.18% or

Rp5.77 trillion. This was due to a number of reasons

including the success of the marketing program

“Untung Beliung BritAma” (BritAma’s Winds of Fortune)

that offered a Lucky Draw Prize including more than

100 cars and packets of cash that were awarded

at draws in 14 major cities that the BRI Consumer

Banking programs have specifically targeted.

Of particular note to BRI BritAma savings was the

growth of the average balance of savings per customer,

which increased from month to month indicating a

high response on the part of the public as well as

the success of BRI’s third-party funding marketing

communications program in general.

In terms of other savings products, BRI also has a

demand and time deposits. The total amount of funds

generated by demand deposit as at year-end 2008

was Rp39.92 trillion that comprised of both individual

and institutional accounts, which increased by 7.45%

compared to that of year-end 2007. Meanwhile, time

deposit reached Rp73.54 trillion, an increase of 36.49%

compared to that of the same period last year.

Priority Banking

The goal of the ‘BRI Prioritas’ service is to increase

customer retention and loyalty, volume of funding,

fee-based income through wealth management

activities such as investment advisories, pension funds,

bancassurance; and enhancing the image of BRI as

the “Premiere Bank that serves all layers of society”.

To date BRI already has a customer base for ‘BRI

Prioritas’ that comprises the mass affluent market

segment and including more than 5,000 customers.

In this initial stage, ‘BRI Prioritas’ provides an exclusive,

integrated “One-Stop Service” that offers the full range

of premium banking products and services that can

satisfy customers with a minimum savings of Rp500

million. ‘BRI Prioritas’ customers obtain a ‘BRI Prioritas’

Card as an access key to the “One Stop Service” at

‘BRI Prioritas’ Service Lounge. Furthermore the Card

functions as an ATM/Debit Card for BRI.

The initial concept was primarily aimed to support

Customer Relationship Management and Cross Selling

that can facilitate customers across all banking services

that will ultimately increase the wallet share of each

individual customer of BRI. Through the ‘BRI Prioritas’,

it is hoped that the Bank’s current customers who

are affluent/high-net-worth individuals (HNI), but have

not obtained priority banking service, will remain loyal

to BRI and take the opportunity to bank with ‘BRI

Prioritas’, and refer their circles to ‘BRI Prioritas’ as

well.

E-Banking BRI

As at year-end 2008, the range of electronic banking

channels that had already been made available to

BRI customers included ATM, Phone Banking, SMS

Banking, Kiosk, Mini ATM and Cash Deposit Machine

(CDM). To enhance the Bank’s competitiveness in

e-Banking, BRI continues to develop other e-Banking

channels including Internet Banking, Prepaid Card

(Electronic Money), Mobile Banking GPRS and Mobile

Services.


85.

Marketing Communications

The successful selling of BRI’s banking products and

services is a direct result of the hard work and effective

marketing strategies in order to achieve the business

targets.

BRI’s marketing communications program aims to

attend the maximum level of awareness for BRI’s brand

as a universal bank in the broadest sense, and promote

BRI’s banking products and services to their respective

target markets.

In addition to building a strong customer awareness, an

aggressive marketing communications programs also

supports BRI’s brand image by creating a blueprint for

BRI’s consumer products and services that are applied

consistently to create a clear positioning and perceived

value for these products and services. The marketing

communications program is aimed at increasing new

accounts as well as that of customer retention and

loyalty toward BRI product brands.

Development Plan

The main target for consumer credit business is to

selectively increase competitiveness. The strategy is

applied by focusing on the middle-segment markets

in the 14 major cities, and by developing features and

product innovation as well as undertake joint promotion

and cooperation with third parties. All this has been

undertaken with the goal to become the “five largest

consumer loan providers in Indonesia” in the near

future.

Another development strategy of BRI is to enhance

business cooperation, strengthen relationships, and

undertake joint promotions with business partners such

as property developers, insurance companies, as well

as sole distributors and dealers of various automotive

brands.


86.

COMMERCIAL BUSINESS

The target market for providing loans to commercial

businesses comprises of loans for businesses within

the agribusiness sector and those which lie outside

of the agribusiness sector for privately owned

corporations. In terms of size, credit for commercial

businesses has a nominal value above Rp50 billion up

to the legal lending limit of BRI.

As part of its commitment to support the development

of Indonesia’s agricultural sector, BRI has developed

a special agribusiness loan product for individuals or

corporations that are engaged in agribusiness in the

broadest sense, from on-farm to off-farm activities

that encompass both upstream and downstream

businesses in agriculture, plantation, forestry, animal-

husbandry, fisheries, trade support and other services

related to agribusiness.

In developing the agribusiness sector since 2006, BRI

has provided a credit scheme for the Development of

Bio-fuel Energy and Plantation Revitalisation (KPEN-

RP). The credit is given to farmers (via cooperatives)

or through the nuclei-company (in the so-called

nuclei-plasma program) to support the development of

alternative energy projects and plantation revitalization.

Commodities that are financed by KPEN-RP scheme

are palm oil, cocoa and rubber.

The interest rate of the KPEN-RP credit is commercial-

rate interest, however during the period prior to the

harvest interest on the credit will be subsidized by the

Government; enabling farmers to pay interest rate on

their borrowings of 10%.


87.

While growth opportunities in the agribusiness sector

continue to be promising, BRI also considers its role in

this sector as part of the Bank’s efforts to contribute to

the success of the national food security program. This

program is not only strategic to the national interest,

but is also central to BRI’s business sustainability. A

successful national food security program also entails

the success of millions of farmers in Indonesia, the

majority of who are customers of BRI, which in turn

will ensure the continuing viability of credits that have

disbursed to the agribusiness sector.

Financing outside of agribusiness sector for private

companies comprises of the manufacturing, mining,

trade and services. One of the business developments

that has been undertaken by BRI is to participate in

credit syndication programs to finance infrastructure

projects, including toll roads and power plants.

The main considerations of BRI to enter into

infrastructure projects is to support the pace of

economic growth, to generate the trickle-down-effect

benefits to other sectors of the economy, and to

provide job opportunities which in turn will support the

growth of the banking sector itself.

Loan Products

There are a whole range of loans that are suitable for

financing commercial businesses, whether in the form

of direct or indirect (contingent) credit that includes:

1. Loan for Working Capital

2. Loan for Export Working Capital

3. Investment Loan

4. Loan for Import Working Capital

5. Loan for Construction Capital

6. Import Guarantee Facility (PJI)

7. Standby Letter of Credit

8. Bank Guarantee


88.

INSTITUTIONAL BUSINESS

To support BRI’s business with government and private

institutions, the Bank has developed new business

opportunities in several strategic sectors comprising

of both the agribusiness and non-agribusiness sectors

including infrastructure, power, telecommunications,

fertilizer, education, and pension fund; and forged

cooperation with government agencies at both central

and regional levels to monitor institutions that constitute

a business opportunity for BRI to provide either lending

or funding services.

In order to support the aforementioned businesses,

in 2007, the Directorate for Institutional Business was

established with the aim of enhancing both funding and

lending to State Owned Enterprises (SOEs), private

sector companies and government agencies.

In an effort to capture available funds and increase

fee-based income from existing customers in the

institutional banking business, BRI specifically offers

products and plans related to financial management

that are custom-made to suit the characteristics of the

customer’s financial transactions.

Loan Products,

Since 2008, BRI has provided credit facilities to several

SOEs to help finance institutions and develop projects,

through a range of facilities including: Cash Loans

(Working Capital for Construction, Import/Export,

Investment and Fixed Assets) and Non-Cash Loans

(L/C, Bank Guarantees, Domestic L/C and Stand

by Letters of Credit) to several companies already

operating in the farming industries, sugar plantation,

fertilizer, infrastructure, electricity, transportation, fuel

and other productive industry sectors.


89.

Currently there are 46 SOEs and their subsidiaries that

have become BRI customers. Growth of Institutional/

SOE financing in 2008 was supported by the

application of several strategies which include, among

others:

- Approaching SOEs that are already customers

to maximize the benefits that they derive from BRI

services;

- Establishing linkages between SOE that are

customers of BRI with SOEs that are not yet

customers. Through this, BRI hopes to expand

its banking services to other SOEs and their

subsidiaries which have not yet become customers

of the Bank so that they may use its banking

services;

- Initiating direct approaches to SOEs that are not

yet customers of BRI, especially those which have

excellent business prospects;

- Organizing seminars, gatherings and meetings with

the management of SOEs and their subsidiaries in

order to present a clear picture of the benefits and

convenience of using the banking services provided

by BRI;

- Coordinating services between and among BRI

regional and branch offices throughout Indonesia

to maximize the services provided to the SOEs,

in consideration of the fact that these SOEs often

maintain offices and operations that are spread

across the country as well.

Funding Products

Institutional Business has become a source of funding

for BRI in the forms of Demand Deposits and Time

Deposits which are obtained from the deposits of

several government departments and agencies, state

and regional companies, public and private institutions,

and pension funds.

In addition, BRI also provides cash management

services, whether through special cooperation and

application of a Cash Management System for several

SOEs that include PLN, Pertamina, Angkasapura I and

II, Bulog, Pegadaian, Pusri, Telkom and Telkomsel as

well as Taspen. Cooperation with SOEs is also done

through the provisioning of other bank services to

obtain fee-based income for example in the form of

salary-based credit, and bills payment for electricity and

telephone.

Development Plan

The strategy deployed to develop BRI’s Institutional

Business include among others:

- The expansion of credit specific to the needs

of SOE sectors such as infrastructure, strategic

industries which boost development in the real

sector, pharmaceuticals and mining;

- Improving the links with SOE that have already

become customers to optimise the use of BRI’s

banking services.

- Cooperation in fund management for SOEs by

implementing Cash Management Systems and

cooperation on other financial operations such

as purchase of fuel from Pertamina, purchase

of fertilizers, systems for bill payments such as

telephone and cellular telephone and others.


90.

INTERNATIONAL BUSINESS AND TREASURY

Treasury plays an important role in safeguarding

liquidity, optimising interest income as well as

maintaining a balance between assets and liabilities.

In addition to that, Treasury has also become a source

of fee-based income from several Treasury-related

services.

Treasury plays a strategic role in managing the position

of the Bank’s assets and liabilities. This business

unit continues to make efforts to increase income by

managing the positions of its banking book and trading

book through effective cooperation with international

and domestic counter parties.

In 2008, BRI demonstrated its existence in the

Indonesian money markets, as a major player in

financial transactions through the Money Market,

Foreign Exchange transactions, and was appointed

by the Ministry of Finance of RI as a Primary Dealer for

Government Treasury Bills (SUN). BRI has consistently

fulfilled its responsibility as a Primary Dealer in spite of

the ongoing global financial crisis.

Additionally, BRI Treasury, through its dealing room

carry out transactions in support of business projects

from other Operating Units in BRI, such as the servicing

of foreign currency transactions through Spot, TOM

(Tomorrow), TOD (Today), as well as Swap and

Forward transactions for the Bank’s main customers

engaged in import and export. During 2008, the

total nominal value of foreign exchange transactions

negotiated on behalf of customers amounted to

US$9.8 billion from more than 8,000 recorded

transactions.

Other banking services provided by treasury:

• Trustee Services

BRI may function as a trustee to represent the

interest of bondholders both inside and outside of a

court of law, overseeing the implementation of the

rights of bondholders in accordance with terms of

the bonds as stated in the trusteeship agreement

as well as prevailing laws and regulations.


91.


Number of Issuers

Total Bonds Value (Rp billion)

Fee Income (Rp billion)

9

13,699

2.71

13

14,039

3.88

The year 2008 witnessed a decline in performance due

to the postponement of several bond issues and delays

on payments of maturing bonds.

• Securities Sales Agency

BRI already obtained its permit to act as a Selling

Agent for mutual funds as a Collective Investment

Contract. Currently BRI has been appointed as

the sales agent for seven mutual funds through

deals with three Investment Managers. Bank BRI

has also been appointed as the sales agent for

the Indonesia Retail Bonds (ORI) by relying on the

Bank’s nationwide branch network. Fee income

from serving as a brokerage for ORI in 2008

amounted to Rp1.99 billion.

• Custodial Services

By the end of December 2008 the total assets

that were managed by BRI custodial services were

Rp13.4 trillion, with fees of Rp7.2 billion through

a client base of 42 institutional customers which

comprised mainly of pension funds, foundations,

insurance companies, mutual funds and other

institutions.

• Financial Institutions for Pension Funds (DPLK)

BRI established its Financial Institutions for Pension

Funds (DPLK) to provide management services

for participating Defined Contribution Pension

Plan for individual and group participants. DPLK

BRI started its operations on 9 January 2006 and

currently manages the pension plan for more than

39,000 participants with total assets of Rp887.67

billion, generating income of Rp6.54 billion. DPLK

BRI has four types of investment choices which

are Money Market, Fixed Income, Equity and a

combination of the above.

International Banking Services

Export and Import Transactions

The global financial crisis continues to influence

international business conditions. The value of export

transactions through BRI in 2008 was US$638.50

million, a decline of 18.08% compared with US$779.43

million recorded in 2007. The value of contributions

by small and medium industry sector to BRI’s export

transactions in 2008 indicate the Company’s success

in actively empowering BRI branch offices in several

areas that actively support export projects.

During 2008, BRI realized import transactions

of US$1,415.86 million, a decrease of 21.73%

compared to 2007 when import transactions reached

US$1,808.92 million.

Remittance

BRI gives attention to the development of international

remittance services that continue to increase in line

with growing number of Indonesian Migrant Workers

from year to year. International remittance transactions

over the course of 2008 were US$15.83 billion or an

increase of 47.85% from the previous year amount of

US$10.71 billion.

Aside from serving export/import transactions and

international remittances, BRI conducts various

specialized work programs aim to increase national

exports, especially those SMEs. Several programs that

were implemented in 2008, including:

- Efforts to support small and medium-sized

businesses that are export-oriented.

- Standardization of banking services and the early

warning system.

- Increase and broaden the scope of cooperation

with international correspondent banks in order to

enhance BRI’s trade finance services.

Trustee Services provided in 2008 were:


92.

Ove

r 58

,000

Per

sonn

el -

At Y

our

Ser

vice

More than 58,000 personnel of BRI are ready to serve roughly 30 million customers who are spread into the far corners

of Indonesia. BRI places a strong emphasis on personnel development and training. Faced with challenges and market

competition, BRI’s personnel are being moulded to become human capital with a great capacity to learn, a strong

desire for change, an innovative spirit, and the impetus for creativity. More importantly, the enhancement of knowledge

and skills among personnel is integral to adopting prudential banking principles and holistic risk management.


93.


94.

Risk Management

I. Overview

1. Risk Management Organization

In managing risks, BRI has established an

Integrated and comprehensive risk management

system, the implementation of which constitutes

the commitment of the Board of Directors of BRI

to mitigate the potential of loss to its minimum.

Risk management has a significant role in the

management of the Bank in order to achieve its

business goals through two aspects, namely the

protection of capital and optimization of the risk

and return correlation and balance.

BRI undertakes risk management by applying three

lines of defence, which are:

1. Risk Taking Unit, serving as the first line of

defence, is the unit responsible for internal

control function that maintains the quality of

output and business process in accordance

with the Bank’s prevailing policies and

procedures. The Risk Taking Unit takes

direct control of the inherent risks in order to

minimize the residual risks.

2. Risk Management Unit, serving as the second

line of defence, is responsible for managing

the risk to ensure that total risk exposure will

not exceed the Bank’s capital to cover such

risks. The management of risks is undertaken

through the setting and monitoring of risk

limits.

3. Internal Audit, as the third line of defence, is

responsible for ensuring the effectiveness of

internal control at both the risk taking units

and risk management units.

Responsibilities and Authorities of the Board of

Commissioners of BRI.

BRI Board of Commissioners

The responsibilities of the Board of Commissioners

with respect to risk management covers among

other things: endorsing and evaluating the General

Policy on Risk Management of the Bank as well as

overseeing the Board of Directors’ accountability

on the implementation of risk management policy

in accordance with prevailing regulations.

Responsibilities and Authorities of the Board of

Directors of BRI.

The Board of Directors is responsible for

establishing a comprehensive written policy and


95.

strategy on risk management that is in accordance

with prevailing rules, including the setting and

approval of risk limits, and being responsible for the

overall risk management policy and risk exposures

of the Bank.

2. Risk Management Committee

In managing the risk exposures of the Bank and

establishing the Bank’s Risk Management System,

the Board of Directors is assisted by the Risk

Management Committee (RMC), which represents

the highest hierarchy in BRI’s Risk Management

System. In addition to the RMC, there are three

sub-RMC namely the Credit Risk Management

Committee (CRMC), Operational Risk Management

Committee (ORMC) and Market Risk Management

Committee (MRMC), all of which were formed

to resolve risk issues that pertain to credit risk,

market risk, operational risk, and other risks. RCM

meetings are convened at least once every quarter.

II. Implementation of Risk Management

BRI evaluates its aggregate risks through a

self-assessment process that produces a Risk

Profile, consisting of the Inherent Risks (risks that

are inherently attached to the Bank’s activities prior

to control implementation) and the Risk Control

System (control over the inherent risks) on eight

types of risks that are inherent on seven functional

activities (credit, treasury, trade finance, funding,

operations and services, IT system, and support

functions).

BRI overall risk profiles for 2008 was Low with a

score ranging from 1.4 to 1.5. On a composite

basis, both the inherent risk and risk control factors

show levels of Low to Moderate, whereas the

overall risks facing BRI’s business in 2008 was

Low, with a stable trend.

The Risk Profile Trends on BRI in 2008 were as follows:

1. Credit Risk Management

Credit Risk is a risk arising from the failure of the

counter party to meet its obligation. The source

of credit risk may come from a variety of activities

of the Bank such as credit (or funding thereof),

treasury, investment, and trade finance in both the

Bank’s trading book and banking book.

For risk-weighted capital, credit risk constitutes the

largest component of risk as lending is the largest

activity of BRI. Credit risk exposures on products

and/or/receivables comprise of lending and

non-lending activities (placement, investment, and

other forms of payables or assets such as in-bank

and external receivables).

Based on the self-assessment of Risk Profile in

2008, the average aggregate inherent risk was

Low with average aggregate risk for risk control

system found to be Strong. Inherent aggregate

risks on credit were measured from several

functional parameters pertaining to aggregate risk

is monitored through some activities parameters of

credit, trade finance, and treasury.

High Risk

Credit Market Liquidity Operational Legal Reputational Compliance Strategic

Q I-2008 Q II-2008 Q III-2008 Q IV-2008


96.

Preparation for Basel II Implementation

BRI has formed a Basel II Implementation

Coordinating Structure that involves all related

Operating Units. This Structure is chaired by the

Head of Risk Management Division. Mindful of the

complexity and the huge credit-risk exposure, BRI

has also formed the Basel II Credit Risk Project

Office Team, which is responsible for developing

and implementing a credit risk management using

the Standard and Internal approaches.

The Monitoring and Mitigation of Credit Risks

To maintain the quality of its credit portfolio, BRI

adheres to the principles of prudence in its lending

practices. The key principles in managing credit

risk include among other things the segregation of

the Relationship Management from the Credit Risk

Management, the implementation of the four eyes

principle, application of a risk scoring system, and

the separation of nonperforming loan workouts.

Moreover, the lending practice has to adhere fully

to proven and sound credit procedures.

In order to fully implement the functions of risk

management on credit risks, BRI has prepared

the framework of credit risk management and

governance involving all related parties (Board of

Commissioners, Board of Directors, risk taking

units, Internal Audit, Risk Management Division),

by giving due attention to the basic values of the

Bank, infrastructure, as well as supporting factors

and the Business Plan of the Bank, so that all

parties can discharge their respective roles and

responsibilities towards achieving the Bank’s goals.

BRI has formulated the Loan Portfolio Guideline

that is aimed at helping BRI achieve the ideal credit

portfolio that offers the highest possible returns

with the least associated risks.

Credit risk that arises from lending/financing

activities that constitute BRI’s main business

activity is monitored through several parameters

including Non Performing Loans (NPLs), credit

concentration on 25 largest borrowers, and loss

provisioning ratio. Credit risk from trade finance

activities is monitored through several parameters

such as NPLs on Export Notes, NPLs on Import

LC; whereas risk arising from treasury activities

is monitored through parameters including Net

Performance Asset and outstanding concentration

of the three largest borrowers over issuers. When

compared against the credit risk limit that is set as

the Bank’s acceptable credit risk appetite, the risk

profile of credit/financing activities in 2008 was still

below the limit.

Credit Risk Management Process

In managing the process of risk management,

BRI has developed the Credit Risk Management

Implementation Guideline that has become

the reference for all Operating Units in the

implementation of risk management. The guideline

covers the Working Framework and Governance

on Credit Risk Management, as well as references

for the implementation of Basel II, Back Testing,

Stress Testing, and Internal Rating System for

products and activities that are exposed to credit

risks; the procedures on determining Credit Risk

Limits, Credit Portfolio Manual, and guideline for

determining loss provisioning in areas prone to

natural disasters.

Furthermore, BRI routinely undertakes stress test

analyses (with different simulations and worst-case

scenario). This analysis is done on credit portfolios

using past performance data and based on

existing external and macro-economic conditions,

especially the crisis condition of 2008.


97.

BRI is developing a Credit Concentration Limit

guideline to cap the risk exposure at a level that

is tolerable to the Bank for the activities of credit,

treasury, trade finance and sharia banking unit as

part of the Credit Risk Limit. BRI will also formulate

the concentration limit and NPL limit each

economic sector and business segment.

2. Market Risk Management

Market Risk is a risk that may arise as a result of

adverse movements in market variables that could

affect the portfolio held by BRI. Market variables

consist of interest rate and currency-exchange

rate.

The scope of market risk management includes

treasury activities, investment in marketable

securities and the money markets, investment in

other financial institutions, financing activities for

lending or such other purposes, financial raising

activities and the issuance of debt notes, and the

financing activities in trading. This also includes

banking activities that are based on the sharia

principles.

The measurement of market risks (for interest rate

and exchange rate risks) uses the Standardized

Approach as stipulated under Bank Indonesia

regulation no.5/12/PBI/2003. Based on that

approach, the monthly average capital needed for

allocation to cover market risk (interest rate and

exchange rate risks) using Standardized Approach

in 2008 was Rp401 billion or approximately 2.1%

of the Bank’s total capital.

To gauge the likely impact that a rise in the Bank

Indonesia interest rate may have on the Bank’s

profit, net open position and CAR, a stress test is

undertaken periodically, such that potential losses

can be anticipated in advance.

The results of a stress test based on a scenario of

BI rate increases in the range of 10.5% to 13.5%

showed the potential for a mark-to-market loss on

bonds held by BRI. However, the likely impact on

CAR is barely perceptible due to the strong capital

base of BRI.

In order to simplify the management of market

risk and to provide updated information for

management decision, BRI is in the process of

developing an application for upgraded treasury

risk and market risk systems.

3. Operational Risk management

Operational risk arises from inadequate or failure

of internal processes, people and systems or from

external events affecting BRI operations. These

risks should be identified, assessed, measured and

mitigated by every personnel of BRI.

BRI continuously undertakes development and

enhancement in the quality of operational risk

management in order to integrate the internal

interests of BRI and that of the need to comply

with prevailing laws and regulations.


98.

The cultivation of a Risk Culture is critical so that

every personnel in all operating units of BRI is able

to identify, measure, control and monitor risks

that are associated with their activities, and to be

able to execute these steps accurately in order to

mitigate the potential loss effectively.

In line with the efforts to implement operational

risk management that is suitable for BRI

needs and those of compliance, and in order

to lower risk composite in its risk profiles, BRI

continuously improves the implementation of

framework, governance, and other operational

risk management tools, including Incident

Management to collect information on incidents

in daily operations. In addition to that, BRI also

optimises the Risk Management Forum and Risk

Management Function in each Operating Unit and

risk management group at the Regional Office.

1. Implement Risk and Control Self Assessment

(RCSA) in all Operating Units. The RCSA

represents tools that are used to estimate risks

and carried out quarterly.

2. Implement the Key Risk Indicator (KRI) in every

risk owner in order to monitor the indicators of

risks from time to time.

3. Prepare for the implementation of Incident

Management (IM) that constitutes a tool

to record, manage and maintain data on

incidents that occurs in every Operating Unit of

the Bank.

4. Organise the Risk Management Forum (RMF)

as a medium or meeting forum between heads

of Operating Units and their subordinates to

discuss issues on risks that are attached to

business or operational activities.

5. Implement risk management functions on

every business operating unit to manage

and monitor risks. This function rests upon

the official/supervisor in the respective units

who is appointed and is responsible for the

implementation of risk management and

the acculturation of risk awareness in the

respective Operating Units.

6. Sort and establish lines of business at BRI that

are aligned with those that are recommended

by the Basel II Accord.

7. Undertake software application development

for MRO in order to simplify the implementation

of MRO and to prepare for the calculation of

operational risk weighted capital using the

Advanced Measurement Approach (AMA)

method.

8. Develop policies on Business Continuity

Management (BCM).

9. Undertake the management of each new

product or activity.

In the case of managing reputational risk,

compliance risk, legal risk, and strategic risk, BRI

has implemented the followings:

1. Appoint the Corporate Secretariat Division as

coordinator for managing reputational risk at

the corporate level.

2. Appoint the Compliance Division as

coordinator for managing compliance risk at

the corporate level.

3. Appoint the Strategic Planning Division as

coordinator for managing strategic risk at the

corporate level.

4. Appoint the Legal Division as coordinator for

managing legal risk at the corporate level.

III. Business Continuity Management (BCM)

In order to assure the business continuity, both in

normal condition and in state of disruption, BRI has

implemented Business Continuity Management

to keep continuity of critical business process,

maintain BRI assets, and provide adequate

response in state of disruption and disaster.


99.

The aim of the Business Continuity Management

Policy is to:

• Standardise program on business continuity at

BRI.

• Provide a strategic direction for the

formulation, implementation, evaluation and

updating of the BCM documentation.

• Provide a general reference for the Business

Continuity Management Maintenance Team

(BCMMT) and the Crisis Management

Team (CMT) in preparing their teams to

undertake the resumption of key business and

operational activities in times of emergency

within the allotted period of time.

• Comply with regulations.

The BCM policy comprises of:

1. General information on the BCM Coordination

Structure at BRI.

2. Guidelines on the development of the BCM that

comprise of:

a. Business Impact Analysis.

b. Disaster Risk and Threat Assessment.

c. Recovery Strategy.

d. Procedures on the Recovery Guidelines that

comprise of:

i. (Emergency Response Plan)

ii. (Business Continuity Plan/BCP).

e. Testing

f. Updating and Distribution of Documents

g. Monitoring

With a sense of pride, BRI takes note of the

fact that a number of audit officials from the

communication forum of the Internal Audit Units of

16 state-owned enterprises that are engaged in the

field of minerals and natural resources (including

PT Pertamina, PT Bukit Asam, PGN, PLN, Elnusa

and others), have chosen to benchmark against

BRI and are of the opinion that the BCM policies

of BRI constitute the most comprehensive and

encompassing.

BRI has launched the Bank’s Official Guidelines

on Emergency Recovery, including the use of

banners and flyers to disseminate information on

the subject. These banners and flyers contain

tips on how to face up to disasters and have

been presented by the President Director to the

Compliance Director of BRI in a ceremony marking

the official kick-off of the BCM program in BRI.

Business Continuity

Management

Maintenance Team

(BCMMT)

National Coordinator of

BCMMT : RM Division

Crisis Management Team (CMT) (CMT Head Office, Regional and Branch Office)Main Coordinator of CMT

at HQ: Service Division

Undertake the BCM program

under normal conditions:

- Manage the BCM Program

of BRI

- Internalisation of response

to crisis/emergency and

concern for business

continuity

- Monitoring the

implementation of the

BCM program (including

testing/evaluation)

bankwide for each of

the key business and

operating activities of the

Bank.

Undertake the required steps

and measures during crisis/

emergency, encompassing:

- Identification of crisis/

emergency

- Identification of the safety

and security of employees,

customers and other

stakeholders that are

within the Operating Units

of BRI

- Recovery of operations

including coordination with

related Operating Units

and agencies.

Roles and Responsibilities: Roles and Responsibilities:

BOARD OF DIRECTORS


100.

Human Resources Management

Manpower Planning

Human resources management and development

planning has been implemented in a timely manner,

with the right amount and quality consistent with

BRI’s short and long term business plans. To fulfil this,

more emphasis was placed on marketing instead of

non-marketing activities which suited BRI’s unique

characteristic that focuses on the MSME segment.

With respect to business development that followed

organisational growth and the establishment of new

offices, BRI recruited 851 employees in 2008. To fulfil

BRI’s human resource needs, as many as 20,304

people were engaged in non-core business functions

through outsourcing.

The numbers of BRI’s employees in detail for 2007 and

2008 are as follows:

Status 2007 2008

Permanent Employees

Employees in Retirement Preparation

Contract Workers

Trainees

Total BRI Personnel*

36,772

995

13

261

38,041

35,580

1071

791

132

37,574

*) Excluding out-sourced personnel

Number of Personnel (people)

Personnel Based on Position (people)

Position 2007 2008

Executive Vice President 29 52

Vice President 73 81

Assistant Vice President 322 292

Senior Manager 614 627

Manager 476 519

Assistant Manager 3,594 3,428

Officer 9,766 9,478

Assistant 23,167 23,097

Total* 38,041 37,574


Personnel Based on Education (people)

Educational Level 2007 2008

Master’s Degree 849 880

Bachelor’s Degree 20,114 20,577

Diploma 4 4 4

Diploma 3 3,991 3,751

Diploma 2 46 41

Diploma 1 108 100

High School 12,861 12,169

Junior High School 68 52

Total* 38,041 37,574



101.

Employee Development and Growth

To face future challenges and business competition,

BRI’s employees are directed to become human capital

with the ability to learn, desire change, be innovative

and provide creative thrust. BRI’s efforts to improve

the quality of its human resources are to routinely

conduct training and development activities through the

movement of its employees (rotation and promotion),

as well as education and training both at home and

abroad.

In line with this, BRI prepared, refined and implemented

certain policies in 2008, such as:

- HRM Blueprint

As a guide so that all human resources

management competency based activities are

implemented in an effective, objective, fair and

transparent manner.

- Employees (personnel grading)

Implementation of personnel grading for employees

is intended to realize the principles of job matching

between the suitability of job requirements and

employees’ qualification.

- Normal Distribution in Employee Performance

Ratings

Aimed at increasing objectivity in employee

assessment in line with work performance so as to

create a competitive work environment.

Education and Training

BRI provided training and development programs that

are adjusted to the needs of the Bank. During 2008,

BRI’s education and training expenditure amounted

to Rp168.60 billion, an increase of 26.11% from

Rp133.69 billion in 2007. Organized training programs

and employee development consisted of:

1. Training for newly recruited employees

Along with BRI’s business growth and expansion

during 2008 which relied on network development,

there had been a lot of recruitment and training to

support BRI’s growing activities. The education

activities for employees conducted during 2008 are

as follows:

- Cadre education for the development of

BRI leaders through the Staff Development

Program (PPS), which was attended by 139

participants;

- Training for Customer Service and Assistant

Loan Officers for KUR involving 1,789

participants, conducted in six Regional

Learning Centres located in Padang, Jakarta,

Bandung, Yogyakarta, Surabaya and

Makassar;

- Training of Front Liners for 7,827 participants,

carried out in order to support BRI’s service

improvement program;

- Training of Associate Account Officers (AAO)

for 993 participants to provide knowledge

about basic credit for account officer

candidates.

2. Job Promotion Training

Training for job promotion is conducted with

the aim of providing skills and knowledge for

employees who have the potential for promotion

and/or have recently been promoted. During 2008,

these trainings were conducted for:

• 36 staff were sent to study at various

universities in the United States (top 50) and

Australia (top 8) for their Master’s degree.

• In-house educational development included:

- Training of Senior Supervisor Development

Program (SSDP), attended by 869

participants,

- Training of Assistant Manager Development

Program (AMDP), attended by 101

participants.


102.

• Supplementary training for employees

promoted to the position of Marketing

Manager, Operations Manager and

Sub-branch Manager, attended by 158

participants.

3. Application Training

The application training provides skills and

knowledge needed by employees to support their

work in their current positions. This training is

carried out either in-house or through attending

public courses, in and out of the country. In 2008,

the in-house application training was attended

by 9,242 participants, covering different types of

training which corresponded with the appropriate

needs of users.

4. Development of e-Learning

During 2008, preparations were made for pilot

modules for the early development of e-learning.

The modules include learning how to use

spreadsheet for the calculation of credit needs;

as well as knowledge on Know Your Customer

and risk management. Another area which had

been implemented is the working cooperation with

external providers in order to provide a Learning

Management System for the development of an

e-learning infrastructure.

Employee Welfare

In appreciation towards its human resources, BRI

continued to fine tune the remuneration system in order

for it to be more fair, equitable, competitive, easily

administered, and in accordance with the needs and

capabilities of the Bank. To maintain the level of wages

at a competitive level, BRI regularly follows the wage

survey conducted by independent consultants.

To reward work achievements, and in consideration

of differences in regional living costs, BRI provides

basic wage increases and makes revisions on the

zonal divisions and tariff benefits according to the

respective regional living cost. In 2008, basic wage

increases were implemented with due attention given

to the performance of each employee, while the revised

zonal tariff and allowances for each region was done

to create more equitable zonal divisions which were

representative of the cost of living in BRI offices in

provinces across Indonesia.

Additionally, in order to reward employees on the

basis of BRI’s work culture and to spur better work

performances, BRI also provides financial and non-

financial rewards.

Industrial Relations and Work Culture

Besides the giving of rewards, BRI also employed

policies on punishments that are both consistent and

just to employees who had been proven to have made

disciplinary violations in order to create a healthy and a

sense-of-fairness in the working environment.

Related to this, each BRI employee needs to act

appropriately both in a personal and professional

capacity in carrying out their duties. At the same

time, work culture continues to be developed and

implemented through the Performance Improvement

Program that must be carried out at least once a

year in each office and to make the Code of Ethics

a standard behavioural guide. At the end of 2008,

Revitalization Work Culture activities were carried out

by BRI’s Change Agents across Indonesia to establish

a commitment to improve the quality of customer

service to both internal and external customers.


103.

The Company also continuously maintained good

communications with the Labour Union who are

strategic partners in developing the Company’s future.

Pursuant to the regulations as stipulated in Labour

Act No. 13 of 2003, the Collective Labour Agreement

(PKB) was made in 2007 between BRI and its labour

union to be used as a manpower relations agreement

for the period of 2007 - 2009. Article 11 paragraph

1 mentions that BRI gives equal opportunity and

treatment in terms of the career development of its

full-time employees in accordance to the requirements

of the post, competencies and needs of the Bank. The

aforementioned Collective Labour Agreement has been

delivered to all employees at all levels.

BRI’s Code of Ethics

Running a business with a code of ethics of a high

standard is imperative to maintain and enhance the

reputation and business of the Bank in the long term.

Recognizing the importance of this, BRI has since 2003

established a code of ethics that applies to all levels of

the BRI organization.

This code of ethics describes the basic principles of

personal and professional behaviour expected of every

individual in BRI in performing their duties. Applying the

code of ethics in BRI creates a work environment that

is open and honest, maintains good relations with all

stakeholders for the long-term successful achievement

of BRI. Implementation of the code of ethics is also

a part of good risk management and builds a good

reputation for BRI.

In developing a code of ethics, BRI applies the

principles of Good Corporate Governance, namely:

• Transparency

• Accountability

• Responsibility

• Independence

• Fairness

Elements incorporated in BRI’s code of ethics include:

• Compliance with legal and banking policy

• Relationships with external customers

• Relationships with local communities

• Relationships between management and bank

employees

• Policy in advertising/promotion

• Obligation to keep bank secrecy

• Integrity and accuracy of bank bookkeeping

• Transactions with customers and suppliers

• Policy in the case of conflict of interest

• Prohibition to receive or offer bribes

• Policy on political contribution and activity

• Policy on gifts and entertainments


104.

Information Technology

As a banking organization with many offices spread

widely across Indonesia, BRI has made information

technology an important factor which is greatly needed

to create the integration and optimal utilization of the

Bank’s network.

In accordance with BRI’s vision for Information

Technology to drive the creation and development

of a technological environment which is efficient,

reliable and integrated within BRI’s business activities,

the mission of Information Technology is to provide

the optimal information system that supports BRI’s

business operations, increases shareholder value,

and provides technology services on the basis of

competitive Service Level Agreement (SLA). It also

encourages and supports productivity and efficiency,

while minimizing operational risks, and providing a safe

and secured technological environment.

In 2008, BRI’s Information Technology achievements

were as follows:

Development of Core Banking System (CBS)

BRINETS

Throughout 2008, Operating Units that implemented

the online BRINETS application were: 1,296 Unit

Offices, 18 Branch Offices, 82 Sub-Branch Offices, 86

Cash Offices and 3 Operating Units at the Head Office.

With this implementation, BRINETS was installed in a

total of 3,879 BRI Operating Units in order to enlarge

BRI’s network that can provide services in “real time,

on-line” environment.


105.

Development of Management Information System

(MIS)

Development of MIS was conducted to improve the

accuracy of the data, the timeliness in the provision

of data, as well as to integrate data and information in

relation to business needs.

Development of Electronic Banking

To serve customers 24 hours a day, 7 days a week,

BRI needs to improve and develop electronic banking

features continuously. Electronic channel makes it easy

for customers to obtain information, communicate and

conduct banking transactions through ATMs, phone

banking facilities, electronic funds transfer, mobile

phones and EDCs.

Cooperation

Information technology also supports BRI’s cooperation

process with several institutions such as Bulog (host-

to-host payment with Bulog’s third parties), PUSRI

(host-to-host purchase of fertilizer), Pertamina (new

host-to-host fuel purchases), UNPAD (host-to-host

payment of university tuition fees) and Taspen (pension

payments using fingerprint identification).

Business Continuity Plan and Disaster Recovery

Plan

To maintain customers’ trust and mitigate operational

risk when failure occurs to the system’s infrastructure

and information technology applications, BRI had

prepared a Business Continuity Plan and Disaster

Recovery Plan that are part of the Company’s Business

Continuity Management. Pilot tests for the systems

application and infrastructure were carried out

periodically so that BRI’s business activity can still run

when there is damage or disruption to the Information

Technology infrastructure. BRI has prepared a Disaster

Recovery Centre (DRC) in a different location from the

Data Centre to be used as a back-up facility when the

Data Centre encounters problems.

Availability of Communications Network

Along with the development of BRI’s network and

operations in Indonesia, which grew rapidly and

the increase in on-line Operating Units, BRI must

maintain the availability of its communications network

supported by continuous supervision of the Enterprise

Monitoring System and using redundant and different

communication media such as satellite, terrestrial and

wireless systems.

Systems Security and Security Awareness

BRI’s technology infrastructure is evaluated and

audited on a regular basis with the aim of mitigating

weaknesses and fragility risks to the Information

Technology infrastructure. After the system’s fragility

was identified, appropriate corrective actions were

taken in accordance with Vulnerability Management

standard procedures. BRI is also preparing for

certification of Operational Information Technology

Security, to comply with ISO Standards (ISO 27001

2005) which is recognized internationally. To improve

the Information Technology Security Awareness, BRI

has implemented the Security Awareness program to

all of BRI’s employees.


106.

Tough competition in the financial industry made banks

more aggressive in adding to their branch-office and

e-channel networks. Until the end of 2008, BRI has

the largest operational bank network compared with

other banks in Indonesia. With its vision to become the

largest National Payment Gateway bank in Indonesia,

BRI must pursue the strategy of network expansion

aggressively in order to prevent a loss in market

share. Supported by the development of information

technology, BRI will maintain dominance in network

services in both urban and rural areas.

BRI currently has more than 5,400 Operating Units

which are spread across the archipelago, both in urban

and in rural areas. Networks and operations consist of:

• 1 Head Office

• 14 Regional Offices

• 12 Regional Audit Offices

• 1 Special Branch Office

• 372 Branch Offices

• 337 Sub-Branch Offices

• 3 Overseas Offices

• 179 Cash Offices

• 4,417 BRI Units (Micro Outlets)

• 76 Service Posts

• 27 Sharia Branch Offices

• 18 Sharia Sub-Branch Offices

As of December 2008, 3,879 BRI Operating Units have

been connected on-line. Those Operating Units cover

the entire divisions in the Head Office, Regional Offices,

Regional Audit Offices, Branch Offices, Sub-Branch

Offices, 2,987 BRI Units, Sharia Branch Offices, Sharia

Sub-Branches, and Learning Centres. BRI plans to

bring all of its remaining Operating Units into the real-

time on-line system in the near future.

Network and Services


107.

2. Creating support synergy for internal support and

other service providers through the Service Level

Agreement (SLA) mechanism.

Some service activities have been conducted in an

attempt to improve the quality of

BRI’s service, for both external and internal customers

(BRI business units), including among others:

1. Preparation and development of new policies

and procedures in the form of a new Standard

Operating Procedures (SOP) to support business

and operational continuity and support the creation

of improved quality service in every operational

Operating Unit;

2. Preparation of various quality improvement

programs to upgrade BRI’s service that aims to

achieve “Customer Satisfaction in All Segment.”

The upgrade of the quality improvement process is

done to improve the queue system, simplification

of front liner work process, handling customer

complaints, and the One Stop Service on Customer

Service to expedite the account opening process;

3. Execution of the development of integrated and

accurate monitoring tools for the e-Banking and

Complaint Management System in order to realize

BRI’s e-Banking service quality;

4. Improvement in the quality of service to internal

customers (all BRI Operating Units in Indonesia),

BRI carried out monitoring of the development

and completion of the quality customer database.

This database can be used as a medium for cross

selling in the future and provide solutions to the

problems that are reported by all Operating Units in

Indonesia in accordance with the SLA.

To support the performance of the network, BRI

carried out several strategic programs such as the

standardization of the display of office buildings and

ATM booths to improve both the corporate image

of BRI and the quality of ATM services. While for

maximising the performance of Operating Units, BRI

has carried out network classification for Branch Offices

and Sub-Branch Offices and performance evaluation

for Regional Offices, Branch Offices and Sub-Branch

Offices based on the balanced scorecard system that

has been running regularly and consistently.

For 2009, BRI’s strategy remains to continue to add

outlets in selected and intended potential areas. In the

implementation of information technology functions,

BRI will add on-line outlets, electronic banking

technology using Biometrics (Finger Print) and EDC

(Electronic Data Capture) in order to optimise the

function of delivery channels and improve Fee Based

Income. While for e-channel deliveries, the strategic

expansion of the e-channel network will be carried

out on a relatively large scale. In addition, to optimise

performance and efficiency of Operating Units, BRI will

reexamine every Branch Office for its organisational

structure suitability with business needs as well as

determine parameters for upgrade and downgrade

Operating Units status in respect to their respective

cost and benefits.

Service

BRI has a special Operating Unit responsible for

preparing the development of operational and quality

services policy, manage service disruption system,

customer data quality and e-Banking services to

achieve accurate, valid, and timely service excellence

in accordance with current goals and conditions to

support business growth. Service mission that must be

implemented to achieve this includes:

1. Developing service management to build

BRI’s image that always prioritise on customer

satisfaction and provide service excellence, and


108.

Corporate Social Responsibility

BRI seeks to maintain the long-term sustainability

of its business activities through the Company’s

corporate social responsibility (CSR) program in the

economic, social, and environmental fields while taking

into consideration the needs of both BRI and the

community as well as without harming the interests

of shareholders. BRI believes that CSR activities are

not only voluntary, but reflects all of the Company’s

business activities. Companies that are responsible

should provide significant contributions towards the

welfare of the community in the vicinity of where

it operates. BRI has developed a number of CSR

programs to help improve the community’s quality of

life and develop economic self-reliance through the

Partnership and Community Development Program

(PKBL).

In 2008, BRI’s PKBL financial statements were audited

by the Public Accounting Firm of Herman Dody

Tanumihardja & Partners with the opinion of “fairly in all

material respect” in accordance with Report No. 19/

GA/HDT-DH.HT/PKBL-BRI/IV/2009 on 7 April 2009.

Partnership Program

The Partnership Program is a program to improve

the ability of small business to become strong and

independent through the utilization of funds derived

from the Company’s profits. Partnership loans are

targeted at existing small businesses that are already

feasible but do not qualify for BRI’s commercial loans

as they are still non-bankable.

BRI carries out the Partnership Program of “BRI

Cares for Small Businesses” in the form of financial

assistance and guidance to increase the productivity

of its guided partners classified as small businesses,

including cooperatives, the fishery sector, trade,

industry, services, agriculture and others, in BRI’s work


109.

Region

Sector

Total %Fisheries/Animal Husbandry

Trade Industry ServicesAgriculture/Plantation

Cooperatives & Others

Grants & Aid

Sumatra

Jakarta

West Java

Central Java

East Java

Kalimantan

East Indonesia

Total

1.79

0.05

0.29

0.12

1.11

0.32

2.94

6.62

10.25

3.90

3.05

2.92

1.68

1.38

10.58

33.76

1.39

0.18

0.62

0.45

0.45

0.48

1.39

4.96

2.73

0.73

0.57

0.60

1.00

0.37

3.58

9.58

1.51

0.37

0.35

0.21

0.32

0.09

0.88

3.73

1.77

0.08

0.29

0.13

0.20

0

0.51

2.98

0.32

1.31

0.19

0.19

0.13

0

0.16

2.30

19.75

6.61

5.37

4.63

4.90

2.64

20.04

63.94

30.89

10.34

8.39

7.23

7.67

4.13

31.34

100.00

regions throughout Indonesia. “BRI Cares for Small

Businesses” activities that have been conducted, were

in the form of entrepreneurial training and product

marketing assistance for guided partners which

included exhibitions in the country and the provision

of partnership loans with affordable terms. The aim

of granting partnership loans to Small Business is to

provide easier access to capital for owners of micro

and small businesses that aren’t as yet bankable but

are expected to improve capabilities and productivity.

Guided partners can later become embryos of

commercial customers who are served by BRI’s

commercial loan scheme.

During 2008 the Company provided Partnership

Program funds to the tune of Rp63.94 billion, of which

Rp61.64 billion were in the form of Partnership Loans.

(in Rp billion)

Distribution of Partnership Funds in 2008


110.

BRI Cares for Natural Disaster Victims

BRI has provided assistance of Rp0.96 billion for

victims of natural disasters that occurred in several

areas, including: assistance for victims of the Cianjur

landslide, floods in most parts of the islands of Java

and Sulawesi, and the earthquake in Dompu. In

addition, BRI also provided relief aids for victims of

the tidal waves and strong winds in Kalabahi, and

the earthquake Manokwari, and bush fires in South

Kalimantan.

BRI Cares for Places of Worship

Rp2.84 billion of assistance was distributed for the

construction or renovation of places of worship and

devotee facilities.

BRI Cares for Education

Distribution of BRI Cares for Education in 2008

amounted to Rp18.39 billion, which included

scholarship assistance to students and undergraduates

from poor families, the building of classrooms in

public schools and Islamic religious schools, library

assistance, uniforms and school supplies, and the

mission of supporting the arts as well as training

assistance to the community.

BRI Cares for Health

BRI has provided Rp7.96 billion in aid to enhance

public health. Assistance given includes: basic food

aid package for low-income communities, free health

service/treatment, help for operations, support the cost

of patient care in 30 public hospitals, public clinics in

Indonesia’s border areas and immunization assistance

and Posyandu (Community Health Centre).

Sectors Number of Partners %

Fisheries/Animal Husbandry

Trade

Industry

Services

Agriculture/Plantation

Cooperatives/Others

Grants and Aid

Total

271

1,568

224

405

122

59

162

2,811

9.64

55.78

7.97

14.41

4.34

2.10

5.76

100.00

Realization of Partnership Program in 2008

Community Development Program

The scope of BRI’s Community Development Program

includes field support for natural disaster victims,

assistance for places of worship, health assistance,

education and training assistance, and support for

the development of public infrastructure and facilities

to help conserve nature via the BRI Cares Program.

In 2008, Rp35.62 billion was channelled to the

Community Development Program.


111.

BRI Cares for Public Facilities

Rp4.67 billion of aid was disbursed to repair irrigation

systems and channels, erection of bus stops, support

the development of traditional markets, public gardens,

orphanage homes renovation, making wells and

water pumps, purchase of hearse, construction and

installation of bio-gas, clean water collection centres

and renovation of public buildings.

BRI Cares for Nature Conservation

Rp0.80 billion was distributed in the form of tree

planting in critical land areas.

In the upcoming years, more Partnership and

Community Development Program will be undertaken

by BRI, among others, to support the development of

prima donna products from local areas and provide

priority social assistance for the improvement of

education and public health.


112.

Sha

ring

Del

ight

ful E

xper

ienc

es w

ith C

usto

mer

s

In the efforts to realise the vision of BRI to be a leading commercial bank that always prioritises customer satisfaction,

BRI emphasises on providing services that induce a delightful experience on the part of every customer. The initiatives

begin at the banking halls of BRI’s main branch offices of BRI, where customers enjoy a relaxed and pleasant

atmosphere in their every day banking transactions, and which are currently being applied consistently across BRI’s

vast service platforms and units throughout the country.


113.


114.

Bunasor Sanim

President Commissioner/Independent Commissioner

Born in Brebes on 16 December 1945. Appointed President

Commissioner of BRI since 30 May 2006, and Independent

Commissioner of BRI since 17 May 2005, having served previously

as the Chairman of the Audit Committee of BRI (2005-2006).

Presently he is Lecturer and Dean of the Faculty of Economics and

Management of the Bogor Agricultural University (IPB). He is active

in several professions including as Chairman of the Association

of Economics Graduates of Bogor Raya; and a member of the

Advisory Board of the International Centre for Analysis of Finance and

Economic (Inter CAFE), the Advisory Board of the Indonesia Economic

Intelligence, the Advisor Team for the IPB Mutual Fund Investment,

and the Senior Scientist Partnership, a cooperation between IPB

and University of Göttingen, Germany. He graduated with a degree

in Agriculture Social Economics in 1975 and a Master’s degree in

Agricultural Economics in 1983, both from IPB, and a Doctorate

degree in Resources Economics from the University of the Philippines

at Los Banos in 1986.

Agus Pakpahan

Commissioner

Born in Sumedang on 29 January 1956. Appointed

Commissioner of BRI since 30 May 2006. Presently

he is Deputy of the Agro Industry Business Sector,

Forestry, Paper, Printing and Publication of the Ministry

of State Enterprises; Head of the Executive Board of

the Collective Plantation Farmers Association, and

as Lecturer of Research Methodology at the Post

Graduate Program of the Bogor Agricultural University

(IPB). He has previously served as General Director of

Production Management, Department of Agriculture,

and President Commissioner of PT Perkebunan

Nusantara (Persero) XIV (1999-2003). He graduated

with a degree in Forestry in 1978 and a Master’s degree

in Agricultural Economics in 1981, both from IPB, and

a Doctorate degree in Agricultural Economics from

Michigan State University, USA, in 1988.

Profile of the Board of Commissioners


115.

Agus Suprijanto

Commissioner

Born in Yogyakarta on 14 August 1953. Appointed

Commissioner of BRI since 22 May 2007. He is

currently an Advisor for the Ministry of Finance,

having previously served as Head of Central Analysis

and Policy Harmonisation, the Ministry of Finance.

He graduated with a degree in Law from Udayana

University, Denpasar, in 1985, a Master of Arts degree

in International Economics in 1991, and a Doctorate

degree in Econometrics in 1995, both from the

University of Colorado, Boulder, USA.

Saifullah Yusuf

Commissioner

Born in Pasuruan on 28 August 1964. Appointed

Commissioner since 5 September 2007. Presently

he is the Chairman of the Anshor Youth Movement

Centre, having previously served as the State Minister

of Remote Area Development, in the United Cabinet

of Indonesia (2004-2007). Prior to that, he served

as a Member of the House of Representatives of RI

(1999-2004). He graduated with a degree in Social and

Political Science from National University, Jakarta, in

2003.


116.

B. S. Kusmuljono


Born in Bogor on 24 June 1943. Appointed

Independent Commissioner of BRI since 17 May

2005. Presently he is Chairman of the Micro Finance

Empowerment Committee of Indonesia; President

Commissioner of PT Syarikat Takaful Indonesia;

Chairman of PT Tatamasa Group/Microfin; Chairman

of the Centre for Policy Reform of Indonesia; and

Chairman of the Wali Amanah Assembly Committee,

Bogor Agricultural University (IPB). He is also Lecturer

at the Bandung Institute of Technology (ITB). Previously,

he was President Director of PT (Persero) Permodalan

Nasional Madani. He graduated with a degree in

Chemical Engineering from ITB, Bandung, in 1970, an

MBA degree from the University of Southern California,

USA, in 1974, and a Doctorate degree in Environment

and Natural Resources Management from IPB, Bogor,

in 2007.

Baridjussalam Hadi


Born in Yogyakarta on 7 January 1948. Appointed

Independent Commissioner of BRI since 30 May

2006. He is currently Chairman of the Indonesian

Banking Development Foundation, having been a

career official with Bank Indonesia since 1979, serving

in various positions with the latest as an Advisor for

Sharia Banking attached to the Board of Governors.

He graduated with a degree in Economics from the

Jenderal Sudirman University, Purwokerto, in 1976

and a Master of Arts degree from Vanderbilt University,

USA, in 1984. He also attended the Leadership School

of Bank Indonesia in 1994.


117.

Aviliani


Born in Malang on 14 December 1961. Appointed

Independent Commissioner of BRI since 17 May 2005,

having previously served as the Director of INDEF (Institute

for Development of Economics and Finance). She is an

active researcher and writer of several books on economic

reviews. She in presently Chairperson of ISICOM (the

Indonesian Society of Independent Commissioners); a

member of the Executive Board of ISEI (the Indonesian

Association of Economics Graduates) Jakarta chapter; a

member of the Sharia Ecomomic Expert Community Board;

co-founder of the Centre for Policy Reform of Indonesia;

advisor to the Global Association of Risk Professional

(GARP)-Indonesia; and member of the Indonesian

Provincial Government Association Board (APPSI). She

graduated with a degree in Economics from the Atmajaya

University, Jakarta, in 1985, an MBA degree from the

University of Indonesia, Jakarta, in 1995, and is currently

reading for her Doctorate degree in Business Management

at the Bogor Agricultural University.


118.

Sofyan Basir

President Director

Born in Bogor on 2 May 1958. Appointed President Director of

BRI since 17 May 2005, having previously served as the President

Director of Bank Bukopin. He began his banking career with Bank

Duta in 1981, and moved to Bank Bukopin in 1986, where he

held several managerial positions including as Manager of several

branch offices of Bank Bukopin and as Commercial Director,

prior to his appointment as President Director of Bank Bukopin.

He graduated with a degree in Accountancy from STAK Trisakti,

Jakarta, in 1980.

He attended several training courses and seminars on banking

and management, including Bank Indonesia’s Executive Risk

Management Certification (Denpasar); Islamic Finance Forum

(Switzerland); Seminar on Business Continuity Planning, by Ernst

& Young; SESPIBANK (Jakarta); Strategy Development Session,

IBM; and Structuring Loans & Short Term, the Institute of Banking

& Finance.

Sarwono Sudarto

Director

Born in Sragen on 21 March 1952. Appointed Director

of BRI since 30 May 2006. He has been with BRI since

1976, serving in various positions including Manager

of BRI Finance Limited Hong Kong, Branch Manager,

Head of Retail Business Division, Head of Internal Audit

Division, Head of Strategic Planning Division, and Head

of Treasury Division BRI. He graduated with a degree in

Economics from Diponegoro University, Semarang, in

1975 and an MBA degree from Tulane University, USA, in

1987.

He attended several training courses and seminars on

banking including Capital Market (Tokyo); Bank Indonesia’s

Executive Risk Management Certification – BSMR

(Singapore); The National Defence College (LEMHANAS

RI), SESPIBANK (Jakarta); Credit Manager; Organization

Management. He represented BRI in several conferences

in London, Hong Kong and Singapore.

Profile of the Board of Directors


119.

Abdul Salam

Director

Born in Kudus on 28 August 1948. Appointed Director of BRI

since 30 May 2006, having previously served as Director and

President Director of PT PNM (Persero). Formerly a career official

with Bank Indonesia, he served in various positions including as an

Advisor attached to the Board of Governors, Director of the BPR

(Rural Credit Bank) Supervisory Directorate, Director of the Credit

Directorate, and Head of the Bank Indonesia Office in Bandung.

He graduated with a degree in Economics from the Diponegoro

University, Semarang, in 1974, and Master in Management from

IPPM, Jakarta, in 1996, and a Doctorate degree from the Post

Graduate School of Gajah Mada University, Yogyakarta, in 2007.

He attended various training courses and seminars including Bank

Indonesia’s Executive Risk Management Certification – BSMR

(Denpasar); Micro Credit Summit (New York); the National Defence

College (LEMHANAS RI); Pollution Abatement Equipment Project

(Washington); Financial Information System (Sydney); Project

Management for Leading Position (Germany); SESPIBI (Jakarta).

Sudaryanto Sudargo

Director

Born in Semarang on 12 May 1952. Appointed Director of BRI since

30 May 2006. He has been with BRI since 1978 and has served

in several managerial positions including as Head of Corporate

Division, Head of Human Resources Management Division,

Regional Manager of BRI Bandung, and prior to his appointment to

Directorship, as Head of Agribusiness Division. He graduated with a

degree in Agriculture from the Bogor Agricultural University in 1977,

and an MBA degree from Adelphi University, USA, in 1987.

He attended various training courses and seminars on banking

including the International Conference on Future of the Palm Oil

Business (Thailand); Bank Indonesia’s Executive Risk Management

Certification – BSMR (Hong Kong & Singapore); Master Card

Executive Forum (Macao); 2nd Annual World Renewable Energy

Summit (Malaysia); Asia Pacific Region Micro Credit Summit

(Bangladesh); SESPIBANK (Jakarta); Organization Management

Temasek (Jakarta & Yogyakarta); Professional Banker’s Program,

Citibank (Jakarta); Loan Syndication Course with Citicorp (Hong

Kong).


120.

Sulaiman Arif Arianto

Director

Born in Boyolali on 2 August 1958. Appointed Director of BRI

since 30 May 2006. He began his banking career with BRI in

1983 and has since served in various positions including as Head

of Agribusiness Division, Head of General Business Division, and

Regional Manager of BRI Denpasar and BRI Jakarta. He graduated

with a degree in Animal Husbandry from the Bogor Agricultural

University in 1981, and an MBA degree from the University of New

Orleans, USA, in 1991.

He represented BRI in several organizations such as APRACA,

the UN Advisor for Inclusive Financial System and Micro Finance

Networks. He was guest speaker in several international seminars

on MSME, including Asian Banking Forum (Jakarta); APEC SME

Working Group (Denpasar); Financial Technology Conference

(Singapore); Micro-finance Sustainability, APRACA, (Kunming); APO

Forum; Micro Banking & Risk Management Workshop (Beijing);

Asia Pacific Regional Micro-credit Summit (Bali).

A. Toni Soetirto

Director

Born in Yogyakarta on 18 August 1958 and graduated from the

Bogor Agricultural University in 1981. Appointed Director of BRI

since 2006. He began his banking career in 1983 with Bank

Duta, and subsequently moved to Bank Bukopin where he

served in various managerial positions including Group Head of

Credit & Marketing for Financial Institutions, Syndication Team

Leader, Director of Risk Management and Compliance and last

as Commercial Director.

He attended various courses and seminars on banking

including: The Branch of The Future (Barcelona); Self Service

Banking (Barcelona); Structured Trade and Export Finance

(Singapore); The Strategic Board (Australia); Comparative’s

Study for Trade Financing and Risk Management (Germany);

Corporate Funding Strategies (Kuala Lumpur); Compliance

Director Workshop; Securities Lending (Singapore), and

Advanced Core Credit (Singapore).


121.

Lenny Sugihat

Director

Born in Bogor on 26 March 1956. Appointed Director of BRI since

30 May 2006. She has been with BRI since 1981, working her

way up through various assignments including a Head of Strategic

Planning Division, Head of Agribusiness Division and last served

as Head of Loans Restructuring and Recovery Division prior to her

appointment as Director. She graduated with a degree in Fisheries

from the Bogor Agricultural University in 1979, and earned an MBA

degree from the University of Houston, Texas, USA, in 1993.

She attended various courses and seminars on banking

including: Bank Indonesia’s Risk Management Certification –

BSMR (Denpasar); The World Bank Conference on the ”Role of

State-Owned Banks” (USA); Strategic Management in Banking

Programme (France); SESPIBANK (Jakarta); Problem Loan and

Loan Syndication Training (Sydney); Advanced Management

Program for Overseas Bankers (USA); and Credit Risk Management,

BRI – Citibank.

Bambang Soepeno

Director

Born ini Surakarta on 23 November 1952. Appointed as

Director of BRI since 30 May 2006. He has been with

BRI since 1980 and served in various positions including

Inspector of BRI Medan, Head of International Division,

Director of Pension Fund and last served as Head of Internal

Audit of BRI Head Office. He graduated with a degree in

Animal Husbandry from Diponegoro University, Semarang,

in 1979, and an MBA degree from St. Louis University, USA,

in 1991.

He attended various courses and seminars on banking

and corporate governance including Bank Indonesia’s

Risk Management Certification – BSMR (Singapore); The

IIA International Conference (USA); Prevention of Banking

Crime (Jakarta); Good Corporate Governance (Jakarta);

International Bankers Seminar (USA); Risk Management,

(ASEAN); SESPIBANK (Jakarta); Auditing Capital Market and

International Trade Finance (Hong Kong).


122.

Asmawi Syam

Director

Born in Ujung Pandang on 16 August 1955. Appointed Director of

BRI since 5 September 2007. He has been with BRI since 1980,

attaining various leadership positions including Regional Manager

of BRI Denpasar, Regional Manager of BRI Bandung, Head of

Consumer Banking Division, and Head of General Business Division.

He graduated with a degree in Economics from Hasanuddin

University, Ujung Pandang, in 1979, and a Master in Management

degree from Padjadjaran University, Bandung, in 2003.

He attended various training courses and seminars including

SESPIBANK (Jakarta); World Congress on IT Information (Adelaide);

Asset & Liability Management, Credit Risk Management &

International Banking (Brussels); Strategic Leadership (Bangkok);

Card and Payment, EFMA (Paris); SOE Restructuring & Performance

Enhancement (Jakarta); and Public Private Partnership (Sydney).

Suprajarto

Director

Born in Yogyakarta on 28 August 1956. Appointed as Director

of BRI since 5 September 2007. He has been with BRI since

1983, serving in various managerial positions including as

Branch Manager, Deputy Manager of Regional Office BRI

Jakarta, Head of Corporate Secretariat Division, and Regional

Manager of BRI Jakarta I. He graduated with a degree

in Economics from Universitas Pembangunan Nasional,

Yogyakarta, in 1982, and a Master in Management degree

from Padjadjaran University, Bandung, in 2001.

He attended various training courses and seminars including

The Branch of the Future (Barcelona); International Trade BRI

Hong Kong & BRI New York Agency; the Fifth Annual Asia

Pacific Mobile Payments (Bangkok), SESPIBANK (Jakarta),

and Executive Management Development Program (Jakarta).


123.

Slamet Riyadi Head of Logistics and Fixed Assets Management Division

Basuki SetyadjidHead of Treasury Division

Dwi Hari Sugeng Prijono (alm.)*Head of Program Business Division

Hartono SukimanHead of Corporate Secretariat Division

Yusuf NawawiHead of Education and Training Division

TriyanaHead of Operations Centre Division

Irwan RinaldiHead of Financial & Management Accounting Division

Dede Suherman S.Head of International Business Division

Dwi Agus PramudyaHead of SOE Business Division

Wachju PrijatnaHead of Agribusiness Division

Djarot KusumayaktiHead of Credit Risk Analysis Division

I Komang SudiarsaHead of Institutional Relations Division

SusiloHead of Funds Services Division

Donsuwan SimatupangHead of Retail Loans Division

WindiartonoHead of Risk Management Division

Heru SukantoHead of Loans Restructuring and Recovery Division

Ano KurniadiHead of Credit Administration Division

M. Jarot Eko WinarnoHead of Human Resources Management Division

Zulhelfi AbidinHead of Information System and Technology Division

Mohamad HelmiHead of Credit Card Division

Joice Farida RosandiHead of Consumer Loans Division

Luki Presisa Budi UtamiHead of Services Division

Agus Katon ES.Head of General Business Division

Wasito PramonoHead of Micro Business Division

MudjiharnoHead of Legal Division

IriantoHead of Strategic Planning Division

Agoes RoediyantoHead of Micro Business Network Division

Moch. Hadi SantosoHead of Retail Business Network Division

Retno SurdiniHead of Compliance Division

A. Firman TaufickHead of Marketing Communications Division

Ali MudinHead of Internal Audit

Senior Managers

*) Passed away on 16 December 2008

Head Office


124.

Agus Imam SudjahriRegional Manager of BRI Banda Aceh

Albert RadjagukgukRegional Manager of BRI Medan

Mohammad IrfanRegional Manager of BRI Padang

Randi AntoRegional Manager of BRI Palembang

Tri SusiloRegional Manager of BRI Jakarta 1

Nandi H. HamakiRegional Manager of BRI Jakarta 2

Yasirin Ginting S.Regional Manager of BRI Bandung

A.M. Nova ChristianaRegional Manager of BRI Semarang

Teddy Rustandi A.R.Regional Manager of BRI Yogyakarta

Agus HidayatRegional Manager of BRI Surabaya

Hidzuldin ElfaniRegional Manager of BRI Banjarmasin

I.B. Putra ArthamaRegional Manager of BRI Denpasar

Eko Wahyu AndriastonoRegional Manager of BRI Manado

Teten Djaka TrianaRegional Manager of BRI Makassar

Ircham Sjafindra R.Inspector of BRI Medan

Hadi SusantoInspector of BRI Padang

Umi HaryatiInspector of BRI Palembang

Yadie SupriatnoInspector ofBRI Jakarta

Muchsin Choirul AmienInspector BRI Bandung

SulistiantoInspector of BRI Semarang

Tjuk SugiyonoInspector of BRI Yogyakta

Jimmy E. EliasInspector of BRI Surabaya

Budi PurnomoInspector of BRI Banjarmasin

Putut Broto SayonoInspector of BRI Denpasar

Rusli WitjahjonoInspector of BRI Manado

Kuwat WaluyoInspector of BRI Makassar

Regional Office

Regional Audit Office

Opi Sofyan SuryadiHead of Special Branch

Special Branch Office


125.

Products and Services

Savings Products

BritAma

Demand Deposit

Time Deposit

Simpedes

Hajj Savings

Loan Products

Micro Loans

Kupedes

People Business Loan (KUR) - Micro

Retail Loans

Working Capital Loan

Briguna Loan

Investment Loan

Express Loan

Construction Loan under OB1 Framework

PPTKI Loan (for Indonesian Migrant Worker Agency)

Franchise Loan

Warehouse Receipt Loan

Petrol Station Loan

BTS Loan

Bank Guarantee

Program Loans

People Business Credit (KUR)

Loan to Members of Primary Coperatives (KKPA)

Loan for the Development of Bio Fuels & Revitalization

of Plantation (KPEN-RP)

Loan to Small Business Group (KKUK)

Loan to Micro and Small Business - Government Notes

(KUMK – SUP)

Loan for Food and Energy Security (KKPE)

Loan for the Economic Empowerment of Coastal

Communities (PEMP)

Consumer Loans

Credit Card

Housing Loan (KPR)

Motor Vehicle Loan (KKB)

Multi-Purpose Loan (KMG)

Medium and Corporate Loans

Working Capital Loan

Export Working Capital Loan

Investment Loan

Import Working Capital Loan

Construction Working Capital Loan

Import Guarantee Facility

Standby LC

Bank Guarantee

Infrastructure Loan

Syndication Loan

Banking Services

Priority Banking

Cash Management System

Salary-Based Loan

Treasury Service

Foreign Exchange Transaction

Swap Transaction

Forward Transaction

Trustee Services

Securities Sales Agency

Custodial Services

Financial Institution Pension Funds

International Banking

Export-Import Transaction

International Remittance

Letter of Credit


126.

Networks

Banda Aceh

Medan

Padang

Palembang

JakartaBandung

Yogyakarta

SemarangSurabaya

Denpasar

Banjarmasin

No BRI NetworksTotal Networks

2007 2008

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

Head Office

Regional Offices

Regional Audit Offices

Special Branch Office

Branch Offices

Overseas Offices

Sub-Branch Offices

Cash Offices

BRI Units (Micro Outlets)

Service Posts

Sharia Branch Offices

Sharia Sub-Branch Offices

Total

1

14

12

1

340

3

230

24

4,300

100

27

18

5,070

1

14

12

1

372

3

337

179

4,417

76

27

18

5,457


127.

Makassar

Manado


128.

Operating Unit (OU) Type of OU Address Area Code Telephone Facimile Telex

BANDA ACEH KW Jl. Cut Meutia No. 17, Banda Aceh 0651 22822 (hunting) 23487, 22352

1. BANDA ACEH KC Jl. Cut Meutia No. 17, Banda Aceh 0651 22900 (hunting), 7410714 31190 54100, 54118

1. Sabang KCP Jl. Perdagangan No. 123, Sabang 0652 22601/4 22603

2. BIREUN KC Jl. Kol. Husein Yoesof I No. 1-2, Bireun 064421146, 21126, 21013, 21230,

32312622040 54166

3. BLANG PIDIE KC Jl. Persada, Desa Keude Siblah, Blang Pidie 0659 91938, 91008, 91266, 91127 91070 54210

4. KUTACANE KC Jl. Iskandar Muda No. 14, Kutacane 0629 21170, 21031, 21399, 21961 21170 54309

1. Blangkejeren KCPJl. Kute Lintang No. 136, Pasar Centong Bawah,

Blankejeren Kab. Gayo Lues0642 21776 21776

5. LANGSA KC Jl. Darussalam No. 1, Langsa 064121033, 21812, 21342, 21365,

2153521364 51829

1. Kuala Simpang KCPJl. Iskandar Muda No. 4-5, Kuala Simpang, Kab. Aceh

Tamiang0641 333365/66 333367

6. LHOKSEUMAWE KC Jl. Merdeka No. 1, Lhokseumawe 064541905/7, 41695, 41478, 43459,

4190640214 51797

1 Lhoksukon KCP Jl. Pangnanggroe No. 4, Lhoksukon Aceh Utara 0645 32224, 32225 32227

7. MEULABOH KC Jl. Gajah Mada No. 70 A-B, Meulaboh 0655 7006217 7006311 54168

8. SIGLI KC Jl. Prof. A. Madjid Ibrahim 065321306, 21411, 21912, 22450,

2153522411 54165

9. TAKENGON KC Jl. Yos Sudarso No.164, Takengon 0643 21294, 21406, 21342, 21117 21119 54109

10. TAPAKTUAN KC Jl. Nyak Adam Kamal No. 42, Tapaktuan 0656 21613, 21038, 21456, 21747 21066 54211

1. Singkil KCPJl. Iskandar Muda No. 13, Rimo, Kec. Gn. Meria, Kab.

Singkil0658 21237, 21402 21401

MEDAN KW Jl. Putri Hijau No. 2 A, Medan 061 4525666, 4528323 4525601

1. BALIGE KC Jl. Sisingamangaraja No. 188, Balige 0632 21159, 21365, 21032 21085 52539

2. BINJAI KC Jl. Sutomo No. 6, Binjai 061 8821503, 8821062, 8823220 8824997 51039

1. Diski KCP Jl. Binjai Medan KM. 13.5, Diski Sei Semayang, Binjai 061 8441781 8441784

2. Stabat KCP Jl. Perniagaan, No. 124-126, Stabat 061 8912690 8912721

3. GUNUNG SITOLI KC Jl. Gomo No. 1-3, Gunung Sitoli 0639 21158, 21560, 21038 22128 51032

4. KABANJAHE KC Jl. Veteran No. 100, Kabanjahe 0628 21158, 20420/21, 21361, 21302 22141 51254

1. Brastagi KCP Jl. Pasar Buah Kel. Tambaklau No. 34, Brastagi 0628 91812 91474

5. KISARAN KC Jl. Dr. Wahidin No. 2, Kisaran 0623 41475/76, 42475/6 43335 51289

6. LUBUK PAKAM KC Jl. Negara No. 100, Lubuk Pakam 061 7952033, 7952089, 7951068 4532170

7.MEDAN ISKAN DAR

MUDAKC Jl. Iskandar Muda No. 18/173, Medan 061

4553100, 4555324, 4574766,

45554044513733 52144

1. Asia KCP Jl. Asia No. 148, Asia, Medan 061 7369335 7368683

2. Kapten Muslim KCP Jl. Kapten Muslim, No. 8 F, Medan 061 8442091 8442091

3. Sunggal KCP Jl. Sei Batanghari No. 3, Medan 061 8448002

8. MEDAN P. HIJAU KC Jl. Putri Hijau No. 2, Medan 061 4576555, 4526555, 4532373 4532170 51162, 51584

1. Krakatau KCP Jl. G. Krakatau No. 145-146 A, Medan 061 6612067

2. Pulau Brayan KCP Jl. Yos Sudarso No. 630/134, Medan 061 6614391, 6645656

9.MEDAN SISINGA-

MANGARAJAKC Jl. Sisingamangaraja No. 241, Medan 061

7881111 (hunting), 7880808,

818384/5 7868333

1. Medan Mall KCP Jl. Pusat Pasar No. 10 A, Medan 061 4516474 4573048

2. Aksara KCP Jl. Arief Rahman Hakim No. 118 B, Medan 061 7332316

10. PADANG SIDEMPUAN KC Jl. Jend. Sudirman No. 36, Padang Sidempuan 0634 21122, 21992, 21905 21905 51995

1. Penyabungan KCP Jl. Wilem Iskandar No. 173, Penyabungan 0636 321054 321054

11. PEMATANG SIANTAR KC Jl. Merdeka No. 2, Pematang Siantar 062221447, 21048, 23909, 25076,

2945923419 51993

1. Perdagangan KCPJl. Sisingamangaraja No. 479, Perdagangan, Pematang

Siantar0622 96166 96166

12. RANTAU PRAPAT KC Jl. Jend. Sudirman No. 1, Rantau Prapat 0624 21441/43, 21029, 24040, 23777 21222 51056

1. Aek Kanopan KCP Jl. Jend. Sudirman, No. 28, Aek Kanopan, Rantauprapat 0624 92319 92319

13. SIBOLGA KC Jl. Brigjend. Katamso No. 3, Sibolga 0631 21592, 21163, 22813 23479 51982

14. SIDIKALANG KC Jl. Sisingamangaraja No. 128, Sidikalang 0627 21854/57, 21086/7, 21782 21782 51093

BRI Network and Addresses


129.


15. TANJUNG BALAI KC Jl. Jend. Sudirman No. 3, Tanjung Balai 062392065, 92519, 93200, 94001,

9244692446. 51030

16. TARUTUNG KC Jl. Sisingamangaraja No. 97, Tarutung 063321452, 21313, 21445, 20474,

2156921985 51279

17. TEBING TINGGI KC Jl. Dr. Sutomo No. 24 B, Tebing Tinggi 0621 21182, 21850 22024 51034

1. Sei Rempah KCPPusat Perniagaan & Perumahan Asia Bisnis Centre,

Jl. Raya Medan KM. 60, Sei Rempah 0621 442086 442087

PADANG KW Jl. Bagindo Azis Chan No. 30, Padang 0751 32204, 31964 s.d. 31970, 32788 31971/74, 25373

1. BAGANSIAPIAPI KC Jl. Merdeka No. 43, Bagansiapiapi, 28911 0767 21311 21329, 21192, 24011/2 2196056268,

56248

1. Bagan Batu KCPJl. Jend. Sudirman No. 392 A, Bagan Batu Kab. Rokan

Hilir, Propinsi Riau0765 551897 551901

2. BANGKINANG KC Jl. Jend. Sudirman No. 61, Bangkinang 0762 20423, 20042, 20286 21377 56328

1. Ujung Batu KCPJl. Sudirman No. 38, Ujung Batu, Kel. Ujung Batu, Kec.

Tambun, Kab. Rokan Hulu0762 62129/39 62209

3. BATUSANGKAR KC Jl. S. Parman No. 45, Batusangkar 075271051, 71011, 71380, 73733/4,

7396872855 55447

4. BENGKALIS KC Jl. Jend. Sudirman No.18, Bengkalis, 28712 0766 22107, 21087/88 22459 56344

5. BUKITTINGGI KC Jl. Jend. A. Yani No. 3, Bukittinggi 075232690, 33317, 21761, 22622,

627778/9, 3416734746

55298,

55438

1.Aur Kuning

BukittinggiKCP Jl. By Pass Pasar Aur Kuning, Bukittinggi 0752 626007 627580

2. Lubuk Basung KCP Jl. Diponegoro Hilir Simpang III, Lubuk Basung 0752 877680/1 877680

6. DUMAI KC Jl. St. Syarif Kasim No. 42, Dumai 0765 33040, 37877, 34777, 35159 35480 55277

7. DURI KC Jl. Jend. Sudirman (depan Ktr Camat Mandau) Duri 0765 94340, 595919, 94340 91160

8. LUBUK SIKAPING KCJl. Jend. Sudirman No. 48,

Lubuk Sikaping 0753 321210, 20436, 20276, 20065 20435 55434

1. Simpang Empat KCPJl. Raya Manggopoh - Simpang Empat, Kabupaten

Pasaman 0753 65786/7 65785

9. PADANG KC Jl. Bagindo Aziz Chan No. 30, Padang 0751 30630, 38383 3172755226,

55249

1. Khatib Sulaiman KCP Gd. Kanins Padang, Jl. Khatib Sulaiman No. 50 0751 446308, 445964 446308

10. PADANG PANJANG KC Jl. Jend. Sudirman No. 220, P. Panjang 0752 83257/8/9, 83260/1 83888 55448

11. PAINAN KC Jl. H. Agus Salim No. 30, Painan, Pesisir Selatan 0756 21012, 21212, 21221 21012 55442

12. PARIAMAN KC Jl. Merdeka No. 21, Pariaman 0751 93025/61, 91365, 91465, 93025 91365 55430

13. PAYAKUMBUH KC Jl. Jend. Sudirman No. 6, Payakumbuh 075292120, 91102, 93934, 92556,

9198792145 55439

14. PEKANBARU KC Jl. Jend. Sudirman No. 316, Pekanbaru 0761 33444, 33643, 31733, 33511 3777156214,

56191

1. Pangkalan KerinciKCP

Rukan Akasia, Jl. Akasia 1, Bumi Lago Indah, Blok I/7,

Komp. PT RAPP, Pangkalan Kerinci 0761 95803/4 95083

2. Perawang KCP Jl. Raya KM 6 Perawang, Kec Tualang Perawang 0761 91415, 7052744 91044

3. Tuanku Tambusai KCPJl. Tuanku Tambusai Mo. 8-9,

Pekanbaru0761 64799 64788

15. P. BATAM KC Jl. Imam Bonjol Blok. A No. 8-9, Batam 0778458788, 458778, 458973,

459988456417

1.Tanjung Balai

KarimunKCP Jl. Pramuka No. 40, Tanjung Balai Karimun 0777 327420, 327267 327421

2. Batam Centre KCP Jl. Engku Putri No. 3, Batam Centre Batam 0778 462368, 462400 462368

3.Panbil Mall Kuning

BatamKCP Jl. Komp. Pertokoan Panbil Mall B 5 Muka Kuning Batam 0778 371372, 371370 371373

16. RENGAT KC Jl. M.T. Haryono No.15, Rengat 0769 21090, 21391/94, 21368, 323500 2136856349,

56314

1. Teluk Kuantan KCP Jl. Dipenogoro No. 7, Teluk Kuantan 0760 20473, 20546 20387

17. SELAT PANJANG KC Jl. Diponegoro No. 50 A, Selat Panjang, 28753 0763 31131/36, 31709 33871 56278

18. SIJUNJUNG KCJl. Prof. M. Yamin No. 25 B,

Muaro Sijunjung, 25711 0754 20203, 20160, 20033, 20143 20033 55449


130.


1. Koto Baru KCPJl. Raya Lintas Sumatera Simpang IV, Koto Baru, Sijunjung,

275810754 71675/76 71670

19. SOLOK KC Jl. Jend. Sudirman No. 1, Solok 0755 21369/70 21360 55441

20. SUNGAI PENUH KC Jl. Jend. Sudirman No. 3, Sungai Penuh, 37111 0748 21917, 323656, 21319/20, 21903 323489 27256

21.TANJUNG

PINANGKC Jl. Teuku Umar No. 29, Tanjung Pinang 0771 27632, 21076/77 21076, 313860

57140/

41

22. TEMBILAHAN KC Jl. M. Boya No. 4 A, Tembilahan 076821128, 21703, 21042, 22286,

2191821703 56244

PALEMBANG KW Jl. Kapt. A. Rivai No.15, Palembang 0711 313411, 367755 312262

1. ARGA MAKMUR KC Jl. Jend. Sudirman No. 91, Arga Makmur 0737 521007, 521029 521038 27248

1. Muko-muko KCP Kel. Muko-muko, Kab. Muko-muko 0737 71618 71619

2. BANDAR JAYA KC Jl. Proklamator Raya No. 1, Bandar Jaya, Lampung Tengah 0725 25354/6/7, 24354 25660 26377

3. BANGKO KC Jl. Bangko Rendah No. 3, Bangko 0746 21005/8, 322376 21007 27565

1. Sarolangun KCP Jl. Lintas Sumatera, Pasar Atas Sarolangun 0745 91909 91904

4. BATURAJA KC Jl. Akmal No. 116, Baturaja 0735320273, 321044, 322145,

320007, 322035, 323914/5322150 27546

1. Gumawang KCPJl. A.K. Gani, Desa Gumawang, Kec. Belitang, Kab. Oku

Timur0735 452363 452364

5. BENGKULU KC Jl. S. Parman No. 120, Bengkulu 0736 22762, 22981, 22919 20087. 27577

1. Raflesia KCP Jl. Semangka No. 45, Panorama, Bengkulu 0736 348688 27533

6. CURUP KC Jl. Merdeka No. 49, Curup 0732 21362/3, 21370 21618 27367

7. JAMBI KC Jl. Dr. Soetomo No. 42, Jambi 0741 31213/7, 31035 25625 27560

1. Abujani Sipin KCP Jl. Kol. Abujani No. 41, Sipin, Jambi 0741 669830, 669938 669830

8. KAYU AGUNG KC Jl. Let. Marzuki Jahri I/45, Kayu Agung 0712321460/61/63, 321212,

321461/2321005 27391

9. KOTA BUMI KC Jl. Jend. Sudirman No. 20, Kotabumi, LU 0724 21335, 21715, 25235 22030 26259

1.Liwa Lampung

BaratKCP

Pasar Liwa, Jl. Jend. Sudirman No. 25 A Liwa, Lampung

Barat0726 21600, 21230 21230

2. Tulang Bawang KCP Jl. Lintas Timur Pasar Unit II, Tulang Bawang 0726 750319, 750399 750738

10. KUALA TUNGKAL KC Jl. K.H. Dewantoro No. 4, Kuala Tungkal 0742 21080, 21326 21778 27242

11. LAHAT KC Jl. Mayor Ruslan I/1, Lahat 0731321772, 321355, 322056,

32322523368 27268

12. LUBUK LINGGAU KC Jl. Yos Sudarso No. 92, Lubuk Linggau 0733 323255, 323447, 323256 323315 27595

13. MANNA KC Jl. Jend. Sudirman No. 215, Manna 0739 21176, 21041, 21148 21148 27516

14. METRO KC Jl. Jend. Sudirman No. 50, Metro 0725 42621, 42634/5/7 42636 26258

15. MUARA BULIAN KC Jl. Jend. Sudirman No. 54, M. Bulian 0743 21018, 21320, 21825, 21695 21321 27398

16. MUARA BUNGO KC Jl. Anggrek No.1, Muara Bungo 0747 21019, 21566, 21559 21020 27354

1.Pasar Sarinah-

Rimbo Bujang KCP Jl. Pahlawan Pasar Sarinah Rimbo Bujang, Muara Bungo 0747 431825/6, 431824 421074

17. MUARA ENIM KC Jl. Jend. Sudirman No. 88, Muara Enim 0734 422020/1, 422640 421074 27269

1. Tanjung Enim KCP Jl. Lintas Tanjung Enim Batu Raja 0734 453764 452369

18. PAGAR ALAM KCJl. Kombes H. Umar No. 126,

Pagar Alam0730 621451, 622451 621055 27366

19. PALEMBANG RIVAI KC Jl. Kapten A. Rivai No.15, Palembang 0711 367688, 364081 312271 27201,

27392

1. Sudirman KCP Jl. Jend. Sudirman No. 12 A, Palembang 0711 376861, 376862 376861

20.PALEMBANG

SRIWIJAYAKC Jl. Letkol Iskandar No. 27, Palembang 0711 379966, 361500, 320423 379967 27371

1. Lemabang KCPJl. R.E. Martadinata, Kel. Sungai Buah, Kec. Ilir Timur II

Palembang0711 710546 716798

2. Veteran KCP Jl. Veteran, Kelurahan 20 Ilir Kec. Ilir Timur I, Palembang 0711 353557 310120

21. PANGKAL PINANG KC Jl. Diponegoro No. 1, Pangkal Pinang 0717423991, 432780, 431169,

432771/3, 431132431702 27857

22. PRABUMULIH KC Jl. Jend. Sudirman No. 6, Prabumulih 0713 320334, 320627, 323698 320848 27192

23. PRINGSEWU KC Jl. Jend. Sudirman No. 495, Pringsewu 0729 21132, 22722, 21246/7 21245 26367


131.


24. SEKAYU KC Jl. Let. Munandar No. 397, Sekayu 0714 321029, 321091 321632 27390

1. Sungai Lilin KCPJl. Raya Palembang Jambi No. 073 KM. 111, Kel Sungai

Lilin0714 322730 322171

2. Pangkalan Balai KCPJl. Raya Palembang Betung No. 006, Kelurahan Pangkalan

Balai, Kec. Banyuasin III Kab. Banyuasin0711 891091 891698

25. SUNGAI LIAT KC Jl. Jend. Sudirman No. 16, Sungai Liat 0717 92026/27/28, 94028 92921 27696

26. TANJUNG KARANG KC Jl. Raden Intan No. 51, Tanjung Karang 0721269881, 260000, 264961,

269880, 262994 26292726353,

26180

1. Pasar Natar KCPJl. Raya Natar Merak Batam No.1380, Natar, Lampung

Selatan 0721 92734/5, 406447, 7400320 92735

27. TANJUNG PANDAN KC Jl. Merdeka No. 11, Tanjung Pandan 0719 23511, 21013/14, 21674 21560 27570

28. TELUK BETUNG KC Jl. Laks. Malahayati No.78, Teluk Betung 0721 471425, 472222 486058 26176

1. Kalianda KCPJl. Indra Bangsawan No. 150 A, Kel. Urang, Kec. Kalianda,

Kab. Lampung Selatan0727 323124 322313

2. Jendral Sudirman KCPJl. Jend. Sudirman No. 88, Kel. Enggal Kec. Tanjungkarang

Pusat Bandar Lampung0721 259358 265404

JAKARTA 1 KW Jl. Veteran No. 8, Jakarta Pusat 021 3840802 3453685

1. JKT CUT MUTIAH KC Jl. Cut Mutiah No.12, Jakarta 021 3143061, 3142752 3106552

61570,

61829,

69034

1. BPKP KCP Jl. Pramuka No. 33, Kel. Utan Kayu Utara, Jakarta Timur 021 8564002/3 8199196

2. Cikini KCP Jl. Cikini Raya No. 58 R, Jakarta Pusat 021 3915344 3915343

3. Menteng KCPPlaza Menteng, Jl. HOS. Cokroaminoto No. 079, Jakarta

Pusat021 3151425, 3154910, 3154812 3154812

2. JKT DAAN MOGOT KCJl. Daan Mogot No. 17, Kel. Duri Kepa, Kec. Kebon Jeruk,

Jakarta Barat 11510021

5683660, 56963053, 56963124,

56963310, 5696342356962970

3. JKT GN. SAHARI KC Jl. Gunung Sahari Raya No. 18, Jakarta Pusat 021 6006272/4, 6598256 6006280 40117/8

4. JKT HAYAM WURUK KC Jl. Hayam Wuruk No.108, Jakpus 021 6297280, 6496935 6252217 63655,

41542

1. Muara Baru KCPJl. Muara Karang Raya No. 31, Blok A-B Utara, Kel Pluit,

Kec Penjaringan, Jak Utara021 6614146 6614146

2. Pesanggrahan KCPRuko Jl. Pesanggrahan No. 2A, Kel Meruya Utara, Kec

Kembangan, Jakarta Barat021 58906231, 58905250 58905249

3. Taman Palem KCPKomp. Perum Taman Palem Lestari Blok C 1, No. 39,

Jakarta Barat021 55956548, 55963704 55963564

5. JKT JATINEGARA KC Jl. Raya Jatinegara Timur IV/ 448 021 8506400, 8516471 8500646 48115

1. Klender KCPJl. Pahlawan Revolusi No. 4, Kel Klender, Kec Duren Sawit,

Jakarta Timur021 86612405, 86612414 8600405

6. JKT KEBON JERUK KCJl. Panjang RT. 13/RW. 01, Kel. Kebon Jeruk, Kec. Kebon

Jeruk, Jakarta Barat021 5356368 5301640

7. JKT KELAPA GADING KC

Jl. Raya Boulevard Barat Blok LC 6

Kav 69 - 70, Kel. Kelapa Gading Barat,

Kec. Kelapa Gading Jak-Ut

021 4507656, 4507911 4507654

8. JKT KEMAYORAN KCGd. PELNI Lt. 1, Jl. Angkasa No. 18 Kemayoran, Jakarta

Pusat021 4212903/4/5/6/8, 4212911, 4212913 49628

1. Cempaka Mas KCPGraha Cempaka Mas I Blok E.1/24, Jl. Letjen. Suprapto,

Jakarta021 4255328, 42803024 4255277

2. Sunter KCPJl. Danau Sunter Blok M. Kav 33,

Sunter Agung, Tj Priok, Jakarta 14350021 70768011 65837007

9. JKT KOTA KC Jl. Kopi No. 54, Jakarta 021 6918281, 6927385, 6928659 6924658 42852

1. Glodok KCPKomp. Pertokoan Glodok Plaza No. B-18 Jl. Pinangsia

Raya, Jakarta 11110021 6248037, 6248038 6248036

2. Teluk Gong KCP Ruko Duta Indah SQ Blok B/1, Teluk Gong 021 66698264/5 66698269

3. Tubagus Angke KCP Komp. Duta Blok E 1/12, Jakarta Barat 021 56944495, 56944509 5694457

10. JKT KRAMAT KC Jl. Kramat Raya No.138, Jakpus 021 3100152/3/4/5, 3904609/11 3100156 61890

1. Manggarai KCPJl. Dr. Saharjo No. 92, Kel. Menteng Atas, Kec. Setiabudi,

Jakarta Selatan021 8370337 83703622

2. Pramuka KCPJl. Pramuka Raya No. 12, Kel. Palmeriam, Kec. Matraman,

Jakarta Timur021 8517931 8517948


132.


3.Sunan Giri

Rawamangun KCPJl. Balai Pustaka No. 53, Rawamangun, Jakarta Timur

13221021 47860123 47862345

11. JKT KREKOT KC Jl. Samanhudi No. 44, Jakarta Pusat 021 2311873, 2311976, 2314174 3812876 44547

12. JKT MANGGA DUA KCGd. Mall Mangga Dua Kav. 23-24, Jl. Arteri Mangga Dua

Raya021

6013623, 6127945, 6255641,

61279446013624 41259

13. JKT OTISTA KC Jl. Otto Iskandardinata No. 72, Jakarta Timur 0212801328, 2800991,

2800717/19/20, 28000962800718 48229

1. Pondok Kelapa KCP Jl. Pondok Kelapa Raya Blok F.I No.4A, Jakarta Timur 021 86903931, 86903235 86902926

2. Tebet KCP Jl. Tebet Barat IX No. 35-B, Tebet, Jakarta 12810 021 83705544 83705545

3. Pangkalan Jati KCPJl. Jatiwaringin No. 20 Rt. 005/ 05 Cip.Melayu, Jakarta

Timur021 86613897 86613898

4.Pasar Grosir

CililitanKCP Jl. Mayjend. Sutoyo No. 76 021 30016917/ 18/ 20 30016919

14. JKT RASUNA SAID KCGd. Wisma Bakrie 2, Lantai Dasar,

Jl. H.R. Rasuna Said, Kav. B-2, Jakarta Selatan021 57942119/ 21 57942122

15. JKT RAWAMANGUN KC Jl. Pemuda Kav. 78 A-B, Rawamangun, Jakarta Timur 021 4714719, 4714559 4714601

16. JKT ROXI KCPusat Niaga Roxi Mas Blok B1 No. 1-2, Jl. KH.Hasyim

Ashari, Jakarta Pusat021 63855121, 6329986/ 82 6329982 67200

1.Mall Taman

AnggrekKCP

Mall Taman Anggrek Ground Floor G. 31 (Banking Centre)

Jl. Letjen S. Parman Kav. 21 Jakarta021 5639581/ 2/ 3 5639581

2. Kebon Jeruk KCP Wisma Relasi, Jl. Panjang No. 333, Jakarta Barat 021 5481433, 5481320 5332487

3.Universitas

TarumanegaraKCP Jl. Tanjung Duren Utara No 1, Grogol, Jakarta Barat 021 5961585/6 56961587

4. Ciledug KCPPusat Perdagangan Anugrah Ciledug Blok D No. 32, Jl.

H.O.S. Cokroaminoto, Sudimara Barat Ciledug Tangerang021 73440663 73440713

5. Jembatan Lima KCPJl. KH. Mas Mansyur No. 120 C, Kel. Sereal, Kec. Tambora,

Jakarta Barat021 63866641 63866641

17. JKT SGT SENEN KCJl. Senen Raya No. 135, Blok C II 9-12 Segitiga Senen,

Jakarta Pusat021 3507966/7 3852328 66149

1. Kelapa Gading KCPJl. Klp Gading Boulevard Blok TA 2/34,

Kel. Klp. Gading, Kec. Koja, Jak-Ut 14240021 4523476 4516478

18. JKT SUDIRMAN 1 KCGedung Arthaloka, Jl. Jend Sudirman Kav 7, Jakarta Pusat

10220021 57933251 57933253

19. JKT TNH ABANG KC Jl. Tanah Abang III/ 4, Jakarta Pusat 021 3454529 3840522 46262,

35262

1.Markas Besar

TNI-ADKCP Jl. Veteran No. 4, Jakarta 021 3519652 3811321

2. Asshidiqiyah KCP Jl. Arteri Kebon Jeruk, Kedoya, Jakarta 021 5813591 5813592

3. Tanah Abang KCPJl. K.H. Fachrudin No. 36, Blok B No. 2 Pertokoan Tn.

Abang Blok A/21, Jakarta Pusat021 39840050 2305331

4. Tomang KCPJl. Kyai Caringin No. 68, Kel. Cideng, Kec. Gambir, Jakarta

Pusat021 63859842, 63859843

5. Slipi KCPJl. Kemanggisan Raya No. 19/6 C, Kel. Kemanggisan, Kec.

Palmerah, Jakarta Barat021 53690977/8/9 53690979

20. JKT TJ. PRIOK KC Jl. Yos Sudarso No. 1 Tj. Priok, Jakarta Utara 021 4300381, 419875, 4300161 43937634 64138,

64148

1. Adpel Tj.Priok KCPKantor Administrator Pel. Tanjung Priok Lt.1, Jl. Palmas

No.1, Jakarta Utara021 43908446, 43908559 43908447

2. Penggilingan KCPJl. Raya Hamengkubuwono No. 30, Penggilingan Cakung,

Jakarta Timur021 4605628/9 4605659

21. JKT VETERAN KC Jl. Veteran No. 8, Jakarta Pusat 0213843553, 3847739, 3453689/98,

3840802, 3858254/55, 37572553842840 45205

1. RSPAD KCP Jl. Abdurachman Saleh, Jakarta 021 3841731, 3524665 3519851

2.Departemen

KeuanganKCP Gedung B Jl. Dr. Wahidin No. 1, Jakarta 021 3519806, 3452334, 3504991 3452334

3. Pertamina KCP Jl. Perwira II No 2 - 4, Jakarta Pusat 10110 021 3506709, 35004383507094/

95

4. Lemhannas KCP Jl. Medan Merdeka Selatan No. 10, Jak-Pus 10110 021 3519809 3500437


133.


22. KETAPANG KC Jl. Jend. A. Yani No.12, Ketapang, Kalimantan Barat 0534 32091/92, 31195. 32170 29380

23. MEMPAWAH KC Jl. G.M. Taufik No. 29 Mempawah, Kalbar 78912 0561 691067, 691306, 691072 691140 29320

24. PONTIANAK KC Jl. Barito No. 2, Pontianak, Kalimantan Barat 0561734009, 760945, 780876,

742775, 741616733019 29167

1. Gajah Mada KCPKomplek Pertokoan Pasar Flamboyan, Jl. Gajah Mada Blok

259, Pontianak0561 734711 733145

25. PUTUSSIBAU KC Jl. D.I. Panjaitan No. 4, Putussibau, Kalimantan Barat 0567 21436, 21020 21592 29351

26. SANGGAU KC Jl. Jend. Sudirman No. 59, Sanggau Kalimantan Barat 0564 21123, 21502, 22122. 21215, 29342

27. SINGKAWANG KC Jl. P. Diponegoro No. 23, Singkawang, Kalimantan Barat 0562 631653, 631654, 634477 633336 29205

1. Bengkayang KCPKomplek Pertokoan Jl. Jerenden AR, Ds. Bumi Emas,

Bengkayang0562 441459 441054

2. Pemangkat KCP Jl. Moh. Hambal No. 82, Pemangkat 0562 243776 243775

28. SINTANG KC Jl. Adi Sucipto No. 1, Sintang, Kalimantan Barat 0565 21506, 21504, 21949 22409 29331,

29443

BANDUNG KW Jl. Asia-Afrika No. 57-59, Bandung 022 4200356 (Hunting) 432038 4200348

1. BANDUNG AHMAD

YANIKC

Jl. A. Yani No. 276, Kel. Kacapiring, Kec. Batununggal,

Bandung022 7270277 7270421

2.BANDUNG ASIA-

AFRIKAKC Jl. Asia-Afrika No. 57-59, Bandung 022

4200350/2, 4200360, 4206356,

4200352439142

24141,

24143

1. Metro Trade Center KCP Jl. Soekarno-Hatta Blok F No. 12, Bandung 022 70633500 7536379

2. Rajawali KCP Jl. Rajawali No. 95, Bandung 022 6047038 6046595

3.BANDUNG A.H.

NASUTIONKC Jl. Ujung Berung No. 140, Bandung 022 7800048, 7803140/1 7803948 28936

4.BANDUNG DEWI

SARTIKAKC Jl. Dewi Sartika No.1-3, Bandung 022 4203666, 4207335, 4215324/5 4232486

28177,

28680,

28817

1.ITC

Kebon KelapaKCP ITC Kebon Kelapa, Jl. Pungkur, Bandung 022 5234267/ 8 5234268

2. Pasar Baru KCP Jl. Otto Iskandardinata No. 77, Bandung 022 4263419, 4209480 4263620

3. Pasar Caringin KCPPasar Induk Caringin Blok A.1 No. 35,

Jl. Soekarno-Hatta, Bandung022 5430777 5430791

5. BANDUNG NARIPAN KC Jl. Naripan No. 93, Bandung 0224231564, 4264330, 4240240,

4231532, 42150664236417 28848

1. ITB KCPKampus ITB,

Jl. Dayang Sumbi No. 7, Bandung022 2508531, 2508486, 2508544

2. Pasir Kaliki KCP Jl. Pasir Kaliki No. 150, Bandung 022 4239960 4208523

3. Setra Sari KCP Jl. Surya Sumantri No. 34 A, Bandung 022 2020896, 2016222 2016222

4.Simpang Buah

BatuKCP Jl. Buah Batu No. 162, Bandung 022 7323107/ 7307665 7323107

6. BANJAR KC Jl. Ciamis No. 1, Banjar 0366 741811/2/3 741810 28936

1. Pangandaran KCP Jl. Merdeka No. 202, Pangandaran 0265 630036, 630147 630036

7. CIAMIS KC Jl. Ir. H. Juanda No. 166, Ciamis 0265771073, 772469, 772825,

774450771219 28853

8. CIANJUR KC Jl. Adi Sucipto No. 8, Cianjur 0263261237, 263843, 261174,

262210265542 28752

1 Cipanas KCP Jl. Raya Cipanas No. 34, Pacet, Cianjur 0263 511031 511506

9. CIBADAK KC Jl. Siliwangi No. 93 A, Cibadak 0266 531106, 531376, 531810 533345 28028

1. Pelabuhan Ratu KCP Jl. Pramuka No. 95, Ds. Pelabuhan Ratu, Kab. Sukabumi 0266 433625/6 432100

10. CIMAHI KC Jl. Raya Cimahi No. 598, Cimahi 022 6654579, 6651728 6652724 28757

1. Soreang KCP Jl. Raya Soreang No. 48, Soreang 022 5897460, 5897461, 5892939

2. Padalarang KCPJl. Raya Padalarang No. 50 B, RT. 004/13, Ds. Kertajaya,

Kab. Bandung022 6808032, 6808230 6808032

11. CIREBON KC Jl. R.A. Kartini No. 85, Cirebon 0231 202085, 204285 208470 28590

1. Weru KCPJl. Raya Plered No. 84 A, Kec. Weru,

Kab. Cirebon0231 322715 322716

12. GARUT KC Jl. Jend. A. Yani No. 65, Garut 0262 232318, 235393 232013 28124


134.


13. INDRAMAYU KC Jl. D.I. Panjaitan No.227/C, Indramayu 0234 271364, 271397, 272322 28724

1. Patrol KCP Jl. Raya Patrol, Kec. Sukra, Kab. Indramayu 0234 611864 611864

14. JATIBARANG KC Jl. Siliwangi No. 3, Jatibarang 0234351062, 351470, 351270,

351550351550, 354406 28705

15. KUNINGAN KC Jl. Ahmad Yani No. 6, Kuningan 0232871449, 871264, 871125,

875977871126 28728

16. MAJALAYA KC Jl. Raya Laswi No. 258, Majalaya 0225950211, 5951747, 5950425,

59519465953730 28655

1. Banjaran KCP Jl. Raya Banjaran No. 202, Majalaya 022 5940335 5940335

2. Rancaekek KCP Jl. Raya Dangdeur Timur No. 105, Rancaekek, Majalaya 022 7793370 7793370

17. MAJALENGKA KC Jl. KH. Abdul Halim No. 286, Majalengka 0233281307, 281207, 281479,

283891, 283718282279 28729

1. Abdul Fatah KH KCP Jl. KH. Abdul Fatah No. 59, Cikijing, Kab Majalengka 0233 318431 318432

18. PAMANUKAN KC Jl. Ian Marta Sasmita No. 52, Pamanukan 0260 551348/9, 553567, 551223 550480 28077

19. PURWAKARTA KC Jl. Kol. Kornel Singawinata No. 68, Purwakarta 0264 200120/1, 200186 206535 45746

20. SINGAPARNA KC Jl. Raya Timur No. 6, Singaparna 0265545821, 545332, 545609,

544666545820 28107

21. SUBANG KC Jl. Otto Iskandardinata No. 87, Subang 0260 413141/2, 413228/9, 420264/5 413230 28737

22. SUKABUMI KC Jl. A. Yani No. 38, Sukabumi 02662040024, 222433, 222087,

223734223830 28149

23. SUMEDANG KC Jl. Prabu Geusan Ulun No. 10, Sumedang 0261201556, 201223, 201263,

207401201884 28713

1. UNPAD Jatinangor KCP Jl. Raya Jatinangor No. 148, Ds. Cikeruh, Jatinangor 022 7791202 7791202

24. TASIKMALAYA KC Jl. R. Ikik Wiradikarta No. 7, Tasikmalaya, 0265 330619, 334717, 334446 28123

SEMARANG KW Jl. Teuku Umar No. 24, Semarang 0248440728, 8440729, 8440730,

84418146

8447315,

8318463

1. BATANG KC Jl. Diponegoro No. 1, Batang 0285 391047, 391516, 391532 392214 22521

2. BLORA KC Jl. Pemuda No. 2, Blora 0296531210, 531944, 533186,

53161431017 22385

3. BREBES KC Jl. Dr. Wachidin No. 1, Brebes 0283 671760/ 1, 672661 672664 52212

1. Jatibarang KCP Jl. Raya Jatibarang, Ds. Jatibarang Lor, Kab. Brebes 0283 6183226 6183226

4. BUMIAYU KC Jl. Raya Utara No. 77, Bumiayu 0289 432250/1/2, 4324425 432025 22855

5. CEPU KC Jl. P. Diponegoro III/2, Cepu 0296 421363, 421160/61, 421505 423410 22188

6. DEMAK KC Jl. Sultan Patah No. 676, Demak 0291 685900/1/3, 86393 685105 22365

7. JEPARA KCGd. PKPRI (PKPN)

Jl. Pemuda No. 101, Jepara0291 591026, 591404, 593969 591505 22367

1. Bangsri KCP Jl. Raya Bangsri, Jepara 0291 772092 772092

8. KENDAL KC Jl. Raya No. 222, Kendal 0294 381100, 381764/65/66, 384124 381767 22474

1. Weleri KCP Jl. Utama Tengah No. 194, Weleri, Kendal 0294 642588 642588

9. KUDUS KC Jl. Jend Sudirman No. 66, Kudus 0291 432060 432086 431868 436268 22453

10. PATI KC Jl. P. Sudirman No. 154, Pati 0295 381949, 381851 381676 22114,

22680

1. Juwana KCPJl. P. Sudirman,

Pertokoan Plaza Juwana, No. 30295 474466 474466

11. PEKALONGAN KC Jl. W.R. Supratman No. 6, Pekalongan 0285 421041, 434902 424318 22473

1. Wiradesa KCP Jl. Raya Wiradesa No.112, Wiradesa, Pekalongan 0285 4417254, 4417443 4417252

2. Kedung Wuni KCPJl. Raya Kedung Wuni No. 125-126,

Kedungwuni, Pekalongan0285 785900 785900

12. PEMALANG KC Jl. Jend. Sudirman Timur No. 36, Pemalang 0284 321016, 321646, 321428 321397 22556

13. PURWODADI KC Jl. K.S. Tubun No. 1, Purwodadi 0292424913/14, 424112, 421848,

424912421241 22302

14. REMBANG KC Jl. P. Diponegoro No. 103, Rembang 0295 691133, 691622, 692373 691853 22447

1. Lasem KCP Jl. Raya Lasem No. 124, Lasem 0295 531234 531234

15. SALATIGA KC Jl. P. Diponegoro No. 9, Salatiga 0298326890, 326356, 327230,

323876323640 22553


135.


16. SEMARANG

PANDANARAN

KC Jl. Pandanaran No. 75, Semarang024

8412418, 8411918, 8414349 8413367,

8450459

22114,

22680

1. Karangayu KCP Jl. Jend. Sudirman No. 174, Semarang 024 7604065 7604065

2. Kranggan KCP Jl. Gang Pinggir No. 36 A, Semarang 024 3563272 3584830

3. Mojopahit KCP Jl. Mojopahit No. 382, Semarang 024 6708939 6708939

4. Tlogosari KCP Jl. Tlogosari Raya 1 No. 68 Blok B 1, Semarang 024 76744280 7644215

17.SEMARANG

PATTIMURAKC Jl. Pattimura No. 2-4, Semarang 024 3585441, 3545017 3546115

22113,

22242,

22861

1. A. Yani KCP Jl. Jend. A. Yani No. 169, Semarang 024 8416790 8416790

2. Metro Plaza KCPPertokoan Metro Plaza Blok A.7, Jl. MT. Haryono 970,

Semarang024 8313571 8417853

3. Piere Tendean KCP Jl. Kapten Piere Tendean No. 25, Semarang 024 3510876 3510876

4. Watugong KCP Komp. Kodam IV Diponegoro, Watugong, Semarang 024 7460460 7460460

18. TEGAL KC Jl. Pancasila No. 42, Tegal 0283 358912/3/4/5 356302 22462

1. Adiwerna KCPJl. Raya Banjaran, Ds. Banjaran,

Kec. Adiwerna, Tegal0283 444872, 445728 444872

2. Slawi KCP Jl. Dr. Sutomo No. 3, Ds. Slawi Wetan 0283 492494 492494

19. UNGARAN KC Jl. Jend. Gatot Subroto No. 75, Ungaran 0246924475, 6921075, 6921675,

6923303921104 22562

1. Ambarawa KCP Jl. Sudirman No. 150, Ambarawa 0298 591150, 592715 592715

YOGYAKARTA KW Jl. Cik Ditiro No. 3, Yogyakarta 0274 561403, 520270 514166

1. AJIBARANG KC Jl. Raya Ajibarang Wetan No.1, Ajibarang 0281 571543/4, 5725448/9 571544

2. BANJARNEGARA KC Jl. Pemuda No. 70, Banjarnegara 0282 591024 591585, 591104 591639 25309

3. BANTUL KC Jl. Jend. Sudirman No. 3, Bantul 0274 367312, 367433, 367044 367122 25441

4. BOYOLALI KC Jl. Pandanaran No. 154, Boyolali 0276321067, 325058, 321120,

32141321414 25386

5. CILACAP KC Jl. Jend. A. Yani No. 29, Cilacap 0282 533422, 533015, 534068 533215 25422

1. Kroya KCP Jl. Jend. Sudirman, No. 60, Kroya. 0282 492100, 492101 494214

6. GOMBONG KC Jl. Yos Sudarso No. 208, Gombong 0287 471162/ 3, 471087 471539 25493

7. KARANG ANYAR KC Jl. Lawu Barat No. 391, Karanganyar 0271 495383, 495388 494275 25301

1. Palur KCP Jl. Raya Solo, Sragen 0271 827571, 825565 494275

8. KEBUMEN KC Jl. Pahlawan No. 114, Kebumen 31247 0287 381005, 381247 381555 25391

9. KLATEN KC Jl. Pemuda Selatan No. 67, Klaten 0272321859, 322330, 321824,

325655, 322738321425 25213

1. Pedan KCP Jl. Raya Pedan No. 4, Kec. Pedan, Kab. Klaten 0272 897986, 897467 897467

10. KUTOARJO KC Jl. Mayjend. S. Parman, No. 107, Kutoarjo 0275642177, 641369, 641035,

641138, 641646641044 25355

11. MAGELANG KC Jl. Ikhlas No. 1, Magelang 0293 365161, 364060, 365277 365269 22153

1. Shopping Centre KCPKomp. Pertokoan Shopping Center Ruko No. 1-2,

Magelang0293 361035, 310158 361035

12. MAJENANG KC Jl. Diponegoro No. 318, Majenang 0280 621069, 621360, 621145 621496 25637

1. Sidareja KCP Jl. Jend. Sudirman No. 171, Sidareja 0280 524162 523316

13. MUNTILAN KC Jl. Pemuda No. 6, Muntilan 0293 587096, 587380, 586097 587444 22853

14. PARAKAN KC Jl. Kosasih No. 15 Parakan 0293596086, 596011, 597345,

596455596086 22759

15. PURBALINGGA KC Jl. Jend. Sudirman No. 214 A, Purbalingga 0281891577, 891054, 891395,

895341, 891892891892 25307

16. PURWOKERTO KC Jl. Jend. Sudirman No. 57, Purwokerto 0281 640985, 631813/14/15 631819 25330

24. WATES KC Jl. Kol. Sugiyono No. 2, Wates 0274 773146, 773340, 774333 773671 25219

25. WONOGIRI KC Jl. Kabupaten No. 1, Wonogiri 0273 321044, 323473, 321287 321496 25270

26. WONOSARI KC Jl. Pramuka No. 6, Pandansari, Wonosari, Gunung Kidul 0274391703, 391472, 391119,

394193392045 25236

27. WONOSOBO KC Jl. Jend. A. Yani No. 1, Wonosobo 0286321190, 321025, 321738/9,

321702322258 22394


136.


28.YOGYA

CIK DITIROKC Jl. Cik Ditiro No. 3, Yogyakarta 0274

520261/2, 520581, 561935,

563439 512110 25121,

25618

1. Bethesda KCP Jl. Jend. Sudirman No. 70, Yogyakarta 0274 520136

2. Seturan Plaza KCP Jl. Raya Seturan, Caturnunggal, Depok 0274 4332615, 4332688 4332688

29. YOGYA KATAMSO KC Jl. Brigjend. Katamso No. 13-15, Yogyakarta 0274 372724/6/8/9 387949 25185,

25365

JAKARTA 2 KWGedung Mulia Lt. 2,

Jl. Gatot Subroto, Kav. 9-11021 52920581, 52920585

52920586,

52920587

1. BEKASI KC Jl. Ir. Juanda No. 93, Bekasi 021 8802820, 88349008 8800971 46973

1. Cikarang KCP Cikarang Plaza Blok B No. 10, Cikarang, Bekasi 021 89110462 89110463

2. Cikarang Selatan KCPJl. Raya Cikarang-Cibarusah No. 39 B, Ds. Sukaresmi,

Kec. Cikarang Selatan, Kab. Bekasi021 89677087/89 89677087

3. Pondok Gede KCPKomp. Pondok Gede Plaza Blok A 20, Pondok Gede,

Bekasi021 849933566 8471488

4. RS ANANDA KCP Jl. Sultan Agung No. 173, Kel. Medan Satria, Kodya Bekasi 021 88861041 88855108

5.Sentral Niaga

KalimalangKCP

Komp. Ruko Sentral Kalimalang

Blok A 2, No. 3, Jl. A.Yani, Bekasi021 88850371 88850370

6. Tambun KCPRuko Kalimas Blok B 1, Jl. Chairil Anwar, Kel. Margahayu,

Kec. Bekasi Timur, Bekasi021 88342908 88359638

2. BOGOR KC Jl. Dewi Sartika No. 6, Bogor 0251 313137 320043 48424,

67049

1. Cibinong Mayor

OkingKCP

Perum. Taman Rezeki, Jl. Mayor Oking Jayaatmaja, Kel.

Ciriung, Kec. Cibinong021 87914147 87914185

2. IPB Dermaga KCP Kampus Institut Pertanian Bogor, Dermaga, Bogor 0251 391393 423046

3. Parung KCP Jl. Raya Parung, Desa Parung, Kec. Parung, Kab. Bogor 0251 8610154 8610194

4. Suryakencana KCP Jl. Suryakencana No. 312, Sukasari, Bogor 0251 321851/8 321856

5. Tajur KCP Jl. Raya Tajur No. 49, Bogor 0251 337578 338822

3. BOGOR PADJAJARAN KCJl. Raya Padjajaran No. 95 A, RT.02/RW.06, Kel.

Padjajaran, Kec. Bogor Utara, Bogor0251 334568 334568

1. Batu Tulis KCP Jl. Raya Pahlawan No. 80/152, Bandongan, Bogor Selatan 0251 8326685

4.BUMI SERPONG

DAMAIKC

Jl. Pahlawan Seribu, Ruko Golden Boulevard Blok Q 6-7,

BSD Tangerang021 5376571, 53161402/4/5 5376570

1. ITC KCP Ruko ITC BSD No. 57, Jl. Pahlawan Seribu 021 53161564 53161563

2. Gading

SerpongKCP Serpong No. 30, Tangerang 021 54212198 54212198

3. Pamulang KCP Pamulang, Kab. Tangerang, Banten 021 7408079 7499888

4. Serpong KCP Ruko Sentra Niaga III E No. 6, Tangerang 021 53123419 53122978

5.. CIBUBUR KCJl. Trans Yogi - Jl. Alternatif Cibubur, Kranggan Permai Blok

16 No. 19-20, Kel. Jatikarya, Kec. Jatisampurna, Bekasi021 8446653/54 845832

1. Cileungsi KCP Komp. Griya Kenari Mas, Blok B/ II, No. 2-3 021 8230614 8230614

2. Gunung Putri KCP Jl. Raya Wanaherang No. 6 021 8670145 8670145

6. CIKAMPEK KC Jl. Jend. A. Yani No. 16, Cikampek 0264316069, 316085, 312200,

319273316743 44798

7. CIKARANG KCRuko Cikarang Comersial Center, Jl. Raya Cikarang,

Cibarusah KM. 40, Cikarang, Bekasi 17550021 89835728, 8935349, 89835728 8934544

8. CILEGON KC Jl. S.A. Tirtayasa No. 5, Cilegon 0254 391393/2, 391351 802666,

9. CIPUTAT KC Jl. Ir. H. Juanda No. 88, Ciputat, Jaksel 021 7403188, 7427806 7427737

10. DEPOK KC Jl. Margonda Raya No. 21 A, Depok 021 7752341/42 77212720

1. Margonda KCP Jl. Raya Margonda No. 341 B, Kel. Kemirimuka, Kec. Beji,

Depok021 7870338 78884575

11. JKT FATMAWATI KC Jl. RS. Fatmawati No. 37, Jakarta Selatan 021 7694430, 7503980/81 7695239

1. Cinere KCP Jl. Cinere Raya No. 19 B, Cinere 021 7540856, 7540845, 7536209 7540841

2. Duta Mas KCPKomp. Pertokoan Duta Mas Blok B. 2

No. 6, Jl. Raya Fatmawati, Jakarta021 72793825/6 72793815

3. Kranggan KCP

Komp. Ruko III Citra Grand No. 19,

Jl. Raya Alternatif Cibubur,

Kel. Jatikarya, Kec. Jatisampurna Bekasi

021 843000017 84300016

4. RSU Fatmawati KCP Jl. RS. Fatmawati Cilandak, Jakarta Selatan 021 7694430, 7503979/80 7695239


137.


12. JKT GT. SUBROTO KC Jl. Gatot Subroto Kav. 52, Jakarta Selatan 0215204431, 5204466, 5204417,

520444, 52044145204433

60553

/54

1.Telkom Gatot

SubrotoKCP

Jl. Jend. Gatot Subroto Kav. 52,

Jakarta Selatan021 52731746/47 5273175

2. Gedung BEJ KCP JSX Building Tower, Jl. Jend. Sudirman Kav. 52-53, Jakarta 021 5152791 5152790

13. JKT KEB. BARU KC Jl. Hasanuddin No. 62, Blok M, Jakarta 021 7201053/4, 7201054/5 7201056 47180

1. Ampera KCPJl. Ampera Raya No. 8, Kel. Pejaten Barat, Kec. Ps.

Minggu, Jakarta Selatan021 71792504 7192410

14. JKT PD. INDAH KC

Jl. Sultan Iskandar Muda/Arteri Pondok Indah Kav. No. 3,

Keb. Lama,

Jakarta Selatan

021 7294070/ 71/ 72/ 73, 7294069, 7294066 47691

1. Bintaro KCPKomp. Ruko Plaza Bintaro Jaya, Sektor 3 No. D 41,

Jakarta021 7375169, 7375857 7375856

2. Cipulir KCPJl. Ciledug Raya No. 15, Cipulir, Kel. Ulujami, Kec.

Kebayoran Lama, Jakarta Selatan021 58904160, 68196654 7206362

3. Cirendeu KCPJl. Cirendeu Raya, Ruko Cirendeu Griya Permai No. 7,

Jakarta021 7493285, 7495529 74710406

4. Permata Hijau KCP

Grand ITC Permata Hijau, Jl. Arteri Permata Hijau, Type

Emerald No. 31, Grogol Utara, Kebayoran Lama, Jakarta

12210

021 53664223 53664234

5. Pondok Indah Mall KCPPd. Indah Mall 2, Lt. Dasar No. G 33 B, Jl. Raya Metro Pd.

Indah, Jakarta Selatan021 75921054/5 75921053

15. JKT PASAR MINGGU KC Jl. Ragunan Raya No. 39, Pasar Minggu 021 78833026, 78839888 7805452 66189

1. Kampus UI KCP Kampus UI Depok Fak. Psikologi 021 70241012, 70300536 70300536

16. JKT WARUNG BUNCIT KCJl. Mampang Prapatan No. 8,

Jakarta Selatan021 7982411, 7983911, 79195844

7982480,

798391166052

1. Cijantung KCP Jl. Raya Bogor KM. 23 No. 1, Pasar Rebo, Jakarta Timur 021 87795861 87795861

2. Cikajang KCPJl. Cikajang No. 3 Blok. Q/ IV, RT. 001/ 05, Keb. Baru,

Jakarta Selatan021 7252125 7392467

17. JOGLO KCJl. Raya Joglo, Ruko Puri Botanical H 7 No. 1-2, Jakarta

Barat021 58907163 58906368

18. KARAWANG KC Jl. Tuparev No. 27, Karawang 0267 402333, 415315 415228, 415138 44740

1. Rengas dengklok KCP

Jl. Blok Kraton RT. 02/ 06, Rengas dengklok, Kec.

Rengasdengklok, Karawang0267 484841/2 484843

19. LABUAN KC Jl. Jend. Sudirman No. 156, Labuan, Pandeglang, Banten 0253 81213/4, 82800, 81761 82666

20. PANCORAN KCJl. Gatot Subroto No. 62, Kel. Menteng Dalam, Kec. Tebet,

Jakarta Selatan021 83785557/8 83785562

21. PANDEGLANG KC Jl. Bhayangkara No. 1, Pandeglang 0253 201047, 201971, 204958 203501 45885

22. PONDOK GEDE KCPlaza Pondok Gede Ruko Blok C No. 23-25, Jl. Raya

Pondok Gede, Bekasi021 84938476/7/8 84948480

1. Galaxy KCPKomp. Ruko Taman Galaxy Indah Blok H No. 1, Kodya

Bekasi021 82404134 82404331

2. Jatibening KCP Jl. Caman Raya No. 17 H, Jatibening, Bekasi 021 84976959 84993668

23. RANGKAS BITUNG KC Jl. Ika Jatmika No. 7, Rangkasbitung 0252 201012, 201683, 204063 204112 45887

24. SERANG KC Jl. P. Diponegoro No. 3, Serang 0254 210025/26 200133 48294

25. TANGERANG KC Jl. Jend. A. Yani No. 4, Tangerang 021 5520789, 5524357, 5515914 5524356 43548

1. Balaraja KCPKomp. Pertokoan Pintu Tol Balaraja Barat, Kamp. Telaga

Sari RT. 05/2, Balaraja, Tangerang 15612021 5952545, 5282558 5952577

2. Bandara S. Hatta KCP Angkasa Pura, Gd. 600 021 55910938 55910938

3. Karawaci KCPRuko, Jl. Imam Bonjol No. 42, Karawaci, Kawasan Lipo

Karawaci, Tangerang021 55791051

55791051

4. Tangerang

Pasar BaruKCP

Ruko M. Toha Blok B No. 34, Jl. Raya M. Toha, Tangerang

(Jl. Raya Mauk Tangerang)021 5518306 55791097

SURABAYA KW Plaza BRI lt.20, Jl. Basuki Rachmad 122-138, Surabaya 031 53242305324033,

5324044

1. BANGKALAN KC Jl. Let. Singosastro No. 1, Bangkalan, Madura 0313095049, 3095520, 3095273,

30990883097123 31533


138.


2. BANYUWANGI KC Jl. Jend. A. Yani No. 12, Banyuwangi 0333424888, 412700, 421444,

427069424616 31887

1. Genteng KCP Komp. Ruko Pasar Genteng Blok C, Banyuwangi 0333 846351, 847955 636401

2. Rogojampi KCP Jl. Raya Rogojampi No. 123, Rogojampi, Banyuwangi 0333 636400 636401

3. Muncar KCP Kec. Muncar, Kab. Banyuwangi 0333 590208 596101

3. BLITAR KC Jl. Jend. A. Yani No. 2, Blitar 0342801846, 802325, 801234,

801755804174 31698

1. Wlingi KCP Jl. Bromo No. 22, Wlingi, Blitar 0342 5696361/62 5696360

4. BOJONEGORO KC Jl. D.I. Panjaitan No. 6, Bojonegoro 0353 881307, 884958, 882495 884979 31029

5. BONDOWOSO KC Jl. Ki Mangunsarkoro No. 5, Bondowoso 0332 427069, 421780, 425994 421444 31887

6. GRESIK KC Jl. P. Sudirman No. 89, Gresik 031 3990078 3983298 31157,

31011

1. Driyorejo KCP Jl. Raya Driyorejo No. 180, Gresik 031 7508240 7508208

7. H.R. MUHAMMAD KC Jl. H.R. Muhammad No. 90 B, Surabaya 031 73282090 7341860

1. Wiyung KCP Taman Pondok Indah, Blok A5-A6, Surabaya 031 7671134 7671276

8. JEMBER KC Jl. Jend. A. Yani No. 1, Jember 0331483258, 424162, 421808,

486983486484 31050

1. Ambulu KCP Jl. Manggar No. 34, Kec. Ambulu, Kab. Jember 0336 883344 883344

9. JOMBANG KC Jl. K.H. Wahid Hasyim No. 116, Jombang 0321 861041, 862126, 861232/4 862758 31661

1. Mojoagung KCP Jl. Raya Mojoagung No. 236, Jombang 0321 495362 495362

10. KEDIRI KC Jl. K.J.P. Slamet A No. 35-37, Kediri 0354 773307 771322 31984

1. Doho KCP Jl. Brawijaya No. 40, Blok A 1-2, Kediri 0354 696859 696858

2. Pare KCP Jl. Raya No. 76, Pare, Kediri 0354 398535 398534

11. LAMONGAN KC Jl. Basuki Rachmat No. 86, Lamongan 0322312255, 321520, 323317,

321442323222 31647

1. Babat KCP Jl. Raya Babat No. 227, Lamongan 0322 457669, 457000 457669

12. LUMAJANG KC Jl. Alun-Alun Selatan No. 3, Lumajang 0334881287, 886374, 881883,

882338881054 31565

13. MADIUN KC Jl. Pahlawan No. 50, Madiun 0351 454131/2/3 462406 31956

1. Caruban KCP Jl. Panglima Sudirman No. 141, Caruban 0351 384533 384533

14. MAGETAN KC Jl. Jend. A. Yani No. 12, Magetan 0351895309/10/11, 891920/21,

891841892456 31663

15. MALANG KAWI KC Jl. Kawi No. 20-22, Malang 0341 327666, 328208, 362217 328106 31089,

31507

1. Batu KCP Jl. Panglima Sudirman No. 21, Batu 0341 594782, 594779 594779

2. Kepanjen KCP Jl. Ahmad Yani No. 106-107, Kepanjen, Malang 0341 399850/51, 399523 39850

3. Lawang KCP Jl. Raya Thamrin Blok AJ-1 0341 422898/99, 423540 423423

16. MALANG M.DINATA KC Jl. Laks. Martadinata No. 81, Malang 0341 368681/2, 363839, 359445 363831 31748

1. Turen KCP Jl. Panglima Sudirman No. 4, Turen, Malang 0341 827434, 827778 827800

2. UNIBRAW KCP Jl. M.T. Haryono, Malang 0341 575952/53 575901

17. MOJOKERTO KC Jl. Mojopahit No. 378, Mojokerto 0321 322402, 322442, 392978 323642 31949

1. Mojosari KCP Jl. Masjid No. 64, Mojosari, Mojokerto 0321 594960/61 594961

18. NGANJUK KC Jl. Raya Supriadi No. 3, Nganjuk 0358 321690/2, 325667, 321007 323404 31721

19. NGAWI KC Jl. Jend. A. Yani No. 55, Ngawi 0351 749525, 749529, 749536 748140 31607

20. PACITAN KC Jl. Jend. A. Yani No. 18, Pacitan 0357881020, 881193, 881211,

882590884153 31378

21. PAMEKASAN KC Jl. Jokotole No. 24, Pamekasan 0324322853, 327328, 322693,

321485324064 31617

22. PASURUAN KC Jl. Pahlawan No. 24, Pasuruan 0343 426621/2/3/4 425344 31684

1. Pandaan KCP Jl. Pahlawan Sunaryo No. 8, Pandaan, Pasuruan 0343 631100, 637645 637646

2. Bangil KCP Komp. Plaza Suropati Blok A No. 16, Bangil 0343 741810, 743900 744810

23. PONOROGO KC Jl. Soekarno-Hatta No. 28, Ponorogo 0352 481271, 481939, 485066 484265 31459


139.


24. PROBOLINGGO KC Jl. Suroyo No. 30, Probolinggo 0335 424130 421267 31899

1. Kraksaan KCPJl. Raya Panglima Sudirman No. 270, Kraksaan,

Probolinggo0335 843456 843413

25. SAMPANG KC Jl. K.H. Wahid Hasyim No. 83, Sampang 0323 321085, 321477, 323483 322544 31546

26. SIDOARJO KC Jl. Jend. A. Yani No. 35, Sidoarjo 031 8967985 8941065 31669

1. Aloha KCPKomp. Pertokoan Gateway Aloha Blok B 07, Jl. Raya

Waru, Kec. Gedangan, Sidoarjo031 8554627/9 8554627

2. Krian KCP Jl. Raya Imam Bonjol No. 37, Krian, Sidoarjo 031 8983343, 8976144 8976133

3. Pondok

ChandraKCP

Komp. Pertokoan Wadung Asri, Jl. Raya Wadung Asri,

Sidoarjo031 8688174 8688175

4. Sepanjang KCP Komp. Ruko Taman No. 58, Sidoarjo 031 7871776 7871762

27. SITUBONDO KC Jl. Jend. A. Yani No. 123, Situbondo 0338 674111, 671279, 675273 673356 31039

28. SUMENEP KC Jl. Trunojoyo No. 135 A, Sumenep 0328662717, 663282, 664821,

662682662682 31876

29.SURABAYA KUSUMA

BANGSAKC Jl. Kusuma Bangsa No. 122, Surabaya 031 5344495, 5467102 5350320 34214

1. Kampus UNAIR KCP Jl. Darmawangsa Dalam No. 23-B, Surabaya 031 5015776, 5039995 5015776

2. Mulyosari KCPKomp. Ruko Sutorejo Prima Indah No. 78 B, Jl. Raya

Mulyosari, Surabaya031 5965313,5964564 5965313

30. SURABAYA KALIASIN KC Gd. Plasa BRI, Jl. Basuki Rahmat No. 138, Surabaya 0315320736/7, 5320757, 5341448,

5350573, 5345771 5320738

32881,

32882,

32883

1. A. Yani KCP Jl. Jemur Andyani No. 69, Surabaya 031 8477361/2, 8475217 8477361

31.SURABAYA

PAHLAWANKC Jl. Pahlawan No. 39-41, Surabaya 031

5474045, 5475277, 35448025474059 34119

1. Diponegoro KCP Jl. Diponegoro No. 174, Surabaya 031

32. SURABAYA RAJAWALI KC Jl. Rajawali No. 23-27, Surabaya 031 3531219, 3551045, 3540275 3540581 32264,

32136

1.Jembatan Merah

PlazaKCP

Jembatan Merah Plaza II Lt. Dasar Blok B, No. 1-2,

Surabaya031 3520418/9

2. Kedungdoro KCP Jl. Kedungdoro No. 67, Surabaya

3. Pucang KCP Jl. Pucang Anom Timur No. 25 B, Surabaya

4. Rungkut KCPKomp. Pertokoan Rungkut Megah

Blok D No. 7, Jl. Rungkut No. 5, Surabaya031 8709265 8794955

33.SURABAYA

TJ. PERAKKC Jl. Perak Barat No. 357-375, Surabaya 031 3291380/2, 3291385 3295115

36317,

36345

1. Manukan KCP Jl. Manukan Taman Blok 2 H No. 16, Surabaya 031 7411190 7458688

2. Pasar Turi KCP Jl. Semarang No. B 16, Surabaya

34. TRENGGALEK KC Jl. Jend. A. Yani No. 4,

Trenggalek 663160355 791691/2/3, 791390 323652 31637

35. T U B A N KC Jl. Veteran No. 15, Tuban 0356321739, 321095, 323079,

321049791691 31708

36. TULUNGAGUNG KC Jl. P. Diponegoro No. 2 B, Tulungagung 0355 329328, 323076, 323070/75 323072 31969

BANJARMASIN KW Jl. Jend. A. Yani KM 3.5, No. 151, Banjarmasin 0511 252056/57 251649, 252992

1. AMUNTAI KC Jl. Jend. A. Yani No. 1, Amuntai 0527 61062, 62075, 61890, 61493 62727 39297

1. Paringin KCP Jl. Jend. A. Yani No. 26 Paringin Kota 0526 2028123, 2028237 2028237

2. BALIKPAPAN KCJl. Jend. Sudirman No. 37,

Balikpapan, 761120542 736765 732850

37126,

37303

1. Balikpapan Baru KCPJl. M.T. Haryono, Komp. Ruko, Balikpapan baru, Blok B 3,

No. 7, Balikpapan0542 875304, 875199 872817

2. Kebun Sayur KCP Jl. Letjend. Suprapto No. 68, RT. 05, Balikpapan 0542 746883 746884

3. Muara Rapak KCPRuko Taman Citra Blok C. 65

Jl. Soekarno- Hatta, KM. 0.5, Muara Rapak0542 416748 734209

3. BANJARMASIN KCJl. Pangeran Samudra No. 98,

Banjarmasin0511 66848, 57884, 54363 53862, 365924

39118,

39107

1. A. Yani KCP Jl. Jend. A. Yani No. 151, KM. 3.5, Banjarmasin 0511 3271876 3266610


140.


2.Bandara

SepingganKCP Jl. UR. Iswahyudi, Bandara Sepinggan, Balikpapan 0542 766866 762907

3. Kayu Tangi KCP Jl. Brigjend. Hasan Basri No. 46 B, RT. 15, Banjarmasin 0511 3302025 3304468

4. BARABAI KC Jl. Pangeran Muh. Noor, No. 19, Barabai 0517 41055, 43083, 42296 42297 39288

5. BATULICIN KC Jl. Kampung Baru No. 50, Batu Licin 0518 70947, 70927 70917 39497

1. Sungai Danau KCP Jl. Propinsi RT. 27, Sungai Danau 0512 61029 61029

6. BONTANG KC Jl. M.T. Haryono No. 9, Bontang 0548 21085 2109138396,

38292

1. PKT Bontang KCP Wisma PT KIE, Bontang 0548 41223 41221

7. BUNTOK KC Jl. Panglima Batur No. 20, Buntok, 0525 22309, 21093, 21019 21295 39295

8. KANDANGAN KC Jl. Panglima Batur No. 16, Kandangan 051721611/12, 21335, 21700,

21918/922575 39289

9. KOTA BARU KC Jl. P. Kesuma Negara No. 12, Kota Baru, Pulau Laut 0518 22207, 22021, 21073 21212 39398

10. KUALA KAPUAS KC Jl. Jend. A.Yani No. 41, Kuala Kapuas 0513 21031/2, 21532 21903 39118

39221

11. MARABAHAN KC Jl. Lima Desember No. 63, Marabahan 05114799010, 4799030, 4799661,

47990104799001 39317

12. MARTAPURA KC Jl. Jend. A. Yani No. 5, Martapura 0511 721870, 721072 721292 39397

13. MUARA TEWEH KCJl. Tumenggung Surapati No. 93,

Muara Teweh0519 21119, 21614 22701 39296

14. PALANGKARAYA KC Jl. Jend. A. Yani No. 85, Palangkaraya 0536 22638, 21507, 22392, 22901 21593 39396

15. PANGKALAN BUN KC Jl. P. Antasari No. 141, Pangkalan Bun 0532 21138, 21015, 21766, 21767 23223 39357

16. PLEIHARI KC Jl. Pancasila No. 2 A, Pleihari 0512 21058, 21028, 21194 210903 39299

17. RANTAU KC Jl. Brigjend. H. Basri No. 2, Rantau 0517 31015, 31150, 31735 31975 39298

18. SAMARINDA KC Jl. Gajah Mada No. 1, Samarinda 0541 742562, 741651, 201317/18 74259238246,

38247

1. Lembuswana KCP Komp. Pertokoan Mall Lembuswana Blok C No. 9,

Samarinda0541 206603, 744781 744781

2. Loa Janan KCPJl. Cipto Mangun Kusumo No. 2,

Loa Janan Ilir, Samarinda0541 261138, 7030810 261138

3. Melak KCP Jl. Piere Tendean RT. II, No. 61 A, Melak, Kab. Kutai Barat 0545 41424 41703

19. SAMPIT KC Jl. M.T. Haryono No. 46, Sampit 0531 21080, 21274, 25306 22764 39384

20. SANGATTA KC Town Centre, Jl. Dr. Sutomo, Sangatta Baru 0549 22225, 5508463, 21655 21155

21. TANAH GROGOT KC Jl. Jend. Sudirman No. 4, Tanah Grogot 0543 21157, 21666 22646 37227

1. Penajam KCPRT. 10/ RW. 14, Kel. Petong Kec. Penajam, Kab. Penajam,

Paser Utara0543 5238923

22. TANJUNG KC Jl. Putri Zaleha No. 2, RT. 03, Tanjung Tabalong 0526 2021189 2021915 39287

23. TANJUNG REDEP KC Jl. S.A. Maulana, No. 1050, Tj. Redep, Kab. Berau, 77312 0554 21043 21759 38334

24. TANJUNG SELOR KC Jl. Teratai No. 4, Tanjung Selor 0552 21300, 21123, 21173 21079 38355

25. TARAKAN KC Jl. Yos Sudarso RT. 14/5, No. 86 Tarakan 0551 21143/4 24209731337,

731310

1. Nunukan KCP Jl. Jend. A. Yani RT. 1 No. 08, Nunukan 0556 22922 22965

26. TENGGARONG KCJl. Cut Nyak Dien, No. 14-15,

Tenggarong, 755120541

661953, 662828, 661416,

664146661404 38333

DENPASAR KW Jl. Dr. Kusumaatmaja No. 1, Denpasar 0361 228715, 221979 225791, 234796

1. AMLAPURA KC Jl. Gajah Mada No. 61, Amlapura 0363 22745, 21686, 21019, 21026 21788 35401

2. ATAMBUA KC Jl. I-J Kasimo No. 10, Atambua 0389 22054, 21053, 22053, 21024 21339 35021

3. BAJAWA KC Jl. Soekarno-Hatta No. 2, Bajawa 0384 21362, 21366, 21711, 21024 21675 35963

4. BANGLI KC Jl. Kusumayuda No. 1, Komp. Kota Baru Bangli 0366 91019, 91039, 91398 92098 35547

5. DENPASAR KC Jl. Gajah Mada No. 5-7, Denpasar 0361 228817/8/9 26371535113,

35684

1.Dps. Gatot

SubrotoKCP Jl. Gatot Subroto No. 459 X, Denpasar 0361 430756 430752

2. Hayam Wuruk KCP Jl. Hayam Wuruk No. 123, Denpasar 0361 231859 231859

3. WR. Supratman KCP Jl. WR. Supratman No. 104, Denpasar 0361 464627 464627


141.


6. DENPASAR RENON KC Jl. Kusumaatmaja No. 1, Denpasar 0361 233011 (hunting) 233021

1. Dps. Diponegoro KCP Jl. Diponegoro No. 220, Denpasar 0361 224580 224580

2. Undiknas KCP Jl. Watu Renggong No. 149, Denpasar 0361 233091 233091

7. DOMPU KC Jl. Akasia No. 62, Dompu 037321147, 21062, 21494, 22130,

2196921669 35344

8. ENDE KC Jl. Soekarno No. 16, Ende 0381 23286, 21030, 21615, 21020 22870 35462

9. GIANYAR KC Jl. Pudak No. 19, Gianyar 0361941097, 943150, 943038,

942273942266 35495

1. Celuk KCP Jl. Raya Celuk No. 22, Gianyar 0361 296930 296930

2. Ubud KCP Jl. Cok Gde Rai No. 50, Ubud Gianyar, Bali 0361 972305 972305

10. KALABAHI KC Jl. Soetoyo No. 6, Kalabahi 0386 21584, 21040, 21461, 21392 21569 35793

11. KEFAMENANU KC Jl. Mayjend. El Tari No. 30, Kefamenanu 038831011, 31020, 31747, 31609,

3174831588 35964

12. KUPANG KC Jl. Sukarno No. 18, Kupang 0380831010, 833788, 833353,

833481, 833463831373

35435,

35370

13. KUTA KC Jl. Raya Tuban Mo. 99 X, Kuta, Denpasar 0361 765573 765573

14. LARANTUKA KC Jl. Piere Tendean No. 3, Larantuka 038321053, 21506, 21030, 21605,

2181921563 35873

1. Lewoleba KCPJl.. Trans Lembata Rayuan Kelapa Timur, Kel. Lewoleba

Utara, Kec. Nubatukan, Kab. Lembata, NTT0383 41641 41641

15. MATARAM KC Jl. Pejanggik No. 16, Mataram 0364 631318, 638379, 633017 633084 35483

16. MAUMERE KC Jl. Don P.C.X. Da Silva No. 1, Maumere 0383 21788, 22210, 22206/7/8/9 21377 35932

17. NEGARA KC Jl. Udayana No. 13, Negara 0365 41076, 42661, 41890 42022 35400

18. PRAYA KC Jl. Gajah Mada No. 128, Praya 0370 654069, 653032 654911

19. RABA BIMA KC Jl. Pintu Gerbang No. 1, Raba Bima 0374 43352, 43122, 42997 43723 35475

20. RUTENG KC Jl. Yos Sudarso No. 25, Ruteng 0385 21603, 21764, 21722 22383 35382

1. Labuan Bajo KCP Jl. Soekarno-Hatta, Labuan Bajo, Manggarai Barat 0385 41995, 41474 41994

21. SELONG KC Jl. Pahlawan No. 92, Selong 0376 21242, 21428, 22680 21419 35343

22. SEMARAPURA KC Jl. Gunung Batukaru No. 7, Semarapura 0366 21042, 21328, 21805, 21841 21329 35473

23. SINGARAJA KC Jl. Ngurah Rai No. 74, Singaraja 0362 23432, 21980 24576 35493

1. Seririt KCP Jl. Sudirman No. 30 A, Seririt, Singaraja 0362 93302 92419

24. S O E KC Jl. M. Hatta No. 34, Soe 0388 21042, 21590, 21346 21144 35931

25. SUMBAWA BESAR KC Jl. Dr. Wahidin No. 13, Sumbawa Besar 0371 21006, 21940 22632 35384

26. TABANAN KC Jl. Gunung Semeru No. 1, Tabanan 0361 819034 814166, 35433

1. Bajera KCPJl. Ngurah Rai, No. 12 X, Bajera,

Kab. Tabanan0361 8533782 810678

2. Kediri KCPJl. Raya Kediri No. 88 E,

Kediri Tabanan0361 810982, 812338 812390

27. WAIKABUBAK KC Jl. Gajah Mada No. 30, Waikabubak 0387 21048, 21068, 21088, 21677 21218 35997

28. WAINGAPU KC Jl. Jend. A. Yani No. 36, Waingapu 0387 61030, 61921 62234 35433

MANADO KW Jl. Sarapung No. 4-6, Manado 0431 863592, 863378, 863778 862779

1. BITUNG KC Jl. Sudirman No. 1, Bitung 0438 21037, 21252, 21647 32177 74248

2. GORONTALO KC Jl. Jend. A. Yani No. 22, Gorontalo 0435824156, 824465, 830201,

826657821046 74255

3. KOTAMUBAGU KC Jl. Jend. A. Yani No. 311, Kotamobagu 0434 21887, 21014 21078, 21901 21224 74347

4. LIMBOTO KC Jl. Jend. Sudirman No. 269, Limboto 0436 881445/7, 880100 881446 74311

1. Marisa KCPJl. Trans Sulawesi, Desa Marisa Utara, Kec. Marisa, Kab.

Pahuato0443 210369 210429

5. LUWUK KC Jl. Jend. A. Yani No. 179, Luwuk 0461 21103/04, 22756, 21153 75133

1.Banggai

KepulauanKCP

Jl. Mandapar, Kel. Lompio, Kec. Banggai, Kab. Banggai

Kepulauan0462 21555 21556

6. MANADO KC Jl. Sarapung No. 4-6, Manado 0431863177, 863377, 852747,

866725867435

74182,

74282

1. Boulevard KCP Komp. Bahu Mall Blok S 2, Jl. W. Mongonsidi, Manado 0431 844700, 843375 841919

2. Martadinata KCP Jl. Martadinata No. 61, Kec. Tikala, Manado 0431 855031, 858784 873794


142.


7. PALU KC Jl. Dr. Mohamad Hatta No. 12, Palu 0451 454000/1/2/3, 466000 42714075147,

75142

8. PARIGI KC Jl. Pasar Inpres Tagunu No. 227, Parigi 0450 21631/3/4, 21321 21632

9. POSO KC Jl. Pulau Sumatera No. 7, Poso 0452 21133, 21796, 21135 21134 75101

1. Ampana KCP Jl. Yos Sudarso No. 10, Ampana 0464 21095 21525

10. SOA SIU KC Jl. Pattimura No. 1, Soa Siu 0921 61046, 61600, 61896 61298 73262

11. TAHUNA KC Jl. Dr. Sutomo No. 50, Tahuna 0432 21318/9, 22784/5 22252 74178

12. TERNATE KC Jl. Pahlawan Revolusi No. 234, Ternate 0921 21280/90, 22072, 21926 25585 75157

1. Tobelo KCP Jl. Pelabuhan Kec. Gamsungi, Tobelo, Halmahera Utara 0924 22540 22540

13. TOLI-TOLI KC Jl. Usman Binol No. 144, Toli-Toli 0453 21195, 23195 75198

14. TONDANO KC Jl. Pinaesaan SK No. 17/31, Tondano 0431 321412, 321447/9, 321248 322420 74341

1. Tomohon KCP Jl. Raya Tomohon, Kel. Paslaten I Lingkungan No. 37 0431 355287 355289

MAKASSAR KW Jl. A. Yani No. 8, Makassar 0411 313174, 312931 365535

1. AMBON KC Jl. Diponegoro No. 29, Ambon 0911 356563, 315108, 355277 35517773112,

73277

1. Waihaong KCP Jl. Sultan Babullah No. 18, Waihaong, Ambon 0911 314849, 356563 356565, 355277

2. BANTAENG KC Jl. Kartini No. 17, Bantaeng 0413 21093/5, 22476 21162 71366

3. BARRU KC Jl. Sultan Hasanuddin No. 90, Barru 0427 21080, 21118, 21600 21818 71385

BRI SYARIAH KPGedung BRI II Lt. 5,

Jl. Jend Sudirman Kav 44-46, Jakarta 10210021 5713115, 5709060 5713117

1. JKT MAMPANG KC Jl. Mampang Prapatan No. 17, Blok G-H, Jakarta Selatan 021 7982538, 7982316 7996032

1. Benhil KCP Jl. Bendungan Hilir Raya No. 17 B, Jakarta Pusat 021 5723906/7 5723947

2. Otista KCP Jl. Otista No. 72, Jakarta Timur 021 2801348 2801351

3. Jkt Pondok

BambuKCP

Jl. Pahlawan Revolusi RT. 003/ 004, No. 16, Pondok

Bambu, Jakarta Timur, 13430021 68196657, 68196653 8607095

4. Jkt Cibubur KCP Jl. Raya Lapangan Tembak No. I A, RT. 006/02, Cibubur 021 70263436/7 87713275

5. Jkt Pondok

GedeKCP

Plaza Pondok Gede Blok C, No. 5, Jl. Pondok Gede Raya,

Bekasi021 68196656, 68196652 8469423

2. SERANG KC Jl. Ahmad Yani No. 165, Sumur Pecung, Serang, Banten 0254 202011, 220377 220376

3. BANDUNG KC Jl. Karapitan No. 92, Kel. Cikawao Kodya Bandung 022 4214385, 4207162 4207158

1. Cimahi KCP Jl. Raya Cimahi No. 598, Cimahi 022 6631675 6632341

2. Lembang KCP Jl. Grand Hotel Lembang No. 21, Lembang, Jawa Barat 022 2784902 2784903

4. CIREBON KCJl. Siliwangi No. 181, Kel. Kejaksaan, Kec. Kejaksaan,

Cirebon0231 207311, 231313, 231414 207311

1. Majalengka KCPJl. K.H. Abdul Halim No. 491, Cigasong, Majalengka,

Jawa Barat0233 284445 284446

5. MALANG KC Jl. Kawi No. 37, Kel. Bareng, Kec. Kojen, Malang 0341 347925/26, 365269 347926

1. Pandaan KCP Delta Permai A. 37, Pandaan, Kab. Pasuruan, Jawa Timur 0343 630108 638308

6. SEMARANG KCJl. Majapahit No. 226 B, Kel. Kalicari Kec. Pedurungan,

Semarang Timur024 6721849, 6718660 6718771

1. Kudus KCPRuko Kereta Api Indonesia (KAI)

Jl. Jend. A. Yani Kudus, Jawa Tengah0291 439474 439475

7. SURABAYA KC

Komp. Ruko Rungkut Megah Raya Blok L2-3,

Jl. Raya Kali Krukut No. 3, Kel. Panjang Jiwo, Kec.

Rungkut, Surabaya

031 8054362 532460

1. Sidoarjo KCP Jl. Ahmad Yani No. 35, Sidoarjo 031 8054362 8054361

2. Surabaya

KaliasinKCP Gedung BRI Tower, Jl. Jend. Basuki Rachmat, Surabaya 031 5324633 5324640

3. Gresik KCP Jl. Panglima Sudirman 031 3980980 3980973

8. YOGYAKARTA KCJl. K.H. Ahmad Dahlan No. 89, Kel. Notoprajan, Kec.

Ngampilan, DI Yogyakarta0274 411221 450603

1. Sleman KCP Jl. Bhayangkara No. 18, Sleman, Yogyakarta 0274 867301 867302

9. BANDA ACEH KC

Komp. Pertokoan Pante Priak

Jl. H. Dimurtala No. 6-7, Kec. Kuta Alam, Banda Aceh,

NAD

0651 638304/5, 635355 638306


143.


10. PADANG KCJl. Veteran No. 37 D, Kel. Purus Selatan, Kec. Padang

Barat, Padang0751 38813/4 812660

11. BANJARMASIN KCJl. Ahmad Yani KM 4.00 No. 31, Kel. Kebun Bunga, Kec.

Banjarmasin Timur0511 3257991/2 3257995

12. MAKASSAR KCJl. Dr. Ratulangi No. 7-9 Petak No. 3 & 4, Kel. Mangkura,

Kec. Ujung Pandang, Kota Makassar0411 83303, 8111156 8111157

13. CIANJUR KCJl. Taepur Yusuf No. 61, RT. 01/ 02, Kel. Pamoyanan,

Cianjur0263 270097, 263260 271909

14. BOGOR KC Jl. Padjajaran No. 53, Bantar Jati, Kec. Bogor Utara, Bogor 0251 313629 317442

1. Depok KCP Jl. Margonda Raya No. 297 Depok, Jawa Barat 021 77210587 77206807

15. KEDIRI KC Jl. Pahlawan Kusumabangsa No. 2, Desa Ngadirejo, Kediri 0354 682776, 672114 683142

16. SOLO KC Jl. Slamet Riyadi No. 325 Solo, Jawa Tengah 0271 728403 742906

17. MEDAN KC Jl. Gaot Suroto No. 189 DE, Medan 061 8826225 8830545

18. PALEMBANG KC Jl. Jend. Sudirman No. 926 B, Palembang 0711 353666 320321

19. SAMARINDA KC Jl. Abdul Hasan Kav. Samarinda, Kalimantan Timur 0541 744450 202353

20. PEKANBARU KC Jl. Ir. Juanda No. 81-83, Pekanbaru, Riau 076 839672 839674

21. TANJUNG KARANG KC Jl. Kartini No. 156 A, Tanjung Karang, Lampung 0721 265003, 267020 265007

22. MATARAM KC Jl. Pejanggih No. 47 E, Mataram-NTB 0370 639527 649271

23. JKT KEDOYA KCKomp. Graha Arteri Mas No. 2, Arteri, Jl. Panjang No. 68,

Kedoya021 58303563/4/5 58303567

1. Jkt-Palmerah KCP Jl. Palmerah Barat No. 50, RT. 003/04, Jakarta Barat 021 53678860 53671380

2. Jkt-Cipulir KCPJl. Ciledug Raya Komp. Cipulir Center No. B/2, Kebayoran

Lama, Jakarta Selatan021 68196651 7206362

24. TANGERANG KC Jl. Merdeka No. 110 A, Tangerang, Banten 021 5522466 5579422

25. BALIKPAPAN KC Jl. Ahmad Yani No. 1 A, Gunung Sari, Balikpapan, Kal-Tim 0542 425314, 736767 732270

26. PONTIANAK KC Jl. Tanjung Pura No. 206 A, Pontianak, Kal-Bar 0561 762875, 760400 748600

27. JAMBI KC Jl. Sudirman No. 31 A-B, Hok, Jambi 074 22451 22317

Note

KW : Kantor Wilayah/Regional OfficeKCK : Kantor Cabang Khusus/Special Branch OfficeKC : Kantor Cabang/Branch OfficeKCP : Kantor Cabang Pembantu/Sub-Branch Office

JKT : Jakarta


144.

Statement of Responsibility for Financial Reporting

This Annual Report and the accompanying financial statements and related information, are the responsibility of the

management of PT Bank Rakyat Indonesia (Persero) Tbk., and have been approved by members of the Board of

Commissioners whose signatures appear below:

Bunasor SanimPresident Commissioner/Independent

Agus PakpahanCommissioner

Agus SuprijantoCommissioner

Saifullah YusufCommissioner

B.S. KusmuljonoIndependent Commissioner

Baridjussalam HadiIndependent Commissioner

AvilianiIndependent Commissioner


145.

Sarwono SudartoDirector

Abdul SalamDirector

Sulaiman A. AriantoDirector

A. Toni SoetirtoDirector

Bambang SoepenoDirector

Sudaryanto SudargoDirector

SuprajartoDirector

Lenny SugihatDirector

Asmawi SyamDirector

This Annual Report and the accompanying financial statements and related information, are the responsibility of the

management of PT Bank Rakyat Indonesia (Persero) Tbk., and have been approved by members of the Board of

Directors whose signatures appear below:

Statement of Responsibility for Financial Reporting

Sofyan BasirPresident Director


147.

Financial Statements

PT Bank Rakyat Indonesia

(Persero) Tbk and subsidiary

Consolidated Financial Statements

with Independent Auditors’ Report

Year Ended 31 December 2008 and 2007

Purwantono, Sarwoko & SandjajaRegistered Public Accountants No. KEP-122/KM.5/2006 A member firm of Ernst & Young Global Limited


151.

Subsidiary Company

No. Name AddressLine of

Businness

Share

Ownership Description

1 PT. Bank Syariah BRI *) Menara Jamsostek South

Tower, 24th Floor

Jl. Gatot Subroto 38

Jakarta 12710

Banking 99.99% Has been operating

since 2008 with total

assets of Rp483.15

billion and revenues of

Rp20.24 billion

Subsidiary Company of BRI (equity holdings of more than 50%)

*) - The Deed of Acquisition of the Shares of BJA by BRI has been signed on 19 December 2007 (Acquisition Deed no. 61)

- Pursuant to Decision Letter of the Governor of Bank Indonesia No.10/67/KEP.GBI/DpG/2008 dated 16 October 2008, as of 17

November 2008, PT. Bank Jasa Artha has changed its line of business to become a Commercial Bank that is engaged in banking

activities on the basis of sharia principles under the name of PT. Bank Syariah BRI

273.


152.

Corporate Information

Name of Company PT Bank Rakyat Indonesia (Persero) Tbk.

Establishment 18 December 1968 (Formally, based on Law No. 21 of 1968)

Composition of Shareholders (as of 31 December 2008)

• The Republic of Indonesia, 56.79%

• Management and Employees, 0.71%

• Public Shareholders, 42.50%

Share Listing Bursa Efek Indonesia/Indonesia Stock Exchange on 10 November 2003

Line of Business Banking

Ticker Code BBRI

Public AccountantPurwantono, Sarwoko & Sandjaja (Ernst & Young)Indonesia Stock Exchange BuildingTower 2, 7th FloorJl. Jend. Sudirman Kav. 52–53Jakarta 12190Tel: (62-21) 52895000Fax: (62-21) 52894100

Shares RegistrarPT Datindo Entrycom Jl. Jend. Sudirman Kav. 34-35Jakarta 10220Tel: (62-21)570 9009

Securities DepositoryKSEI (Kustodian Sentral Efek Indonesia)Indonesia Stock Exchange Building,Tower 1, Lt.5Jl. Jend. Sudirman, Kav.52-53Jakarta, 12190Tel: (62-21) 5299 1003Fax: (62-21) 5299 1129

Rating AgenciesPT Pemeringkat Efek Indonesia (Pefindo)Setiabudi Atrium 8th FloorSuite 809 - 810Jl. Rasuna Said Kav. 62Jakarta 12920

Fitch RatingPT Fitch Ratings IndonesiaGedung Plaza DM, 24th FloorSuite 2406Jl. Jend. Sudirman Kav. 25Jakarta 12920 - Indonesia

Fitch Ratings Singapore Pte. Ltd.6 Temasek Boulevard #35-03/04/05 Suntec Tower FourSingapore 038986

Moody’sPT Moody’s IndonesiaMenara Rajawali Lt. 22Mega Kuningan Lot. 5.1Jakarta - Indonesia

Moody’s Singapore Pte. Ltd.50 Raffles Place #23-06Singapore Land TowerSingapore 048623

Corporate SecretaryGedung BRI I Lt. 20Jl. Jend. Sudirman Kav. 44-46Jakarta 10210, IndonesiaTel: (62-21) 575 1966Fax: (62-21) 570 0916email: [email protected]

274.


153.

Contact Address for Readers

PT Bank Rakyat Indonesia (Persero) Tbk.

Head Office

Gedung BRI I

Jl. Jend. Sudirman Kav. 44-46

Jakarta 10210, Indonesia

Tel: (62-21) 251 0244, 251 0254, 575 1966

Fax: (62-21) 250 0065, 250 0077, 570 0916

Corporate Secretary

Gedung BRI I Lt. 20

Jl. Jend. Sudirman Kav. 44-46

Jakarta 10210, Indonesia

Tel: (62-21) 575 1966

Fax: (62-21) 570 0916

Website

www.bri.co.id

E-mail

[email protected]

Contact Address

273.275.


154.276.

This Page is Intentionally Left Blank

PT Bank Rakyat Indonesia (Persero) Tbk.

Head Off iceGedung BRI IJ l . Jendera l Sudirman Kav. 44-46Jakarta 10210, IndonesiaPhone: (62-21) 251 0244, 251 0254, 575 1966Facsimi le: (62-21) 250 0065, 250 0077, 570 0916

Corporate SecretaryGedung BRI I 20 th f loorJ l . Jendra l Sudirman Kav. 44-46Jakarta 10210, IndonesiaPhone: (62-21) 575 1966Facsimi le: (62-21) 570 0916

Websitewww.br i .co. id

E-mailhumas@br i .co. id

ANNUAL REPORT 2008