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Mission :
“To achieve and maintain price stability by maintaining
monetary stability and by promoting financial system stability
for Indonesia’s long term sustainable development”
ii
Table of Contents
iii
List of Boxes
Chapter 2
Box 1 Core Principles for Effective Banking Supervision 4.1 Key Banking Indicators 37
10 4.2 The Composition of Sharia Banks’ Funding 38
Box 2 Post-crisis Banking Restructuring Program 11 4.3 Key Indicators of Sharia Banks 39
Box 3 The Importance of Good Governance 12 4.4 Sharia Inter-bank Market and Bank Indonesia
Box 4 Certification Program for Bank Supervisors and Sharia Certificate 39
Examiners 16 4.5 Key Indicators of Rural Banks 39
Box 5 Financial Safety Net 17
Box 6 Implementation of Indonesian Banking 6.1 Plan and Realization of rural bank examination 56
Architecture (IBA) 17
Chapter 3
Figures
Box 1 Problem Banks and Supervision Policy 25
Box 2 On-site Supervisory Presence (OSP) 26
1.1 The Trend of the Number of Commercial
Box 3 The Bank Negara Indonesia (BNI) Case 29
Banks 3
Box 4 The Liquidation of Asiatic Bank and Bank
1.2 Share of the Major Banks 4
Dagang Bali 30
1.3 The Composition of Commercial Bank
Ownership 4
Chapter 5
Box 1 Challenges and Policies of Sharia Banking 46
3.1 Risk-based Supervisory Cycle 21
Chapter 6
Box 1 Professional Certification Program for Rural 4.1 Capital Adequacy Ratio (CAR) Trend 38
Banks (CERTIF) 53
List of Appendices
List of Tables and Figures Appendix 1
Core Principles for Effective Banking Supervision
Appendix 2
Tables Banking Key Indicators
Appendix 3
1.1 Sharia Banking Office Network 4
Key Financial Ratios
1.2 Rural Banks’ Office Network 5
Appendix 4
2.1 Training Programmes in 2004 16 Organization Chart of Bank Indonesia’s Banking Sector
Appendix 5
3.1 Supervisory and Bank Corrective Actions 23 List of Acronyms
3.2 The Interviews for Controlling Shareholders and
Management 32
3.3 Investigation Results 33
iv
Foreword
With all praise to God Almighty, for His guidance and blessing, this Banking Supervisory Report (BSR) has
been completed as part of the transparency and accountability of Bank Indonesia as the supervisory authority
to the stakeholders and the public. Our appreciation goes to those who have contributed in the preparation
of this report.
Previously, information and policies relating to banking supervision were published by Bank Indonesia in
various reports, namely, Development of Monetar y, Payment System and Banking System (quarterly), Fi-
nancial Stability Review (bi-annually), and Economic Report on Indonesia (annually). However , Bank Indo-
nesia currently publishes an annual banking supervision report to provide more comprehensive information
on the development of polices and regulations, as well as the activities of Bank Indonesia with regard to bank
supervision.
The report comprises of four main aspects, namely: (i) the structure of the banking industry; (ii) the
activities of Bank Indonesia as the supervisory authority: licensing, regulation, off-site supervision, on-site
examination, on-site supervisory presence (OSP), banking investigation, and liquidation; (iii) the development
of banking policies and regulations; (iv) the development of the banking industry, including commercial banks
and rural banks (BPR); and (v) relevant issues in banking supervision.
In addition to micro prudential supervision Bank Indonesia has also has placed more emphasis on macro
prudential supervision through research and surveillance, and developing financial safety nets to maintain
financial system stability.
In 2004, the banking system was relatively stable, despite the fact that there were a number of fraud
cases and the closure of two small failed banks due to poor governance. In general, the performance of the
banking industry is improving, which is supported by adequate liquidity and capital.
Bank Indonesia is continuing to improve the effectiveness of banking supervision in line with interna-
tional standards, especially the Basel Core Principles, among others, through the development of forward
looking and risk-based supervisory approach. The challenge confronted by the banking industry and Bank
Indonesia is becoming more complicated in line with the development of domestic and international economy.
v
In the creation of a sound, efficient and competitive banking system, Bank Indonesia has formulated and
implemented Indonesian Banking Architecture as a basis for the development of the banking industry and
supervision in the future.
We hope that this report can provide valuable information for stakeholders and the general public.
Maman H. Somantri
vi
Chapter 1
Overview of the Banking
System
Institutionally, the banking system in Indonesia of 1996, with 239 banks and 7,314 offices. The growth
consists of commercial banks and rural banks. The basic of commercial banks was dominated by the establishment
distinction between the two types of banks is in their of new commercial banks during the period of 1988-
roles in the payment system. Commercial banks can 1996.
provide demand deposit accounts, whereas rural banks During 1997 and up until December 2002, the
cannot. Other aspects that distinguish them are capital number of conventional commercial banks decreased due
requirements and the location for running their to the closure of 18 banks that were liquidated by the
operations. From the nature of its operation, the banking government (including East Timor Regional Development
system is divided into conventional banks and Sharia Bank), ten banks had their operations frozen, 42 had their
banks. business activities frozen , 28 banks merged and two banks
closed of their own initiative (self-liquidation).
1. DEVELOPMENT OF A COMMERCIAL BANK For the past two years, there has been a decrease
NETWORK in the number of banks, from 141 in December 2002 to
Conventional Commercial Bank 133 in December 2004. This is due to the self-liquidation
Conventional commercial banks have evolved in line of three joint-venture banks, namely: Agricole Indosuez,
with various banking policies, especially banking Bank Societe Generale Indonesia and Bank Merincorp;
deregulation policy that was stated in the October the merger of two joint-venture banks (Bank Keppel Tat
Package, 1988. By the end of December 1988, there were Lee Buana and Bank OCBC, became Bank OCBC
only 111 commercial banks with 1,957 offices. The Indonesia) and the issuance of a license for the
quantity of commercial banks reached a peak at the end establishment of one foreign bank (Bank of China). In
2004, there was another self-liquidation of one joint-
venture bank (ING Bank), three banks merged (Bank Pikko,
8000 250
Bank CIC and Bank Danpac, became Bank Century) and
225
6500 two private national banks (Bank Asiatic and Bank Dagang
200
Bali) were liquidated.
5000 175
150
3500 Sharia Commercial Bank
125
Number of Offices (left) Number of Bank (right) In 2004, the number of Sharia Banks increased to
2000 100
1988 1996 1997 1998 1999 2000 2001 2002 2003 2004
three commercial sharia banks, 15 Sharia Business Units
Period Before Crisis (1988-1997) dan Post-Crisis (1998-August 2004)
and 88 Sharia Rural Banks. This was caused by the
Figure 1.1
The Trend of the Number of Commercial Banks conversion of one Conventional Commercial Bank (Bank
Tugu) into a Commercial Sharia Bank, namely Bank Sharia
Trillions of Rp
1.000 National Private Banks
15 Major banks 40.06%
Other banks
800
Figure 1.3
600
The Composition of Commercial Bank Ownership
400
200
Before the 1997 economic crisis, foreign ownership
-
Assets DPK Credit in conventional commercial banks was only 8.80% of the
Figure 1.2 total deposited capital. In line with the recovery efforts for
Share of the Major Banks
the Indonesian banking system carried out by the
Indonesian Bank Restructuring Agency through the
1 Bank DKI, BPD Riau, BPD Kalsel, BPD Sumut, BPD Aceh, Bank Niaga and Bank Permata.
2 BPRS Situbondo, BPRS Tenggamus, BPRS Buana Mitra Perwira, BPRS Artha Surya Barokah
and BPRS Bhakti Sumekar
3 Including cash service and sub-branch office 4 Bank has no activity in foreign exchange transaction
Table 1.2
Rural Banks Office Network
2004
Description 1997 1998 1999 2000 2001 2002 2003
Q1 Q2 Q3
Central 2,140 2,262 2,427 2,419 2,355 2,141 2,141 2,148 2,157 2,164
Branch 48 56 57 62 76 138 140 141 139 136
Cash Service 1 1 1 1 1 468 1,018 1,019 1,146 1,154
Total 2,189 2,319 2,485 2,482 2,432 2,747 3,299 3,308 3,442 3,454
Banks have a strategic role in a nation’s economy; detected at an early stage by supervisors if banks report
they serve as financial intermediaries and provide liquidity their financial conditions accurately and transparently. In
and other financial services to the public. Banks also serve some cases, banks purposively try to cover their problems
as a transmission tool in monetary policy. A good banking making it difficult for supervisors to identify the problems
system, which dominates the overall financial system, has early enough. This makes any follow-up actions ineffective.
to be maintained to accomplish a stable financial and On-site inspection could reveal a bank’s problems more
monetary system. In pursuit of this, banks have to be accurately, however, these inspections are only carried out
managed in a prudent and professional way to avoid any once a year unless there is an indication of deviation.
systemic risk to financial stability. For that reason, banks
need to be supervised and managed according to Post-crisis Banking Recovery Program
international standards. To overcome the currency and banking crisis of 1997,
the government and Bank Indonesia implemented a bank
1. BANKING SUPERVISION POLICY restructuring program in 1998. It is anticipated that the
Bank Indonesia is responsible to supervise banks program will help rejuvenate the banking system to be
according to prevailing regulations1 and international more sound, efficient and competitive, based on
standards, namely the Basel Core Principles for Effective international standards.
Banking Supervision. A summary of the principles is shown Banking restructuring is carried out through two main
in Box 1, and the complete translation is given in the programs: (i) a banking recovery program consisting of a
Appendix 1. blanket guarantee program, a recapitalization and loan
Banking supervision has three main purposes: (i) to restructuring program; and (ii) banking system
create and maintain a sound and stable banking system; strengthening program including the improvement of
(ii) to protect the customers; and (iii) to increase market banking infrastructure, the implementation of good
confidence. Bank supervision includes different activities: corporate governance, and improvements in banking
licensing, regulation and supervision (on-site examination supervision and regulation (see Box 2).
and off-site supervision), as well as the liquidation of
problem banks, which are unfeasible based on legitimate Improvement of Banking Supervision Effective-
standards. ness
Bank supervisors monitor banks’ operations based Up until now, Bank Indonesia has focused its efforts
on submitted periodical reports and/or by general or special towards performing its main task of banking supervision.
inspections. In general, problems faced by banks can be Before the crisis, it has been admitted that there were some
weaknesses in the banking supervision system. During the
1 Act No.13 of 1999 as was amended with Act No. 3 of 2004 post-crisis period however, Bank Indonesia has committed
In September 1997, The Basel Committee succeeded control that can be either quantitative or qualitative.
in formulating the Core Principles for Effective Banking Internal control has to cover procedures intended to
Supervision. These principles contain 25 minimum prevent crime in banks.
requirements for an effective supervision system. The 4. Methods of ongoing bank supervision (Principles no.
principles (listed in the appendix) can be summarized in seven 16-20).
main points: These principles state that both on-site and off-site
1. Preconditions for effective banking supervision. supervision needs to be undertaken. Off-site supervision
The first principle stresses the necessity of a target includes analyses of the reports and conditions of a bank
framework and transparent, attainable and consistent and the affiliated entity based on consolidation as well
liability for all institutes involved in banking supervision. as individually. The importance of both independent data
This principle shows the necessity of a legal framework validation and the need to interact with bank
to supervise banks and information exchange among management to ensure a bank’s operations are fully
respective institutions. understood is stressed here.
2. Licensing and structure. (Principles no. 1-5). 5. Information requirements (Principle no. 21).
These principles focus on the process of licensing, Each bank has to maintain an appropriate record
ownership and the business coverage of banks and generated from consistent accounting policy to enable
related banking groups. The supervision system has to the supervisor to obtain objective understanding on the
be based on a banking licensing system to identify the financial condition and profitability of the bank. Each
institutions to be monitored, especially on the use of bank also has to issue periodic financial reports
the word BANK in running their businesses, which needs describing their conditions objectively.
to be limited to avoid confusion amongst the public. 6. Formal authority of supervisor (Principle no. 22).
The licensing system has to include basic assessment The supervisor has appropriate authority to take
covering aspects of: ownership, management and the corrective actions if a bank fails to fulfil prudential
operational scheme. Supervisors have to be able to standards, or if the importance of a depositor is
review the acquisition of a bank. threatened.
3. Prudential regulations and requirements (Principles no. 7. Cross-border banking (Principles no. 23-25).
6-15). These principles evaluate the role of home and host
These principles stress the need to identify different types supervisors and stress the need for consolidated
of risk encountered by banks and methods to ensure supervision and the authority to exchange information
that these risks are well monitored and controlled. The with other supervisory authorities.
development and maintenance of prudential guidance
is an integral part of the process. This guidance has to Source: Bank for International Settlements, The Basel
cover capital adequacy, loan loss reserve, asset Committee on Banking Supervision, The Core Principles
concentration, liquidity, risk management and internal for Effective Banking Supervision, September 1997.
to increase the effectiveness of bank supervision through emphasized compliance to the regulations issued. With
comprehensive programs, namely the Bank Indonesia this approach, supervision became predominantly focused
Master Plan. Bank Indonesia has already achieved on the extent of deviation from Bank Indonesia’s
significant progress, including compliance to the Basel Core regulations.
Principles. Since 1998, Bank Indonesia has been developing a
In line with the changes in the environment, the risk-based banking supervision system, which is more
supervision approach adopted by Bank Indonesia is always future-oriented. With this approach, banking supervision
evolving. Before the 1997 crisis, banking supervision is more focused on identifying, reviewing and controlling
To facilitate the recovery of the banking sector from B. Banking System Strengthening
systemic crisis in 1997, the government and Bank Indonesia a. Improvement of banking infrastructure – undertaken
executed the banking restructuring program with two main by the establishment of the Deposit Insurance Company,
agendas: (i) banking recovery; and (ii) banking system Indonesian Banking Architecture implementation, the
strengthening. development of a financial system stability framework
and the development of sharia banking and rural
A. Banking Restructuring banking, including the blueprint. As part of a financial
a. Government guarantee – issued to regain public safety net, the Governor of Bank Indonesia and the
confidence, including all claims against bank liabilities Minister of Finance signed a Memorandum of
with IBRA (Indonesian Bank Restructuring Agency). The Understanding on Emergency Liquidity Assistance (ELA),
government guarantee program will be superseded by which defined the basic principles and decision-making
a deposit insurance scheme with limited coverage. With procedures on ELA, problem banks that have systemic
the closure of IBRA, the implementation of the impact, and funding resources of ELA.
government guarantee program is now administered b. The implementation of good governance – implemented
by Government Guarantee Program Unit. through the establishment of the National Committee
b. Recapitalization – aimed at strengthening bank capital. on Corporate Governance to formulate and recommend
This program began with financial review and bank national policy. Corporate governance is expected to
classification: solvent or insolvent, followed by enhance banking transparency, and the competency and
recapitalization with the issuance of government bonds integrity of bankers through fit and proper tests. In
as a replacement for the non-performing loans that were addition, bank compliance is improved by assigning a
transferred to IBRA. This recapitalization program was compliance director. Bank Indonesia has also formed a
completed in 2000. Special Unit for Banking Investigation to follow-up
c. Loan Restructuring – initially it was undertaken by three banking violations and indications of crime.
institutions, namely: IBRA, Indonesian Debt c. Improving the effectiveness of banking regulation and
Restructuring Agency (INDRA) and Jakarta Initiative Task supervision - This initiative covers the enhancement of
Force (JITF) as an attempt to expedite the loan bank transparency, exit policy and supervision
restructuring process, and establish a task force as a effectiveness according to Basel Core Principles. The
facilitator of the loan restructuring process. After the activities include the adoption of risk-based supervision
closure of the three institutions, loan restructuring was and consolidated supervision, and the placement of on-
continued by each bank. Some of the constraints site supervisory presence teams in 13 major banks to
encountered were some difficulties in settling the loans analyze and monitor risks. Banking regulations that have
syndicate and the group of debtors as well as the poor been issued are: implementation of risk management,
legal framework. Bank Indonesia set the NPL indicative incorporating market risk in the bank capital calculation,
target at a maximum of 5% as of June 2003 to force fit and proper tests for controlling shareholders and bank
banks to improve their loan quality. management, and bank transparency.
the risk banks may encounter in their operations. supervision will be synchronized with the improvement
However, compliance to prevailing regulations is still of risk management in the banking industry.
important. The enhancement of the above-mentioned system
The banking supervision effectiveness improvement is necessary based on one basic principle; no matter how
program is continuing and will become more integrated good supervision is, it cannot guarantee against all future
and optimized through the implementation of Indonesian bank failures given that it is the management of a bank
Banking Architecture . Implementation of risk-based bank who is ultimately responsible for its performance. Based
Good governance is the core for sound banking There are four principles in realizing good governance:
management. Each key player in the bank industry should (i) clearly define the strategic goals and organizational culture
act responsibly. Shareholders are responsible for selecting and communicate them to all staff members; (ii) determine
players -board of commissioners and the directors- who are and maintain clear responsibility and accountability within an
ultimately responsible for bank management. While the organization; (iii) ensure that management are competent in
supervisory authority is responsible for formulating regulations their duty, possessing in-depth understanding of their role in
and supervising bank operations. corporate governance and being independent from outside
Senior management is responsible for bank operations interference; and (iv) ensure that there is active board oversight.
and policy implementation, which are set by the board of From experience, it appears that these principles,
commissioners and the directors. The Audit Committee and especially the last two, are frequently ignored by shareholders
Internal Auditor function as the agents of bank management and management alike.
in supervising bank operations. The external auditor is In line with good governance principles, it is necessary
responsible for reviewing and providing professional opinion to develop partnership and discipline from all market players
regarding bank operations. On the other hand, the customers to perform responsibly. Besides a clear legal framework, it is
(the general public) are expected to be responsible for their necessary to have ongoing education and consistent legal
deposits and loans received from a bank. enforcement.
Responsibility in Importance
Key Player
Risk Management Policy Level Operational Level
Systemic
Regulatory Authority Optimize Strategic -
Banking Supervision Supervise Indirect
Institutional
Shareholders Choose the key players Indirect (Supervise) Indirect
Board of Directors Determine policies Strategic Indirect
Executives Implement policies Strategic (implementation) Strategic
Audit Committee/ Internal Audit Test compliance Indirect (Compliance) Strategic
External Auditor Evaluate and provide opinion Indirect (Evaluation) Indirect
Customer
External Stakeholders/Public Act Responsibly - Indirect
Source: Analysing Bank Risk, The World Bank, 2000.
To achieve effective competency development and to committee formation. The role of the certification committee
acquire accreditation, the training includes a well-planned, is to maintain the credibility of the certification program through
standardized program, up-to-date modules and qualified by reviewing the best practices concerning the modules, the
trainers, combined with a certification program. trainers and the training providers. This committee consists of
The aim of the certification program is to provide staff experts in banking supervision and human resources from
in the banking sector a professional standard in carrying out relevant institutions such as the supervisory authorities, banker
their duty as bank supervisors. associations, auditors and academics.
By following the certification process, it is expected The certification program was conducted on 11 August
that the staff will gain a high standard of knowledge and – 21 October 2004 for the basic level (grade 1-4), attended
skills, to nurture individual specialty and competency. by 137 staff at head office. The continuation of the
To support the implementation of a certification program, certification program will commence in 2005 after the
a Governor’s Decree has been issued concerning certification formation of the certification committee.
Financial Safety Net is one of the main pillars to create by the government. Bank Indonesia and the Ministry of
a sound and efficient banking system, in addition to effective Finance have signed a Memorandum of Understanding
regulation and supervision. In general, comprehensive financial regarding the provision of ELA. The regulations concerning
safety nets cover five elements: (i) effective regulation; (ii) ELA provision are currently being formulated by Bank
effective and independent supervision; (iii) an adequate ‘lender Indonesia and the Ministry of Finance team.
of the last resort’; (iv) appropriate deposit insurance scheme; In relation to the phasing out of the Government
and (v) adequate crisis management. Guarantee Program, in September 2004, the People’s
The government and Bank Indonesia have formulated Representative Assembly approved the IDIC law. IDIC will have
a policy framework for financial safety nets containing the two main functions: (i) as insurer of deposits up to a particular
role, responsibility and coordination mechanism of related amount; and (ii) handling the resolution and closure of failed
institutions in financial safety nets, namely, Bank Indonesia, banks.
the Ministry of Finance, Supervisory Authorities, and The implementation of the deposit insurance will be
Indonesian Deposit Insurance Company (IDIC). The framework gradual as follows:
also elaborates the policies of ‘lender of the last resort’ and 1) Phase I: deposits and inter banks
deposit insurance to be adopted in the future. 2) Phase II: deposits
In accordance with the regulations1, under normal 3) Phase III: deposits up to Rp5 billion
conditions Bank Indonesia can provide Short-Term Financing 4) Phase IV: deposits up to Rp1 billion
Facilities for banks undergoing liquidity difficulties due to cash 5) Phase V: deposits up to Rp100 million
flow mismatch. Additionally, Bank Indonesia can also provide Additionally, Bank Indonesia is actively involved in
Emergency Liquidity Assistance for banks undergoing financial maintaining financial system stability through research and
difficulties that have systemic impact which could endanger surveillance activities on the development and risks that can
financial system stability. The funding for ELA will be borne disrupt the financial system. Bank Indonesia publishes
periodically a Financial Stability Review (FSR) covering the
1 Act No.13 of 1999as was amanded with Act No.3 of 2004 chapter 11 verse (4).
research and surveillance of the financial system.
Nineteen IBA programs will direct the Indonesian considering other institutions’ policies and market interest.
banking industry towards achieving its vision of a sound, Besides, the envisaged higher capabilities of supervisors and
strong and efficient banking system to create financial system examiners, the improved investigation process through
stability and support national economic growth. internal reorganization, and better legal enforcement will
As a first step, Bank Indonesia has conducted internal improve the quality of banking supervision quality.
restructuring to improve regulation and supervision The banking structure to be created by IBA includes
effectiveness. Internal restructuring has become the focus of banks with strong capital and appropriate tools to manage
seven of nineteen IBA programs covering the formation of risk. With a minimum capital of Rp100 billion, commercial
banking-specialist panels in Bank Indonesia, the gradual banks will be able to absorb confronted risks. Banks will also
implementation of Basel Core Principles, improvement of Bank be equipped with risk-management tools and internal control
Indonesia’s coordination with other supervisory authorities, to manage their inherent risks better. The improvement of
reorganization of banking supervision functions, improvement risk management is achieved, among other things, through
of supervisor and examiner competency through certification, enhancing the competency of human resources by requiring
the development of risk-based supervision, and improvement bank management and executives to successfully participate
of the effectiveness of legal enforcement. in a risk-management certification program.
With these programs, Bank Indonesia is expected to Internal control improvement can be achieved with the
formulate consistent, high-quality and applicable policies by enhancement of good governance. The capacity of the banks’
Effective and
Healthy
independent Adequate
banking
supervisory infrastructure
structure
system
operation will also be increased with the improvement of A complaint mechanism is currently being formulated
human resources and efficiency. As a facility for banks to to accommodate the suggestions and complaints of
improve their loan quality assessment, a Credit Bureau, a customers regarding their banking services. In anticipation
body that will organize and maintain the loan data of banks’ of disagreements between banks and their customers in
customers, will be formed. settling disputes, Bank Indonesia will establish an
Small and medium enterprises (SME) will receive due independent mediatory institution, or bank-client
consideration too. Bank Indonesia will stimulate the ombudsman.
development of rural banks to reach areas that hitherto do Subsequently, the transparency standard for banks in
not have banking services. The linkage program that has promoting their products will clearly be defined, so that banks’
been established with commercial banks will be improved customers can make informed decisions on which of the
to provide more incentives to commercial banks and rural bank’s products are suitable and to avoid misleading
banks to collaborate. Access of SMEs and the general public information. Banks are also encouraged to conduct ongoing
to loans will be increased through guarantee schemes and customer education.
partnerships with local government authorities.
1. OFF-SITE SUPERVISION
Supervision Cycle 1.
Bank Indonesia continues its banking restructuring Understanding
Institution/Core
Knowledge 2.
program consistently to strengthen banking system 6.
ISS Execution Quarterly Risk
resilience. The various efforts taken include improvements Assessment
&
in the quality of banking supervision in line with Supervisory Action
CAR < 8% Place under special surveillance, request a capital restoration plan, Submit and implement a capital restoration plan.
request Mandatory Supervisory Action and monitor the execution.
NPL Net > 5 Place under intensive surveillance, request restoration plan and Submit and execute an action plan to decrease NPLs.
monitor the execution.
Exceeding Legal Lending Limit Place under intensive supervision, request restoration plan and Submit and execute an action plan to settle the legal
monitor the execution. lending limit.
Liquidity (MSR) <5% Place under special surveillance, request action plan on liquidity Submit and execute action plan on liquidity
restoration and monitoring. improvements.
Credit risk: High Apply cease and desist order. Reduce credit risk.
Liquidity Risk: High Monitor liquidity condition and request the bank to find Improve liquidity position.
alternative fund resources.
Operational Risk: Request the bank to improve the function and implementation of Improve internal control complete the legislation.
High internal control and monitor the execution.
actions (MSA); and (iv) provide a Cease and Desist Order with consideration of the impact on the banking system,
(CDO) and request a change of management within 15 especially on public confidence.
days of the bank being placed under special surveillance. Furthermore, along with the blanket guarantee
The surveillance action aims to improve the condition of program, the banks’ depositors’ claims will be settled by
banks to reach the minimum 8% CAR or Minimum the Government Guarantee Program Unit under the
Statutory Reserves (MSR) as regulated. Bank Indonesia Ministry of Finance. The settlement process for the two
allows six months for listed banks to reach the minimum banks to have their licenses revoked was carried out
CAR and MSR and three month for non listed banks. The meticulously. This was done to anticipate mistakes in
given period can be extended once for up to three months. disbursement and to mitigate the indications of moral
With the limited time, the actions taken by banks to hazard by bank management and staff.
overcome their capital problems are, among others, Other steps taken by Bank Indonesia to assist problem
augmenting the deposited capital, maintaining adequate banks include mergers. Currently, the merger of three
daily liquidity, implement CDO, change management, sell banks that have joint ownership is still in process. It is
non-productive assets or attempt a merger with other predicted that through the merger process the three
banks. problem banks can become one sound bank.
Even though Bank Indonesia has been maintaining Other problems which require attention are the 15
bank soundness, at the beginning of 2004 there were still banks with a non-performing loans (NPLs) net ratio of total
two banks where licenses had to be revoked. This is due loans above the 5% indicator level. As per procedure, Bank
to the banks’ management and owners not implementing Indonesia will place these banks under intensive supervision,
the action plans consistently. As a result, they were unable request them to formulate action plans to reduce the NPLs
to improve their bank’s capital to reach the minimum of and monitor the implementation of the action plan. The
8% CAR as scheduled. The business licenses of the two actions being taken by the banks to reduce their NPLs are,
banks were revoked according to the prevailing regulations among others, restructure the non-performing loans; sell
In a competitive business environment, banks operations, Bank Indonesia can take several actions: (i)
encounter various problems which can result in failure. shareholders must inject capital; (ii) shareholders must replace
Subsequently, worldwide, there is no supervisory authority the Board of Commissioners and Board of Directors; (iii) the
that can guarantee against bank failure and liquidation. For bank must merge or consolidate with another bank; or other
example, in the United States, as one of the countries which actions. If the shareholders and management of insolvent
has the most advanced supervision system and applies banks have been unable to take the necessary steps in a given
multiple supervisory agencies, there is still bank failure and time, Bank Indonesia assigns the bank to IBRA to be recovered
liquidation. or freezed its business activity.
To mitigate the systemic effect of bank failure and Since the closure of IBRA, the recovery of problem
liquidation, which can cause financial instability, good and banks, which do not have systemic impact, has been handled
efficient management of problem banks is required, as is the by Bank Indonesia. For banks with systemic impact, recovery
availability of financial safety nets, which have been discussed will be handled by the government, in accordance with the
previously in Box 4. Memorandum of Understanding between the Minister of
The factors affecting problem banks vary and can be Finance and the Governor of Bank Indonesia dated 17 March
categorized into two groups, namely: (i) internal factors, which 2004.
come from within the bank organization, such as: fraud due From the experience of other countries and the 1997/
to weak internal control and risk management, poor corporate 98 financial crisis there are some good lessons to be learned:
governance (intrusion by the owner in banking operations), (i) a supervisory authority cannot prevent bank failure; (ii)
or mistakes in strategy determination that cause significant shareholders are responsible for selecting capable people to
losses; and (ii) external factors, which come from the banking manage their banks; (iii) ultimate responsibility in bank
business environment, such as worsening economic management lies with the board of directors. For that reason,
conditions that can cause business failure for bank debtors board of commissioners, board of directors and executives
leading to non-performing loans, or financial crisis which can have to be fit and proper; (iv) the audit committee and internal
engulf the whole financial system and the economy.. auditors have to be an extension of the bank management in
Post-crisis, the resolution of problem banks in Indonesia supervising a bank’s business; (v) external auditors (public
has been carried out by Bank Indonesia and Indonesian Bank accountants) play an important role in evaluating a bank’s
Restructuring Agency (IBRA). For solvent banks with a CAR financial system; and (vi) the public/customers, as market
above 8%, supervision is carried out by Bank Indonesia. associates, have to be trained to be responsible for their
Referring to Banking Law No.10, 1998, if a bank suffers savings and deposits.
from financial difficulties that directly endanger business
OSP is part of banking supervision that places a The role of OSP teams in terms of supervision is: (i)
supervisor in major banks. This program is implemented in monitor the bank liquidity condition daily; (ii) monitor the
line with the agreement between the government and IMF new loan disbursements; and (iii) identify, evaluate and
in 2000 regarding the improvement of the supervisory quality monitor bank risks, including internal control.
of Bank Indonesia. Initially, Bank Indonesia placed OSP teams OSP team prepares a report periodically to provide
in 9 banks1 but since January 2004, another 4 have been updated information for bank supervisors regarding the
added making a total of 13.2 condition and problems of major banks. Therefore, the
Previously, Bank Indonesia adopted compliance based improvements necessary could then be taken to overcome
supervision systems that focused more on the performance a bank’s problems.
of banks based on historical data and bank compliance toward OSP activities integrate with the off-site bank
prevailing regulations. This type of supervision needs to be supervision. In addition the three key activities mentioned above
complimented with more forward looking and risk-based OSP teams also monitor the implementation of corrective
supervision. actions, analyze the impact of new product launchings, and
This new approach focuses on the evaluation of three provide inputs for updating banks’ risk profiles.
main aspects: the effectiveness of risk management, the The role of OSP is becoming more important in line
adequacy of internal control and information management with the change in supervisory strategy with the adoption
systems. It is expected that OSP team is able to identify bank’s of risk-based supervision and capital regulation that
problem beforehand so that it can be followed up with proper incorporates market risks in 2005. In addition, OSP teams
preventative actions and improvements. are also expected to provide inputs for intern control. The
challenge is growing in line with greater complexity and
the innovation of bank products based on technology.
1 Bank Mandiri, Bank BNI, Bank BRI, Bank BTN, Bank BCA, Bank Danamon, Bank
Niaga, Bank BII and Bank Lippo. Therefore, bank supervisors, in particular the OSP teams,
2 Bank Permata, Bank Panin, Bank Bukopin, and Bank Buana.
should be equipped with appropriate skills and tools.
bank operations. Weak legal enforcement is evident from violations in banking regulations and business. The
the lengthy administrative process of justice for banking adoption of compliance supervision in general, emphasizes
The challenge faced by the banking industry is compliance to a more risk-based approach requires the
growing in line with the more complicated products and improvement of supervision tools. In the short term, Bank
the higher risks confronted by banks, which necessitates Indonesia plans to improve the organization of supervision,
the implementation of effective risk management. In line supervisor competency, the management information
with this, Bank Indonesia has developed a supervision system including a bank reporting system, enhance the
system using a risk-based approach. Risk-based supervision assessment of a bank’s soundness and increase the
is a more effective system and able to anticipate and control effectiveness of OSP teams which are currently posted in
compliance is still needed because there are still some accomplished through either long-term education, or
Bank fraud occurring recently has been very serious. To ensure the internal control function is implemented
By the end of 2003, there had been a take over of the Export effectively, Bank Indonesia has requested the banking sector
Bill at BNI Head Office in Kebayoran Baru, with a total value to do the following:
of USD 166,781,517 and EUR 56,113,947 or equivalent to 1. Prepare and adopt the standard internal audit function
approximately Rp1.7 trillion. The case has so far caused of a bank and operational guidelines; and form an
significant losses to BNI of around Rp1.2 trillion. However, internal audit unit.
more importantly, the case not only gave BNI a bad reputation 2. Employ a compliance director who is liable for
but also the banking system and the country of Indonesia. determining steps to ensure compliance to all the
The case against BNI happened because of deception regulations and internal system and operating
by one BNI Kebayoran Baru Head Office employee who procedures.
conspired with an outsider in the take over of the Export Bill 3. Submit a report to Bank Indonesia every semester and
of Gramarindo Group and Petindo Group, which is not in an incidental report if there are issues that can endanger
accord with internal regulations nor general regulations (UCP the business of the bank. The report has to be signed
500). The take over was phased from June 2002 until July by the Chief Director, Commissioner and the
2003 with a total of 117 letters of credit (L/C). The fraud Compliance Director.
occurred due to the low integrity of the employee, and weak 4. Provide a risk-management infrastructure (organization,
internal control including board oversight. policies and procedures, management information
In fact, the weak internal control of BNI was detected system/technology, and human resources) and
by Bank Indonesia beforehand through deviation in the appropriate risk control systems.
deposits on call and negotiable certificate deposits. As of It is expected that bank can run its business based on
2002, Bank Indonesia warned BNI to resolve these weaknesses these prudential principles.
immediately but the recovery effort was never carried out Learning from the experience of bank fraud, banks are
optimally until the bigger case appeared. Furthermore, Bank obliged to implement good governance and risk management
Indonesia has taken firm action, such as requesting the with an effective internal control system. Banks also need to
shareholders to replace the management, postponing the maintain the integrity and competency of human resources.
expansion of the office network and requesting the bank to No matter how good the management and control systems
prepare an action plan to improve its internal control to avoid are, it will be worthless if there is still collusion among low
more bank fraud. integrity employees and outsiders for personal gain.
Bank Indonesia will continue to attempt to supervise pillar contains a program for forming a specialist team of
banks in a more effective way. Special attention will also examiners as part of Bank Indonesia’s banking consolidation
be given to banks that have significant roles in the banking program and to improve bank examiner competency. The
system. The implementation of Indonesian Banking program is in response to the challenge of the rapid growth
Architecture (IBA) is expected to help facilitate the and development of banking products nowadays.
realization of the goals. Currently, the Directorate of Bank Examination is
forming a core team of examiners encompassing
Improvements in the Effectiveness of Bank information system technology, treasury, earning assets,
Examination ‘know your customer’, amongst others. In line with
The implementation of risk management is one of improvements in the examination results, the inspection
the foundations of IBA. Of the six pillars, the one relating to process is to be supported by information system
bank supervision and examination is the third pillar, namely, technology, such as Audit Command Language (ACL) and
an effective and independent supervision system. The third other bank audit applications.
PT. Bank Asiatic and PT. Bank Dagang Bali suffered from 4. Ask for a written statement from the management
serious financial difficulties due to fictitious lending and the and shareholders to cope with their problematic
violation of prudential principles by bank management in the Negotiable Certificate Deposit (NCD) and securities,
interest of the shareholders. This was in the form of the as well as fictitious lending. This is done by formulating
issuance of negotiable certificate deposits, fictitious lending and submitting a capital restoration plan, and to
to some debtors, and the purchase of large amounts of execute Mandatory Supervisory Actions (MSA) to
fictitious repo bonds. These problems caused a severe decline restore the Capital Adequacy Ration (CAR) to a
in the quality of earning assets that inflicted a huge loss on minimum of 8%.
the banks, which eventually affected the bank’s capital and Although the management and controlling
liquidity. These, in turn, made the Capital Adequacy Ratio shareholder were given sufficient time to resolve the banks’
(CAR) become negative and the Minimum Statutory Reserves problems, the recovery efforts did not succeed. Ever since
fall below 5%. the bank was placed under special surveillance, the financial
To overcome these problems, Bank Indonesia has taken condition worsened, as indicated by the negative CAR, high
supervisory actions in accordance with prevailing regulations non-performing loans (NPL), liquidity problems and
as follows: continuous violation of Minimum Statutory Reserve. This is
1. Conduct a Fit and Proper Test on the management and mainly due to bank management and the controlling
controlling shareholders, and impose sanctions on shareholder, who did not comply with their commitment as
involved parties or those persons considered not to pass, per the schedule. To secure public funds kept in both banks
by asking them to resign. and to avoid even worse impacts on other banks, Bank
2. Place bank under special surveillance. Indonesia, after coordinating with the Ministry of Finance,
3. Apply a Cease and Desist Order (CDO), such as: (i) the revoked the licenses of the two banks. The procedure of
prohibition of transactions with other parties verified revoking the licenses was carried out as per Law no. 7, 1992
by Bank Indonesia; (ii) prohibition to withdraw deposits concerning the banking industry, replaced by Act no. 10,
by related parties; (iii) prohibition of business expansion 1998 and Bank Indonesia Regulation No. 6/9/PBI/2004 dated
including loan disbursement; (iv) prohibition to sell or 26 March 2004.
reduce assets or make commitments without approval There are two important lessons to be learnt from
from Bank Indonesia; (v) prohibition to make any the cases, (i) banks can fail for different reasons in their
amendment or alteration in the shareholding, and operations, (ii) the supervisory authority will take firm steps,
request a capital restoration plan to avoid any difficulties including the closure of problem banks which cannot be
or a lack of Minimum Statutory Reserves. recovered.
3. INFORMATION SYSTEM AND BANK LICENSING Performance Report (BPeR) has been developed and
Bank Information System utilized as an analytical tool of a bank’s condition. With
In line with technological development and in an BPeR, supervisors, examiners and bank researchers are able
effort to improve supervision effectiveness, Bank Indonesia to identify banks’ conditions in a more comprehensive way,
continues to develop banking management information at individual and industry levels.
systems. This aims to accommodate the approach change In general, banking information system consists of
towards risk-based supervision. During 2004, efforts were two main systems, Banking Sector Management
made to improve the banking information system to Information System (BSMIS) of Bank Indonesia and Debtor
optimize the settlement process of licensing, supervision Information System (DIS) which will be elaborated farther
and banking research. As an example, the Bank below:
Table 3.2
The Interviews for Controlling Shareholders and Management
1. The number of cases reported to investigate 251 131 186 96 437 227
2. The number of cases that have been investigated 237 121 169 88 406 209
2.1. The number of cases reported/forwarded to investigator*) 141 55 73 40 214 95
2.2. The number of cases that have not been followed-up**) 96 66 96 48 192 114
Republic of Indonesia, the Head of the Police Department from all of the received cases, some were not followed-up
and the Governor of Bank Indonesia dated 6 November because no criminal aspect could be found; because legal
1997. In its development, some regulations that were used administrators handled the case or it was the domain of
as basic rules for Collective Decree formulation have been other institutions (tax related cases), the case expired or
modified or even revoked. Therefore, the collaboration because of other aspects that were void.
needs to be improved in accordance with the Considering the importance of Special Unit on
organizational development of the related institutions. Banking Investigation role in handling banking crime and
Besides, the Collective Decree is expected to provide new related to the initiative of the Indonesian Banking
motivaton for related institutions to stimulate, accelerate Architecture, the status of Special Unit on Banking
and optimize the handling of banking criminal case Investigation will be extended to be a directorate, namely
conjecture. The Collective Decree of the Republic of the Directorate of Banking Investigation and Enforcement
Indonesia Attorney General, Head of the Police Department with additional core tasks as mediator of customer
and the Governor of Bank Indonesia was signed on 20 complaints and monitoring the banks’ compliance with
December 2004. customer protection regulations.
Since it became effective in the first quarter 1999 One of the main prerequisites of supporting
through December 2004, Special Unit on Banking investigation activity, which has hitherto been unavailable
Investigation has received and handled 251 cases from to Special Unit on Banking Investigation, is the authority
131 commercial banks, and 186 cases from 96 Rural Banks. to investigate banking cases. As a comparison, Bank
Of the total, 141 cases in 55 commercial banks and 73 Negara Malaysia (BNM) has an investigation unit, namely,
cases in 40 Rural Banks have been investigated and the Special Investigation Unit (SIU) that has the authority
reported to legal enforcers (Police and Judiciary). During to investigate banking cases. With this authority, the
the period of January to December 2004, Special Unit on enforcement of effective banking can be realized in BNM,
Banking Investigation received 69 cases from 12 which will support stability in the Malaysian financial
commercial banks and 7 cases from 5 rural banks. However, system.
Table 4.1
Key Banking Indicators
(Trillion of Rp)
Growth
Key Indicators Dec-03 Mar-04 Jun-04 Sep-04 Oct-04 Nov-04 Dec-04
(+/-) (%)
Total Assets 1196.24 1149.95 1185.70 1213.09 1218.35 1228.10 1272.28 76.04 6.36
Earning Assets 1072.40 1080.33 1102.78 1074.71 1127.77 1114.95 1146.83 74.43 6.94
Loans * 477.19 485.91 528.68 555.06 567.26 573.36 595.06 117.87 24.70
New Loans - non SME 1.30 2.15 11.80 12.88 5.90 13.14 16.76 15.47 1193.19
New Loans - SME 0.63 1.18 5.24 7.54 3.18 5.68 5.34 4.71 750.22
Deposits 888.60 875.13 912.79 926.43 928.11 932.50 963.11 74.51 8.38
Net Interest Income 3.20 5.66 5.41 5.31 6.40 5.02 6.32 3.12 97.34
Loan to Deposit Ratio (%) 43.17 43.72 46.41 48.17 49.16 49.52 49.97
Return on Assets (%) 2.50 2.71 2.67 2.97 2.91 3.03 3.46
Non Performing Loans Gross (%) * 8.21 7.76 7.55 6.89 6.73 6.64 5.75
Non Performing Loans Net (%) * 3.04 2.67 2.10 2.12 2.10 2.01 1.72
Capital Adequacy Ratio (%) 19.39 23.50 20.93 20.52 20.38 19.71 19.36
Efficiency Ratio (%) 88.8 91.6 87.0 83.5 84.8 80.8 76.7
*) including chanelling
period from the previous year, namely Rp48.5 billion with (Billion of Rp)
a ROA of 0.9%. Due to the high expansion of financing, Indicators Q IV- 2003* Q I - 2004 Q II - 2004 Q III - 2004** Q IV - 2004
Table 4.5
Key Indicators of Rural Banks
(Billion Rp)
∆
∆ ∆ ∆
Selected Balance (Sep 04-
No Dec 01 Dec 02 Dec 02- 01 Sep 03 Dec 03 Dec 03- 02 Jun 04 Sep 04 Sep 04- 03
Sheet Data Dec 03)
% % %
%
1 Total assets 6,474 9,080 40.3 11,759 12,635 39.2 14,416 16,015 26.8 36.2
2 Loans (amount) 4,860 6,683 37.5 8,624 8,985 34.4 10,419 11,639 29.5 35.0
Loans (no. of account)* 1,560 1,825 17.0 2,064 1,993 9.2 2,002 2,161 8.4 4.7
3 Deposits 4,280 6,126 43.1 8,270 8,868 44.8 9,894 10,795 21.7 30.5
Deposit (no. of account)* 4,410 5,329 20.8 5,562 5,535 3.9 5,700 5,692 2.8 2.3
- Savings 1,574 2,002 27.2 2,418 2,617 30.7 2,889 3,223 23.2 33.3
Savings (no. of account)* 3,908 4,891 25.2 5,087 5,046 3.2 5,190 5,372 6.5 5.6
- Time deposit 2,706 4,124 52.4 5,852 6,251 51.6 7,005 7,572 21.1 29.4
Time deposit (no. of acc.)* 502 438 (12.7) 475 489 11.6 510 320 (34.6) (32.6)
4 Profit (loss) current year 223 338 51.6 333 429 26.9 294 466 8.6 39.9
*) Account in Thousand
The policy direction of sharia banking in 2004 has sharia banks. For that, Bank Indonesia has developed a
continued to build a strong foundation for the development risk-based supervision system and issued prudential
of sharia banking. In 2005, these policies will focus on efforts regulations.
to strengthen the structure of the Sharia banking industry 3. Efficiency and Competitive Capacity
through the implementation of programs to reinforce the Besides the focus on the development of human
effectiveness of programs that were implemented in 2004. resource competency through different types of training
Four key principles regarding the development of sharia program, Bank Indonesia will also collaborate with
banking in 2005 include: related institutes to improve the sharia financial market
1. Compliance with sharia principles instrument, such as Sharia Government Bonds and tax
One of the main issues in the development of sharia regulations, which will stimulate the development of
banking is a better understanding of Sharia financial sharia banking and the efficiency of the Sharia
concepts, especially for sharia bank supervisors. Bank Arbitrage Body.
Indonesia has continuously provided technical training 4. Systemic Stabilization and the Economic Benefits
for the Sharia Supervisory Council (SSC), as well as for One focus under this activity is the development of
other bank management. the Sharia Economic Information Center as the
Another issue is to integrate sharia norms with banking credible information exchange body useful to mitigate
supervision regulations and guidance. For this reason, financial crises in sharia financial institutions. It is
Bank Indonesia has developed an evaluation system planned to have a deposit insurance scheme for sharia
for the supervision of a bank’s condition with the banking products.
application of specific characteristics of sharia banks. Other improvement initiatives include: compliance
2. The Implementation of Prudential Regulations with the 25 Basel Core Principles and a review of the entry
In addition to integrating sharia norms with banking and exit policy for sharia banks that relate to the second
supervision regulations, Bank Indonesia has also key principles and the implementation of Sharia Rural
committed to develop good corporate governance and Banks official certification in relation to the third key
update the supervision and examination system for principle.
1. DEVELOPMENT POLICY AND REGULATION Operation of the Government’s Guarantee Program for
Bank Indonesia continually attempts to improve the the Settlement of the Liabilities of Rural Banks. The aim is
effectiveness of the supervision and regulation of rural to optimize the implementation of the Government
banks to achieve a sound rural bank industry through the Guarantee Program to rural bank by including items not
implementation of various programs: (i) rural bank accommodated before, such as the inclusion of mergers,
restructuring program; (ii) improvements in the regulation acquisitions and consolidation in the program.
and supervision system; (iii) enhancement of rural bank Based on the above regulation, rural banks have to
capacity and institution; and (iv) strengthening rural bank follow the Government Guarantee Program by fulfilling
industry infrastructure. These programs are as follows: the following requirements: (i) the soundness rating of rural
banks has to be fairly sound and not under a special
a) Restructuring Program surveillance program; (ii) the statement of participation
To facilitate the realization of a sound rural bank from the bank management and shareholders; (iii) a fee
industry, Bank Indonesia has implemented a restructuring must be paid; (iv) a nominative list of deposits must be
program through acquisitions, capital injection and provided; and (v) a penalty must be paid.
mergers of problem rural banks that are still feasible. Up to July 2004, there were 175 rural banks unable
When the restructuring program fails, Bank Indonesia is to fulfil the requirement to participate in the Government
forced to take action either through freezing business Guarantee Program, including five sharia rural banks. Rural
activities or revoking the rural bank license. Since May banks failing to meet the requirements have to announce
2001 until the end of September 2004, Bank Indonesia their status to the public. In such a case, the settlement of
has consolidated 66 rural banks into one and has merged all deposits will be borne by the rural bank according to
nine rural banks into three. prevailing regulations.
If any rural banks fail to announce their participation
b) The Implementation of the Government’s Guarantee status, Bank Indonesia will announce it to the public to
Program protect the bank’s customers in order to stabilize the rural
As a follow up on the signing of a Memorandum of banking industry.
Understanding between the Minister of Finance and the
Governor of Bank Indonesia regarding the implementation c) The Settlement of Deposits for Non-participants of the
of a guarantee program for rural banks dated 15 June Guarantee Program
2003, Bank Indonesia issued Bank Indonesia Regulation The settlement of deposits for non-participants of
No. 5/17 PBI/2003 dated 3 September 2003 as a the guarantee program (including five rural banks whose
replacement of Bank Indonesia Regulation No. 3/12/PBI/ licenses were revoked in 2004) will be borne by the
2001 regarding the Requirements and Procedures for the respective rural banks through liquidation according to
In relation to the capacity improvement of the rural certified training program to other parts of Indonesia, such
banking institution, a BPR Professional Certification Program as: West Java, Jabotabek (Jakarta, Bogor, Tangerang and
CERTIF was launched on 12 July 2004. The program stipulates Bekasi), South Sumatra, West Sumatra and South Sulawesi
that BPR directors must pass a graduation certificate, at least through the Training of Trainers (ToT) program for the training
for one director by the end of 2006 and for all directors by of candidates in those areas.
the end of 2008. In accordance with Bank Indonesia Regulation No. 6/
The CERTIF program in intended to improve the quality 22/PBI/2004 dated 9 August 2004 and External Circular Letter
of human resources in rural banks in a systematic and No. 6/34/DPBPR dated 13 August 2004 regarding Certification
sustainable way. A pilot project was implemented in East Java Institutions for rural banks, the establishment of this institution
province and Bali with support from Bankakedemie, which must take into consideration Bank Indonesia’s
has completed several programs: (i) the establishment of recommendations. The institution has the right to regulate
training institutes as part of the pilot project; (ii) the the certification system and issue graduation certificates, give
composition of a curriculum, training modules and exam accreditation for trainers and to training institutes, and to set
material; (iii) training of trainers (ToT) that has been conducted the test procedures and exam material, all in collaboration
twice; and (iv) two certified training courses run by the with institutions that have been established from Certification
consultancy agency IRBA, Malang and one training course Council, National Curriculum Committee and Management
run by IRBA, Bali. Council.
The National Task Force, which has Bank Indonesia In supporting the implementation of CERTIF, Bank
membership (the Directorate of Rural Banks Supervisory, the Indonesia provides training grants as much as 50% of the
head of Bank Indonesia Branch Office in Surabaya, Denpasar total training costs for one rural banks director, in particular
and an official from the Directorate of Sharia Banking), has for rural banks that were founded before the issuance of the
conducted twelve meetings with some agreements on the regulation.
foundation of a certification institution by the Indonesian In future, the development of a human resources
Banking Development Foundation and the expansion of the program for rural banks will be self-funded.
allocation for Small and Micro Enterprises (SME). The – A linkage program has positive impacts on both
linkage program is the continuation of the successful Micro commercial banks and rural banks, therefore it is
between commercial banks and rural banks, or with other – Bank Indonesia will have to continuously stimulate
micro finance institutions to develop a network to allocate the participation of commercial banks in the linkage
As of June 2004, there was collaboration between competitive capacity of rural banks. Commercial
924 rural banks and 25 financial institutions (24 commercial banks need to lower their interest rates for rural banks
banks and PNM Ltd.) with a cap of Rp944 billion and a and continue to monitor and provide technical
Rp536 billion outstanding debit. From the survey assistance to rural banks.
conducted by Bank Indonesia in cooperation with the – Support from the credit guarantee institution is
Economic Faculty of Padjajaran University, concerning the necessary to warrant loan allocation for relatively
bank performance, there are some important results as – Incentives should be given to commercial banks and
Appendices 59
60 Appendices
Appendix 1
Core Principles for Effective Banking Supervision
This document is a revised version of consultative principles are applicable to all important aspects. The
paper which was published by BIS (Bank for International documents of the principles can be downloaded from the
Settlement) on April 1997, confirming 25 principles which BIS web site: http://www.bis.org.
are ensured by the Basel Committee to be implemented
for effective supervision. PRECONDITIONS FOR EFFECTIVE BANKING
Basel Core Principles were developed by the Basel SUPERVISION
Committee in collaboration with supervisory authorities 1. An effective system of banking supervision will have
from 15 developing countries and have received inputs clear responsibilities and objectives for each agency
from intensive consultation with many supervisory involved in the supervision of banking organizations.
authorities worldwide. The principles cover basic elements Each such agency should possess operational
of an effective supervision system. The principles have independence and adequate resources. A suitable
comprehensive coverage including preconditions for legal framework for banking supervision is also
effective bank supervision, licensing and structure, necessary, including provisions relating to
requirement and prudential regulations, and method of authorization of banking organizations and their
ongoing supervision. ongoing supervision; powers to address compliance
Basel Core Principles is intended to be a basic with laws as well as safety and soundness concerns;
guideline for supervisory authorities worldwide to be and legal protection for supervisors. Arrangements
applied to banking supervision in line their own regulations. for sharing information between supervisors and
Supervision authorities worldwide were urged to apply protecting the confidentiality of such information
these principles at least in October 1998. The should be in place.
implementation includes a review of the current supervisory
system compared to the principles. The pace of change LICENSING AND STRUCTURE
varies depending on whether the supervisory authority has 2. The permissible activities of institutions that are
the legal power or not. If changes in the law are required, licensed and subject to supervision as banks must be
legislators of each country are requested to give immediate clearly defined, and the use of the word “bank” in
consideration to the necessary changes to ensure that the names should be controlled as far as possible.
3. The licensing authority must have the right to set
1 Source: The Core Principles for Effective Banking Supervision, Bank for International criteria and reject applications for establishments that
Settlements, September 1997.
2 The Basel Committee on Banking Supervision founded by the Governors of Central do not meet the standards set. The licensing process,
Banks of the Group of Ten Countries in 1975. This Committee members include senior
manager from supervisory authorities and central banks from Belgium, Canada, France,
Germany, Italy, Japan, Luxembourg, Netherland, Sweden, Switzerland, England and United
at a minimum, should consist of an assessment of
States. The Committee, meet regularly at the Bank for International Settlements (BIS) in
Basel, Switzerland where the Secretary reside permanently. The Basel Committee the banking organization’s ownership structure,
continuosly develop banking supervisory systems and approach to be implemented in-
ternationally. directors and senior management, its operating plan
Appendices 61
and internal controls, and its projected financial management to identify concentrations within the
condition, including its capital base; where the portfolio and supervisors must set prudential limits
proposed owner or parent organization is a foreign to restrict bank exposures to single borrowers or
bank, the prior consent of its home country supervisor groups of related borrowers.
should be obtained. 10. In order to prevent abuses arising from connected
4. Banking supervisors must have the authority to review lending, banking supervisors must have in place
and reject any proposals to transfer significant requirements that banks lend to related companies
ownership or controlling interests in existing banks and individuals on an arm’s-length basis, that such
to other parties. extensions of credit are effectively monitored, and
5. Banking supervisors must have the authority to that other appropriate steps are taken to control or
establish criteria for reviewing major acquisitions or mitigate the risks.
investments by a bank and ensuring that corporate 11. Banking supervisors must be satisfied that banks have
affiliations or structures do not expose the bank to adequate policies and procedures for identifying,
undue risks or hinder effective supervision. monitoring and controlling country risk and transfer
risk in their international lending and investment
PRUDENTIAL REGULATIONS AND activities, and for maintaining appropriate reserves
REQUIREMENTS against such risks.
6. Banking supervisors must set prudent and appropriate 12. Banking supervisors must be satisfied that banks have
minimum capital adequacy requirements for all banks. in place systems that accurately measure, monitor and
Such requirements should reflect the risks that the adequately control market risks; supervisors should
banks undertake, and must define the components have powers to impose specific limits and/or a specific
of capital, bearing in mind their ability to absorb capital charge on market risk exposures, if warranted.
losses. At least for internationally active banks, these 13. Banking supervisors must be satisfied that banks have
requirements must not be less than those established in place a comprehensive risk management process
in the Basle Capital Accord and its amendments. (including appropriate board and senior management
7. An essential part of any supervisory system is the oversight) to identify, measure, monitor and control
evaluation of a bank’s policies, practices and all other material risks and, where appropriate, to hold
procedures related to the granting of loans and capital against these risks.
making of investments and the ongoing management 14. Banking supervisors must determine that banks have
of the loan and investment portfolios. in place internal controls that are adequate for the
8. Banking supervisors must be satisfied that banks nature and scale of their business. These should
establish and adhere to adequate policies, practices include clear arrangements for delegating authority
and procedures for evaluating the quality of assets and responsibility; separation of the functions that
and the adequacy of loan loss provisions and loan involve committing the bank, paying away its funds,
loss reserves. and accounting for its assets and liabilities;
9. Banking supervisors must be satisfied that banks have reconciliation of these processes; safeguarding its
management information systems that enable assets; and appropriate independent internal or
62 Appendices
external audit and compliance functions to test of the financial condition of the bank and the
adherence to these controls as well as applicable laws profitability of its business, and that the bank
and regulations. publishes on a regular basis financial statements that
15. Banking supervisors must determine that banks have fairly reflect its condition.
adequate policies, practices and procedures in place,
including strict “know-your-customer” rules, that FORMAL POWERS OF SUPERVISORS
promote high ethical and professional standards in 22. Banking supervisors must have at their disposal
the financial sector and prevent the bank being used, adequate supervisory measures to bring about timely
intentionally or unintentionally, by criminal elements. corrective action when banks fail to meet prudential
requirements (such as minimum capital adequacy
METHODS OF ONGOING BANKING SUPERVISION ratios), when there are regulatory violations, or
16. An effective banking supervisory system should where depositors are threatened in any other way.
consist of some form of both on-site and off-site In extreme circumstances, this should include the
supervision. ability to revoke the banking license or recommend
17. Banking supervisors must have regular contact with its revocation.
bank management and thorough understanding of
the institution’s operations. CROSS-BORDER BANKING
18. Banking supervisors must have a means of collecting, 23. Banking supervisors must practice global consolidated
reviewing and analyzing prudential reports and supervision over their internationally-active banking
statistical returns from banks on a solo and organizations, adequately monitoring and applying
consolidated basis. appropriate prudential norms to all aspects of the
19. Banking supervisors must have a means of business conducted by these banking organizations
independent validation of supervisory information worldwide, primarily at their foreign branches, joint
either through on-site examinations or use of external ventures and subsidiaries.
auditors. 24. A key component of consolidated supervision is
20. An essential element of banking supervision is the establishing contact and information exchange with
ability of the supervisors to supervise the banking the various other supervisors involved, primarily host
group on a consolidated basis. country supervisory authorities.
25. Banking supervisors must require the local operations
INFORMATION REQUIREMENTS of foreign banks to be conducted to the same high
21. Banking supervisors must be satisfied that each bank standards as are required of domestic institutions and
maintains adequate records drawn up in accordance must have powers to share information needed by
with consistent accounting policies and practices that the home country supervisors of those banks for the
enable the supervisor to obtain a true and fair view purpose of carrying out consolidated supervision.
Appendices 63
Appendix 2
Banking Key Indicators (Million of Rp)
TOTAL COMMIT-
No BANKS L O A N S SECURITIES INTER-BANK OTHER EQUITY
ASSETS MENT AND DEMAND SAVING TIME
AND PLACEMENT INVESTMENT CLAIMS TOTAL TOTAL
CONTIGENCY DEPOSIT ACCOUNT DEPOSIT
BIS
STATE-OWNED BANK
1 PT BANK MANDIRI (PERSERO) Tbk 228,727,465 81,338,713 104,669,283 15,551,812 1,882,069 6,147,665 15,139,023 224,728,565 42,364,778 44,637,844 75,969,286 162,971,908 23,782,691
2 PT BANK NEGARA INDONESIA (PERSERO),Tbk 129,972,228 51,758,953 51,912,983 10,101,085 3,443,442 2,501,826 7,710,914 127,429,203 30,213,329 36,058,973 36,300,793 102,573,085 11,946,676
3 PT BANK RAKYAT INDONESIA (PERSERO) Tbk, 100,086,609 58,381,719 28,794,335 5,118,821 61,308 110,817 2,373,079 94,840,079 12,975,443 41,142,461 24,449,128 78,567,032 11,742,744
4 PT BANK TABUNGAN NEGARA (PERSERO) Tbk, 26,647,428 12,072,920 12,775,474 179,362 4,341 25,032,097 1,364,850 5,743,624 11,426,324 18,534,798 1,166,513
5 PT BANK EKSPOR INDONESIA (PERSERO) 5,737,152 783,198 1,152,246 3,789,665 5,146 5,730,255 0 0 4,570 4,570 3,673,745
PRIVATE NATIONAL FOREX BANK
6 PT BANK CENTRAL ASIA Tbk, 143,355,044 35,817,736 85,813,176 4,704,806 257,804 791,269 1,731,569 129,116,360 28,552,673 63,498,175 33,626,807 125,677,655 13,672,243
7 PT BANK DANAMON INDONESIA Tbk 53,324,203 25,747,562 20,707,954 1,851,243 974,876 508,852 1,080,942 50,871,429 4,803,090 10,903,421 20,040,235 35,746,746 8,146,186
8 PT BANK INTERNASIONAL INDONESIA Tbk 35,783,117 12,220,471 14,467,745 5,221,642 60,750 707,051 369,750 33,047,409 9,738,434 5,838,607 13,466,902 29,043,943 4,096,127
9 PT BANK PERMATA Tbk (prev. PT, BANK BALI ) 31,391,579 13,297,987 12,638,048 1,473,848 141,028 203,887 452,408 28,207,206 4,982,004 3,988,836 16,593,280 25,564,120 2,205,096
10 PT LIPPO BANK, Tbk 27,353,918 5,428,310 14,732,884 2,558,258 3,464 80,979 637,260 23,441,155 8,524,965 10,291,391 5,690,363 24,506,719 1,723,181
11 PT BANK NIAGA, Tbk 27,239,356 18,370,136 4,915,080 1,393,735 144,451 338,902 707,000 25,869,304 5,303,801 4,639,911 11,832,924 21,776,636 2,175,322
12 PT PAN INDONESIA BANK, Tbk 22,296,369 10,574,709 6,851,417 2,437,938 246,796 130,277 415,151 20,656,288 4,378,863 3,882,903 6,629,424 14,891,190 4,200,571
13 PT BANK MEGA, Tbk 17,215,031 7,314,403 7,683,333 302,873 37,615 55,268 125,894 15,519,386 2,759,719 1,805,326 10,606,917 15,171,962 1,253,234
14 PT BANK NISP, Tbk 16,534,806 9,450,846 3,894,728 981,027 56,215 727,211 593,860 15,703,887 1,634,990 2,562,449 7,736,678 11,934,117 1,229,854
15 PT BANK BUANA INDONESIA Tbk, 15,880,659 7,121,283 5,102,296 2,148,034 88 26,226 250,264 14,648,191 3,918,602 4,532,548 4,583,969 13,035,119 1,923,011
16 PT BANK BUKOPIN 15,620,846 12,632,541 1,312,064 316,013 550 8,637 530,016 14,799,821 2,670,027 1,462,689 8,709,497 12,842,213 1,075,641
17 PT BANK EKONOMI RAHARJA 10,117,253 4,144,738 4,616,757 597,179 31,167 235,661 9,625,502 1,635,377 3,059,129 4,546,093 9,240,599 503,481
18 PT BANK ARTHA GRAHA 8,517,479 5,287,664 1,327,464 569,904 131 2,079 41,687 7,228,929 799,690 687,204 5,263,569 6,750,463 298,130
19 PT BANK CENTURY Tbk,(BANK CIC-6,12,2004) 6,292,682 1,155,645 1,041,875 2,442,498 274,281 11,839 4,926,138 403,148 318,649 3,509,542 4,231,339 446,230
20 PT,BANK SYARIAH MANDIRI, Tbk 6,051,925 5,007,108 369,994 5,478 1,127 118,702 5,502,409 776,780 1,431,134 2,846,170 5,054,084 505,827
21 PT BANK MUAMALAT INDONESIA 4,279,170 3,766,817 80,129 26,083 6,802 53,194 3,933,025 333,864 1,007,860 2,068,248 3,409,972 335,310
22 PT BANK HAGA 3,723,868 1,538,132 1,661,685 215,943 12,046 75,527 3,503,333 1,025,604 715,640 1,718,011 3,459,255 125,975
23 PT BANK BUMIPUTERA INDONESIA 3,579,489 2,651,487 492,812 69,020 17,558 119,934 3,350,811 525,330 374,136 1,848,807 2,748,273 264,495
24 PT BANK MESTIKA DHARMA 2,840,357 1,933,327 647,878 7,653 2,000 110,710 2,701,568 448,537 1,270,134 451,442 2,170,113 578,800
25 PT BANK MAYAPADA INTERNATIONAL 2,437,771 1,426,022 168,072 104,725 13,739 12,387 1,724,945 269,054 106,875 1,636,750 2,012,679 301,662
26 PT, BANK NUSANTARA PARAHYANGAN TBK, 2,125,238 960,228 718,141 262,703 10,183 20,750 1,972,005 558,978 244,433 1,138,596 1,942,007 134,068
Appendices 64
(Million of Rp)
TOTAL COMMIT-
No BANKS L O A N S SECURITIES INTER-BANK OTHER EQUITY
ASSETS MENT AND DEMAND SAVING TIME
AND PLACEMENT INVESTMENT CLAIMS TOTAL TOTAL
CONTIGENCY DEPOSIT ACCOUNT DEPOSIT
BIS
27 PT BANK MASPION INDONESIA 1,758,617 1,050,847 426,547 66,330 2,717 19,810 1,566,251 187,237 500,174 868,836 1,556,247 138,199
28 PT BANK BUMI ARTA 1,529,510 377,183 384,273 609,448 7,366 3,152 11,229 1,392,651 447,094 390,531 437,590 1,275,215 194,244
29 PT BANK KESAWAN, Tbk 1,492,810 634,156 594,208 44,358 2,218 1,274,940 238,946 342,613 789,511 1,371,070 106,575
30 PT BANK PIKKO (MERG,CENTURY 6,12,2004) 1,203,163 326,497 228,720 449,430 37,064 14,881 1,056,592 74,417 208,011 967,605 1,250,033 -274,842
31 PT BANK ARTA NIAGA KENCANA 952,184 651,905 167,786 27,274 18 17,102 864,085 125,521 188,287 499,131 812,939 115,143
32 PT BANK IFI 870,658 283,837 405,927 60,420 17,839 768,023 28,614 14,299 420,421 463,334 84,343
33 PT BANK GANESHA 803,885 464,868 158,319 71,278 13,568 33,714 741,747 83,259 48,321 558,273 689,853 85,595
34 PT BANK HAGAKITA 741,853 560,196 48,915 45,239 3,519 11,854 669,723 202,369 123,935 312,261 638,565 72,307
35 PT BANK SWADESI, Tbk 707,509 372,768 258,885 24,583 6 4,630 660,872 82,714 78,789 430,499 592,002 101,921
36 PT BANK ANTAR DAERAH 572,707 369,251 127,127 17,060 6 98 23,896 537,438 92,690 193,348 177,071 463,109 50,910
37 PT, BANK HALIM INDONESIA 463,150 267,562 148,377 11,074 2,300 17,620 446,933 38,477 52,266 251,633 342,376 95,258
38 PT BANK SHINTA INDONESIA 432,871 108,544 259,762 52,865 21,262 442,433 118,128 45,460 167,632 331,220 81,869
39 PT BANK METRO EKSPRESS 361,379 119,356 184,432 30,476 71 6,253 340,588 69,335 54,003 92,510 215,848 137,412
40 PT BANK WINDU KENTJANA 338,671 168,752 48,652 41,182 524 259,110 84,900 131,461 95,540 311,901 17,003
PRIVATE NATIONAL NON-FOREX BANK
41 PT BANK TABUNGAN PENSIUNAN NASIONAL 3,442,348 2,537,913 356,739 22,387 22 945 2,918,006 8,896 451,889 2,186,923 2,647,708 583,464
42 PT BANK AGRONIAGA Tbk, 2,067,494 1,588,720 326,327 30,307 20 7,830 1,953,204 341,938 46,461 1,232,658 1,621,057 180,898
43 PT BANK VICTORIA INTERNATIONAL 1,964,143 751,777 1,092,078 13 12,721 9,633 1,866,222 68,050 79,012 1,519,543 1,666,605 152,131
44 PT GLOBAL INTL BANK (closed 13,1,2005) 1,848,094 670,935 774,565 42 27,924 1,473,466 16,049 38,674 748,998 803,721 499,041
45 PT BANK JASA JAKARTA 1,802,985 1,214,845 449,906 32,001 7,758 1,704,510 230,278 135,045 1,178,123 1,543,446 226,759
46 PT BANK EKSEKUTIF INTERNASIONAL, Tbk, 1,618,974 1,141,272 129,857 10,947 668 1,282,744 20,089 70,731 1,258,314 1,349,134 195,678
47 PT BANK YUDHA BHAKTI 1,363,262 692,844 384,987 151,260 10 19,117 1,248,218 73,113 52,606 1,048,102 1,173,821 121,231
48 PT BANK HARDA INTERNASIONAL 1,025,251 629,559 293,743 21,544 1,900 946,746 147,181 49,399 738,964 935,544 56,048
49 PT BANK DANPAC (MERG,CENTURY 6,12,04) 905,932 379,943 175,744 289,162 8,703 853,552 71,327 53,103 504,077 628,507 148,206
50 PT BANK INDEX SELINDO 640,627 353,624 215,294 10,381 1,450 580,749 81,307 172,179 332,209 585,695 44,163
51 PT BANK PERSYARIKATAN INDONESIA 606,708 578,831 1,204 7,427 4,525 591,987 56,754 68,280 369,479 494,513 7,514
52 PT BANK UIB 557,430 383,197 123,200 6,271 512,668 37,736 29,374 402,926 470,036 70,045
53 PT DIPO INTERNATIONAL BANK 544,609 417,622 67,481 570 15,405 501,078 197,837 18,027 240,707 456,571 71,001
Appendices 65
(Million of Rp)
EARNING ASSETS DEPOSITS
TOTAL COMMIT-
No BANKS L O A N S SECURITIES INTER-BANK OTHER EQUITY
ASSETS MENT AND DEMAND SAVING TIME
AND PLACEMENT INVESTMENT CLAIMS TOTAL TOTAL
CONTIGENCY DEPOSIT ACCOUNT DEPOSIT
BIS
54 PT BANK HIMPUNAN SAUDARA 1906 527.883 427.013 32.499 2.112 3.727 162 465.513 42.089 68.108 349.958 460.155 62.002
55 PT BANK AKITA 491.574 386.485 43.025 49 588 430.147 66.384 29.703 312.810 408.897 65.636
56 PT BANK SYARIAH MEGA INDONESIA 402.425 303.276 20.663 458 324.397 38.830 4.471 288.951 332.252 64.808
57 PT CENTRATAMA NASIONAL BANK 393.670 308.618 17.351 2.536 6.910 335.415 31.705 60.224 241.031 332.960 46.100
58 PT PRIMA MASTER BANK 391.955 315.351 28.973 5.182 450 349.956 65.239 44.312 245.728 355.279 25.656
59 PT BANK MULTI ARTA SENTOSA (MAS) 328.458 221.506 83.672 410 1.089 306.677 23.057 41.585 222.754 287.396 35.556
60 PT BANK KESEJAHTERAAN EKONOMI 314.558 258.344 38.663 477 297.484 34.387 21.366 134.663 190.416 92.005
61 PT BANK DJASA ARTA 302.926 161.499 67.206 5.397 2.177 236.279 34.652 58.777 172.568 265.997 33.478
62 PT BANK SRI PARTHA 293.676 167.851 16.096 1.010 184.957 5.639 138.778 79.866 224.283 46.368
63 PT BANK INDOMONEX 278.135 206.003 41.128 1.193 358 248.682 22.305 42.971 179.354 244.630 25.198
64 PT BANK MITRANIAGA 243.231 156.954 62.756 5.154 224.864 11.940 16.611 186.903 215.454 26.084
65 PT BANK FAMA INTERNASIONAL 236.412 184.817 28.270 1.345 214.432 15.344 13.019 172.161 200.524 31.560
66 PT BANK MAYORA 200.960 62.327 106.287 15.007 7.969 191.590 35.954 27.451 115.428 178.833 20.200
67 PT BANK ARTOS INDONESIA 188.954 122.469 38.169 233 530 161.401 36.608 23.546 94.892 155.046 25.927
68 PT ANGLOMAS INTERNASIONAL BANK 182.841 84.769 34.960 7.501 1.546 128.776 31.563 30.972 93.726 156.261 22.736
69 PT BANK INA PERDANA 181.209 102.496 55.571 1.673 12 159.752 33.509 29.280 91.393 154.182 -1.658
70 PT BANK BINTANG MANUNGGAL 161.953 114.057 33.943 2.440 1.302 151.742 17.754 12.163 98.254 128.171 27.317
71 PT BANK SINAR HARAPAN BALI 159.146 107.462 23.500 5.377 136.339 2.564 83.280 31.269 117.113 23.945
72 PT BANK HARMONI INTERNATIONAL 145.014 97.294 22.354 913 1.840 122.401 15.591 53.451 50.995 120.037 22.234
73 PT BANK BISNIS INTERNASIONAL 141.053 83.986 32.415 451 1.325 118.177 20.330 14.316 75.130 109.776 28.407
74 PT LIMAN INTERNATIONAL BANK 134.592 45.264 65.336 54 131 110.785 19.022 21.534 26.669 67.225 61.931
75 PT BANK HARFA 124.916 69.882 27.442 199 100 97.623 9.941 17.605 58.611 86.157 25.754
76 PT BANK ROYAL INDONESIA 68.020 4.880 20.714 36.181 10 61.785 39.459 4.357 2.839 46.655 20.068
77 PT BANK PURBA DANARTA 63.408 10.506 46.080 2.715 59.301 5.217 11.104 26.002 42.323 20.034
78 PT ALFINDO SEJAHTERA BANK 49.596 8.834 35.790 267 44.891 9.941 2.766 22.673 35.380 11.797
79 PT BANK SWAGUNA 22.029 13.274 227 66 630 14.197 1.980 2.410 14.461 18.851 2.237
REGIONAL DEVELOPMENT BANK
80 PT BPD JAWA BARAT 12.179.500 8.371.867 1.450.918 1.004.062 77.239 10.904.086 3.577.663 1.481.037 5.193.308 10.252.008 1.222.064
Appendices 66
(Million of Rp)
EARNING ASSETS DEPOSITS
81 PT. BPD JAWA TIMUR 8.444.048 3.504.395 821.524 1.869.965 297.374 6.493.258 3.934.206 1.472.314 1.562.874 6.969.394 721.256
82 PT. BPD DKI 7.025.374 2.142.289 3.496.634 680.971 927 147.460 6.468.281 2.063.745 849.785 1.809.271 4.722.801 631.645
83 PT BANK PEMBANGUNAN DAERAH JAWA TENGAH 6.222.361 3.809.456 395.170 1.078.362 2.497 54.867 5.340.352 1.855.168 1.227.475 1.683.771 4.766.414 937.295
84 PT BANK PEMBANGUNAN DAERAH RIAU 4.157.981 997.754 2.080.111 680.946 1.092 73.974 3.833.877 2.764.136 709.203 238.692 3.712.031 310.966
85 PT. BPD SUMATERA UTARA 3.559.120 1.419.949 1.288.932 149.977 750 41.031 2.900.639 1.442.685 690.926 710.830 2.844.441 660.785
86 BPD SUMATERA BARAT 3.145.263 1.926.102 220.497 736.273 250 17.802 2.900.924 940.099 656.403 594.492 2.190.994 278.666
87 BPD KALIMANTAN TIMUR 3.112.290 1.563.397 968.855 183.880 1.035 71 35.388 2.752.626 1.356.490 599.032 448.673 2.404.195 407.166
88 PT. BANK BPD ACEH 3.080.705 1.034.433 1.198.745 397.196 110 24.352 2.654.836 1.696.020 582.842 456.201 2.735.063 220.488
89 BANK PEMBANGUNAN DAERAH BALI 2.951.167 2.178.049 302.997 179.094 635 9.468 2.670.243 690.737 966.608 491.067 2.148.412 417.843
90 PT. BPD PAPUA 2.498.718 856.898 50.000 664.959 32.778 1.604.635 1.667.846 369.123 100.972 2.137.941 280.163
91 BPD SULAWESI SELATAN 2.255.260 935.391 450.573 503.231 65 831 1.890.091 1.002.619 187.580 333.847 1.524.046 291.700
92 PT BPD SUMATERA SELATAN 2.144.898 1.521.952 40.000 58.649 1.250 960 74.896 1.697.707 962.818 382.833 276.002 1.621.653 245.489
93 BPD YOGYAKARTA 1.509.235 746.426 489.254 73.656 130 3.255 1.312.721 531.876 479.278 300.003 1.311.157 122.261
94 PT. BPD KALIMANTAN BARAT 1.295.345 637.038 93.609 78.180 147 15.648 824.622 483.207 463.402 170.228 1.116.837 137.801
95 PD BPD KALIMANTAN SELATAN 1.056.957 460.842 76.920 114.124 545 8.994 661.425 462.410 223.037 188.824 874.271 140.802
96 PT. BPD BANK KALIMANTAN TENGAH 1.054.375 296.092 433.521 184.731 500 18.854 933.698 657.148 210.136 38.810 906.094 83.818
97 PT. BPD NUSA TENGGARA TIMUR 1.005.129 641.878 80.000 176.941 44.076 942.895 596.516 175.937 103.172 875.625 87.658
98 PT. BPD NUSA TENGGARA BARAT 926.841 620.108 7.962 130.024 860 21.734 780.688 332.478 177.696 96.277 606.451 167.384
99 PT. BANK LAMPUNG 874.250 611.884 172.971 477 8.144 793.476 480.302 87.860 108.035 676.197 84.441
100 PT. BPD SULAWESI UTARA 862.809 495.055 59.983 196.531 6.831 758.400 163.672 200.938 308.760 673.370 122.645
101 PT. BPD MALUKU 771.839 310.480 114.317 192.055 616.852 336.628 149.728 113.538 599.894 79.059
102 BPD JAMBI 618.361 305.072 201.624 63 6.038 512.797 234.041 75.374 166.216 475.631 113.429
103 BPD SULAWESI TENGGARA 404.144 196.624 20.000 136.325 300 13.662 366.911 226.376 66.472 29.690 322.538 48.012
104 PT. BANK PEMBANGUNAN DAERAH BENGKULU 394.523 258.214 55.461 80 623 314.378 204.579 64.204 75.968 344.751 30.378
105 PT. BPD SULAWESI TENGAH 245.449 104.510 12.000 87.690 8.119 212.319 168.764 26.646 24.978 220.388 18.923
JOINT VENTURE BANK
106 PT BANK UFJ INDONESIA 6.848.151 5.864.158 466.799 181.405 71.925 187.493 1.016.786 7.788.566 1.715.254 2.106 1.826.193 3.543.553 1.068.702
107 PT BANK SUMITOMO MITSUI INDONESIA 5.388.695 3.259.633 1.096.946 989.459 330 72.700 463.617 5.882.685 1.619.303 0 1.552.976 3.172.279 1.126.704
Appendices 67
(Millions of Rp)
EARNING ASSETS DEPOSITS
TOTAL COMMIT-
No BANKS L O A N S SECURITIES INTER-BANK OTHER EQUITY
ASSETS MENT AND DEMAND SAVING TIME
AND PLACEMENT INVESTMENT CLAIMS TOTAL TOTAL
CONTIGENCY DEPOSIT ACCOUNT DEPOSIT
BIS
108 PT BANK MIZUHO INDONESIA 5.283.438 2.549.977 1.640.865 397.868 532.120 1.194.066 6.314.896 2.319.466 5.650 1.271.538 3.596.654 767.803
109 PT BANK DBS INDONESIA 4.203.836 2.949.785 761.252 106.482 228.398 300.864 4.346.781 865.246 9.625 2.117.845 2.992.716 452.313
110 PT BANK RESONA PERDANIA 3.644.256 2.424.649 871.231 169.825 38.217 209.681 364.657 4.078.260 898.854 1.706 915.458 1.816.018 720.859
111 PT BANK UOB INDONESIA 3.017.584 1.315.991 1.249.511 226.430 1.938 136.800 249.659 3.180.329 647.959 50.243 1.318.497 2.016.699 501.562
112 PT ANZ PANIN BANK 2.877.122 1.709.389 511.286 420.797 107.828 725.932 3.475.232 546.942 0 1.358.621 1.905.563 642.941
113 PT BANK CHINATRUST INDONESIA 2.825.802 2.005.279 340.918 69.383 153.455 327.419 2.896.454 520.798 56.687 1.158.339 1.735.824 586.472
114 PT RABOBANK INTERNATIONAL INDONESIA 2.516.190 2.007.345 277.291 263.011 111.883 97.981 252.487 3.009.998 553.464 0 766.323 1.319.787 297.434
115 PT BANK WOORI INDONESIA 2.307.598 824.721 870.755 559.742 32.750 174.070 2.462.038 581.112 96.261 231.364 908.737 580.405
116 PT BANK COMMONWEALTH 2.270.731 78.456 1.239.477 838.669 64 2.921 46.441 2.206.028 227.288 90.499 1.645.470 1.963.257 152.069
117 PT KOREA EXCHANGE BANK DANAMON 1.971.662 1.148.927 702.399 116.508 16.136 258.013 2.241.983 579.858 0 143.787 723.645 463.555
118 PT BANK OCBC-INDONESIA 1.557.834 582.878 864.060 67.702 31.312 101.566 1.647.518 177.617 1.255 653.785 832.657 378.213
119 PT BANK FINCONESIA 989.313 870.076 26.060 128.987 27.239 115.003 1.167.365 42.038 0 506.936 548.974 197.986
120 PT BANK BNP INDONESIA 621.339 492.596 231.663 73.292 12.724 489.863 1.300.138 60.776 0 246.101 306.877 173.650
121 PT BANK MULTICOR 430.519 150.690 173.348 69.765 6.462 400.265 76.397 16.130 203.803 296.330 132.907
122 PT BANK MAYBANK INDOCORP 329.657 104.633 214.432 41.799 1.240 17.553 1.243 380.900 57.802 0 114.306 172.108 127.807
123 PT INTER PACIFIC BANK 254.374 124.201 169.069 15.644 14.749 5.972 329.635 604 0 25.869 26.473 114.692
124 PT. BANK CAPITAL INDONESIA 13.180 11.856 509 12.365 0 0 0 0 13.103
FOREIGN BRANCH BANK
125 CITIBANK N.A. 23.814.025 11.899.396 1.833.147 8.823.161 1.500 208.231 1.906.911 24.672.346 6.689.342 1.869.087 10.922.508 19.480.937 2.564.578
126 DEUTSCHE BANK AG. 19.422.063 2.867.231 10.111.670 5.333.914 24.692 118.960 1.073.391 19.529.858 2.706.484 0 10.850.392 13.556.876 1.197.313
127 ABN AMRO BANK 16.556.744 4.437.347 5.581.664 4.639.250 105.519 98.318 547.208 15.409.306 5.510.575 467.436 6.050.336 12.028.347 961.618
128 THE HONGKONG & SHANGHAI B.C. 16.252.035 7.715.205 2.958.082 4.506.222 23.621 572.699 2.665.402 18.441.231 6.762.908 0 6.414.580 13.177.488 257.318
129 STANDARD CHARTERED BANK 13.893.774 5.353.588 4.122.157 2.351.634 1.371.798 1.453.880 14.653.057 3.330.750 726.012 5.112.688 9.169.450 218.180
130 THE BANK OF TOKYO-MITSUBISHI LTD. 8.071.763 6.226.781 1.188.722 229.196 143.817 1.008.504 8.797.020 3.182.489 0 2.353.353 5.535.842 1.641.457
131 AMERICAN EXPRESS BANK 2.297.379 1.553.468 12.754 301.696 8.097 84.610 1.960.625 699.041 31.696 1.144.477 1.875.214 81.099
132 JP. MORGAN CHASE BANK 1.893.794 670.499 536.875 478.895 40.797 134.370 1.861.436 397.721 0 892.728 1.290.449 18.308
133 THE BANGKOK BANK COMP. LTD 1.030.581 583.041 465.477 4.220 57.240 160.427 1.270.405 242.293 0 225.773 468.066 155.203
134 BANK OF CHINA 552.387 11.921 139.004 396.207 219 15.244 562.595 61.035 5.189 32.896 99.120 -12.369
135 BANK OF AMERICA. N.A 299.230 3.178 73.236 182.976 1.033 260.423 143.246 0 55.905 199.151 7.241
Appendices 68
Appendix 3
Key Financial Ratios (Percent)
Operational Cost
No BANK CAR NPL EAA/EA1) EEAA/RA2) ROA to Operational LDR
Income
STATE-OWNED BANK
1 PT BANK MANDIRI (PERSERO) Tbk 26.56 7.49 4.91 135.61 3.59 63.41 49.77
2 PT BANK NEGARA INDONESIA (PERSERO),Tbk 18.48 6.12 5.66 165.18 2.43 78.69 50.49
3 PT BANK RAKYAT INDONESIA (PERSERO) Tbk. 19.65 5.75 5.71 223.1 5.81 67.44 74.31
4 PT BANK TABUNGAN NEGARA (PERSERO) Tbk. 17.18 4.81 2.51 245.98 2.08 81.75 65.14
5 PT BANK EKSPOR INDONESIA (PERSERO) 218.38 0 1.91 238.77 5.01 58.12 0
PRIVATE NATIONAL FOREX BANK
6 PT BANK CENTRAL ASIA Tbk. 25.84 0.67 0.92 180.3 3.2 65.79 28.5
7 PT BANK DANAMON INDONESIA Tbk 31.87 5.53 4.2 194.28 4.47 59.8 71.93
8 PT BANK INTERNASIONAL INDONESIA Tbk 21.53 7.72 2.56 107.17 2.38 79.68 42.08
9 PT BANK PERMATA Tbk (prev. PT. BANK BALI ) 12 6.6 4.1 203 2.3 85.3 52
10 PT LIPPO BANK, Tbk 18.84 10.5 4.67 142.32 1.2 85.38 22.15
11 PT BANK NIAGA, Tbk 11.01 4.98 2.75 166.11 3.04 74.58 84.36
12 PT PAN INDONESIA BANK, Tbk 39.55 6.9 7.14 143.55 4.23 66.93 71.01
13 PT BANK MEGA, Tbk 13.34 1.85 0.66 100.02 3.25 72.41 48.21
14 PT BANK NISP, Tbk 14.37 1.34 1.22 113.18 2.4 77.6 78.98
15 PT BANK BUANA INDONESIA Tbk. 23.28 1.43 1.04 136.73 2.67 75.18 54.63
16 PT BANK BUKOPIN 17.11 2.68 2.54 124.41 2.08 82.69 98.37
17 PT BANK EKONOMI RAHARJA 11.34 0.86 1.44 211.04 1.52 83.61 44.85
18 PT BANK ARTHA GRAHA 11.05 4.8 2.04 127.1 0.98 94.34 78.3
19 PT BANK CENTURY Tbk.(BANK CIC-6.12.2004) 16.76 1.42 1.28 131.31 0.45 98.86 26.32
20 PT.BANK SYARIAH MANDIRI, Tbk 10.86 1.92 1.71 100.98 2.37 83.4 99.07
21 PT BANK MUAMALAT INDONESIA 13.11 2.21 1.45 98.17 2.26 84.53 110.19
22 PT BANK HAGA 8.84 1.49 1.45 100 1.05 87.79 44.31
23 PT BANK BUMIPUTERA INDONESIA 10.01 4.56 1.77 105.85 1.43 89.62 95.89
24 PT BANK MESTIKA DHARMA 23.66 2.4 3.05 244.19 7.79 51.38 89.07
25 PT BANK MAYAPADA INTERNATIONAL 16.08 2.37 2.39 189.92 2.25 82.55 69.22
26 PT. BANK NUSANTARA PARAHYANGAN TBK. 12.9 0.61 2.45 342 1.63 86.11 49.45
27 PT BANK MASPION INDONESIA 12.4 0.79 0.92 101.88 1.78 83.62 67.46
28 PT BANK BUMI ARTA 34.42 2.72 1.17 200.14 2.29 79.16 29.51
1 Earning Asset Allowance to Earning Asset
2 Existing Earning Asset Allowance to Required Allowanced
Appendices 69
(Percent)
Operational Cost
No BANK CAR NPL EAA/EA1) EEAA/RA2) ROA to Operational LDR
Income
29 PT BANK KESAWAN, Tbk 14.32 2.11 1.03 135.38 1.37 89.43 46.25
30 PT BANK PIKKO (MERG.CENTURY 6.12.2004) -19.93 7.91 2.4 255.6 -32.14 539.89 26.12
31 PT BANK ARTA NIAGA KENCANA 20.6 3.15 1.51 100 1.19 89.98 79.65
32 PT BANK IFI 32.3 3.97 0.92 101.09 0.27 102.27 61.13
33 PT BANK GANESHA 17.62 1.65 2.82 278.99 1.3 89.44 67.39
34 PT BANK HAGAKITA 11.3 1.94 2.33 100 1.74 86.02 87.72
35 PT BANK SWADESI, Tbk 25.61 1.45 3.56 216.3 2.55 74.59 62.97
36 PT BANK ANTAR DAERAH 16.05 2.82 1.95 123.34 1.77 85.33 75.34
37 PT. BANK HALIM INDONESIA 68.19 1.15 2.44 318.99 2.44 77.24 74.42
38 PT BANK SHINTA INDONESIA 69.78 10.42 6.23 256.27 0.92 91.41 32.77
39 PT BANK METRO EKSPRESS 74.31 1.93 2.31 207.51 4.26 61.06 55.3
40 PT BANK WINDU KENTJANA 12.68 1.51 1.82 157.29 1.03 129.97 54.1
PRIVATE NATIONAL NON-FOREX BANK
41 PT BANK TABUNGAN PENSIUNAN NASIONAL 19.04 3.24 4.24 140.98 8.55 65.05 95.85
42 PT BANK AGRONIAGA Tbk. 16 4 2 134 2 83 98
43 PT BANK VICTORIA INTERNATIONAL 14.46 5.65 3.75 388.3 1.09 92.85 44.11
44 PT GLOBAL INTL BANK (closed 13.1.2005) 44.84 2.05 1.48 100 1.22 89.71 74.09
45 PT BANK JASA JAKARTA 16.93 0.56 4.08 519.16 3.66 69.21 78.71
46 PT BANK EKSEKUTIF INTERNASIONAL, Tbk. 15.83 7.88 3.28 94.79 2.57 85.03 84.59
47 PT BANK YUDHA BHAKTI 15.79 2.94 2.3 161.98 4.28 74.17 59.02
48 PT BANK HARDA INTERNASIONAL 11.67 2.18 1.08 105.22 1.57 87.16 67.31
49 PT BANK DANPAC (MERG.CENTURY 6.12.04) 27.15 0.87 1.07 121.05 2.79 84.4 60.16
50 PT BANK INDEX SELINDO 10.83 2.5 1.82 147.43 1.38 90.58 60.38
51 PT BANK PERSYARIKATAN INDONESIA 8.82 23.29 6.82 100.46 -13.18 205.92 103.37
52 PT BANK UIB 16.5 3.69 2.87 100 2.2 84.48 81.53
53 PT DIPO INTERNATIONAL BANK 13.86 2.6 1.9 112.79 5.35 63.84 91.51
54 PT BANK HIMPUNAN SAUDARA 1906 11.84 0.43 2.12 124.87 4.69 75.7 92.75
55 PT BANK AKITA 13.22 3.59 1.1 100.47 3.81 76.92 94.52
56 PT BANK SYARIAH MEGA INDONESIA 19.82 1.07 3.01 107 2.8 70.51 91.4
57 PT CENTRATAMA NASIONAL BANK 12.29 1.08 1 100.11 4.5 73.72 92.43
Appendices 70
(Percent)
Operational Cost
No BANK CAR NPL EAA/EA1) EEAA/RA2) ROA to Operational LDR
Income
58 PT PRIMA MASTER BANK 11.48 0.45 1.44 149.87 1.19 90.42 88.07
59 PT BANK MULTI ARTA SENTOSA (MAS) 22.01 1.43 1.41 169.41 2.65 74.67 77.07
60 PT BANK KESEJAHTERAAN EKONOMI 32.43 3.27 3.35 107.05 6.95 58.89 135.57
61 PT BANK DJASA ARTA 12.55 4.98 2.88 132.1 2.35 83.11 58.32
62 PT BANK SRI PARTHA 17.68 0.46 1.31 64.96 1.29 92.72 74.84
63 PT BANK INDOMONEX 11.67 1.23 1.91 130.45 1.78 83.26 84.21
64 PT BANK MITRANIAGA 16.42 1.98 1.03 104.25 3.32 77.85 72.85
65 PT BANK FAMA INTERNASIONAL 15.04 2.67 2.73 155.42 2.65 80.61 92.17
66 PT BANK MAYORA 19.32 0.9 2.05 311.18 0.82 94.25 34.85
67 PT BANK ARTOS INDONESIA 19.31 1.96 0.77 100 1.37 93.32 78.99
68 PT ANGLOMAS INTERNASIONAL BANK 15 2 1 112 3 77 89
69 PT BANK INA PERDANA 20.97 5.57 1.02 113.88 3.16 76.73 66.48
70 PT BANK BINTANG MANUNGGAL 22.05 0.65 2.22 129.25 3.37 78.2 88.17
71 PT BANK SINAR HARAPAN BALI 18.23 1.45 1.63 127.71 5.31 75.44 91.76
72 PT BANK HARMONI INTERNATIONAL 17.17 2.3 2.19 113.05 3.07 81.26 81.05
73 PT BANK BISNIS INTERNASIONAL 34.93 0.96 1.06 138.25 1.42 91.43 76.51
74 PT LIMAN INTERNATIONAL BANK 88.82 0 0.85 188.4 3.54 73.66 67.33
75 PT BANK HARFA 30.87 2.43 1.63 154.1 -1.24 105.27 81.11
76 PT BANK ROYAL INDONESIA 132.01 1.24 1.07 139.75 0.18 98.52 10.46
77 PT BANK PURBA DANARTA 178.85 4.77 3.11 479.36 1.09 82.04 24.82
78 PT ALFINDO SEJAHTERA BANK 84.13 0 4.71 1839.13 -0.21 103.43 24.97
79 PT BANK SWAGUNA 10.61 20.27 3.96 60 -2.77 118 70.74
REGIONAL DEVELOPMENT BANK
80 PT BPD JAWA BARAT 15.1 0.41 1.21 115.07 4.09 72.88 81.66
81 PT. BPD JAWA TIMUR 16.53 1.46 1.8 139.49 4.47 66.71 50.28
82 PT. BPD DKI 18.85 4.43 1.58 138.36 4.64 66.91 45.36
83 PT BANK PEMBANGUNAN DAERAH JAWA TENGAH 19.75 1.28 1..53 110.39 5.83 62.7 79.92
84 PT BANK PEMBANGUNAN DAERAH RIAU 25.02 6.4 1.46 87.1 2 77.84 26.88
85 PT. BPD SUMATERA UTARA 30.98 4.14 0.88 112.15 5.99 61.43 49.31
86 BPD SUMATERA BARAT 14.46 4.37 3.08 118.14 4.57 67.49 87.85
Appendices 71
(Percent)
Operational Cost
No BANK CAR NPL EAA/EA1) EEAA/RA2) ROA to Operational LDR
Income
Appendices 72
(Percent)
Operational Cost
No BANK CAR NPL EAA/EA1) EEAA/RA2) ROA to Operational LDR
Income
Appendices 73
Appendix 4
Organization Chart of Bank Indonesia’s Banking Sector
Board of Governor
Governor
Senior Deputy Governor
Deputy Governor
DIRECTORATE OF BANKING DIRECTORATE OF BANK LICENSING DIRECTORATE OF BANK DIRECTORATE OF BANK DIRECTORATE OF BANK DIRECTORATE OF BANK DIRECTORATE OF RURAL BANK DIRECTORATE OF ISLAMIC SPECIAL UNIT FOR BANKING
RESEARCH AND REGULATION SUPERVISION
AND BANKING INFORMATION (DPIP) SUPERVISION 1 ( DPwB1 ) SUPERVISION 2 ( DPwB2) EXAMINATION 1 (DPmB1) EXAMINATION 2 (DPmB2) BANKING (DPbS) INVESTIGATION (UKIP)
(DPNP) (DPBPR)
Nelson Tampubolon Ny. Siti Ch. Fadjrijah S. Anton Tarihoran Ahdi Jumhari L Yang Ahmad Rizal Aris Anwari Irman Djaja Dalimi Harisman Bachri Ansjori
Tel. 381 7726 Fax. 231 0993 Tel. 381 7905 Fax. 386 6029 Tel. 381 7372 Fax. 386 4971 Tel. 381 7074 Fax. 350 1976 Tel.381 7300 Fax.231 1436 Tel.381 8675 Fax.3501 902 Tel.381 8733 Fax.231 1177 Tel.381 7774 Fax.350 1990 Tel. 381 7726 Fax. 231 0993
Financial System Bank Liquidation Bank Supervision Bank Supervision Bank Examination Islamic Banking Research Banking Investigation
Bank Examination
Bank Supervision Teams and Development Team Teams 1
Stability Bureau (BSSK) Team (BDL) Division 11 (PwB11) Division 21 (PwB21) Teams Teams
Information and
Bank Supervision Bank Supervision
Documentation Division of
Division 16 (PwB16) Division 26 (PwB26)
Banking Investigation
(IDIP)
Information and Information and
Documentation of Bank Documentation of Bank
Supervision 1 (IDWB1) Supervision 2 (IDWB2)
Appendices 74
Appendix 5
List of Acronyms
Appendices 75
Indonesian Banking Architecture (IBA) Arsitektur Perbankan Indonesia (API)
Indonesian Debt Restructuring Agency (INDRA)
Indonesian Deposit Insurance Company (IDIC) Lembaga Penjamin Simpanan (LPS)
Indonesian Rural Bank Assosiations (IRBAs) Asosiasi -asosiasi BPR (Perbarindo, Perbamida dan
Asbisindo)
Information System for Banks Under Investigation (ISBI) Sistem Informasi Bank Dalam Investigasi (SIBADI)
Institute for Development of Economics and Finance
(INDEF)
Interbank Money Market (IMM) Pasar Uang Antar Bank (PUAB)
International Islamic Financial Market (IIFM)
Islamic Financial Services Board (IFSB)
Jakarta Initiative Task Force (JITF)
Legal Lending Limit (LLL) Batas Maksimum Pemberian Kredit (BMPK)
Loan to Deposit Ratio (LDR)
Mandatory Supervisory Actions (MSA)
Minimum Capital Requirement (MCR) Kewajiban Penyediaan Modal Minimum (KPMM)
Minimum Statutory Reserve (MSR) Giro Wajib Minimum (GWM)
Money Laundering Crime (MLC) Tindak Pidana Pencucian Uang (TPPU)
National Sharia Arbitrage Body (NSAB) Badan Arbitrasi Syariah Nasional (Basyarnas)
Negotiable Certificate Deposit (NCD) Sertifikat Deposito
Net Interest income (NII)
Net Open Position (NOP) Posisi Devisa Netto (PDN)
Non Performing Loans (NPL)
Non-Performing Financing (NPF)
On-site Supervisory Presence Team (OSP)
People’s Representatives Assembly (PRA) Dewan Perwakilan Rakyat (DPR)
Professional Certification Program for Rural Banks (CERTIF)
PT Perusahaan Nasional Madani (PNM Ltd) PT PNM
Regional Development Bank (RDB)) Bank Pembangunan Daerah (BPD)
Return on Assets (ROA)
Rural Bank in Liquidation (RBL) Bank Perkreditan Rakyat dalam Likuidasi (BPRDL)
Sharia Business Units (SBU) Unit Usaha Syariah (UUS)
Sharia Economic Communication Centre (SECC) Pusat Komunikasi Ekonomi Syariah (PKES)
Sharia National Council (SNC) Dewan Syariah Nasional (DSN)
Sharia Supervisory Council (SSC) Dewan Pengawas Syariah
Small and Medium Enterprises (SMEs) Usaha Mikro Kecil dan Menengah (UMKM)
Special Investigation Unit (SIU)
76 Appendices
Standard Financial Accountancy Statement (SFAS) Pernyataan Standard Akuntansi Keuangan (PSAK)
Supervision Management Information System (SMLS) Sistem Informasi Manajemen Pengawasan (SIMWAS)
The Financing to Deposit Ratio (FDR)
Training of Trainers (ToT)
Wadiah Sertificate of Bank Indonesia (WSBI) Sertifikat Wadiah Bank Indonesia (SWBI)
Appendices 77