A Strong Foundation for Mutual Prosperity - Adira - Adira · ADIRA FINANCE PT Adira Dinamika Multi Finance Tbk (Adira Finance) is a financing company in Indonesia that was established

Sustainability Report

2015A Strong Foundation

for Mutual Prosperity

The Landmark I 26th-31st FloorJl. Jenderal Sudirman No. 1Jakarta 12910Phone : +6221 5296 3322, +6221 5296 3232 Facsimile : +6221 5296 4159Website : www.adira.co.id

2015 Sustainability Report

PT Adira Dinamika Multi Finance Tbk

A Strong Foundation for Mutual Prosperity

About Adira Finance 4

Message from the President Commissioner 10

Message from the President Director 14

A Strong Foundation for Growth Towards Mutual Prosperity

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Human Resources Development 33

Responsible Consumer Financing 41

About the 2015 Sustainability Report 55

Tentang Adira FinanceSam

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1PT Adira Dinamika Multi Finance Tbk 2015 Sustainability Report

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2 PT Adira Dinamika Multi Finance Tbk 2015 Sustainability Report

Introduction to Sustainability Report

Through this 2015 Sustainability Report, Adira Finance means to communicate its policies and corporate measures in regards to how we manage the sustainability of our business. This report discloses the Company’s achievements and important issues as we work towards Creating Shared Value (CSV), fulfilling our social and environmental responsibilities, managing human resources and implementing Good Corporate Governance (GCG).

The theme of this sustainability report is how Adira Finance is creating a strong foundation that will make it possible for us to realize growth for mutual prosperity. A better future is everyone’s aspiration, which we believe should and can be achieved by sharing, building synergies and cultivating closer relations with the community. We hope that our presence will create value and benefits to many stakeholders, creating opportunities for both Adira Finance and its surrounding communities to grow sustainably.

In 2015, we changed our sustainability vision and also made considerable changes. Since 2014 we have begun to apply a strategic approache in line with the changes to the Company’s vision. This report is also intended to disclose Adira Finance’s transformation as we began a new chapter of our journey towards sustainability.

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PT Adira Dinamika Multi Finance Tbk or Adira Finance (the

Company) originated as a company that offered financing

for purchases of two- and four-wheeled vehicles of various

brands. In line with current business trends and regulatory

environment, the Company now also provides other financing

service products.

The Company was founded in 1990 and began operations in

1991. Since then, the Company has been committed to providing

the best possible services in the financing sector.


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PT Adira Dinamika Multi Finance Tbk 2015 Sustainability Report

ADIRA FINANCEPT Adira Dinamika Multi Finance Tbk (Adira

Finance) is a financing company in Indonesia that

was established in 1990 and began operations in

1991. In accordance with its business license, Adira

Finance may provide financing for leasing, factoring,

consumer financing and credit card businesses.

Currently, our core business comprises investment

financing, multipurpose financing, and working

capital loans with motor vehicles as collateral.

Adira Finance conducted its public offering in 2004,

where PT Bank Danamon Indonesia Tbk acquired

75% of its shares to become the majority shareholder.

In 2009, Bank Danamon acquired another 20% of

Adira Finance’s shares, bringing its total ownership

to 95% of the Company’s total shares. Subsequently,

to comply with PT BEI regulation which sets the

minimum public ownership at 7.5%, in January

2016, Bank Danamon sold 2.93% of its shares in the

Company to third parties resulting in the public having

7.93% of the Company’s shares as of the publication

of this report. Bank Danamon is a subsidiary of Asia

Financial (Indonesia) Pte. Ltd., whose owner and

ultimate controller is Temasek Holding Pte. Ltd., a

Singapore-based investment company owned by the

Government of Singapore.

Today’s Adira Finance is one of the largest auto

financing companies in Indonesia, supported by more

than 20,000 employees with more than 500 business

offices spread across the regions, serving more than

3.3 million customers and managing receivables of

Rp46.4 trillion. Adira Finance has gained more than

12 percent of the automotive financing market share

in the new motorcycle segment and more than 4.9

percent in the new car segment. This achievement has

positioned Adira Finance as a significant contributor to

Bank Danamon’s overall portfolio.

To ensure sustainability, Adira Finance seeks to maintain

the Company’s long-term commitment to preserve the

environment, as well as to maintain good relations

with the community, customers, business partners,

shareholders, and the government of Indonesia, while

sustainably conducting business activities. For Adira

Finance, sustainability is about creating a strong

foundation to catalyze growth with the aim of delivering

optimal contribution for a better life.

About


Vision Creating shared value in the interests of the Company and to improve social prosperity

Competition has become increasingly intense in this modern era, forcing businesses to compete against one another. This high level of competition demands that each business to become an enterprise with unique characteristics and strengths in carrying out its activities.

Mission • Provide a variety of products and

services to serve every step in customer’s life cycle.

• Provide beneficial and friendly experiences for stakeholders.

• Empower communities to reach prosperity.

Not every business finds it easy to meet the demands of the market, yet they must continue to do so in order to maintain their existence and business reputation. In line with these trends, Adira Finance’s business has expanded even more rapidly, requiring the management to carefully observe the developments taking place, so as to keep pace with competition. Therefore, we felt it necessary to change Adira Finance’s corporate identity, including our vision and mission, to become a better organization with unique characteristics that differentiate us from our competitors.

In line with this rebranding, Adira Finance has adjusted its vision and mission to strengthen its relationship with all stakeholders and create shared value.

The above Vision and Mission have been approved by the Board of Commissioners, was authorized by the Board of Directors on 9 June 2014, and is being socialized to the Employees.

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Corporate Values

ADIRA TOP has become a consistent part of personal values of each employee at Adira Finance, as well as the culture that drives the Company’s business activities...

Advance• One step ahead and faster compared to

other people in general or competitors; • Having a clear and focused conception of

the future; and • Capable of making quick and proper

decisions in all circumstances.

Discipline• Moving in a better direction through

planning, implementation, oversight and continuous improvement;

• Thinking and behaving in a manner that is as perfect as possible; and

• Discipline in accordance with organizational norms.

Integrity• Commitment along with consistent attitude;• Trustworthy (honest and sincere); • Able to maintain ethical business conduct; • Strong sense of belonging; and • Becoming a role model for other employees.

Reliable• Having a winner mentality, as reflected in

positive thinking and intelligent behavior; and

• Strong sense of responsibility in all matters.

Accountable• Informing matters based on factual data;

and • Objective and wise transparency.

Teamwork• Synergy; • Willing to sacrifice for one another; and • Never blame each other.

Obsessed (High Motivation)• Working with the right processes and

oriented towards optimum results; • High motivation in the form of willingness to

work that extra mile and being proactive; • Improving skills; and Taking care of each

other.

Professional• Customer oriented; • Reliable leadership skills; and • Entrepreneurial spirit, capable of calculating

risk, being innovative and creative.


Focus on High-Yield PortfolioThe Company focuses its financing activities on high-yield assets

with due consideration of the quality of such assets.

Prudent Implementation of Risk ManagementComprehensive review on the financial ability of each prospective

customer, and the requirement of minimum payment on the down

payment.

Commitment to Productivity and EfficiencyContinuous improvement to systems and procedures towards

improved productivity, support for financial activities, and higher

efficiency.

Solid RelationshipThe Company is highly aware that a solid relationship with

consumers and business partners is a kay element behind the

success of the Company. Accordingly, the Company strives at all

times to maintain and improve on the good relationship as well as

the trust and satisfaction of consumers and business partners.

Adira Finance Strategy

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Optimizing Business NetworkThe Company continue to optimize its business network in order to

provide the best services to the consumer and business partners.

Development of Information Technology and Human CapitalThe Company recognizes the importance of Information Technology

and Human Capital in support of its growth. Therefore, the Company

continue to strive to develop the capabilities of its Information

Technology and human capital.

Synergy with Parent Company, PT Bank Danamon Indonesia TbkCreating strategic business synergy through joint products, network

expansion, and consumer-based business potential from PT Bank

Danamon Indonesia Tbk.

Diversification of Balanced Funding SourcesThe Company strives to secure stable and competitively-priced

sources of funds to meet its funding needs. In addition to the full support

from the Parent Company, Adira Finance also seeks diversification

into various funding options that are available in the capital market

in order to maximize on the existing business opportunities while

continuing to maintain a balnced and effective funding mix structure.



Despite the unfavorableeconomic conditions, the Boardof Directors managed to performwell in 2015. The variouschallenges that affected theCompany’s performance havebeen dealt with appropriately.The Company has been able tomaintain a positive performance.

Sng Seow WahPresident Commissioner

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utual Prosperity11PT Adira Dinamika Multi Finance Tbk 2015 Sustainability Report


Dear Stakeholders,

Our Company encountered numerous challenges in the year 2015, among them high levels of inflation, an increase in the Bank Indonesia benchmark rate to 7.75%, the rise of fuel prices, society’s weakening buying power, and the issuance of new regulations that all combined to reduces sales of motor vehicles during the year. Nonetheless, the Board of Directors and the entire management team managed to surmount these obstacles with the right strategy proven effective in maintaining Adira Finance’s performance as shown in the following indicators: a 2.3% increase of income, or IDR8.2 trillion from the prior year; a 1% increase in new financing, or IDR34.1 trillion from the prior year; strong financing receivables of IDR49.6 trillion and a decent net income of IDR792 billion. As the Board of Commissioners, we have supported Adira Finance’s efforts for our sustainability programs in the areas of economy, environment, social and community development.

In the area of economy, we appreciate the efforts made across our Company to improve people’s welfare through partnership.This special program has enabled and will continue to enable our partner small and medium enterprises to grow, expand, and advance towards prosperity with more reliable skills and expertise.

In the environment, we continue to give our support to the Company’s policies for environment preservation and conservation. We believe that it is only with such policies that we can contribute to the sustainability of both human life and Adira Finance in the long run.

In employment, Adira Finance has well-executed its policies for human resource development in anticipation of the rapid changes in the business. We support our human resource management and agree that it must encompass developing our internal training institutions. We believe that the support from competent and dedicated employees is one of the key ingredients to our Company’s future development.

Our achievements in 2015 show that Adira Finance was able to manage the business well to allow the Company to grow sustainably. This high performance was possible thanks to contributions made by all members of the Board of Directors, all employees and our different groups of stakeholders. As one of the highest organs of the Company, we have also worked to make our share of contribution. We made strong efforts to execute our duties, including by planning and executing our plan to oversee the Company’s activities through comprehensive oversight. A comprehensive approach should help the Company’s sustainability.

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We have also given our support to the Board of Directors’ policy for applying the GRI standards to our sustainability reporting. The application of these global standards should improve the quality of our reports and make them easy to comprehend for all of our stakeholders.

We believe that the strong execution of our corporate social responsibility programs will directly and indirectly give positive impacts to Adira Finance’s business sustainability.

We continued to give encouragement, suggestions, input and support to every initiative proposed by the Board of Directors to carry out activities intended as a manifestation of our corporate social responsibility. This is consistent with our mindset, which emphasizes that social responsibility is not an obligation to make in any successful business but an ingrained part of the business itself that will help it to get traction for further growth and expansion.

In each of our joint meetings with the Board of Directors, we emphasize the importance of corporate social responsibility and improve its implementation within our operational activities.

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Willy Suwandi DharmaPresident Director

Amidst the challengingsituation in 2015, AdiraFinance carried outinitiatives in variousaspects to ensure theCompany’s positive businessperformance and furtherstrengthen its fundamentals.


MESSAGE from the President Director


Dear Stakeholders,

Without realizing, more than 20 years have gone by with Adira Finance in the midst of the Indonesian people. Backed by over 20 thousand employees with diverse skills and more than 500 business networks throughout almost the entire Republic of Indonesia, we now serve around 3.3 million customers nationwide.

We would like to take this opportunity to inform our stakeholders of the activities carried out by Adira Finance as part of our sustainability programs in 2015. In delivering his report, we expect that stakeholders will derive a clearer picture on the policies and programs that Adira Finance has carried out, is carrying out, and will carry out. We also intend that this report can motivate all stakeholders realize Adira Finance’s values of unity towards achieving mutual prosperity.

For the Company, the aim of these sustainability programs is to realize sustainable economic development, which can improve the quality of life and the environment in a way that benefits the Company itself, local communities and the public at large. Based on these objectives, the Company has realized its responsibility through the concept of “Creating Shared Value,” whereby we do not just giving donations but also empower society and our consumers as partners with whom we can grow together to achieve mutual prosperity.

Economically, the Company is committed to participate in the development of the medium and micro-economic segments through business partnership programs. Through these business partnerships, our business partners enjoy benefits in the form of increased efficiency and synergy related

to their resources. In 2015, our support included training to build technical, managerial, and financial skills. We believe that consistently supporting the small enterprise sector will have a profound impact on the surrounding communities.

Environmentally, we have a strong commitment to participate in environment preservation and maintain a good quality environment for future generations. This has been based on the notion that a well-organized environment will, both in the short and long term, support our business development. During 2015, we conducted various environmental activities in collaboration with our stakeholders including environmental management, use of environmentally friendly materials, water and energy savings across our entire network of operations, and reforestation.

Socially, we have b een active in efforts to assist victims of natural disasters in Indonesia. We also organized a Mudik Bareng (home coming) event once again to celebrate the Idul Fitri, worked with Increso to help the needy get better health services, and held blood donor events. As one of our approaches to meeting our responsibility to customers, we have undertaken plenty of initiatives to empower our customers, including by providing:• Facilities and tools that enable prospective or

existing customers to know more about our products and services;

• Business networks that customers find easy to access; and

• Customer complaint system.

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In executing our sustainability programs, we have encountered various challenges, but we are convinced that our strong commitment and the support we have from all stakeholders will enable us to achieve the best results through our efforts, in a way that stakeholders can tangibly enjoy.

We have also extended the reach of our costumer complaint handling services through Adira Finance’s Customer Services available at each of our branches, “Dering Adira” Services, [email protected], and SMS CARE accessible 24/7.

As of the end of the year, Adira Finance had a total of 21,351 employees comprising 15,457 permanent employees and 5,864 contract staff of which 60% have a college degree, 21% have a diploma degree, and the remainder have a high school degree or equivalent. Of the total employees, 65% were in the productive age group between 26-35 years and 23% between 36 and 55.

Adira Finance Key Achievement in 2015Indicator Actual (31 December 2015) Actual (31 December 2014) Actual (31 December 2013)

New Financing Rp30.5 trillion Rp35.8 trillion Rp33.7 trillion

Financing Under Management Rp46.4 trillion Rp49.6 trillion Rp48.3 trillion

Net Income Rp0.665 trillion Rp0.792 trillion Rp1.695 trillion

Revenue Rp8.1 trillion Rp8.25 trillion Rp8.06 trillion

Operational Expense Rp2.5 trillion Rp2.7 trillion Rp2.5 trillion

Non Performing Loans (NPL) 1.7% 1.5% 1.3%

Gearing Ratio (Liabilities vs. Equity) 4.9 x 5.8 x 3.8 x

Business Network Offices 558 645 667

Number of Consumers 3,300,000 3,530,251 3,686,492

Employees 21,351 26,098 28,519

Risk Management:

- BI Regulation No. 8 of 2006 Score:Composite 2“Good” Category

Score:Composite 2“Good” Category

Score:Composite 2“Good” Category

- Forum for Corporate Governance in Indonesia

Score: 88.12“Excellent” Category




IND

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Gili Lawa

Gili LawaGili Lawa is located next to the northern part of Komodo Island, directly facing the Flores sea. Gili Lawa divided into two, namely Gili Lawa Darat (Land) and Gili Lawa Laut (Sea), both of which offer breathtaking views and fascinating underwater world.


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For the majority of mankind, prosperity is an important goal in life, a goal which requires economic growth. Economic growth in turn requires adequate sources of funding, including that offered by financing companies. Financing by financing companies can be used for a variety of needs, whether consumptive or productive, such as for working capital, investment and other productive purposes. The availability of such reliable sources of financing facilitates the realization of economic growth and prosperity.

People can leverage financial institutions, including banks and non-bank financial institutions, such as financing companies, to meet their financial needs. One of the largest financing companies in Indonesia, Adira Finance was established in order to offer financing services that customers can use to meet a variety of needs, such as loans for the purchase of motor vehicles, working capital, investments and other purposes.

With the passage of time, Indonesians are becoming increasingly aware that they need to benefit from credit facilities if they want to be more productive, while meeting personal needs. This has presented Adira Finance with an enormous opportunity to offer the right financing services while helping to boost economic growth.

A STRONG FOUNDATION FOR GROWTH TOWARDS

MUTUAL PROSPERITY

BUSINESS PERFORMANCE IN 2015Indonesia’s economic growth in 2015 was 4.8%, lower than the prior year’s figure of about 5%, due to a weaker exports and lower levels of investment, consumption and government spending. The Rupiah exchange rate against the US dollar reached its lowest point since the crisis of 1998. At the same time, the benchmark rate was relatively stable at 7.50%.

This situation had an impact on purchasing power. Sales of new motorcycles in Indonesia declined significantly by approximately 18% from 7.9 million units in 2014 to 6.5 million units in 2015, while sales of new cars dropped by around 16% from 2014 to 1 million units in 2015.

This was quite a challenging situation for the management, as that the Company’s business was directly impacted by the decline of the automotive industry, as well increasingly fierce competition.

In dealing with this challenge, Adira Finance has implemented a business strategy of focusing on improving operational process efficiency, enhancing productivity, and strengthening the business network in order to support sustainable growth and good relations with stakeholders.

In 2015, the Company was able to generate Rp8.1 trillion in revenues, down 1.2% if compared to the prior year. Net profit reached Rp665 billion, a decrease compared to Rp792 billion in the previous


year. These achievements were accompanied by strong governance and risk management as indicated by Adira Finance’s idAAA rating from PEFINDO. This shows the financial community’s high level of confidence in the Company.

Adira Finance’s Economic Performance (Rpbillion) [G4-EC1]Description 2015 2014 2013

Economic Value Generated

- Revenue 8,063.75 8,251.15 8,064.63

Economic Value Distributed

- Operational Expenses 2,513 2,767 2,540

- Employee Expense 1,585.36 1,886.97 1,761.57

- Dividends 664.83 2,700 709.30

- Contribution to the Nation (tax, retribution, etc.) 542.9 556.12 778.55

- Social Investments 47.05 35.74 13.30

Retained Earnings 4,126 3,900.5 5,847.6

Total New Financing by Segment (RpTrillion)

12.213.1

14.7 14.3

0.27

20152014201320122011Motor Cycle Car Durables

12.7

20.4 19.4 19.0 19.7 17.6

The following details new financing disbursement and outstanding financing receivables of the Company by type of business activity for 2013-2015:

(In RpTrillion)

Contribution of Business Activities 2013 2014 2015

New Financing Disbursement

Consumer Financing 32.2 33.0 30.1

Finance Lease 1.5 1.1 0.5

Total New Financing Disbursement 33.7 34.1 30.5

Managed Financing Receivables

Consumer Financing 46.8 47.7 44.9

Finance Lease 1.5 1.9 1.6

Total Managed Financing Receivables 48.3 49.6 46.4


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The following presents the Company’s financing disbursement for new and used motorcycles in 2013-2015:

Description 2013 2014 2015

New Motorcycles

Total New Financing (Thousand Unit) 980 996 778

Total New Financing (RpBillion) 12,849 13,578 11,452

Growth of Total Financing -8% 6% -16%

Average Effective Interest Rate per Annum 32%-35% 34%-37% 34%-38%

Used Motorcycles



Growth of Total Financing 13% 1% 0%


Following is the performance of financing disbursement for new and used automobiles between 2013-2015:

Description 2013 2014 2015

New Automobiles



Growth of Total Financing 15% -9% -25%

Average Effective Interest Rate per Annum 13%-17% 15-18% 15% -18%

Used Automobiles



Growth of Total Financing 8% 11% 16%


As of year-end 2015, the profitability of each business segment managed by the Company was as follows:(In RpBillion)

Description Motorcycles Automobiles Durable Goods

Consumer Financing Income 4,126 1,661 27

Finance Lease Income 4 260 -

Interest and Finance Expenses (1.332) (864) (2)

Profit Sharing for Investors (52) (5) -

Net Interest Income 2,746 1,052 25


Sahabat Setia SelamanyaIn 2014, PT Adira Dinamika Multi Finance Tbk introduced a new logo and tagline, “Sahabat Setia Selamanya” (Best Friend Forever). This tagline articulates the Company’s commitment to build long term relationships with consumers and business partners. The new identity is also a manifestation of our long-term business strategy for sustainable performance.

Through this new identity, Adira Finance seeks to serve consumers in all aspects of life to build long-term relationships, or as developing customers for life. We want consumers to see Adira Finance as a life-long friend who can provide solutions, and at the same time synergize with them through the concept of “A Friend in Adira.”

In the Company’s philosophy, “Sahabat”(Friend) has a very deep meaning, reflecting the characteristics of Adira Finance towards its consumers: intelligent, trustworthy, friendly, through which Adira provides convenience, care, and commitment.

Intelligent Just like a smart best friend, Adira Finance offers solutions for consumers’ financial problems.

Trustworthy Adira Finance is a trustworthy brand, always making its consumers feel secure.

Friendly Adira Finance is a friendly brand. Both in the internal and external environment, Adira is a friend to you all.

Adira Provides Convenience Adira Finance is simple, with a fast process and straight to the point.

Care Adira Finance always cares for consumer needs because we always put consumers’ welfare first.

Commitment Adira Finance’s commitment is always giving the best to consumers. Further, Adira Finance is committed to its mission with the ultimate goal of improving welfare of the people of Indonesia, through the provision of various products and services in line with customers’ life cycles while also emphasizing a beneficial experience for customers.

CLOSER TO OUR CUSTOMERSWe are aware that our business growth relies on contributions made by our customers. That is why since 2014, Adira Finance has followed its new brand promise called ‘Sahabat Setia Selamanya’ (Best Friend Forever). Instead of building the usual “provider-user” relationship, we seek to be a friend who is there for consumers in each phase of their lives.

We seek to build long term relationships as an effort to meet customers’ needs by partnering with and becoming a best friend for our customers. In this regard, Adira Finance offers benefits that include easy and quick processing, various payment options for installments, and a strong network with hundreds of branches spread all over Indonesia.

In 2015, Adira Finance organized promotional programs and the Adira X-TRA BONUS – Bisa Pilih Program (You Can Choose Program) for its customers. This direct relationship building will create an opportunity for both the Company and its customers to get to know each other better and nurturing friendship, while allowing the Company to explore the needs of its customers in the long term.


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Branch Offices

201Representative

Offices

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Kiosks

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Supporting Customers to ExpandWe have identified the diverse backgrounds of our customers and how customers need motor vehicle financing not only for personal use but also to support their businesses. In 2015, about 70% of new car financing was disbursed for purchases of commercial vehicles as well as motorcycles that could be modified for commercial purposes.

For this type of customers, Adira Finance offers a beneficial and friendly experience through the implementation of customer training programs. Adira provides a mentoring program to customers who have businesses in the Greater Jakarta area.

This program was implemented in 3 months and divided into stages: the selection of participants, training, and assistance. Afterwards, participants were monitored to see how their businesses progressed. Materials provided during this program ranged from know how in business management, comprehension of potential business opportunities, simple bookkeeping, and marketing tricks.

A subsequently growing trend of such small entrepreneurs will likely enhance the potential for Adira Finance to benefit more. Successful small entrepreneurs will also spur economic growth and create more opportunities for the Company consistent with our stated concept of ‘creating shared values’.

Customer ServiceIn managing customers’ needs, Adira Finance has long provided interactive media, which we continuously to developed. The media include Adira Finance Club, as an interactive forum for consumers, the Company and all stakeholders, and Dering Adira whereby customers and the public at large can receive explanations, file complaints or access information about the Company as well as its products and services.

Adira Finance’s approach to customers was rewarded with various awards throughout 2015 in the areas of customer service, branding and customer satisfaction. These awards will further encourage Adira Finance to be closer to our customers as their ‘best friend forever’.


Installments paid off by the consumer

Prospective consumer

approaches dealer or Company

business network

Marketing Officer (MO) at Dealer/Adira

Finance Business Network

Handover of Automotive Ownership Document (BPKB) to consumers that have fully settled their debt

Survey process by the Credit Field Officer (CFO) using MS2

Credit approval by the Credit Committee

Initial data entry in the business network

Financing Service Process Up to Settlement

CREATING A SUSTAINABLE VALUE CHAINDealers are Adira’s old friends, connecting us with our consumers; where buyers can have the vehicles of their preference and later use our financing facilities to purchase the vehicles. Good and strong relationships with our dealer stakeholders have been built on both inter-personal and business-to-business bases.

Various programs are launched and targeted to dealers as our business partners. Currently, in addition to large dealers, we are connected to more than 7,000 small-and medium-sized dealers spread across almost all regions in Indonesia. For dealers of micro, small and medium sizes, Adira Finance provides the Partnership Program to help them grow their businesses.

Dealer development programs are conducted through educational avenues and routine dealer gatherings in various regions in Indonesia. In addition to educating dealers, Adira Finance also rewards those outstanding dealers who have reached a certain sales volume through a program called Mokas Priority.

We also facilitate our partner dealers who wish to expand the scale of their businesses through working capital and investment loans. To have this scheme well implemented, Adira Finance cooperates with parent company Bank Danamon. This approach will provide added value to dealers in cooperation with Adira Finance and indirectly help boost the economy of small communities and improve the Company’s performance.


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Our other method of dealer engagement to create shared values includes collaboration with the stakeholder communities we have created surrounding our dealers. There are now Adira Mokas Community and Mokas Poenya Kawan, which organize their own gatherings. In this community gathering, participants can share information and educational programs are organized, whereby small dealers can benefit from the larger dealers during knowledge-sharing sessions.

Consistent with our commitment to be a loyal friend forever, these joint programs between Adira Finance and dealers are expected to create value through mutually beneficial relationships. Dealer that are able to grow will benefit Adira Finance in terms of ensuring business sustainability.

Supporting Partner Supporting the Community Within our dealer community is a stakeholders that influences our performance as traditionally through dealers potential consumers become new customers. It is because of this close relationship that Adira Finance considers it important to empower motor vehicle dealers, especially those in the category of micro, small and medium businesses.

In this value chain, our customers are our ultimate stakeholders. We understand that the better their economy, the higher chance for growth that Adira Finance will have. With these two concepts, Adira Finance is developing a program of Customer and Dealer Mentoring in the Greater Jakarta Area.

This mentoring program was initiated in 2014 as the seed for the mentoring programs that we plan to hold in the years ahead. The participants of these mentoring programs are the buyers of commercial vehicles and dealers of used motorcycles in the Greater Jakarta, with an aim of helping to increase the income of our entrepreneur customers and dealers by showing them how to enhance productivity.

In implementing programs for selected dealers and customers, Adira Finance works with Pro Indonesia Foundation, a training facilitator. Training materials provided include preparing and understanding potential business, marketing tricks, and excellent managerial skills to manage finances. With this approach, both dealers and entrepreneur customers will be able to do business with better financial skills.

Participants are selected and recruited from potential customers and dealers

Recruitment

Preparing participant profile database from the beginning

Baseline Survey

Training with the theme “Developing Business Capacity and Productivity”

Workshop

Mentoring and assistance to participants for about 3 months to monitor progress and program of improvement

Mentoring

Give appreciation to outstanding participants as motivation

Award

Customer and Dealer Development Model


CREATING OPPORTUNITIES FOR THE COMMUNITYWith its new understanding of community, Adira Finance now has a new perspective on society. We no longer see society as passive stakeholders in our sustainability issues, but rather view them as strategic community partners.

Adira Finance’s social engagement strategy aims to develop communities in which all of the stakeholders benefit from this relationship. To achieve this goal, Adira Finance runs social and environmental responsibility programs with a concept of ‘creating shared values’ (CSV) that are consistent with our new vision. Under CSV, not only do we donate, but we also empower people or consumers as partners so they can grow to achieve common prosperity.

Within the CSV development framework, Adira Finance provides opportunities for communities to be part of Adira’s ecosystem and achieve mutual economic benefit. In addition to this approach, Adira Finance continues to implement social and environmental responsibility (CSR) programs as commonly practiced by Indonesian corporations.

AXI - Ber-Axi (Take Action) to Reach our DreamsAxi is a financing program with a fast, easy process that offers many benefits to customers. Unlike other existing programs, Adira Finance takes a different approach, namely giving community members opportunities to become partners in our AXI program.

By becoming an AXI participant, anyone can earn extra income while still working other jobs. For AXI, Adira Finance provides an Adira Finance Club Member Card and rewards outstanding agents with trips overseas.

Adira Berdaya Partnership Adira Berdaya Partnership (Keday) is a program designed especially for individuals who wish to expand their marketing network as a partner of Adira Finance in communities where Kedays are located. Keday owners became shared business owners, by providing Adira Finance financial services to the community. Services provided by Keday include providing data, managing the community, serving as a payment channel, and referring sales. The services are also integrated with the marketing system of InterAxi Motor & Mobil Adira Finance.

When one becomes a Keday manager, he or she will receive fees for customer installment payments, sales commissions and bonuses and rewards in the form of trips overseas. Keday enables the community members to manage their business with flexibility in terms of time and place, in a transparent and mutually beneficial partnership.

As of 31 December 2015, Adira Finance had 1,066 Kedays managed by Indonesian entrepreneurs. Keday also improves service to Adira Finance customers as they no longer need to visit our offices and can instead go to the nearest Keday for the same purpose.

SHARING FOR SOCIAL DEVELOPMENT IN INDONESIA Adira Finance executes social and environmental responsibility (CSR) as a form of community development. Our CSR programs are an investment we make in the community in the form of partnership, social, and environmental programs. Community empowerment has been our key CSR program objective as we believe that a successfully implemented economic development will improve the quality of life of the local communities and make their environment a better place to live.


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In carrying out its CSR programs Adira Finance works with non-profit organizations and also solely runs other programs. Adira Finance lays its focus on four key areas; the environment, employment, work health and safety, and responsibility to consumers.

ENVIRONMENTAL ENGAGEMENT

Management PolicyAdira has a strong commitment to contribute to preserve the quality of the environment for future generations. The underlying notion is that a neatly organized environment will support the Company’s business, both for the short- and long-term outlooks.

Environmental activities are focused around the Company’s areas of operations but this does not exclude the possibility that they may be conducted elsewhere.

The Company pays serious attention to environmental issues including pollution, and environment preservation and conservation. Our approach to environment preservation and conservation starts from within the Company, through the establishment of green policies. Among others, these mandate the decoration of workplaces with plants, periodic monitoring of room and office sanitation, use of environmentally friendly tools and effective implementation of energy saving policies.

The management makes regular assessments of office sanitation and orderliness at the division level. The results are openly announced to show which division gets the highest score and which gets the lowest. This is done to keep employees motivated so they become more willing to preserve and conserve the environment.

Activity Program In conducting CSR activities in the environment, the Company works with both internal and external stakeholders. They include the government and society.

Throughout 2015, CSR activities in environment were as follows:1. Environmental Management Good environmental management of work areas

will provide many benefits to employees, both directly and indirectly. Clean and neatly arranged work spaces give comfort and will help improve the health of those around it.

The activities conducted by the Company include:a. Providing green plants within and around

areas in which the Company has operations;b. Designing work spaces that take into

consideration comfort and hygiene;c. Providing facilities to keep the work

environment clean such as trash bins and other cleaning equipment;

d. Clean, Beautiful and Healthy Ciliwung program;

The Clean, Beautiful and Healthy Ciliwung Program, with the theme “Care for the Preservation of Our Homeland” was conducted during 2015 in cooperation with the Jakarta Military Command. Under this program participants cleaned the TB Simatupang - North Pluit Raya Bridge section of the Ciliwung River.

e. Donating trash cans at traditional markets under a nation-wide program called Exploring Traditional Market across the Archipelago in collaboration with Yayasan Danamon Peduli (YDP). The program is aimed at returning traditional markets back to vibrancy and restoring them as major suppliers of the


community’s needs. This Exploration Program was conducted at 12 traditional markets in Java where one of the activities was donating 15 trash cans at each market.

2. Use of Environmentally Friendly Materials Material usage for the Company’s operations

includes materials used for non-operational and operational purposes. One of the most used materials is paper. The Company has made serious efforts to reduce paper usage.

The efforts have encompassed:1. Utilizing more information technology within

each of business activities and for document filing;

2. Simplifying consumer financing documentation to save paper;

3. Encouraging employees to print draft documents on used but still printable paper to reduce the use of new sheets.

Comparison of paper usage in 2014 and 2015:

Year Reams Used Sheets Used

2014 2,840 1,420,000

2015 2,235 1,117,500

Saving 605 302,500

3. Water Consumption Water is a vital aspect of human life, whereas

presently water sources are still limited and not all Indonesians have access to clean water. Recognizing this, the Company makes every effort to use water as effectively and efficiently as possible. Water is used at the Company’s premises for consumption and room and office

sanitation purpose. At the Company’s Head Office, the water is supplied by the building management.

4. Energy Consumption The limited amount of energy sources

encouraged the Company to establish policies that can direct stakeholders towards effective and efficient energy consumption. In operations, energy saving efforts include reducing electricity consumption by keeping less lights on or all lights off when there is sufficient sunlight, using more energy saving appliances, reducing the use of tools that consume electricity and others.

5. Consideration of Environmental Aspects in Financing Requirements

To help control pollution as a form of environmental preservation, the Company has conducted various initiatives, including:a. Determining the maximum age of vehicles

to be financed, with the hope that the use of environmentally unfriendly technology will gradually decrease. The maximum age of vehicles that can be financed by the Company is 7 years at the end of the financing period for motorcycles and 10 years for cars. As we know, auto manufacturers are now working to meet eco-friendly standards in order to market their products in European countries which have stricter requirements for maximum emissions, and whose requirements typically increase each year.

By establishing limits on the age of motor vehicles, it is expected that the motor vehicles financed will have more environmentally friendly technology. In addition, newer cars normally have well maintained engines that are most likely to produce emissions under the maximum limit.


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b. Requiring customers to continuously maintain and care for collateral, in this case motor vehicles, because good maintenance and care of motor vehicles will help reduce both air and sound pollution.

6. Greening In 2015, for its greening program, the Company

planted 1,200 Mangrove trees on 7 December 2015 in collaboration with Yayasan Restorasi Mangrove Indonesia (IMARF) in Coastal Village of Marunda, Cilincing, North Jakarta. This planting program is intended to prevent coastal erosion and abrasion, stabilize coastal areas and accelerate the decomposition process of organic waste that is carried away into the coastal areas. Newly planted mangroves will be looked after for one full year to ensure the mangrove trees grow normally.

In 2015, the Company did not receive any environmental certification.

The Company spent a total of Rp106,245,484 on environment preservation in 2015.

SOCIAL COMMUNITY DEVELOPMENT

Management PolicyWith regard to community economic development, we are committed to play our part in building the economy of the medium and micro segments through partnerships. Business partnerships are part of the Company’s strategy, as they enable our partners to do business more efficiently and synergize our resources. Small businesses benefit greatly from this partnership as it allows them to take advantage of the market, capital, technology, management and entrepreneurship of larger corporations such as Adira Finance.

Adira Finance also pays attention to the development of the small business sector due to the sector’s increasingly important role in national economic development. In 2015, our support included training to build technical, managerial, and financial skills. We believe that consistent support to small enterprises will deliver large benefits to the communities where each of the businesses is run.

Our responsibility with regard to community social issues was also demonstrated through direct contact with the public at large. This was done in order for the Company’s presence to provide benefits to the social environment, particularly in areas where Adira Finance has operations. Further, we expect our social activities for the communities to encourage all stakeholders to increase their social awareness towards the surrounding community.

Equally important, social activities are a manifestation of the Company’s efforts to contribute to the nation’s building programs. Among its activities is assistance to victims of natural disasters.

Program ActivitiesA. Community Economic Development

1. Financial Literacy Financial Literacy Training is conducted

to enhance public knowledge in financial management, overview of financial institutions and financial products. This year, beneficiaries of this program were teachers, pupils, college students and housewife PKK members.

Some of the activities conducted include:• Literacy sessions for vocational school

teachers held on 26-27 August 2015. • 3 Literacy sessions for vocational

students on 23 November at SMK 17, on 27 November at SMK 48, and on 10 December at SMK 47 in Jakarta.


• Literacy session for students of Binus University on 14 December 2015,

• Literacy session for PKK members on 8 October at the Multipurpose Building People’s Sovereignty, Yogyakarta, on 27 October at the Office of Bandung PKK and on 29 October at PKK office of the city of Cirebon.

2. Education by the Si Molek Mobile Car Education using the Si Molek mobile car

aims to provide information about financial institutions, financial management and financing by distributing flyers and video playback on financial management and credit information on 15 to 26 June 2015. This activity targeted the general public in Medan, Semarang, Bandung and Makassar.

3. Partnership Program Adira Finance also pays attention to the

development of small businesses due to the sector’s increasingly important role in national economic development. In 2015, our support included training to build technical, managerial, and financial skills with a total budget of Rp3.8 billion. We believe that consistent support of small enterprises will have profound impact on the communities where these businesses are run.

The total of Rp3.9 billion in funds were allocated to social activities for community economic development.

B. Social Activities Various program activities were implemented by

the Company in 2015, which included:1. Social Assistance The Company was actively involved in

relieving the burden of victims of natural disasters hitting some parts of Indonesia. The Company provided assistance to the victims of flooding in the Jabodetabek area. The Company also provided assistance to victims of the smoke haze in Sumatra and Kalimantan.

Besides this, assistance was also given to flood victims in West Jakarta and North Jakarta, in the form of cooked food.

2. Religious Activity In the religious field, the activities conducted

by the Company in 2015 included:• Organizing a homecoming event (mudik

bareng) for the celebration of the Idul Fitri. This event was organized in collaboration with, among other participants, PT Kereta Api Indonesia (KAI), on 14 July 2015, where the Company gave transportation facilities to around 500 people consumers and families to return to their respective hometowns during the homecoming season.

• Breakfasting with orphaned children on 10 July 2015.

• Providing donations and paying a visit to the Parish of St. Therese Jakarta on 04 August 2015.

The funds allocated to social and religious activities during 2015 amounted to Rp422,184,500.


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3. Activities in the Health Sector In the health sector, the activities conducted

by the Company in 2015 included:

• Cooperation with Increso As a manifestation of its commitment

to meeting its social responsibility, the Company has, since 2013, worked with non-governmental organizations engaged in social, including with “Increso”.

This social foundation, whose members are employees of Adira Finance, engages in social activities, and was established at the end of 2006. Increso has programs that engage the public at large, such as mass medical treatment, social services, free surgery for the needy and many others. All funds are collected from Adira Finance employees as a form of their awareness towards social activities, outside of other contributions made by the Company.

In addition, the Company has also positioned Increso to encourage solidarity among employees. Solidarity is demonstrated by giving the opportunities to all employees of various levels to actively participate in social activities within the community. Employees can

become active participants by giving information on cases of people in great need or by participating in social service activities and mass medical treatments.

During 2015, a total of Rp1.8 billion in funds was allocated by Adira Finance to Increso, with employees of Adira Finance donating total funds of Rp3.7 billion.

• Blood Donation To support the Indonesian Red Cross (PMI)

in addressing the lack of blood donors in Indonesia, the Company holds regular blood donation events in cooperation with the Indonesian Red Cross (PMI) in which all employees participated. The event was held at the Company’s Head Office as well as business networks in Sumatra, Bali, Nusa Tenggara, Sulawesi, West Java, Central Java, East Java, Kalimantan and the Greater Jakarta Area among others.

The funds allocated by the Company for blood donation events in 2015 amounted to Rp22,556,166.


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Komodo IslandKomodo Island is located in the Nusa Tenggara Islands, known as the habitat of the komodo dragon. Other than komodo dragons, the island also features a variety of exotic flora, and is recognized by UNESCO as a world heritage site.


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Adira sees Human Resources (HR) as an extremely important factor in supporting each of the Company’s business processes. Therefore, considerable attention is given to HR, ranging from recruitment to talent development. This development takes the form of training and enhancement of potentials, succession, and talent management. Included in the process of evaluation are performance appraisal, awards giving, and sanctions.

ROADMAP OF HUMAN RESOURCES (HR) DEVELOPMENTThe human resource development roadmap is a strategic plan adopted by the Company to improve the skills and competencies of employees with a scope that covers talent acquisition, talent development, and talent retention through short-, medium- and long term-planning.

2015-2016Early Stage

2016-2018Development Stage

2018-2020Growing Stage

Schools & Learning System Strategic Talent Management Industri Regulation Partner

• Corporate University Blueprint• School of Risk Management• School of Sales & Marketing• School of Operations• School of CoRpFunctions• Career Academy

• Learning Management System (anytime, anywhere)

• Knowledge Management System• Applied Learning (learning apps,

gamification)

• School of Community• School of FMA

High integration of Talent Management

Community Development Center

Assessment Center

Fast Talent Supply Role model for financial industry learning institution

HUMAN RESOURCES

DEVELOPMENT


BUILDING THE COMPETENCY OF ADIRA HUMAN RESOURCE As of 31 December 2015, Adira had a total of 21,351 employees, consisting of 15,487 permanent employees and 5,864 temporary employees. In terms of educational background, 60% of the employees have Bachelor degrees, 21% have Diploma degrees, and the remainder have master degree or high school, junior high and elementary school diplomas.

In terms of age, the average age of the employees of Company fall in the productive category with 12% aged 18-25 years, 65% ged 26-35 years and 23% aged 36-55 years, with the remaining 0.02% aged above 55 years.

Throughout 2015 Adira did not recruit any new employees. This was due to the fact that the Company was in the midst of consolidating the organization and strengthening the competence of existing employees. The Company is of the belief that it has an adequate number of employees to support achievement of its current targets.

To foster competence within the Company, we provide employee development programs through employee education, training, evaluation and remuneration. Employee development is based on transparent and fair competence assessment. Adira Finance does not discriminate against its employees based on ethnicity, religion, race or any other form of discrimination.

The remuneration system for employees is based on a merit system, where higher employee performance will be appreciated accordingly. Performance appraisal is based on predefined indicators of key performance and targets achievement that are relevant to employee functions and positions. The remuneration of employees is always benchmarked against current market price for all positions, but is also subject to performance, where higher remuneration will be given if employees exceeded their stated targets.

In addition to policies established for employee management, Adira Finance also conducts Employee Engagement Surveys (EES). The EES is conducted once a year to obtain input from employees and provides a connection between the employee satisfaction level and the Company’s profitability. The EES results serve as a reference for Adira Finance in creating programs to improve its human resources by enhancing employee productivity.

For fiscal year 2015, the Company worked with AON Hewitt in carrying out the EES assessment. With an average overall response of 96%, Adira Finance obtained an EES index of 84%, which falls within the top quartile, meaning that 84% of its total employees are strongly engaged with the Company.

Description 2015 2014

Total Employees

- Permanent 15,487 16,708

- Contract 5,864 9,390

TOTAL 21,351 26,098

Description2015 2014

Incoming Employees Outgoing Employees Incoming Employees Outgoing Employees

Total 4,112 9,198 4,905 7,328

Turn over 43.08% 28.08%


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COMPETENCE DEVELOPMENT AND EDUCATION

Development Strategy Adira Finance has outlined an HR strategy not only for the short term, but also for the long term in an effort to make human resource planning fundamentally an ongoing process.

In connection with the ongoing process of HR development, in 2015 Adira Finance applied two key strategies, of developing internal human resources and actively participating in increasing the capacity of stakeholders. The strategies were implemented through our Corporate University, which is a concept developed to cover not only internal HR development, but also the community within the Company’s business chain.

Adira Corporate University Adira Corporate University is a very important initiative for HR development within the Company, which also engages the Adira Finance business chain community. This development center was officially opened in 2015.

Adira Corporate University works closely with various parties in order to ensure continuity, while providing benefits to the surrounding communities. The collaboration is based on the notion that basically, the Corporate University is designed to be a center of internal competence and community development. Thus, not only will it provide internal benefit but it will also give added value to 3 (three) million customers and partners of Adira Finance (Dealer, AXI, and Keday).

Several Corporate University activities that have been carried out are as follows:a. Compiling 7 (seven) curricula; Career Academy,

School of Risk Management, School of Sales & Marketing, School of Operation, School of FMA, School of Corporate Function, and School of Community.

b. Working with a number of universities; with Binus International Business School for preparation of lectures for School of Sales & Marketing and with Prasetya Mulya for human resources lectures for managerial and upper levels.

c. Applying the concept of anytime and anywhere learning by developing a Learning Management System and cloud-based Knowledge Management System. In addition, all training lectures are developed by using a multi-platform technology, which allows the content to be accessed from any place and at any time via computer, laptop, tablet, or smartphone.

d. Applying the concept of applied learning by developing a digital based learning support system using the Ad1Pedia application, which can be accessed by all employees via smartphones and Android-based tablets.

e. Applying the concept of fun learning by developing the Ad1Game, which is a learning game to make the learning process more interesting and enjoyable. The Ad1Game has been implemented through online training organized by the Corporate University. In addition, the Corporate University has also developed an Android-based Ad1Game application.


TrainingAdira Finance does not just view employee skill development as meeting its regulatory obligations as set forth in OJK No. 28/POJK.05/2014, which mandates that companies must have a policy for the skill and knowledge development of their workforce.

Further, the Company’s management has a commitment to develop human resource capabilities by organizing a variety of training programs.

Adira Finance held 1,176 training sessions in 2015, consisting of four types of training (Obligatory, Functional, Qualification, and Additional). Training is given both online and offline.

Total Participants of Adira Finance Training Programs (Number of Employees)Training Program 2015 2014

Mandatory Program 8,758 14,276

Extra Training 11,452 5,262

Functional Training 12,574 11,295

Qualification Training 2,812 5,719

Socialization 63 359

Total 35,659 36,911

Employee Training Hours

YearNumber of Training Hours Average Hour per Man

Female Male Female Male

2015 11,892.16 45,325.56 1.62 1.55

2014 495,965.64 129,665.60 22.52 31.14

Adira Finance Employee Costs (billion Rp)Allowance 2015 2014

Salary and Allowance 1,585.36 1,886.97

Training Expense 36.61 33.15


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HIGHLIGHT OF EMPLOYEE COMPOSITION PER 31 DECEMBER 2015

By Regions and Gender

Area2015 2014


Bali 120 769 168 946

Head Office 351 856 404 872

West Jawa 323 1,810 394 2,184

Greater Jakarta 489 3,080 561 3,475

Jakarta Fleet - 14 - 12

Northern Part of Central Java 151 1,029 164 1,209

Southern Part of Central Java 122 1,010 194 1,284

East Java 1 128 923 167 1,144

East Java 2 184 1,316 252 1,749

Borneo 332 1,664 438 2,040

Sulawesi 314 1,643 383 1,897

Northern Part of Sumatra 358 2,101 551 2,635

Southern Part of Sumatra 302 1,962 472 2,503

Total 3,174 18,177 4,148 21,950

By Employee Status

Status2015 2014


Permanent Employee 2,830 12,635 3,703 12,970

Contract Employee 344 5,542 445 8,980

Total 3,174 18,177 4,148 21,950

By Age

Age Group 2015 2014


Younger than 30 1,519 6,464 2,368 9,077

30-50 years 1,652 11,684 1,776 12,829

Older than 50 3 29 4 44

Total 3,174 18,177 4,148 21,950


By Position

Position 2015 2014


Board of Directors 1 6 1 6

Deputy Director 1 3 1 5

Senior Vice President 9 22 3 32

Vice President 4 29 - -

Assistant Vice President 6 50 5 40

Manager 78 605 86 658

Assistant Manager 32 91 33 83

Supervisor 607 3,346 756 3,961

Staff 2,436 14,025 3,263 17,155

Total 3,174 18,177 4,148 21,950

Creating a Comfortable Work EnvironmentManagement realizes in conducting business activities, there may be activities which impact work health and safety, either directly or indirectly. In anticipation of potential risks and losses, the Company has established a policy for health and safety concerns that is communicated to all of the Company’s leaders and employees.

The policy encourages all business units to consistently implement health and safety systems in an integrated manner. All policies for work health and safety are expected to reduce or minimize the impacts of our business activities and encourage

the creation of safe, comfortable and clean place to work to keep it comfortable while protecting the health and safety of employees.

Having embraced this commitment, the Company recorded a smaller number of accidents on employees in 2015, amounting to 7 (seven) incidents. Most of the accidents were employee traffic accidents on their way to work.

Employee turnover was also relatively low. In 2015, turnover was around 34.3% of the total employees.


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Activity ProgramsIn order to create a safe, healthy, and comfortable work environment, the Company has taken various steps, including:1. Providing equal opportunities for all employees

to participate in training to develop their careers.2. Providing decent, clean and healthy work places

and facilities.3. Arranging work spaces taking into consideration

its functionality and aesthetics.4. Placing plants within and around the Company’s

business offices.

5. Providing safety and security equipment for employees.

6. Providing training and socializing on health and safety for employees.

7. Having in place the mechanism for oversight and reporting on work place conditions.

8. Periodically inspecting the sanitation and health at work places.

9. Providing medical facilities for employees.

Employee Development and Training ProgramDescription 2010 2011 2012 2013 2014 2015

Number of Employees Trained 32,485 30,012 37,250 45,654 36,911 32,818

Training and Education Expense (billion Rp) 16.1 41.4 42.2 48.6 33.1 36.6

Work Health and Safety To make Adira Finance a comfortable and safe place to work for our employees and customers, we have made efforts to reduce or minimize the K3 impacts through establishing policies, procedures, periodic inspections and socializing in our neighborhoods. Our health and safety initiatives include:• Providing decent, clean and healthy work places and facilities.• Arranging work spaces with due respect to functionality and aesthetics.• Providing plants within and around the Company’s business networks.• Providing safety and security equipment for employees.• Providing training and socializing on health and safety amongst employees.• Preparing oversight and reporting mechanisms on work place conditions.

In addition to work safety, work health is also an important requirement to allow productivity. To maintain and improve the quality of employees’ health, Adira Finance is making work health efforts that include preventative, curative and rehabilitative measures. Adira Finance’s work health management efforts include:• Periodically inspecting on the sanitation and health at work places.• Providing medical facilities for employees.


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Belitung

Belitung IslandBelitung Island has incredible marine tourist attractions and amazing, sloped beaches with the unique characteristics, as well as various traditional ceremonies and unique traditional arts.


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RESPONSIBLE

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A company that can grow a sustainable business is one capable of effecting strong GCG practices and sound risk management while consistently and sustainably keeping itself responsible for products and services it offers to customers. This strong capability will enable a company to continue to grow and provide high value and benefit not only internally but also to all of its stakeholders.

ADIRA FINANCE’S CORPORATE GOVERNANCEAdira Finance has implemented Good Corporate Governance (GCG), using it as a performance indicator. In addition, we always endeavour to position our code of ethics and the GCG principles as our corporate values and culture, to be instilled in all of Adira Finance employees.

Adira Finance GCG ObjectivesThe objectives of GCG are to:• Optimize the Company’s values to each of

Adira Finance’s leaders and employees to improve the Company’s competence at both national and international levels. Our values are optimized through transparency, accountability, responsibility, independence and equality, and fairness, as well as through the creation of a conducive environment for investment;

• Improve organizational management to be more professional, transparent and efficient. We also strengthen all functions and exercise objective judgments towards members of BOC, members of BOD, and our General Meeting of Shareholders, in order to allow the Company to achieve more.

• Encourage the application of high moral values and strict adherence to all laws and regulations, including awareness of performing civic tasks for all stakeholders. This principle is applied to all shareholders, the Board of Commissioners and the Board of Directors in every decision made and action taken.

• To provide reasonable satisfaction to all of the Company’s stakeholders.

Legal Basis of Governance at Adira Finance The implementation of Corporate Governance at Adira Finance has been adopted from both local and international standards. At the national level, Adira Finance uses the following as reference:1. Law No 40 Year 2007 on Limited Liability

Companies;2. Law No 8 of 1995 on Capital Markets;3. OJK Regulation No.30/POJK.05/2014 on Good

Corporate Governance for Financing Companies.4. OJK Regulation No.21/POJK.04/2015 on

Implementation of GCG Code at Public Companies.

5. Bank Indonesia Regulation No.8/14/PBI/2006 dated 5 October 2006 on the implementation of GCG at Commercial Banks.

6. OJK Circular No.32/SEOJK.04/2015 on GCG Code for Public Companies.

7. GCG Road Map for Indonesian companies issued the OJK in January 2014.

8. General Guidelines for GCG revised 2006 issued by the National Committee on Governance (KNKG).


Adira Finance also uses the following standards as an international reference:1. Principles of Corporate Governance issued by

the Organization for Economic Co-operation and Development (OECD);

2. ASEAN Corporate Governance Scorecard issued by the ASEAN Capital Market Forum.

Adira Finance GCG Principles Adira Finance applies GCG principles through Corporate Governance guideline, which applicable to all of the Company’s stakeholders. The Adira Finance GCG guidelines were ratified in 2007, and have been amended several times.

Our GCG Guidelines were established after careful consideration of regulations on corporate governance issued by the OJK, the standard guidelines of Good Corporate Governance of the National Committee on Governance (KNKG) revised 2006, legislation on limited liability companies, legislation for financing companies, legislation of the capital markets, and other legislation related to the Company’s business activities.

All GCG guidelines are incorporated into the Company’s values, referred to as ADIRA TOP, which contains the following basic principles for all Adira Finance employees:1. Advance Each member of the management and employees

must have the “one step ahead” mental attitude on behaving, doing activities, and thinking (able to think and realize one step ahead and faster than others or competitors); “Visionary” (looking-forward vision that encourages and development); “Execution ability” (reliable in making quick and accurate decisions in any situation to reduce or eliminate adverse side effects).

2. Discipline Each member of the management and employees

in performing their obligations should be able to have an attitude of “Plan, Do, Check, and Action (PDCA) to Improvement” (leads to something better through the process of planning, implementation, monitoring, and continuous improvement), which is to be followed by the best possible way of thinking and behaving while acting in a disciplined manner according to the norms of the organization.

3. Integrity Each member of the management and employees

in all activities need to have an attitude that always upholds their commitments, which should be are accompanied by consistency, trustworthiness (honest and sincere), have a high sense of belonging and should become a role model for other employees.

4. Reliable Each member of the management and

employees should be able to reflect the mental attitude of a champion, that should be reflected in their positive thinking and intelligent attitude supported by full responsibility for everything they do.

5. Accountable All actions must be based on facts and data and

made by applying the principles of objective transparency and prudence.

6. Teamwork Each member of the management and all

employees must be willing to produce optimal results by working together, based on a willingness to sacrifice, to not blame each other, and to find solutions in synergy.

7. Obsessed Each member of the management and all

employees must work within the right process that is results-oriented, highly motivated with willingness to do more work and do it proactively, and should always work to improve their skills and look after one another.


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8. Professional Each member of the management and all

employees must have a mental attitude that reflects entrepreneurship, be able to calculate potential risks, be innovative and creative, and have reliable and consumer-oriented leadership.

ADIRA TOP requires each member of the management and all employees to always comply with prevailing regulations in operating the Company’s business, whether they be state laws, the central government’s, the local government’s, and/or customary laws prevailing in the area where the Company has operations. ADIRA TOP also governs the responsibility of members of the Company’s management and all of its employees.

Adira Finance GCG Principles and Approaches Based on the values contained in the ADIRA TOP, we have established the following GCG principles:1. Openness, particularly with regards to providing

information in a clear, complete, accurate and timely manner.

2. Accountability in defining roles, responsibilities, rights and duties between the Board of Commissioners, the Board of Directors, and the Company’s shareholders.

3. Responsibility, a commitment to professionally follow all applicable laws and regulations and act and behave as good corporate citizen.

4. Independence, the ability of each member of the Board of Commissioners, the Board of Directors, and all employees to conduct objective assessment on all things when business judgment is required in order to avoid potential conflicts of interest.

5. Equality and Fairness, which relate to professionalism and decision-making policies that ensure fair and equal treatment as an effort to protect the interests of all shareholders.

6. Integrity, which is a reflection of honesty as the fundamental principle of behavior to ensure all decisions made are free from conflicts of interest and corporate interests are prioritized against personal ones.

GCG Principles are applied at all levels of the Company through the following approaches: • By establishing strategic objectives and a set

of corporate values that are communicated and implemented across the Company’s entire organization;

• By establishing clear and unequivocal limits of responsibilities and accountabilities for all elements of the Company;

• By establishing guidelines for the application of ethical standards, values, goals, strategies, and environmental monitoring;

• By providing guidelines for a strong internal control system. This approach includes internal and external audit functions, and risk management and compliance functions that are independent from business units. In addition, the approach is also applied through the proper execution of checks and balances;

• By providing guidelines for specific risk monitoring that may potentially cause conflicts of interest. Conflicts of interest referred to include business relationship with affiliates, shareholders, Commissioners, Directors, and senior officials.

The Strategic Role of GCG in Sustainability IssuesThe BOD formulates and evaluates the Company’s vision, mission and values and submits them to the Board of Commissioners for approval. In the same pattern, the BOD also formulates the Company’s strategies, policies and objectives, including those related to the economic, environmental, social issues. [G4-42]


Both the Boards of Commissioners and Directors play an active role in sustaining the Company’s business, by regularly organizing joint meetings to discuss the Company’s performance. Besides that purpose, the meetings also discuss any emerging issue or issue that is expected to emerge as a preventive measure, while finding the best possible immediate solutions.

All issues or potential issues within the Company will initially be submitted to the Committees under the Board of Directors to be managed first by the Committees, who will then report all decisions they take to the Board of Directors and the Board of Commissioners through a joint meeting. [G4-49]

Details regarding the implementation of good corporate governance can be found in Adira Finance’s 2015 Annual Report.

Programs of GCG Improvement in 2015During 2015, Adira Finance implemented programs of GCG improvements that encompassed:1. The assessment of GCG by independent parties

in the perspective of the standards of ASEAN Corporate Governance Scorecard;

2. Training on ASEAN Corporate Governance Scorecard given to members of the Board of Commissioners, the Board of Directors, and the Committees under the Board of Commissioners;

3. The evaluation of various guidelines, standards, and system operational procedures;

4. Human Resources Development;5. Comprehensive Internal control systems and risk

management improvements;6. Regular socialization to the Company’s employees

and all business partners and creating intensive communication between the Company’s leaders and employees, business partners, and other stakeholders.

Various efforts to improve the implementation of Good Corporate Governance are of the strength to maintain public trust towards our business. Adira has proven that it has to date been able to maintain business sustainability. The banking sector, both domestic and overseas, continues to increase the volume of financing for working capital as our performance is improving. Every time we issue conventional or sharia bonds, they are enthusiastically absorbed by investors in the capital market.

Adira Finance GCG StructureTo organize good corporate governance, Adira Finance has established a GCC structure pursuant to regulations governing corporations in Indonesia. At Adira Finance, the structure consists of: 1. Main Organs, composed of: General Meeting of

Shareholders, the Board of Commissioners and the Board of Directors. The structure refers to Law No.40 Year 2007 on Limited Liability Companies and the Company’s Articles of Association, where:• The General Meeting of Shareholders is the

Company’s organ that has the authority not granted to the Board of Directors or the Board of Commissioners, within limits as specified in Law No.40 of 2007 on Limited Liability Companies and contained in the Articles of Association.

• The Board of Commissioners is the Company’s organ that oversees general and specific aspects in accordance with the Articles of Association and provides advice to the Board of Directors.

• The Board of Directors is the Company’s organ authorized and fully responsible for the management of the Company in the best interest of the Company, in accordance with the purposes and objectives of the Company and represents the Company both inside and outside the court in accordance with the provisions of the Articles of Association.

2. Supporting Organs, which consist of Committees under the Board of Commissioners and those under the Board of Directors.


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• Committees under the Board of Commissioners consist of the Audit Committee, the Risk Management Committee, the Nomination and Remuneration Committee, and the Corporate Governance Committee.

• Committees under the Board of Directors consist of the Credit Committee, the Risk Management Committee, Compliance Committee, ALCO Committee and Human Resources Committee. The structure is also supported by a Corporate Secretary, Internal Audit Unit, Compliance Unit, Anti Money Laundering & Counter Terrorism Financing Unit, Division Heads, and Regional Heads. [G4-34] [G4-35] [G4-36]

Both the main and supporting organs consult with stakeholders through General Meetings of Shareholders, management meetings, and dialogue with the public, business partners, and the Government. Adira Finance is aware of the importance of communication with stakeholders for its business sustainability.[G4-37]

General Meeting of Shareholders

Board of Directors Board of Commissioners

Audit Committee

Risk Management Committee

Nomination and Remuneration Committee

Corporate Governance Committee

Compliance Committee

Internal Audit Unit

Credit Committee

Main Organs

Supporting Organs


ALCO Committee

Compliance Unit

Human Resource Committee

Anti Money Laundering & Counter Terrorism

Financing Unit

CORPORATE GOVERNANCE STRUCTURE OF ADIRA FINANCE


ADIRA FINANCE GCG ASSESSMENTAdira Finance has gained an objective assessment of its GCG implementation. During 2015, besides through self-assessment the Company also had an independent assessment of its GCG practices.

Self-Assessment using FCGI FormatOur self-assessment used assessment criteria published by FCGI, and was done twice, in June 2015 and December 2015.

The scores with weighted values of the assessments made in June and December 2015 were both 88.12. This means that Adira Finance GCG implementation was “Excellent “

Self-Assessment using BI Regulations as Reference In addition to using FCGI’s format, the Company also self-assesses its GCG practices using valuation method by referring to Bank Indonesia Regulation No.8/14/PBI/2006 dated 5 October 2006 with a specific note that not all requirements therein apply to a financing company.

In accordance with Bank Indonesia Circular Letter No.15/15/DPNP dated 29 April 2013 regarding GCG implementation for Commercial Banks, the assessments were made once in every 6 (six) months, in July 2015 and January 2016.

Adira Finance had a score of 2 in its GCG assessments, which means that Adira Finance management has performed fairly good GCG implementation. This is reflected in strong fulfillment of GCG principles and in general all the weaknesses were considered insignificant and can be solved by Adira Finance with regular business actions.

Independent AssessmentTo ensure objectivity, besides self-assessments, the Company assigns an independent party to assess its GCG practices. In 2015, the Company underwent a GCG assessment made by the Indonesian Institute for Corporate Directorship (IICD) using the standards of ASEAN Corporate Governance Scorecard. The assessment uses as parameters the rights of shareholders, the role of stakeholders, disclosure and transparency, and responsibilities of the boards of commissioners and directors.

The IICD assessment was made during the period of August to early September based on analysis of information or the Company’s documents that are publicly available. The total score of Adira Finance GCG practices was 80.46. The results of IICD assessment suggest that Adira Finance GCG practices fell within the “Fair” category based on ASEAN CG Scorecard.


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Members of GCG Organs

Name Position Audit Committee


Nomination and

Remuneration Committee

Credit Committee

Compliance Committee

ALCO Committee

HR Committee

Board of Commissioners

Sng Seow Wah President Commissioner

Member

Djoko Sudyatmiko Commissioner concurrently as Independent Commissioner

Member Member Chairman

Eng Heng Nee Philip Commissioner concurrently as Independent Commissioner

Chairman Chairman Member

Loh Niap Juan Commissioner

Vera Eve Lim Commissioner Member

Board of Directors

Willy Suwandi Dharma

President Director • • • •Marwoto Soebiakno Vice President Director

concurrently as Director of Operations

• •

Hafid Hadeli Director of Marketing and Financing • •

Ho Lioeng Min Risk Management Director • • • •

I Dewa Made Susila Director of Finance and Compliance • • • •

Cornel Hugroseno IT Director •Swandajani Gunadi HR Director •

Sharia Supervisory Board:

Composition of Sharia Supervisory Board:• Prof. Dr. H. Fathurrahman Djamil, MA; Chairman of Sharia Supervisory Board• Dr. H. Noor Achmad, MA; Member of Sharia Supervisory Board• Dr. Oni Sahroni, MA; Member of Sharia Supervisory Board[G4-38]


Diversity of Members of Governance Body

Board of Commissioners Composition by Gender

Female Male

20% 80%

[G4-LA12]

By Age Group

30-50 years >50 years

20% 80%

[G4-LA12]

Independent Director, Independent Commissioner

Independent Commissioners % Independent Commissioners

2 40%

Independent Directors % Independent Directors

1 14.3%

[G4-41]

RISK MANAGEMENTThe key objective of Risk Management practices is to keep and safeguard the Company through the management of risk against loss that may arise from our variety of activities. In addition, it also aims to maintain the level of risk in order to conform to our specified directives. The role of risk management is important for the Company’s business sustainability.

Four Pillars of Risk ManagementAdira Finance adopted a mechanism that relies on four (4) pillars of risk management, as specified in Bank Indonesia Regulation No. 5/8/PBI/2003 on the Implementation of Risk Management for Commercial Banks.

Pillar 1 : Active Supervision of the Boards of Commissioners and DirectorsCommissioners and Directors carry out oversight functions assisted by Committees and Units under the two Boards. The BOC is supported by the Audit Committee, Risk Management Committee, and Nomination and Remuneration Committee. The BOD is supported by the executive committees

under the Board, Risk Management Committee, Credit Committee, Human Resources Committee, Asset and Liability Committee, and Compliance Committee.

Pillar 2 : Limits Policy and its ImplementationAdira Finance has a set of risk management policies referred to as Standard Operating Procedures and Internal Memoranda, which are disseminated to all employees. The set of policies is checked regularly and always adjusted to business current progress. In addition, the Company also has a set of policies that stipulate limitations of approval/authorization for both credit and non-credit transactions.

The Company needs to have approval from the parent company should it plan new limits. In addition, we also made a risk management consolidation framework with the parent company through an annual review process on the credit program. Our policy for allowance for receivables loss is also in line with the allowance policy in the parent company in accordance and compliance with BI regulations (those also governing the parent company).

Pillar 3: Identification, Measurement, Monitoring and Management Information SystemThe Company has tools in place to identify, measure, and oversee risks, particularly credit risk and operational risk. Since first established, the Company has been convinced that risk control is vital in running the business.

Based on that conviction, we have developed the right mechanisms using an End-to-End Approach, which is a risk control measure covering the entire process of risk management from beginning to the end.

From selecting consumer profiles to screening consumers eligible for financing to having consumer obligations settled. It also includes a wide range of primary and support functions. Now the Company


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has a comprehensive instrument for controlling various risks, adjusted to the impacts it may have on the sustainability of the Company’s business.

We identify and measure Credit risk by using credit assessment and credit analysis instruments. For operational risk, we have chosen the Risk Control Self-Assessment (RCSA). In addition, the Company also has other mechanisms as described below: (1) Fraud Management, in which the Company has

preventive, detective, investigative and recovery, and deterrence strategies; and

(2) Business Continuity Management/BCM) that underlies the preparation of Business Continuity Plan, which is a documented framework for responses and recoveries in critical activities within a unit with pre-defined time-frame.

Our Ad1Sys Corporate Information Technology System is capable of providing fast and accurate data to the management, the parent company, or other parties related to the Company. Risk management consolidation with the parent company’s risk management is done through by regularly disclosing our current risk exposures to the parent company’s Risk Management Committee. In addition we also submit periodic reports on compliance, legal and other aspects to the parent company.

Pillar 4: Internal ControlThe Company has other control mechanisms to quickly detect weaknesses and deviations. This control mechanism has three (3) tiers, namely :1. Tier 1: The manager/superior, in which each

direct supervisor is expected to filter weaknesses or irregularities during the earliest stages.

2. Tier 2: Quality Assurance (QA) Team that works to periodically check the compliance of every division with policies that have been issued by the Company, especially the most recent ones regarding business network.

3. Tier 3: Internal Audit, which independently reports its audit findings based on sampling to the Board of Commissioners and President Director.

The Parent Company’s Internal Audit Unit performs regular/information technology/and integrated audits on the Company’s units.

Risk Management Implementation1. Credit Risk The Company uses these instruments to

implement credit risk management:• Credit Assessment with 5 (five) criteria of how

to measure risk levels on consumers, namely: character, capacity, collateral, capital, condition.

• Analysis within Credit Risk; The company uses statistical methods to measure the level of risk with an end-to-end approach, which is generally described through processes; acquisition, billing, recovery.

2. Operational Risk Within the Company, Operational Risk

management is implemented by identifying, measuring and managing, supervising, and controlling risks through proactive measures, in order to prevent operational losses that may exceed the specified limit and potentially disrupt operations.

To manage this risk Adira Finance applies these risk management tools:• Risk Control Self-Assessment (RCSA) to

examine and measure the scale of potential risks during the internal process and later determines the status of operational risks to be reported periodically to the Parent Company. RCSA Rating is the result of an independent assessment performed by each unit assigned by the Company.


• Operational Risk Management System (ORMS), which is a filing system to record risk events during its occurrence. The risks are and recorded in our database system, to be further filed in the ORMS system of our parent company as a form of consolidation for a Bank Operational Risk Report.

3. Market Risk The Company consistently implements fixed

rate management by financing interest rate and financing expenses to the benchmark rate. Meanwhile, in anticipation of exchange rate risk, the Company has established a policy for hedging loans we have taken in foreign currencies. The Company takes loans in foreign currency but distributes no financing denominated in foreign currencies.

4. Liquidity Risk The Company implements a strategy of

diversification to create room for flexibility in selecting the types of sources of funding. This strategy has enabled the Company to choose the most appropriate source of funding when needed, with the most optimal financing costs and fits the tenor of asset financing.

5. Legal Risk To manage Legal Risk, the Company has a Legal

and Compliance Division in charge of managing legal risks. Legal and Compliance Division is responsible, among others, for handling and managing all legal aspects related to our activities and operations, providing legal opinions to the management, as well as overseeing and controlling all matters associated with our exposure to legal risks.

6. Compliance Risk The Company has a Corporate Secretary

Division and Investor Relations that oversees and prepares reports on all issues relating to compliance risk.

Evaluation of Risk ManagementThe effectiveness of risk management is evaluated internally by the Risk Management Committee and the Audit Committee, who assist the Board of Commissioners in its oversight function. The Audit Committee evaluates the Company’s internal control policies, oversees the implementation of such policies through the accountability provided by the Company’s Internal Audit Unit and provides recommendations to the Board of Commissioners.

Meanwhile, the Company’s Internal Audit Unit and the Internal Audit Unit (SKAI) of our parent company have always cooperated in conducting assessments and audits on our business and work units. The assessments and audits are always risk-based audits to ensure sustainable risk control and internal auditing.

PROVIDING FAIR AND TRANSPARENT SERVICESIn accordance with our commitment to be the best friend forever of our customers, Adira Finance provides fair, transparent, and better services to them prior to acquisition, during term of financing, and until the end of the contract period.

Adira Finance is aware that consumers are a very important part of the business. Therefore, to ensure customers receive the best service, we have established a special line for consumer complaints that can be contacted during week days (Monday-Friday: 8:30 am to 5:00 pm and Saturday: 8:30 am to 1:00 pm).

Requests for information and consumer complaints can also be submitted via Email Care: [email protected], and SMS services CARE Adira Finance available 24/7 through number 0811-811-5811. Conversations with customers are automatically recorded, allowing the designated unit to monitor the settlement process. This system has helped the


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Company to evaluate its customer service, as the basis of improvements going forward.

Throughout 2015, the consumer-programs activities conducted included among others:1. Consumer Empowerment In order to empower consumers, in 2015 Adira

Finance conducted various activities, which encompassed:• Establishing an Adira Finance consumer

community called Adira Club Member. Adira Club Member is a forum where consumers can communicate with each other, share experiences and knowledge, and where information can be effectively disseminated.

• Socialization or education related to general financial services offered by Adira Finance. For consumers who are also entrepreneurs, Adira Finance offers a profitable and friendly experience through the implementation of a customer training program. Adira provides a mentoring program to customers having businesses in the Greater Jakarta area.

This program lasted 3 months and divided into stages: the selection of participants, training, and mentoring. Afterwards, participants were monitored to see how their business progressed. The materials provided during this program ranged from business management knowhow, comprehension of potential business, simple bookkeeping, and marketing tricks.

2. Providing a special line for Consumer Complaints

In order to provide the best service to consumers, the Company has extended the reach of its costumer complaint handling services through Adira Finance’s Customer Services available at each of our branches, “Dering Adira” Services,

[email protected], and SMS CARE that can be accessed 24/7.

3. Handling Customer Complaints In providing complaint handling services to

consumers, the Company always refers to, among other regulations, OJK Regulation No.01/POJK.07/2013 on Protection to Consumers in Financial Services Sector, OJK Circular Letter No.2/SEOJK.07/2014 Customer Complaint Services And Settlement for Businesses in Financial Sector and other applicable legislation.

Consumers and the public can directly submit complaints or feedback through our Customer Service at any Adira Finance offices or by contacting Dering Adira service by calling 500 511 (021-500511 from mobile phones) Monday through Friday: 08:30 am to 5:00 pm and Saturdays from 8:30 am to 1:00 pm.

Requests for information and complaints can be sent to Email Care: [email protected], and Adira Finance SMS CARE that can be accessed 24 hours 7 days a week at 0811-811-5811.

In 2015, we received 15,509 complaints including both related and unrelated complaints to the financial services that we provide, all of which had been resolved (100%) by year end.

Complaints received 2015 2014 2013

Total 15,509 4,767 4,087

Notes:1. Examples of complaints related to financial services are survey

delays, delays in the distribution, payment process and other types of complaints.

2. Examples of complaints not related to financial services are insurance claims or complaints unintentionally filed to Adira Finance due to similarities in company names or trademark.


We evaluate all complaints, feedback, and information we receive for further analysis and use this as the basis of improvements in providing services to consumers.

To avoid misunderstandings, customers shall receive a copy of the financing contract long before they sign it, to allow them to go through the contents. However, there is always possibility that consumers do not fully understand the contents, resulting to disputes down the road.

Type of Legal Cases 2015 2014

Basic Clauses (Service Labelling) 2 4

Customer Privacy 4 0

Other Legal Cases 30 41

Total 36 45

In order to meet the provisions of OJK Circular Letter No.2/SEOJK.07/2014 On Customer Complaint Services And Settlements In the Financial Services Sector, Adira :1. Already has a Complaint Service and Settlement

procedure in place.2. Never charges customers for customer complaint

services and settlement.3. Already has a special unit that functions to give

customer complaint services and settlement, called the Service Quality Unit.

4. Has, since 2010, assessed service levels throughout the Company’s business units by calculating the SLA (the time required by each unit to complete the process within the respective unit). The results of this assessment are then respectively submitted to all business units on a monthly basis. The results have encouraged all units to improve performance, either by improving existing systems or by providing relevant training

to employees in the units. In 2015, the Company spent more than Rp500 million on third party services who have the knowledge and experience in consumer services, in order to improve service to consumers.

5. In order to minimize risks and ensure that customer complaint services and settlement process follows procedure, Adira Finance has established the Quality Assurance Unit and Internal Audit Unit.

6. Has always submitted customer complaint services and settlement reports within the time as specified by the OJK.

4. Product Information For each of its financing products, Adira Finance

always explains to our customers the applicable terms and conditions. Each financing contract is made under the provisions of applicable legislation and as commonly practiced in Indonesia. The explanations are given to prevent customers from feeling wronged during the financing period.

To ensure this procedure is always followed, we equip any officer dealing with consumers with the necessary knowledge about our products and services and make certain that he or she is able to explain the requirements contained in our loan contracts when potential consumers request them to.

5. Customer Confidentiality and Privacy Adira Finance protects consumer data and

information to prevent misuse by irresponsible parties. To maintain customer privacy and confidentiality Adira Finance requires its management and all employees to keep all classified data and information confidential.


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This obligation is included in the Adira Finance Employee Code of Conduct which the employees have to uphold starting from the training period through to the work period, and even when they are no longer Adira Finance employees. Also considered confidential are all of the Company’s confidential information, including the Company’s plans and strategies, consumer information, financial information, data of operations, and other information deemed important by the Company. Throughout 2015, Adira Finance received no complaints nor warnings from Financial Services Authority (OJK) related to violations of customer confidentiality or privacy. [G4-PR8]


IND

ONESIAN

H E R I T A G

E

Bali 1sland

Bali IslandBali Island is the most popular tourists destination in Indonesia. Bali boasts the best resorts in the world combined with charming beaches, beautifully terraced rice fields, magnificent underwater scenery, and unique cultural arts and crafts.


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ABOUT

THE 2015 SUSTAINABILITY REPORT

This is the sixth Adira Finance’s sustainability report published by Adira Finance. This report contains a description of its major achievements in corporate governance, social responsibility, and environmental management implemented throughout 2015. The data and information presented includes the head office and as well as Adira Finance’s entire business network, which is spread over most of Indonesia.

This report illustrates Adira Finance’s commitment to realize sustainability programs and stakeholders, with the aim of delivering maximum benefit for the entire Adira community including the surrounding community, business partners, employees, and Adira Finance as a corporate entity in the future.

REFERENCES FOR THIS 2015 SUSTAINABILITY REPORTThe presentation of this Sustainability Report refers to the G4 Sustainability Reporting Guidelines issued by the Global Reporting Initiatives (GRI-G4) and the Financial Services Sector Disclosure Guide (GRI-G4 SDFS).

All data and information presented in this Sustainability Report uses the ‘in accordance’ option, with ‘core’ presentation in every aspect of our report. The GRI Content Index is presented on page 68. [G4-32]

REPORTING PERIOD AND FREQUENCY The 2015 Adira Finance Sustainability Report presents data and information relating to the sustainability of the Company’s management during the period of 1 January to 31 December 2015. Our report for the prior year was published in June 2015. Adira Finance is committed to publishing this Sustainability Report annually. [G4-28][G4-29][G4-30]

TOPIC SELECTIONS This year’s Sustainability Report contains a description of policies, procedures, strategies, and programs of sustainability implemented by PT. Adira Dinamika Multi Finance Tbk (Adira Finance), which operates within Indonesia. This year’s report covers the material detailed in the 2015 Financial Statements of PT. Adira Dinamika Multi Finance Tbk. [G4-17]

In selecting the contents of this Sustainability Report, Adira Finance always tests the materiality of all topics relevant to all sustainability issues faced. We have selected these sustainability topics based on the G4 Global Reporting Initiatives (GRI-G4) Sustainability Reporting Guidelines and our previous sustainability reports. Each sustainability topic is subject to qualitative materiality tests by Adira Finance ensure that material aspects and topics are presented in this report.


Adira Finance applies certain principles set by GRI G4 to specify the contents of the report, namely the principles of materiality, stakeholder inclusiveness, sustainability context, and comprehensiveness. We have applied these principles to ensure that each topic presented in this report conforms to these principles. [G4-18]

Environmental Category

Social Category

Economic Category

Affecting Stakeholder Perspectives

Identified Material Aspects [G4-19]

Significant for Adira Finance’s economic, social, or environmental performance

Threshold

2

3

24

123 25

21 21

13 1310

15

20

16

14

1119

56

894

7

22 22

18 18 12 12

17

Relevant aspects and topics 1. Economic performance 2. Indirect economic impact 3. Procurement practices 4. Material 5. Energy 6. Water 7. Emissions 8. Effluents and Waste 9. Transportation 10. Employment 11. Labor Relations/

Management 12. Health and safety 13. Training and education 14. Diversity and equal

opportunity 15. Equality of remuneration 16. Non-discrimination 17. Independence of

association and collective agreements

18. Human Rights and security practices

19. Local community 20. Anti-corruption 21. Explanation of products and

services 22. Customer privacy 23. Compliance and

governance 24. Credit quality 25. Creating Shared Value


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Organizational Aspect LimitsMaterial Aspect Group Internal Limits [G4-20] External Limits [G4-21]

Economic Performance Adira Finance Operations -

Creating Shared Value Adira Finance Operations Partners and Community

Indirect Economic Impact Adira Finance Operations Partners, Customers, and the Community

Customer Privacy Adira Finance Operations Partners and Customers

Product and Services Explanation Adira Finance Operations Partners and Customers

Local Community Adira Finance Operations the Community

Training and Education Adira Finance Operations Partners and Customers

Employment Adira Finance Operations -

Energy and Water Adira Finance Operations -

The 2015 Adira Finance Sustainability Report does not restate any information or data from the 2014 Sustainability Report. The material aspects presented in this report differ however from those presented in the previous edition, in order to make this report consistent with the Company’s new vision. Aspects that are no longer considered material for disclosure are procurement, material, emission, effluent and waste, transportation, human rights, freedom for discussions, and anti-corruption. [G4-22][G4-23]

Contact for this Sustainability ReportTo obtain further information, clarifications, feedback, or suggestions or to file criticisms on this report, you can use the form attached at the end of this report or directly contact:

Corporate SecretaryPT Adira Dinamika Multi Finance TbkThe Landmark Building I 29th FloorJl. Jenderal Sudirman No. 1Jakarta 12910Phone : +6221 5296 3232Facsimile : +6221 5296 4159E-mail : [email protected] : www.adira.co.id [G4-31]


Adira Finance ProfileCompany Name PT Adira Dinamika Multi Finance Tbk [G4-3]

Core Business Financing Companies:1. Investment Financing;2. Working Capital Financing;3. Multipurpose Financing;4. Other financing approved by Financial Services Authority (OJK);5. Operating leases and/or fee-based activities to the extent that they are not in violation of

all applicable legislations in the financial services sector.

Sharia Financing:1. Purchase Financing;2. Investment Financing;3. Services Financing.

[G4-4]

Head Office Address The Landmark I 26th-31st FloorJl. Jenderal Sudirman No. 1Jakarta 12910Phone : +6221 5296 3322, +6221 5296 3232 Facsimile : +6221 5296 4159E-mail : [email protected] : www.adira.co.id

[G4-5]

Country of Operation 1 (Indonesia) [G4-6]

Ownership and Legal Status Limited Liability Company in IndonesiaShareholding Composition:PT Bank Danamon Indonesia Tbk 95%Public 5%

[G4-7]

Market Served Indonesia ConsumerNew Financing: Rp30.5 trillion

[G4-8]

Organization Scale (per 31 December 2015)

Total Employees : 21,351Total Operations : 1 (one)Total Managed Financing Recevable : Rp46.4 trillionTotal Assets : Rp27.7 trillionTotal Liabilities : Rp23.4 trillionTotal Equity : Rp4.4 trillion

[G4-9]

Commitment to External Initiatives

- [G4-15]

Membership in Associations • Indonesia Financial Services Asssociation• Indonesian Entrepreneur Association

[G4-16]


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Fullerton Financial Holdings Private Limited

Asia Financial (Indonesia) Private Limited

Public

Public BoD/BoC

Ir. Willy Suwandi Dharma

JPMCBFranklin Templeton Investment

Funds

Temasek HoldingsPrivate Limited

Fullerton Management Private Limited

100%

100%

100%

67.37%25.97% 0.27%

95%

1% 0.42%

4.58% 10%

90%99%

6.39%

MAJOR SHAREHOLDERS& AFFILIATIONS


ORGANIZATION STRUCTURE

* Pande Radja Silalahi passed away on 2 October 2015

DIRECTOR OF SALES & DISTRIBUTION

Hafid Hadeli

RISK MANAGEMENT DIRECTOR

Ho Lioeng Min

VICE PRESIDENT DIRECTORMarwoto Soebiakno

Head of Business Development

Vacant

Deputy Director - Head of Operations

Suang Siang Susanto

Head of Honda New Motorcycle Marketing

Chandra Hermanto

Deputy Director - Head ofMotorcycle Financing 1

Harry Latif

Deputy Director - Head ofMotorcycle Financing 2

Andy Sutanto

Deputy Director - Head ofMotorcycle Financing 3Nugroho Budy Prasetyo

Head ofCredit Fleet &

CommercialAlim Mashuril

Chaqqi

Head ofCredit RetailDenny Riza

Farib

Head of Loan & Asset

Recovery Riyantono

Head Of Collection Operation

Henrick Kusno Sujarwadi

Head of National Used Motorcycle Marketing 1

Sugianto

Head of National Used Motorcycle Marketing 2

Vacant

Head of National Yamaha New Motorcycle

MarketingTrianto Subekti

Head of Multi Brands New Motorcycle Marketing

Vacant

Head of National Suzuki New Motorcycle

MarketingVacant

Head of Quality & Securities Assurance

Achmad Komara

Head of Operations Miranti Hidajat

Head of RegionAlphonsus Barta Pelawi

Djohan HadiKrisdianto

Cucu SumiarsaSuwanto

Mochamad Syahrir Insan Anshari

Sugeng HariadiAffan Barieda

Head of Customer Retention ManagementAntonius Danny Hendarko

Head of National Chanelling ManagementAntonius Danny Hendarko

Head of Corporate Performance Management

Wirdati Handayani

Head of Marketing Communication & Brand

ManagementWirdati Handayani

AUDIT COMMITTEEChairman

Eng Heng Nee Philip Member

Djoko SudyatmikoDiyah Sasanti

RISK MANAGEMENT COMMITTEEChairman

Eng Heng Nee PhilipMember

Djoko SudyatmikoVera Eve Lim

BOARD OF COMMISSIONERSPresident Commissioner:

Sng Seow WahCommissioners, concurrently

as Independent CommissionersPande Radja Silalahi *

Djoko SudyatmikoEng Heng Nee Philip

CommissionersLoh Niap JuanVera Eve Lim

PRESIDENT DIRECTORWilly Suwandi Dharma

Head of Risk ManagementInformation System & Analytics

Pramono Pranoto

Head of Operational Risk Management

Budiman Parkin TambunanDeputy Director - Head of Credit

& CollectionVacant

HEAD OF INTERNAL AUDIT Ingrid Sri Komala Dewi

Head of Corporate Communication & Csv

Silvi Tirawaty


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SHARIA SUPERVISORY BOARDChairman

H. Fathurrahman DjamilMember

Noor AhmadOni Sahroni

Head of Corporate Secretary , Investor Relations & Compliance Perry Barman Slangor

Head of IT Services & Operation

Tantri Hariadi

Head of Corporate Real Estate Management

Vacant

Head of Plan Do Check Action

Vacant

Head of Human Resources Development

Novitri Diah Lista Wulandari

Head of HCGATri Evita Aryani

Head of Legal Ingrid Setiadharma Head of IT Solution &

DevelopmentVacant

Head of Process Improvement Bien Constan

Head of ShariaSugianto

Head of Fleet MarketingAgus Hamid Arief

Head of Marketing DevelopmentRudy Widjaja

Deputy Director - Head ofRetail Car Financing

Niko Kurniawan Bonggowarsito

NOMINATION AND REMUNERATION COMMITTEE

ChairmanDjoko Sudyatmiko

Member Eng Heng Nee Philip

Sng Seow Wah

CORPORATE GOVERNANCE COMMITTEE

ChairmanDjoko Sudyatmiko

MemberPande Radja Silalahi *

Diyah Sasanti

Head of Financial Planning & ProjectSylvanus Gani Kukuh Mendrofa

Head of Finance and Funding Jimmy Setiadi Tunggaldinata

Head of Accounting & TaxLindawati Soetopo

DIRECTOR OF FINANCEI Dewa Made Susila

DIRECTOR OF COMPLIANCE AND CORPORATE SECRETARY

I Dewa Made Susila

IT DIRECTORCornel Hugroseno

HRDGA, CREM &PDCA DIRECTORSwandajani Gunadi

Head of National New Car 1 Marketing

Simon Yauwenas

Head of National New Car 2 Marketing

Yimmy Weddianto

Head of National Used Car Marketing

Vacant


Operations

Areas

Branch offices are the Company’s business units. They hold executive powers and manage their own books, but their activities are subject to the provisions passed by the head office. As of 31 December 2015, the Company had 201 branch offices.

Branch Offices Representative OfficesRepresentative offices are an extension of the Company’s branch offices. They offer direct points of service to the Company’s customers. Each branch office is responsible for handling one or more representative offices in its area.


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Kiosks are a part of the Company’s official business network. They are located in strategic areas to facilitate certain transactions. As of 31 December 2015, the Company had 67 kiosks.

KiosksEach representative office has the authority to market financing products, receive installment payments and provide application/credit forms. All the administrative processes, including credit approval, are conducted at the branch offices. As of 31 December 2015, the Company had 290 representative offices.

Areas Branch Offices RO Kiosk Total

Jabodetabekser 33 5 16 54

West Java 24 21 9 54

Central Java 22 21 16 59

East Java 25 22 18 65

North Sumatra Region 19 62 2 83

South Sumatra Region 23 58 0 81

Kalimantan 21 40 0 61

Sulawesi, Maluku, Papua 23 52 1 76

Bali, Nusa Tenggara 11 9 5 25

Total 201 290 67 558


Awards& Certification

Adira Finance received the Excellent Service Experience Award 2015 in the Industry Category of 2-Wheeler Financing and 4-Wheeler Financing. Organized by Carre Center for Customer Satisfaction and Loyalty (Carre CCSL) in cooperation with Bisnis Indonesia daily, the event was held at Hotel Mulia, Jakarta.

10 February

0102

0304

Adira Finance received the Manado Service Excellent Award 2015 in the Best Motorcycle Financing Product category, organized by MarkPlus Insight.

24 February

Adira Finance received the Bali Service Excellent Award 2015 in the Best Motorcycle Financing Product category, organized by MarkPlus Insight.

0110 March

Adira Finance received the Obsession Awards 2015 in the Best Private Sector Achievers Category, Sub-Category Non-Bank Financing, organized by Obsession Media at Hotel Indonesia Kempinski, Jakarta.

02

19 March

Adira Finance received the Warta Ekonomi - Indonesia Most Admired Companies (WIMACO) 2015 award in the Multifinance category. The event was organized by Media Warta Ekonomi and held at Hotel Le Meridien, Jakarta.

0315 April

Adira Finance won the first rank in the Multifinance category of Infobank Digital Brand of the Year 2015, organized by InfoBank magazine at Hotel Shangri-la, Jakarta.

04

26 April


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Adira Finance received the Jabodetabek WOW Service Excellent award in the Motorcycle Financing category. The event was organized by MarkPlus Insight at Kota Kasablanka, Jakarta.

8 May

Adira Finance received the Bisnis Indonesia Award 2015 in the Best Issuer in the Financial Sector - Multifinance category, organized by Bisnis Indonesia daily at JW Marriot Hotel, Jakarta. In the same event, Adira Finance’s President Director, Willy Suwandi Dharma, was recognized as one of the 30 Best Chief Executive Officer (CEO) in Indonesia.

05

16 JuneAdira Finance received the first place at the Word of Mouth Marketing Award 2015 in the Motorcycle Leasing category. The event was organized by SWA Magazine and Onbee Marketing Research Institution at Hotel Intercontinental, Jakarta.

06

13 August

Adira Finance received an award in the 11th Islamic Finance Award 2015 for The Best Islamic Multifinance category. The event was organized by Karim Consulting at The Energy Building, Jakarta.

087 September

Adira Finance received the Best Syariah Award 2015 in the Best Sharia Multifinance category. The event was organized by Investor Magazine at Hotel Le Meridien, Jakarta.

07

19 August

05

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Awards & Certification

Adira Finance received the Silver of Champion in Indonesia WOW Brand Award 2015 for the Motorcycle Leasing category. The event was organized by MarkPlus Insight at Raffles Hotel, Jakarta.

09

10 SeptemberAdira Finance won third place at the 2014 Annual Report Awards in the Private Finance Listed category. The event was organized by the Financial Services Authority, the Directorate General of Taxes, the State Ministry for State-Owned Enterprises, Bank Indonesia, the National Committee for Governance Policy, and the Indonesia Accountant Association at the Ritz-Carlton Hotel, Jakarta.

10

22 September

Adira Finance received the Indonesia Best Brand Award 2015 in the Motorcycle Financing category and The Best Brand Platinum Award for the Car Financing category. The event was organized by SWA Magazine and MARS Indonesia research institute at Hotel Shangri-La, Jakarta.

11

30 September

09

10

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Adira Finance received the Indonesia WOW Service Excellence Award 2015 for the Motorcycle Financing category in 4 areas, namely Sumatera, Java-Bali, Kalimantan and Sulawesi-Maluku-Papua. The event was organized by Markplus Insight at Hotel Ritz-Carlton, Jakarta.

12

9 October

Adira Finance received the Otomotif Choice Award 2015 in the Motorcycle Credit general category, in an event organized by Otomotif Magazine and Kompas Gramedia at Jakarta Convention Center, Jakarta.

1411 December

Adira Finance was recognized as a Top 100 Most Valuable Brands 2015, placing 38th rank in the list of 100 brands with highest (nominal) value, and ranking 2nd in the Finance Service industry, with a brand value of US$114 million. The event was organized by SWA Magazine and Brand Finance at Hotel Shangri-La, Jakarta.

13

22 October

12

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GRI G4

Index and G4 Standard Disclosure for Financial ServicesThe Adira Finance 2015 Sustainability Report contains Disclosure Standards for the G4 Sustainability Reporting Guidelines issued by the Global Reporting Initiatives (GRI-G4) and G4 Standard Disclosure for Financial Services. All data and information provided in this Sustainability Report uses the ‘core’ presentation option in every aspect of our report. Our GRI Content index is as follows:

General Standard Disclosures Page

STRATEGY AND ANALYSIS

G4-1Statement from the most senior decision-maker of the organization 15-17

G4-2Description of key impacts, risk and opportunities

ORGANIZATION PROFILE

G4-3Name of the organization 58

G4-4Primary brands, products, and services 58

G4-5Location of the organization’s headquarters 58

G4-6Number of countries where the organization operates 58; 62-63

G4-7Nature of ownership and legal form 58

G4-8Markets served 58; 62-63

G4-9Scale of the organization 60

G4-10a. Total number of employees by employment contract and genderb. Total number of permanent employees by employment type and genderc. Total workforce by employees and supervised workers and by genderd. Total workforce by region and gender

17;34;37383837

G4-11Percentage of total employees covered by collective bargaining agreements In accondance with Company

Regulation, Adira Finance employees are not covered by

any Collective agreement

G4-12Organization supply chain

G4-13Any significant changes during the reporting period Tidak ada perubahan signifikan

pada masa pelaporan

G4-14Precautionary approach or principle 48-50

G4-16List of memberships in associations 58



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MATERIAL ASPECTS AND IDENTIFIED BOUNDARIES

G4-17Entities included in the organization’s consolidated financial statements 55

G4-18a. Process for defining the report content and the aspect boundariesb. The reporting principles for defining report content

5656

G4-19 Material aspects identified in the process for defining report content 56

G4-20The aspect boundary within the organization 57

G4-21Aspect boundary outside the organization 57

G4-22Effect of any restatements of information provided in previous reports 57

G4-23Significant changes from previous reporting periods 57

STAKEHOLDERS ENGAGEMENT

G4-24List of stakeholder groups engaged 22-25

G4-25Basis for identification and selection of stakeholders 22-25

G4-26Organization’s approach to stakeholder engagement 22-25

G4-27Key topics and concerns that have been raised through stakeholder engagement 22-25

REPORT PROFILE

G4-28Reporting period 55

G4-29Date of most recent previous report 55

G4-30Reporting cycle 55

G4-31Contact point 17;57

G4-32a. ‘in accordance’ option the organization has chosenb. GRI content index for the chosen option

55

G4-33External assurance for the report No external assurance has

been made on Adira Finance 2015 Sustainability Report

GOVERNANCE

G4-34Governance structure 45

G4-35Process for delegating authority for economic, environmental and social topics 45

G4-36Appointed an executive-level position or positions with responsibility for economic, environmental and social topics

45

G4-37Processes for consultation between stakeholders and the highest governance body 45



G4-38Composition of the highest governance body and its committees 47

G4-39Whether the chair of the highest governance body is also an executive officer The chair of the highest

governance body is not an executive officer

G4-40Nomination and selection processes for the highest governance body and its committees 2015 Annual Report

G4-41Processes to ensure conflicts of interest are avoided and managed 48 and 2015 Annual Report

G4-42Highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals

43

G4-44a. Evaluation of the highest governance body’s performance b. Actions taken in response to evaluation of the highest governance body’s performance

2015 Annual Report

G4-45a. Highest governance body’s role in the identification and management of economic, environmental

and social impacts, risks, and opportunitiesb. Stakeholder consultation

2015 Annual Report

G4-46Highest governance body’s role in reviewing the effectiveness of the organization’s risk management 2015 Annual Report

G4-47Frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities

2015 Annual Report

G4-49Process for communicating critical concerns to the highest governance body 44

G4-51a. Remuneration policies for the highest governance body and senior executives b. Performance criteria in the remuneration policy

2015 Annual Report

G4-52Process for determining remuneration 2015 Annual Report

G4-53Stakeholders’ views regarding remuneration 2015 Annual Report

ETHICS AND INTEGRITY

G4-56Values, principles, standards and norms of behaviour 42-43

G4-57Internal and external mechanism for seeking advice on ethical and lawful behaviour

G4-58Internal and external mechanism for reporting concerns about unethical or unlawful behaviour



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SPECIFIC STANDARD DISCLOSURES PageMaterial aspects DMA and indicators

List specific standard disclosures related to each identified material aspectCategory: economic DMA EC

Economic performance + G4-EC1Direct economic value generated and distributed 20

Indirect economic impacts G4-EC8Significant indirect economic impacts, including the extent of impacts 57

Category: environmental DMA ENEnergy G4-EN3

Energy consumption within the organization 28, 57Water G4-EN8

Total water withdrawal by source 28, 57Overall G4-EN31

Total environmental protection expenditures and investments by type 27-29Category: socialSub Category: Labor practices and decent work

DMA LA

Employment G4-LA1Total number and rates of new employee hires and employee turnover by age group, gender and region

34

Training and education G4-LA9Average hours of training per year per employee by gender, and by employee category

36

G4-LA11Percentage of employees receiving regular performance and carier development reviews, by gender and by employee category

Sub Category: Society DMA SOLocal community + G4-SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

22-25

Sub Category: Product responsibility

DMA PR

Product and Service Labelling +

G4-PR3 Type of product and service information required by the organization’s procedures 55-58G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

No related incidents in 2015

G4-PR5 Results of surveys measuring customer satisfaction 34DMA-PRFinancial Skills Initiatives (FS16)

Marketing Communication G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

No related incidents in 2015

Customer Privacy G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

53

Product Portfolio++ FS6 22-25FS7 26-27


Response Sheet for

Adira Finance 2015 Sustainability ReportThank you for reading Adira Finance 2015 Sustainability Report. For Adira Finance, continuous improvement is essential to be able to give the best to our stakeholders. To improve the overall sustainability performance of Adira Finance we expect criticism and suggestions on this report.

No. Area Your Comment

1. The information presented in the report meets your expectations

2. The data presented is transparent, trustworthy and fair

3. The report can be read comfortably, with appropriate language style and clear

4. Layout, color scheme, appearance and pictures in the report are attractive

5. The information that you would like to be discussed more deeply is

6. Other suggestions that you would like to convey for the improvement of Adira Finance’s Sustainability Report

Readers’ ProfileGender Age Highest Education Occupation

Name of Institutions Field of Work/Organization Would you like to receive future reports? Preferred medium

We value your comments and suggestions.

Kindly send this sheet to:Corporate SecretaryPT Adira Dinamika Multi Finance TbkThe Landmark Building I 29th FloorJl. Jenderal Sudirman No. 1Jakarta 12910

About Adira Finance 4

Message from the President Commissioner 10

Message from the President Director 14

A Strong Foundation for Growth Towards Mutual Prosperity

19

Human Resources Development 33

Responsible Consumer Financing 41

About the 2015 Sustainability Report 55

Sustainability Report

2015A Strong Foundation

for Mutual Prosperity

The Landmark I 26th-31st FloorJl. Jenderal Sudirman No. 1Jakarta 12910Phone : +6221 5296 3322, +6221 5296 3232 Facsimile : +6221 5296 4159Website : www.adira.co.id

2015 Sustainability Report

PT Adira Dinamika Multi Finance Tbk

A Strong Foundation for Mutual Prosperity

Documents

A Strong Foundation for Mutual Prosperity - Adira - Adira · ADIRA FINANCE PT Adira Dinamika Multi Finance Tbk (Adira Finance) is a financing company in Indonesia that was established