GCG Policies

BRI has established Policy on creditor rights fulfillments in the guidelines to ask for loan from the creditor to safeguard the fulfillment of rights and maintain the trust of creditor to the Public Company. The policy includes the consideration for agreements, as well as follow up in fulfilling the Public Company’s responsibility to the creditor, which stated:

1. BRI implements a transparent information disclosure.
2. Receive payment of principle in a timely manner, and interest payment in the agreed timeframe to avoid delays or missions that could potentially result in loss of both parties.
3. Rights to any fine on the late principle payment and interest payment.
4. Ask for explanation, information, and documents as well as auditing the company’s accountancy.
5. Right to received protection regarding information or confidential data provided to the Bank in accordance with laws and regulation.

The procurement of good and services carried out by BRI aims to support bank operations and business performance in general. In an effort to provide the best service and heed the principles of Good Corporate Governance, BRI is determined to create a process of procurement of goods and services that is safe, effective and efficient.

The General Policy of Fixed Asset and Logistic Management (KEMAL) is a guideline in carrying out the process of Procurement of goods and services to support the Bank’s operational activities in accordance with the quality, quantity and time set at the best price while still observing Good Corporate Governance principles.

The objectives of the compilation of KEMAL BRI are:

1. As a guideline in managing fixed assets and quality logistics services for all BRI work units.
2. As a guideline in the process of procurement of goods and services at BRI so that the procurement process at BRI.

Principle of Good and Services Procurement

1. Efficient
   Procurement of goods and / or services must be endeavored to obtain optimal and best results in a short time by using the funds and the minimum capacity to be reasonable and not only based on the lowest price.
2. Effective
   Procurement of goods and / or services must be in accordance with predetermined needs and provide maximum benefits according to the targets set.
3. Competitive
   Procurement of goods and / or services must be open to providers of goods and / or services that meet the requirements and carried out through fair competition among providers of goods and / or services that areequal and meet certain requirements / criteria based on clear and transparent provisions and procedures.
4. Transparent
   All provision and information regarding the procurement of goods and / or services, including technical requirements for procurement administration, evaluation procedures, evaluation results, determination of prospective providers of goods and / or services, are open to participants who are interested in providing goods and / or services.
5. Fair and equal
   Provide equal treatment for all prospective suppliers of goods and services that meet the requirements.
6. Accountable
   Must achieve goals and be accountable so as to keep away from potential abuse and irregularities.

Good and Service Procurement Procedure

The stages of implementing the procurement of goods and services at BRI are carried out as follows:

1. In order to support operational activities, BRI requires adequate facilities and infrastructure to achieve the Company’s objectives. A procurement process is required to fulfill facilities, infrastructure and infrastructure.
2. In each implementation of the procurement process, it is necessary to determine the Self Estimated Price as one of the bases in determining the method of procurement. In 2017 an Estimation Group was formed, namely an independent work unit that has the duties and responsibilities in preparing and stipulating the HPS for the procurement of goods and / or services at BRI.
3. The procurement process can be carried out with several methods, including Swakelola, direct purchase, direct appointment, direct election and open auction.
4. In the procurement process an evaluation of the offer submitted by the prospective Provider of Goods / Services will be carried out to obtain the best quality and price.
5. In order to obtain conformity between the needs of BRI and the bids submitted by prospective suppliers of goods / services, Clarification and Negotiation will be carried out in the procurement process until the winner of the goods / service provider is determined.
6. If a winner has been determined, BRI provides a refutation time if there are parties who object to the procurement process that has been carried out or to the winner’s determination. This is done by BRI in order to realize the process of procurement of goods and services that meet the rules of Good Corporate Governance.

Partner Management

1. Providers of good and/or services which will participate in the procurement of good and / or services in BRI need to have a BRI Registration Certificate (TDR). TDR (Partner Register) is a statement in the format of a certificate or letter explaining that the provider of good / services is listed therein has been registered as a BRI Partner, as a condition for participating in the procurement of good / services at BRI.
2. BRI has a list of suppliers of good/ services that can be used in the process of procuring goods/services at BRI. The list of partners is obtained from the selection of qualifications and requirements determined by BRI. Supplier selection process to consider the legality of the company (not limited to Hinderordonnantie (HO), Environmental impact assessment /AMDAL), the financial aspects, (the company's financial statements) and non-financial, among others related to labor and human factors. The partner selection process is carried out transparently and applies the GCG principles.
3. The requirements set for the partners of BRI has been done in accordance pinsip procurement such as:
   1. Have a valid business legality
   2. Financial performance report partner in both categories
   3. Having the experience of the field work to be done.
4. Partner Management Application. BRI has developed application management TDR (Associate Registration) that is integrated with BRISMILE starting from partner registration conducted independently by vendors (via BRI intranet), legality and vendor business evaluation process to issuance of BRI Partner Signs (BRI TDR) by BRI.

As a public company with more than 40% public ownership of its shares, PT Bank Rakyat Indonesia (Persero) Tbk is committed to carrying out its tax obligations following applicable regulations.

Key Tax Principle

In accordance with the provisions of the applicable tax laws, BRI consistently applies tax principles to its tax management implementation.

1) Compliance with tax laws and regulations in different jurisdictions

In their operational activities, BRI and its overseas branch offices have implemented good corporate governance that is carried out transparently and accountably, especially in managing their tax rights and obligations following the provisions of the applicable tax laws in each country.

On May 18, 2020, the Government issued Law Number 2 of 2020 concerning Enactment of Government Regulation in Lieu of Law Number 1 of 2020 concerning State Financial Policy and Financial System Stability For The Handling Of COVID-19 Pandemic and/or in the Framework of Dealing with Threats Endangering the National Economy and/or Financial System Stability Becomes Law, and enact Government Regulation No. 30 of 2020 concerning Reduction of Income Tax Rates for Domestic Entity Taxpayers in the Form of a Public Company and effective from the date of promulgation, namely on June 19, 2020. Furthermore, on October 29, 2021, the Government issued Law of the Republic of Indonesia Number 7 of 2021 concerning Harmonization of Tax Regulations.

The regulation has stipulated, among other things, a reduction in the income tax rate for domestic corporate taxpayers and permanent establishments from previously 25% to 22% for the fiscal years 2020, 2021, and 2022 onwards, as well as a further reduction in the tax rate of 3%, for domestic taxpayers who meet specific requirements such as a publicly listed company that satisfy a minimum listing requirement of 40% and certain other conditions.

Bank BRI has met the requirements to get an incentive to reduce the tax rate by 3% based on the provisions of Article 5 paragraph (2) of Law No. 2 of 2020 so that for 2021 Bank BRI will use a tax rate of 19% in the calculation of Corporate Income Tax.

2) Tax Risk Management and Information Disclosure

Tax-related policies and their implementation are approved and reviewed by the Director of Finance in reporting the Annual Corporate Income Tax Return. The Director of Finance reviews the strategy and performance of this tax obligation annually. Bank BRI always strives to comply with applicable tax regulations.

Occupational Health & Safety Policy

PT Bank Rakyat Indonesia (Persero) Tbk commits to continuously improving Occupational Safety and Health (OHS) in its business activities to increase employee productivity and to create a safe and healthy work environment. BRI regulates the OHS implementation and policies through The Circular Letter of The Board of Directors No. SE.110-DIR/MOP/12/2019 which updated by through The Circular Letter of The Board of Directors No. SE.24-DIR/ORD/04/2022, and The Letter of Standard Operating Procedure No. SO.35-ORD/06/2022. In summary, these policies cover the following matters:

1. The policy is formulated by referring to applicable government regulations and standards set by the Company, namely ISO 45001:2018 Occupational Health and Safety Management System.
2. The policy applies to BRI Employees and Non-Employees (Building Management and Vendors) within BRI Working Environment.
3. This policy aims to take preventive and control measures against the risks of the Company's operational activities, to protect or prevent work accidents and occupational diseases to all interested parties of the Company, including in the process of company goods and services procurement based on Occupational Health and Safety (OHS)
4. The OHS Management System (SMK3) coordination structure consists of:
   1. Occupational Safety and Health Committee (P2K3)
   2. Emergency Response Team
   P2K3 is formed based on the policy of the legislation and ratified by the Manpower Office. P2K3 membership consists of elements of management and workers.
5. BRI is committed to:
   1. Continuing to improve the implementation of the Company's Occupational Health and Safety Management System in a systematic and integrated manner.
   2. Improve the top management and other employees' ability, understanding, attitude, and behavior in carrying out each job with a culture of Occupational Safety and Health.
6. The policy of OHS is approved by The Board of Directors, while the Standard Operating Procedures regarding OHS Implementation is approved by the Senior Management.

Occupational Health & Safety Programs

OHS management system includes the following elements:

1. OHS risk and hazard assessment to identify what can cause hazards in the workplace is called the Hazard Identification Risk Assessment Determining Control (HIRADC). HIRADC covers at least the following: work area, description of process/target/activity, nature of process/target/activity, external and internal legal aspects, OHS hazards, risk impact, inherent risk, type of control, and residual risk. Hazard Identification Risk Assessment Determining Control (HIRADC) is carried out at least once a year in each working unit if the following condition(s) is/are met:
   1. Changes in the working process
   2. Changes in the company's working conditions
   3. Modification of the equipment used
   4. Work accident
   5. Occupational diseases
   6. Emergency conditions that affect the company's business processes
2. Risk assessment to determine the size of the risk to decide the priority of control over the level of risk of accidents or occupational diseases.
3. Determining the Emergency Response Team in each working unit in stages:
   1. Conducting OHS socialization and periodic emergency response trials.
   2. Emergency Response Trial at least once in 1 (one) year
4. Review and improvement of the OHS Management System performance are conducted to ensure the suitability and effectiveness of the OHS Management System implementation. Reviews are carried out on planning, implementation, monitoring, and evaluation activities. The review results are used to improve the performance of the OHS Management System.
5. OHS monitoring and evaluation are carried out periodically through inspection, testing, measurement, and internal auditing of the implementation of the OHS Management System.
6. BRI has procedures in the flow of reporting, analysis, and investigation of work accidents that have been conveyed to all employees. From reporting incidents to the risk management function, performing first aid, conducting investigations to taking justifiable corrective actions.
7. Understanding OHS is part of the rights and obligations of every worker. Therefore, Human Capital is an essential element in implementing the OHS program. Several things can be done to create and internalize an OHS Culture for Workers, including OHS Education and Socialization. OHS education and socialization programs can be carried out through various media, including:
   1. In-class training, webinars, e-Learning; and/or
   2. Other communication media (letters, infographics, videos, podcasts, etc.)
   3. Emergency Response Trial at least once in 1 (one) year
8. BRI takes preventive and controls measures against the risks of the Company's operational activities to protect and prevent work accidents and occupational diseases to all interested parties of the company, including in the company's procurement of goods and services process based on OHS.