PT Bank Danamon Indonesia, Tbk.

Climate Impact & Sustainability Data (2012, 2015)

Environment rehabilitation due to damages from illegal tapping at the Tempino-Plaju project.
Corporate Social Responsibility (CSR) Program: Planting of 5,000 Mangrove Trees.
Achieved zero fatality and zero Lost Time Injury (LTI) in 2012.

Strengthening of integrity commitment by developing Management Code of Conduct.
Cultivation of operational excellence culture: “HSE is my culture, Equipment is my life & Cost Awareness is my attitude”.
Competence enhancement by restructuring the human capital and empowerment to the Elnusa Petroleum School.
Openness and intensive communication by the management to all personnel.
Improvements to the relationship mechanism between corporate organs to expedite business processes.

Whistle Blowing System (WBS) Campaign in the Company's work areas as part of commitment to Good Corporate Governance (GCG) Implementation.
Renewal of ISO 9001:2008 Certificate as consistent implementation of the quality management system for 15 years.
Strengthened the implementation of risk management.
Internalization of Code of Conduct on the operational level and induction to new employees.
Implementation of a good corporate governance system, as indicated by a transparent reporting system.

Decline in its fundamental performance amidst a slew of highly complex corporate issues, in terms of cost structure, financing structure, business model, corporate culture, as well as business intervention.
Cases of illegal tapping at one of the Company’s projects.
Losses from an associate (joint control) namely ECS worth Rp29.1 billion (net Rp21.8 billion), and losses of the Modular Rig worth Rp12.9 billion.

Turnaround program starting in mid 2011.
Improvements in project management to maintain project completion progress.
Stringent monitoring of new project proposals and implementation of the risk mitigation.
Reorganization and restructuring to enable prompt decision making.
Tight supervision for projects that are not yet profitable.
Optimization of procurement to obtain best-price business partners.
Efficiency through strong cost control in the head office.
Focus on core and more profitable business structure.
Termination and divestment of business that are not in line with the corporate business model or whose risks are too high.
Optimization of assets by divesting non-productive assets.
Determination of business development roadmap towards the energy services sector to ensure sustainability.
Loan refinancing to obtain a more competitive interest rate.
Repurchase of Fixed Rate Notes to suppress interest rate.
Improvements to cash management & flexibility through a more accelerated billing and unbilled mechanism to clients.
Selective investment for a more prudent business expansion.

Printed Annual Report from recycled paper manufactured by Danamon’s recycling partner, which used waste paper from Danamon’s operations

Implemented Integrated Corporate Governance
Established Integrated Corporate Governance Committee
Refined corporate governance implementation based on Financial Service Authority Guidelines and ASEAN Corporate Governance Scorecard
Improved information disclosure on Danamon’s website
Implemented Integrated Risk Management
Established Integrated Risk Management Committee
Various governance related policies were prepared or updated

Indonesian economy grew by 4.8%, down from 5% last year due to lower exports, investments, government spending and consumption.
Volatility in the currency markets.
Rupiah depreciated throughout the year.
Economic slowdown impacted loan growth and quality.
Non Performing Loans (NPLs) rose from 2.3% in 2014 to 3% in 2015.
Decline in Net Interest Margin (NIM) by 18 basis points to 8.2%
Lower consolidated Net Profit After Tax (NPAT) of IDR 2.4 trillion, a 9% decrease as compared to last year.

Improving operating efficiency and productivity through organizational realignment and centralization of support services.
Improving credit standards and maintaining asset quality.
Building a more diversified, stable and granular deposit base.
Prudent capital management, maintaining a strong capital position with a Capital Adequacy Ratio (CAR) of 19.8%
Containing operating costs and improving pre-provision operating profit by 8% to IDR 8.5 trillion.

Frameworks Used: GRI

50 Best Publicly Listed Companies in Southeast Asia
3 Best Publicly Listed Companies in Indonesia in Good Corporate Governance at the ASEAN Corporate Governance Award 2015
“Best Overall” in the 7th Indonesian Institute for Corporate Directorship (IIICD) Corporate Governance Conference and Award 2015
First Runner Up in the Financial Services Category of Sustainability Report Awards 2015