Responsibilities of Committee

Conducting their duties, Audit Committee has the guidelines and work order as stipulated in the Decision Letter of the Board of Commissioners No. 52A/2017/SK dated June 2, 2017

Implementation of duties and responsibilities of Audit Committee, among others:

  1. Conduct monitoring and evaluation of audit permit and execution and monitoring of audit actions in order to assess the adequacy of internal controls, including the adequacy of the financial reporting process.
  2. Conduct monitoring and evaluation of at least:
    • Implementation of the duties of the Internal Audit Unit
    • Compliance of audit conducted by public accounting rm with audit standard
    • Conformity of financial statements with financial accounting standards
    • Follow-up actions by the Board of Directors on the findings of internal audit work units, public accountants, and supervisory results of the Financial Services Authority, in order to provide recommendations to the Board of Commissioners
  3. Provide recommendations on the appointment of public accountant and public accountant office to the Board of Commissioners to be submitted to the GMS

In performing its duties, the Risk Oversight Committee has established guidelines and work procedures as stipulated in its Decree of the Board of Commissioners Number 52B/2017/SK dated June 2, 2017 on the Appointment of Risk Monitoring Committee Implementation of duties and responsibilities of the Risk Oversight Committee, among others:

  • Evaluation of the suitability between risk management policy and the implementation of the policy
  • Monitoring and evaluation of the implementation of the tasks of Risk Oversight Committees and risk management units to provide recommendations to the Board of Commissioners.

In performing its duties, the Remuneration and Nomination Committee already has guidelines and work order as stipulated in Decree of Board of Commissioners Number 08/2015/SK dated December 2, 2015 on Appointment of Nomination and Remuneration Committee. Implementation of duties and responsibilities of Remuneration and Nomination Committee, among others:

  • Evaluation of nomination and remuneration policies and recommending to the Board of Commissioners on:
    • The nomination and remuneration policy for the Board of Commissioners and Board of Directors to be submitted in the GMS
    • Policy of nomination and remuneration for Executive O cers and employees as a whole to be submitted to the Board of Directors
  • In carrying out duties and responsibilities related to nomination and remuneration policies, the Nomination and Remuneration Committee waiib ensure that the policy is at least consistent with:
    • Financial performance and reserve ful llment as stipulated in applicable legislation.
    • Individual work achievement.
    • Fairness with peer group.
    • Consideration of the Bank’s long term goals and strategy.

ALCO was established based on the Directors Decree (SK) which was last updated with SK Direction No. 109/2017/SK dated November 29, 2017 regarding the Asset & Liabilities Committee (ALCO) and has the authority and responsibility of:

  • Develop, review, and modi ed the ALMA strategy.
  • Evaluate the risk position of interest rate and ALMA strategy to ensure that Bank’s ‘taking position’ is appropriate with the purpose of management and interst risk of the Bank.
  • Review the asset and liabilites pricing stipulation to ensure that such pricing able to optimalize the fund placement result, minimize the cost of fund, and maintaining Bank’s balance sheet structure to be in accordance with the ALMA strategy.
  • Review the deviation between realization and business plan of the Bank.
  • Inform the Board of Directors on each development and market condition, as well as provision a ecting the ALMA strategy and policy.

The Risk Management Committee is established by virtue of the Board of Directors Decree last updated by Decree of the Board of Directors Number 106/2017/SK dated November 23, 2017 regarding Risk Management Committee. The Risk Management Committee has the following powers and responsibilities:

  • Formulation of Risk Management policy and its changes including Risk Management strategy, Risk level taken and Risk tolerance, Risk Management framework and contingency plan to anticipate abnormal condition.
  • Periodic or incidental process of Risk Management process as a result of a change of external and internal condition of Bank a ecting capital adequacy, Bank Risk pro le, and ine ective implementation of Risk Management based on evaluation result.
  • Determination of business policies and/or decisions that deviate from normal procedures, such as signi cantly exceeding business expansion compared to predetermined business plans of the Bank or position taking or exposure Risk beyond the prescribed limit.
  • Establish and adjust restrictions on each type of risk and allocate it to operational units that manage risk.
  • Conduct an assessment of the results of risk level measurements encountered by the Bank including review of proposed new products and activities to be issued by the Bank.
  • Evaluate the exceptions of each type of risk that is managed including the responsible unit and its authority
  • Monitor periodically the impact of implementation of Bank policies and business strategies and the magnitude of risks that may occur.
  • Conduct an assessment of the level of risks to new product and activity publishing plan

Their authority and responsibility among others:

  1. Evaluate and review Corporate Regulation and Code of Conduct.
  2. Implement the corporate culture.
  3. Review the proposal of promotion, employee’s mutation/ rotation under the Division/Work Unit in Headquarter.
  4. Propose employee penalty/sanction conducting major violation.

The Information Technology Steering Committee was established on the Board of Directors Decree No. 105/2017/ SK dated November 15, 2017 concerning the Information Technology Steering Committee (Revised II of 2017). The Information Technology Steering Committee has the authority and responsibility of:

  • Provide recommendations, evaluations and reviews to the Board of Directors at least on:
    • Information Technology Strategic Plan which is in line with the Bank’s strategic business plan and taking into account the efficiency, effectiveness and other factors, namely:
      • A roadmap to achieve IT requirements that support the Bank’s business strategy. The road map consists of the current state, the future state, and the steps to be taken to achieve the conditions to be achieved;
      • Resources needed;
      • Benefits to be gained when IT Strategic Plan is implemented; and
      • Constraints that may arise in the application of IT Strategic Plan.
    • The compatibility of approved Information Technology projects with the Information Technology Strategic Plan and also establishes the priority status of critical IT projects that have significant impacts on the Bank’s operational activities, such as substitution of core banking applications, switching/payment gateway apllication, Server Server production, and topology Network infrastructure (Dacen and/or DRC).
    • Compliance between the implementation of the Information Technology project with the Project Charter and complete the recommendations with the results of analysis of the major IT projects to enable the Board to make decisions efficiently.

Credit Policy Committee is authorized and responsible for among others:

  • Provide suggestion to the Board of Directors in order to arrange General Credit Policy, especially related to the formulation of prudential principles in credit.
  • Monitor the General Credit Policy to be applied and implemented consistently and as well as formulating solution in the event of obstacles in the implementation of General Credit Policy.
  • Conduct periodic review on the General Credit Policy and provide suggestion to the Board of Directors whenever amendment/correction on the policy. Commercial Credit Division, Consumer Credit Division and Credit Review & Administration Division monitor and evaluate:
    • The development and quality of the loan portfolio as a whole.
    • The truth of the execution of the authority to decide on credit.
    • The truth of the process of granting, development and credit quality provided to parties associated with the Bank and certain large debtors.
    • Truthful implementation of LLL provisions.
    • Adherence to the provisions of legislation and other regulations in the implementation of credit provision.
  • The Billing & Recovery Asset division monitors and evaluates:
    • The settlement of non-performing loans in accordance with those set out in the Rural Credit Policy
    • The Bank’s efforts to meet the adequacy of the amount of the Provision for Impairment Losses
  • Responsible for submitting the above meeting materials and/or monitoring and evaluation results as well as other matters related to Bank’s credit activities and policies, which will be discussed in the Pre-KKP meeting and/or CTF’s meeting to the secretary of the CTF.
  • Attend meetings of Pre-KKP and CTF according to the schedule set by the secretary of the CTF
  • Follow up on the results of the decision of the Pre-KKP and CTF meetings