THE PIONEERING SPIRIT FOR A BRIGHTER FUTURE · PIONEERING SPIRIT FOR A BRIGHTER FUTURE FOREWORD The completion of a program depends not only on the right and focused business strategy,

TH

E P

ION

EE

RIN

G S

PIR

IT F

OR

A B

RIG

HT

ER

FU

TIR

EA

NN

UA

L REPO

RT 2

01

7

PT DANAREKSA (PERSERO) ANNUAL REPORT 2017

THE PIONEERING SPIRIT FOR A BRIGHTER FUTURE

PIONEERING SPIRIT FOR A BRIGHTER FUTURE

F O R E W O R D

The completion of a program depends not only on the right and focused business strategy, but also on consistency and discipline in building good corporate governance. Danareksa has translated it into the implementation the cultural values of IFAST - Integrity, Fairness, Accountable, Skillful and Transparency. In the last four decades, Danareksa has always created a variety of products and services that become the benchmark for Indonesian capital market industry. This spirit of innovation and pioneering of Danareksa continue to be maintained from time to time to achieve Indonesia's glory.

There are many things that affect the development of a business organization, one of which is the organization's consistent effort in maintaining growth and risk management. Danareksa believes that the rise and fall of a business is inevitable, but with long experience as a pioneer of the capital market in Indonesia, Danareksa is able to get through tough times. The records during 2017, still placed Danareksa as one of the trusted and experienced companies in Indonesian capital market industry.

In that context, customers and partners for Danareksa are not just business forces, but rather the life of the capital market growth itself. Customer confidence and recognition of achievements from major institutions in the financial industry highly strengthen Danareksa to remain one of the trusted and reliable Indonesian Capital Market companies.

The pioneering role is also highly important in developing the growing Indonesian Capital Market. It must always be upheld as a commitment that guides Danareksa's steps forward.

Danareksa realizes that the dynamics of the needs of the Capital Market community are increasingly varied and the level of competition in the Capital Market is increasing. The emergence of new players sends a clear message that Danareksa, as one of the State-Owned Enterprises, should take strategic steps to move forward, be maintained and developed for future generations of Indonesia.

2 TA B L E O F C O N T E N T

PIONEERING SPIRIT FOR A BRIGHTER FUTURE

1

SIGNICANT EVENTS 10

HIGHLIGHTS

Financial Highlights 12

Bond Information 13

Share Information 13

REPORT OF THE BOARD OF COMMISSIONERS ANDBOARD OF DIRECTORS

Board of Commissioners' Report 16

Board of Directors' Report 20

RESPONSIBILITY OF ANNUAL REPORT 2017 27

P E R F O R M A N C E

TA B L E O F C O N T E N T

D A N A R E K S A | A N N U A L R E P O R T 2 0 1 7 3

C O M PA N Y P R O F I L E

Corporate Identity 30

Danareksa Brief History 31

Milestones 32

Vision and Mission 34

Purpose and Objective 35

Excellence and Added Value 36

Business Sector 37

Subsidiaries 46

Associates 47

Organizational Structure and Senior Officials 48

Board of Commissioners 53

Board of Directors 57

Human Capital 62

Shareholder Composition 74

Company Group Structure 74

Award and Certification 76

Capital Market Supporting Institutions and Professionals

77

Company Network 78

4

M A N A G E M E N T D I S C U S S I O NA N D A N A LY S I S O N C O M PA N Y P E R F O R M A N C E

GENERAL OVERVIEW

Economic Indicators 2017 82

Capital Market Industry 84

Business Prospects 2017 85

FINANCIAL REVIEW

Financial Performance 86

Financial Position 88

Solvency and Other Ratios 92

Capital Structure 93

Material Commitments For Capital Expenditure

94

Capital Investment 94

Material Information and Facts Occurred 94

After the Date of the Accountant's Report

94

Dividend 94

ESOP/MSOP 94

Report of Realized Use of Proceeds from 94

Public Offering

Material information on investments, 94

expansion, divestment, merger/

consolidation, acquisition or restructuring

of debt/capital

Material Information Containing Conflict 94

of Interest and/or Transaction with

Affiliated Parties

Regulatory Changes that Significantly 94

Affect the Company

Changes in Accounting Policies Applied by the Company

95

BUSINESS REVIEWPT Danareksa (Persero) 97

PT Danareksa Sekuritas 102

PT Danareksa Investment Management 108

PT Danareksa Finance 112

PT Danareksa Capital 114

OPERATIONAL REVIEWResearch 116

Institutional Coverage and Advisory 118

Marketing and Market Share 118

Information Technology 120

General Affairs,Purchasing & Procurement 125

Legal, Asset Recovery & Compliance 126

Accounting & Financial Control 126

Treasury, Proprietary, Finance Operation 126

Business Development & Change Management

127



C O R P O R AT E G O V E R N A N C E

GCG PRINCIPLE IMPLEMENTATION 130

Commitment 130

REFERENCE/LEGAL BASIS 132

GCG IMPLEMENTATION PURPOSE 133

CODE OF CONDUCT 134

Principles of the Code of Conduct 134Dissemination 134Code of Conduct Enforcement 134Commitment 134Corporate Culture 134

MAJORITY AND CONTROLLING SHAREHOLDERS

135

GCG STRUCTURE 136

General Meeting of Shareholders (GMS) 136

Board of Commissioners 137

Charter 137Duties, Authorities and Obligations 137

Distribution of Duties and Responsi-bilities

138

Frequency and Attendance Rate of 139

Board of Commissioners MeetingTraining and Development 139Performance Assessment 140Remuneration Determination Proce-dure

140

Remuneration Structure 140Remuneration Amount 140Work Plan & Duty Implementation 142Independent Commissioner 142

Affiliation with Shareholders and Board of Directors

142

Table of Board of Directors Work Plan and Duty Implementation

143

Table of List of Approval Letter/Authorization of Recommendations

146

Board of Directors 149Charter 149Duties and Authorities 149Obligations of the Board of Directors 150Distribution of Duties and Responsibilities of Board of Directors

153

Concurrent Positions of Board ofDirectors

153

Frequency and Attendance Rate ofBoard of Directors Meeting

153

Training and Development 153Performance Assessment 153Remuneration Determination Procedure

153

Remuneration Structure 153Remuneration Amount 154Affiliation with Shareholders andBoard of Commissioners

155

GMS Implementation 158

Organ/Committee of the Board of Commissioners

Secretary of the Board of Commissioners 160Audit Committee 161

Organ/Committee under the Board of Directors

Risk Management Committee 166Human Capital Committee 168Information Technology Committee 170Assets and Liabilities Committee 171

Public Accountant 172Corporate Secretary 174Internal Audit 178Risk Management 180Internal Control System 184Access to Company Information and Data 185Whistleblowing System 186Composition Diversity 187

Board of Commissioners and Board of Direc-tors

189

Material Litigation 189GCG Score

v i

6

I N T E G R AT E D G O V E R N A N C E

FRAMEWORK OF INTEGRATED GOVERNANCE OF FINANCIAL CONGLOMERATION OF DANAREKSA GROUP

192

INTEGRATED RISK MANAGEMENT WORK UNIT (SKMRT)

193

INTEGRATED INTERNAL AUDIT WORK UNIT (SKAIT)

195

INTEGRATED COMPLIANCE WORK UNIT (SKKT)

196

INTEGRATED GOVERNANCE COMMITTEE 197



PA R T N E R S H I P A N D C O M M U N I T Y D E V E L O P M E N T P R O G R A M A N D C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM

203

CORPORATE SOCIAL RESPONSIBILITY 206

� Social Responsibility to Occupational Health, Safety and Security

206

� Social Responsibility to Consumers 206

� Social Responsibility to the Environment 207

� Social Responsibility to Community 208

BUMN HADIR UNTUK NEGERI PROGRAM 209

ACTIVITY DOCUMENTATION 212

REFERENCE OF FINANCIAL SERVICES AUTHORITY (FSA)REGULATION NO. 29/POJK.04/ 2016 ON ANNUAL REPORT OF THE ISSUER OR PUBLIC COMPANIES

211

FINANCIAL REPORT (AUDITED) 221

9


1 0 P E R F O R M A N C E

S I G N I F I C A N T E V E N T SThroughout 2017, Danareksa Group carried out various activities, in the form of educational, dissemination, assistance, branding and corporate business events.

03/07/17 | Plataran Dharmawangsa, Jakarta. Market Outlook. Indonesian Macroeconomic Update & 2017 Outlook by Chief Economist, Kahlil Rowter. Update for Product "Danareksa Mawar Konsumer 10 & Danareksa Mawar Rotasi Sektor Strategis " by Coordinating Investment Specialist of PT Danareksa Investment Management, Barkah Supriadi.

March

07/20/17 | Financial Club, Jakarta. Media Gathering: 25th Anniversary of PT Danareksa Investment Management. PT Danareksa Investment Management celebrated its 25th anniversary and received ISO 9001: 2015 certification issued by SGS, a leading UK-based certification body.

July

03/03/17 | Financial Dissemination by PKK Laweyan and Financial Services Authority (FSA). Financial Dissemination activities in Laweyan district in collaboration between FSA Solo and Danareksa Solo. This activity was attended by 100 members of PKK Laweyan District. This activity improved financial literacy and financial inclusion in Laweyan District.

07/25/17 | Small Class of Capital Market and D'ONE Next-G. SID Malang invited several student representatives in Malang such as Polinema, Islamic State University (UIN) Malang, and Brawijaya University to attend education and research on Capital Market.

D A N A R E K S A | A N N U A L R E P O R T 2 0 1 7 1 1

9/20/17 | Indonesia Stock Exchange, Jakarta. Launch of KIK-EBA Danareksa Indonesia Power PLN-1. The handover of KIK EBA certificate by President Director of PT Indonesia Stock Exchange to President Director of PT Indonesia Power, witnessed by Investment Manager (PT Danareksa Investment Management).

August

September

08/17/17 | Dirgahayu Republik Indonesia. The ceremony of Danareksa big family, in commemoration of the 72nd Independence Day of the Republic of Indonesia, which was attended by all members of Boards of Directors and employees of Danareksa to foster a sense of nationalism.

9/14/17 | The 11th Annual Alpha Southeast Asia Best Financial Singapore, Shangri-La Hotel. PT Danareksa Sekuritas won the award in the category of "Best Investment Bank and M&A House".

December

12/14/17 | 14th Best Financial Person of Indonesia by Investor Magazine. Acceptance of award for the Best CEO; Jenpino Ngabdi - President Director of PT Danareksa Sekuritas, as "Top Executive Securities Company 2017".

12/28/17 | 41th Anniversary of Danareksa. Established since 1976, in 41 years continues to build strong synergies with organizations and subsidiaries to make Danareksa a trusted provider of financial services.

12/9/17 | Mangrove Planting on Untung Jawa Island. Danareksa in collaboration with TRASHI (Transformasi Hijau or Green Transformation), planted approximately 4,000 mangrove trees on the coastal area of Untung Jawa Island to rehabilitate damage to the environment and ecosystem, as well as prevent abrasion.

1 2

OPERATIONAL PERFORMANCE 2017 2016 2015 20141 2013

Operating Revenues 446,414 636,942 602,193 607,225 378,446

Operating Income (138,906) 145,358 104,464 117,672 43,312

Income Before Tax (130,374) 148,606 113,078 125,499 69,007

Net Income2 (147,574) 116,259 78,675 77,268 23,089

Comprehensive Income2 (134,060) 121,172 78,675 77,268 23,089

FINANCIAL POSITION

Total Assets 3,644,235 3,607,389 3,719,334 3,454,385 2,532,527

Total Liabilities 2,407,527 2,236,621 2,469,737 2,709,447 1,888,530

Total Equity 1,236,708 1,370,768 1,249,597 744,938 643,997

SHARE INFORMATION

Outstanding Shares (Volume of Shares) 701,480 701,480 701,480 701,480 701,480

Earning per Share (in full Rupiah) (210,375) 165,734 112,115 110,150 32,914

FINANCIAL RATIOS

Net Income to Average Equity (11.32%) 8.87% 7.89% 11.22% 3.57%

Net Income to Average Assets (4.07%) 3.17% 2.19% 2.58% 0.94%

Earnings Before Tax to Revenues Current Ratio (29.20%) 23.33% 18.78% 20.68% 18.23%

Current Ratio 132.82% 174.28% 280.81% 246.49% 233.27%

Long-term Debt to Equity Ratio 24.19% 49.55% 113.31% 189.78% 134.78%

Debt to Equity Ratio 1.95x 1.63x 1.98x 3.63x 2.93x

Debt to Asset Ratio 66.06% 62.00% 66.40% 78.44% 74.57%

Total Employees 411 392 378 378 377

1 Restatement

(in millions Rupiah, unless stated otherwise)

2 Attributed to the owner of parent entity and to non-controlling interests


F I N A N C I A L H I G H L I G H T


Name of Bond Total (Rp billion)

Coupon(%)

Tenure Maturity Date Ratings

Danareksa Sustainable I Phase I - B Series

375,000 8.80% 5 January 9, 2018 IdA (Single A)

Danareksa Sustainable I Phase II - B Series

250,000 11.00% 5 December 16, 2019 IdA (Single A)

Total 625,000

Table of Bonds

All bonds are listed on Indonesia Stock Exchange

2 Attributed to the owner of parent entity and to non-controlling interests

B O N D I N F O R M AT I O N

S H A R E I N F O R M AT I O N

Danareksa total issued bonds as of December 31, 2017, with total outstanding bonds amounted to Rp625,000,000,000, - (six hundred and twenty five billion rupiah).

The company is not a publicly listed company, thus there is no information of Danareksa shares including but not limited to the volume and prices of outstanding shares, market capitalization, highest and lowest share prices, volume and listing chronology of shares. All shares of PT Danareksa (Persero) are owned by the Goverment of Indonesia.

1 4

Revenues (in Rp million)

Net Income (in Rp million)

(138.906)



Assets (in Rp million)

Liabilities (in Rp million)

Equity (in Rp million)


B O A R D O F C O M M I S S I O N E R S ' R E P O R T

Dear Shareholders,

With gratitude to God Almighty, Danareksa has been able to go through 2017. The Board of Directors and all employees of Danareksa have demonstrated their dedication and professionalism in facing this challenging year during 2017. Allow us, on behalf of the Board of Commissioners of PT Danareksa (Persero), present the Board of Commissioners’ Report on Danareksa Performance 2017.

Business Performance Overview

The year 2017 was marked by a steady rise in world oil prices, which by the end of December 2017, the world price per barrel of oil (Brent) reached US$66.73. In the monetary aspect, by the end of 2017, the Fed again raised the Fed Fund Rate (FFR) by 25 bps on December 13, 2017, which increased the FFR by 75 bps from 0.75 in December 2016 to 1.50 in 2017. These events affected international trade and cooperation. Whereas in the world of finance, technological developments and globalization demands more international cooperation including to counter money laundering, fraud and terrorism.

Indonesia's economic growth showed recovery, where the JCI (Jakarta Composite Index) at the end of 2017 reached 6,365.55 or gained 20.20% if compared to the closing of JCI in 2016 at the level of 5,296.01. Meanwhile, the Rupiah exchange rate in 2017 was closed at Rp13,548/USD or weakened by 0.83% compared to the rate at the end of 2016.

In addition to the above conditions, the Company also faced with challenges of global competition including pricing for various fees and retention of competent human resources. Dynamic conditions in 2017 were anticipated by prudent business and operational management including problem solving and strengthening operations of subsidiaries to simultaneously continue preparing for the plan

to establish Holding of SOEs in Financial Services initiated by the Government as shareholder of the Company.

To support the Company's performance, the Board of Commissioners has always committed to improving its oversight function, focusing on strengthening of integrated risk management implementation and quality, system application, procedures, internal control and governance culture that upholds transparency, accountability, responsibility, independence & fairness.

The Board of Commissioners continues to support the company’s efforts to innovate in improving its performance both to increase productivity through information technology alignment program, service and operational improvement.

Assessment of the Company and Board of Directors’ Performance

The global and regional economic conditions during 2017 have had an impact on Danareksa's performance in general. Total revenues in 2017 amounted to Rp446.41 billion and when compared to the 2017 budget only reached 71.83%, which was posted as the company's loss in 2017.

This loss was due to decreased revenues from some of the Company's core business, such as securities underwriting, financial advisory, securities brokerage and financing. Decrease in revenues was indeed a business risk in the capital market world. Therefore, the Board of Commissioners shall always oversee the performance improvement measures undertaken by the Board of Directors.

Despite posting losses in 2017, the industry still gave a high appreciation to what Danareksa's management and employees have done so far. Up to 14 awards were received by Danareksa in 2017, from both national and international media. This achievement was an important start for more



achievements that have been set by the Corporate Long-Term Plan 2014 -2018.

Therefore, the Board of Commissioners would like to thank the Board of Directors, management and employees for the hard work and dedication to the Company’s achievements amid the unfavorable economic condition during 2017, including the following:

� Good Corporate Governance (GCG) implementation, score = 92.02 (Category: Very Good). This score was higher than last year (2016) which was = 88.75.

� Awards received, among oyhers "Top Banks in Corporate & Government Bond" and "Best Islamic Deal in Indonesia" from The Assets; "Best Investment Bank and M/A House" and "Best Loan Deal of the Year in Southeast Asia" from Alpha South-East Asia. We also received from the State-Owned Enterprise Excellence Forum: "Good Performance Category - SOE Performance Excellence Award 2017".

� Audited Financial Statement Opinion 2017: Unqualified.

� Consistently plays an active role as a development agent for the advancement of capital markets and fellow SOEs.

� Consistently contribute to improving the welfare and quality of life of the community through the program PKBL - CSR.

For its performance in 2017, the Board of Commissioners considers that the Board of Directors has performed its duties, controlled the risks and made quick and appropriate decisions.

It should be noted that during 2017 the performance was achieved with the company’s limited capacity and amid the efforts of empowering its subsidiaries in order to form Holding for Financial Service SOEs. Based on these conditions, the Board of Commissioners believes that the Company still has opportunities for better performance in the future.

Performance Assessment of Organs/Committees under the Board of Commissioners

In performing its duties, the Board of Commissioners is assisted by the Audit Committee and Secretary of the Board of Commissioners. During 2017, the Audit Committee has held weekly meetings, providing inputs and reviews on the Monthly, Quarterly and Annual Financial Reports submitted by the Board of Directors, as well as reports on regular visits to branches. The Audit Committee also assists the Board of Commissioners in ensuring that the internal control system is running well, internal and external auditors are reliable, and provide recommendations on matters that require attention of the Board of Commissioners.

The Board of Commissioners also acknowledged the Secretary of the Board of Commissioners and Staff who have assisted in the management of meetings, the preparation and documentation of the minutes of meetings, and recommendations on the Board of Directors’ proposals.

In performing its oversight function, the Board of Commissioners established Audit Committee and Integrated Governance Committee. In 2017, the two committees have performed their duties and authorities according to the charter applicable to each committee including making recommendations and reports to the Board of Commissioners on matters that need to be the Board of Commissioners’ concerns in carrying out its oversight duties and function as well as improvement of oversight aspect and responsibility in each committee.

In 2017, the Audit Committee has carried out its responsibilities in assisting the Board of Commissioners to evaluate the internal control effectiveness by internal and external auditors, while the Integrated Governance Committee assisted and facilitated the Board of Commissioners in performing its duties and function overseeing the Good Corporate Governance implementation to be in conformity with the current Integrated Governance Guidelines.


Performance evaluation and assessment of all committees are conducted every year using the method established by the Board of Commissioners. Evaluation by the Board of Commissioners is aimed at improving the effectiveness of the implementation of the activities and performance of each Committee in the future.

Implementation of Good Corporate Governance (GCG)

The Board of Commissioners always emphasized to the Board of Directors that GCG principles should be part of the corporate culture. The Anti Gratification program has been regularly disseminated and not limited to the times prior to religious holidays.

In addition, the implementation of the Whistleblowing System (WBS) has entered its fourth year, which is expected to eliminate or minimize the likelihood of violations. WBS dissemination has been provided to all employees. Implementation of GCG has been conducted at all lines. Business processes, support and reports are implemented in accordance with applicable regulations.

In 2017, during the recovery of Indonesia's economy, the Board of Commissioners considered it was necessary to intensify monitoring and evaluation of the company's risk control continuously, both directly or through the organs of the Board of Commissioners. The Board of Commissioners also encouraged the Board of Directors to update the policies and procedures, as well as to develop the company's human resources according to needs and good corporate governance.

Changes in the Composition of the Board of Commissioners

In 2017, there were changes in the composition of the Board of Commissioners, in relation to the end of the term of Mrs. Indrasjwari K.S. Kartakusuma in March 2017. At the end of 2017, the composition of

the Board of Commissioners was as follows:

Eko Sulistyo - CommissionerDyah Kartika Rini - Independent Commissioner

While the composition of the Board of Commissioners at the end of 2016, was:

Indrasjwari K.S. Kartakusuma - President CommissionerEko Sulistyo - CommissionerDyah Kartika Rini - Independent Commissioner

Closing

Through the hard work of all personnel of the Company and the support of shareholders and stakeholders, in the coming years the Company is expected to always be able to improve its positive performance in better time and scale than the target in the Corporate Long Term Plan.

On behalf of the Board of Commissioners of PT Danareksa (Persero) Jakarta, April 25, 2018

EKO SULISTIYOCommissioner


B O A R D O F D I R E C T O R S ' R E P O R T

With our gratitude to God Almighty for His blessing enables Danareksa to keep growing and contribute to the development of Indonesia’s Capital Market. The Shareholders' directives and supervision from the Board of Commissioners become the reference of the Board of Directors in managing the Company's business. Allow us on behalf of the Board of Directors of PT Danareksa (Persero) to present the Board of Directors’ Report on Danareksa Performance in 2017.

Economic Condition and Capital Market Industry

During 2017, global economic conditions were generally in recovery. One of the indicators was the upward trend of world oil prices, with the world price per barrel of oil (Brent) and West Texas Intermediate (WTI) crude were recorded at US$66.73 and US$ 60.42 respectively at the end of 2017. On the other hand, the US Central Bank, the Fed, raised the Fed Fund Rate (FFR) rate which increased the FFR throughout 2017 by 75 bps, from 0.75 in December 2016 to 1.50 in December 2017.

Meanwhile, the realization of Non-Tax State Revenues (PNBP) in 2017 reached Rp308.4 trillion or 118.5% of the target of Revised State Budget at Rp260.2 trillions. The figure was 17.7% growth from achievement in 2016 of Rp262 trillion. The achievement of PNBP was supported by the increase of natural resources revenues, dividend income of SOEs, improvement of services and application of information technology, as well as increased revenue of Public Service Agency (BLU).

For the entire year of 2017, the average daily rate was relatively stable with a 0.60% depreciation to Rp13,385 per US dollar, despite pressure due to the normalization of monetary policy, rising expectations

of interest rate hikes and tax reform plans in the United States. The rupiah weakening was in line with the weakening of the exchange rate in almost all the world currencies against the US dollar. Rupiah exchange rates were helped with the flow of foreign capital to Indonesia in line with the positive external and domestic developments. Conducive conditions in the global financial market has driven the flow of foreign capital into the developing countries, including Indonesia.

Indonesia's capital market recorded a remarkable achievement throughout 2017, with the Jakarta Composite Index (JCI) at the end of 2017 at the highest level in the history of Indonesia Stock Exchange: 6,355.65. This level was an increase by 41.61 points or 0.66%. Securities transactions that took place on the Indonesia Stock Exchange were also high, contributing 11% to the state tax revenue in 2017. The development of the domestic stock market in 2017 showed a positive performance, in line with improvement in domestic economic data amid the world economic slowdown.

The 20% increase in trading frequency has made the Indonesian capital market more liquid than other bourses in ASEAN. There were 36 companies listed in the capital market in 2017, with an average oversubscribed of 2.2 times. Closing the end-of-year trade, the market capitalization was recorded at Rp7,072.09 trillion. The total value of capital market transactions in late 2017 trade amounted to Rp28.38 trillion from 26.08 billion shares traded.

The Indonesia Stock Exchange during the period of 2017 provided benefits for both domestic and foreign investors. The foreign investments in 2016, which were recorded at Rp1,691 trillion, up to Rp1,958 trillion in 2017.

Dear Shareholders and Stakeholders,



Meanwhile, the industry of mutual funds also showed a positive growth in the aspects Asset Under Management (AUM), numbers and innovation of investment products offered to the market. This industry grew 31.0% to Rp685.6 trillion. Overall, the entire products managed by Investment Manager in 2017 showed a positive performance. The increase in nominal originated from Mutual Funds amounted to Rp116.6 trillion and KPD amounted Rp38.9 trillion.

The increase in rating was also given by Fitch Rating Agency, in addition to domestic and global economic conditions that were experiencing recovery. These factors had an impact on the growing investment products both in the volume and variety of products up to expected return of each product offered to investors.

Inflation and Interest Rate Development

During 2017, the domestic inflation rate was 3.61%, which all spending groups experienced inflation. With a controllable inflation rate and on such target, Bank Indonesia through Board of Governor Meeting (RDG) maintained the benchmark rate of 7-day Reverse Repo at 4.25% with Deposit Facility interest rate 3.50% and Lending Facility remained at 5.00%.

Meanwhile, there was an increase of 16.2% (YoY) in the foreign trade or US$168.73 billion. The increase was supported by oil & gas increase of 20.1% (YoY), and non-oil & gas grew 15.7% (YoY). On the other hand, import value reached US$156.89 billion or up 15.7% (YoY). Therefore, export and import performance throughout 2017 saw a surplus in trade balance amounted to US$11.84 billion, in which non-oil & gas surplus amounted to US$20.40 billion while oil & gas still experienced a deficit of US$8.57 billion.

With these developments, Indonesia's foreign exchange reserves at the end of December 2017 reached record highest in history at US$ 130.2 billion. The foreign exchange reserves were

sufficient to finance 8.6 months of imports, or 8.3 months of imports and paid government foreign debt, and were above international standards of approximately 3 months of imports.

The Indonesian economy grew 5.07% (YoY) by the end of 2017. This figure was higher than the growth rate in 2016 of 5.03%. This economic growth was mainly due to strong domestic demand in line with increased investment, household consumption, and fiscal stimulus. Meanwhile, exports were expected to maintain positive growth along with the continuing global economy recovery and high commodity prices.

Challenges

The dynamics of the economy and capital market both globally and locally have directly affected the activities of business players in Indonesian capital market, including Danareksa. However, the management has taken measures and made innovations in bid to meet the targets set in the 2017 budget.

In addition, in utilizing positive momentum in 2017, the challenge faced by Danareksa was the limited capital. The additional capital was highly required by Danareksa to expand our business in to increase revenue in the future.

Business Prospects and Strategy 2017

With the recovery of global and domestic economies as well as support of the financial services industry and the Indonesian capital market, Danareksa took advantage of this conditions to improve performance and make innovation for its products and services. Danareksa was expected to continue to be a pioneer in Indonesian capital market industry with support of adequate risk management.

The strategic policies of 2017 were formulated and implemented based on business opportunities while maintaining the prudential principles as follows:


1. Continuing the financial restructuring of the parent company.

2. Strengthening risk management and Enterprise Risk Management (ERM)

3. Focusing on profitable areas4. Reprofiling human resources5. Proper cost composition

Danareksa Performance in 2017

By the end of 2017, Danareksa booked total operating revenues of Rp446.41 billion, 71.83% of 2017 budget, or 70.09% compared to revenues at the end of 2016.

Danareksa posted net losses of Rp147.57 billion in 2017. In terms of assets, total asset by the end of 2017 was recorded at Rp3,644.23 billion or 101.02% from Rp3,607.39 billion recorded at the end of 2016.

The decrease was due to the unrealized revenue target of some of the Company's main businesses, such as securities underwriting, financial advisory, securities brokerage and financing. The decline in revenue was more due to technical issues, which were a normal occurrence in the capital market business. In running the business, we have always paid attention to the prudential principle.

Total liabilities by the end of 2017 amounted to Rp2,407.53 billion or 107.64% compared to the figure at the end of 2016, which was Rp2,236.62 billion. The company's capital at the end of 2017 was Rp1,236.71 billion or 90.22% of the budget.

Meanwhile, in 2017 the Asset Under Management (AUM) of Mutual Funds managed by PT Danareksa Investment Management increased by 45.5% from Rp18.7 trillion at the end of December 2016 to Rp27.2 trillions at the end of December 2017. The AUM of DIM Mutual Funds which experienced the largest nominal increase was Collective Investment

Contract of Asset Backed Securities (KIK EBA) and Mutual Funds of Fixed Income amounted to Rp3.2 trillion and Rp2.3 trillion respectively with percentage

increase of 177.8% and 65.7% respectively.

On the other hand, we were humbled to say that the industry appreciated what Danareksa's management and employees have done so far. No less than 14 awards were received by Danareksa in 2017, both from national and international media. Among them were "Top Banks in Corporate & Government Bond" and "Best Islamic Deal in Indonesia" from The Assets; "Best Investment Bank and M&A House" and "Best Loan Deal of the Year in Southeast Asia" from Alpha Southeast Asia. We also received "Good Performance Category - SOE Performance Excellence Award 2017" from the SOE Excellence Forum. This showed that the company management at Danareksa has been carried out properly and with the prudential principle. These awards were highly valuable for us, as it proved the industry's confidence in Danareksa to be able to continue the culture of achievement.

As a growing and expanding company in Indonesia, Danareksa has a deep concern for the environment in Indonesia. Therefore, corporate social responsibility activities in 2017 were aimed to conserve the nature and rehabilitate the damage, such as coral reef planting on Badul Island, Mangrove planting in Panimbang (Banten Province) and continued works on construction of toilets in Ponorogo, East Java. For this, BusinessNews Indonesia media awarded "Top CSR Improvement 2017" to the company.

In 2017, Danareksa actively participated in the program "BUMN Hadir Untuk Negeri" initiated by the Ministry of SOEs. In collaboration with PT Angkasa Pura I, Danareksa conducted programs which involved the community’s active participation in Central Sulawesi province. These activities include the Healthy Walk event to commemorate the 72nd Independence Day of Indonesia. These series of events also held a student exchange program dubbed as “Siswa Mengenal Nusantara”, where a group of the best students from provinces across Indonesia were invited to visit and interact for several days in one of the other provinces.


Corporate Governance Implementation

The implementation of risk management as part of the efforts to implement the good corporate governance principles is the essence of operating Danareksa's business. Through good corporate governance implementation, asset management is not only properly managed and prudent, but also capable of generating breakthroughs that can address the challenges of dynamic capital market development.

As part of the good corporate governance implementation, Danareksa implements policies and procedures for procurement of goods and services that are accountable, transparent, effective, efficient and avoid inefficiency in addition to commit to not tolerate rewards in the forms of money , goods, commissions, credit, gifts, entertainment, valuable goods or any form of special award to company employees because it can lead to a conflict of interest and a decline in public confidence in the integrity of the company.

Business Prospects 2018

The global economy is still in its expansion, and is expected to continue until 2018. This will have a positive impact on the Indonesian economy. In 2017, our economic growth was 4.8% or slightly lower than in 5.0% in 2016. In 2018, Indonesia's economic growth is predicted to be better at 5.3%, which is mainly supported by consumption and investment as well as more significant contribution from exports.

With the conditions above, Danareksa has an optimistic outlook in 2018. Danareksa keeps prioritizing synergy between the principal/parent company with subsidiaries, as well as the synergy between subsidiaries. With such synergies, various financial services required by the customers can be met by Danareksa.

Composition of the Board of Directors

There was a change in the composition of the Board of Directors in 2017. With the assignment of Mr. Hoesen as Commissioner of Financial Services Authority; and Mr. Marciano H. Herman was appointed by the Ministry of SOEs as President Director of PT Bahana Pembinaan Usaha Indonesia (Persero).

Thus, the Directors in office at the end of 2017 were as follows:

Heru D. Adhiningrat – President DirectorBondan Pristiwandana – Director

At the end of 2016, the composition of the Board of Directors was as follows:

Heru D. Adhiningrat – President DirectorBondan Pristiwandana – DirectorHoesen – DirectorMarciano H. Herman – Director

Appreciation

We acknowledge that our efforts would never find success without real support from all Stakeholders. Therefore, on behalf of our Board of Directors, I would like to thank all employees who gave their dedication, loyalty and effort to achieve Danareksa's performance. Our sincere appreciation is dedicated to all Customers who have trustd Danareksa as their investment partner. Furthermore, we would like to extend our greatest gratitude to the Shareholders who have provided direction and the Board of Commissioners for their constructive oversight function.


HERU D. ADHININGRATPresident Director

On behalf of the Board of Directors of PT Danareksa (Persero)

Jakarta, April 25, 2018



Statement of Members of the Board of Commissioners and the Board of Directors on the Responsibility for the Annual Report 2017 of PT Danareksa (Persero)

R E S P O N S I B I L I T Y O FA N N U A L R E P O R T 2 0 1 7

Jakarta, April 25, 2018

We, the undersigned, declare that all information in the Annual Report 2017 of PT Danareksa (Persero) has been completely presented and are fully responsible for the accuracy of the contents of this Annual Report. This statement is made truthfully.

THE BOARD OF COMMISSIONERS

DYAH KARTIKA RINI Commissioner

EKO SULISTYO Commissioner

HERU D. ADHININGRAT President Director

BONDAN PRISTIWANDANA Director

THE BOARD OF DIRECTORS

29

Since over four decades ago, Danareksa has

always been involved in the ups and downs

of the Indonesian capital market, and this

has shaped Danareksa into one of the largest

financial services providers in Indonesia. As a

State Owned Enterprise (SOE), Danareksa has

developed the capital market industry and

continues to do for the people of Indonesia.


3 0 C O M PA N Y P R O F I L E

Company Name PT Danareksa (Persero)

Company Type Limited Liability Company

Status State-owned Enterprise (SOE)

Business Sector Financial Services

Shareholder The Government of the Republic of Indonesia, 100%

Legal Basis Government Regulation (PP) 25 of 1976 on Capital Participation of the State of the Republic of Indonesia for the establishment of Danareksa on December 27, 1976

Establishment Year December 28, 1976

Deed of Establishment Notarial deed of Julian Nimrod Siregar gelar Mangaradja Namora, SH, No. 74 dated December 28, 1976. Last amended by Deed No. 13 dated October 9, 2009, which was made before Nelfi Mutiara Simanjuntak, SH

Authorized Capital Rp2,800,000,000,000.00

Total issued and paid-up capital Rp701,480.000,000.00

Rating - Pefindo Single A – Stable Outlook

Total Employees (people) 411

Network Head Office, Danareksa Investment Center (SID) and 31 branches as of 2017, consisting of 10 Danareksa own branches, 5 partner branches (non-member securities firms), 12 outlets

AddressDanareksa BuildingJl. Medan Merdeka Selatan 14Jakarta 10110, IndonesiaTel (021) 29-555-777; (021) 29-555-888Fax (021) 350-1712website : www.danareksa.co.idemail : [email protected]

C O R P O R AT E I D E N T I T Y


The history of PT Danareksa (Persero) is closely related to the history of the

Indonesian Capital Market, which began in 1912, with the establishment of

the stock exchange as the pioneer of stock exchange industry in Southeast

Asia.

Due to the World War II, Batavia Stock Exchange was closed and reopened

in 1952. After a few years, the Stock Exchange was inactive since 1958 due

to lack of transactions. Later, President Suharto inaugurated the opening of

the Jakarta Stock Exchange at Danareksa Building on August 10, 1977, as

a symbol of capital market reactivation in Indonesia.

The establishment of PT Danareksa (Persero) was initiated from the

resolution of the National Economic Stabilization Board session on

December 21, 1976. This resolution was later set out in the Presidential

Decree No. 52 of 1976 dated December 27, 1976 on Capital Market. On

the same day, Government Regulation No. 25 of 1976 was also issued

concerning Capital Investment of the State of Republic of Indonesia

for the Establishment of a Limited Liability Company (Persero) "Dana

Reksa". Furthermore, on December 28, 1976, PT Danareksa (Persero) was

established based on Deed No. 74 by Notary Julian Nimrod Siregar gelar

Mangaradja Namora, SH.

PT Semen Cibinong was the first company listed by PT Danareksa (Persero)

on the exchange in 1977. PT Danareksa (Persero) also issued Danareksa

Certificate for PT Semen Cibinong’s shares worth Rp10,000 per certificate.

In 1992, PT Danareksa (Persero) conducted organization restructuring

by establishing three subsidiaries with PT Danareksa (Persero) as the

parent company. The three subsidiaries are Danareksa Sekuritas, which is

engaged in the underwriting, financial advisory and securities brokerage;

PT Danareksa Investment Management, which is engaged in fund

management (mutual fund) and PT Danareksa Finance, which is engaged in

financing sector. Along with the development of business and customers’

needs, PT Danareksa (Persero) founded PT Danareksa Capital in 2010, with

a primary focus on investment and private equity.

Since it was established, PT Danareksa (Persero) never changed the name of the company.

D A N A R E K S A B R I E F H I S T O R Y

The inauguration of Jakarta Stock Exchange at Danareksa Building on August 10, 1977 was the milestone of the beginning of Capital Market activities in Indonesia.


M I L E S T O N E S

1976 1992 20001976 The establishment of PT

Danareksa (Persero)

1977 First Share Underwriting in Indonesia by Danareksa with Issuer: PT Semen Cibinong

1981 Issuance of Danareksa Fund Certificate of General Unit A Series

1992 Danareksa established PT Danareksa Sekuritas, PT Danareksa Investment Management and PT Danareksa Finance

1996 Danareksa issued the first Mutual Fund in Indonesia

1998 Issuance of the first Shariah-based mutual fund

2000 The issuance of the first US Dollar (USD) denominated mutual fund

2000 The initiator of the Jakarta Islamic Index (JII)

2003 Danareksa logo change

2003 Focusing on core business: investment banking, equity capital market, debt capital market, investment management, and treasury


2009 2014 20172009 Preparation of the first

and only Asset Backed Securities in Indonesia

2010 Establishment of PT Danareksa Capital

2014 PT Danareksa Investment Management received ISO 9001: 2008 from JAS-ANZ, Certificate No.732448

2014 PT Danareksa Sekuritas received ISO 9001: 2008 from SGS-UKAS, Certificate No.ID14/02970

2015 PT Danareksa (Persero) was registered and supervised by the Financial Services Authority (OJK)

2016 Forty years of Danareksa Group. A Pioneer and Financial Institutions, securities companies with the most experience in Indonesian Capital Market industry.

2017 PT Danareksa Investment Managementreceived an upgrade to ISO 9001: 2015,Investment Management Service, SGS.

2017 PT Danareksa Sekuritas received an upgrade to ISO 9001: 2015. For "Securities Company Operations, including Brokerage, Investment Banking, Underwriting, Financial Advisory, Fixed Income, Equity, Online Trading, Settlement & Operations"


To be the pre-eminent, preferred and trusted institution in the financial services industry

1. Providing various quality financial products and services to fulfill clients' needs

2. Providing financial solutions to clients with synergy and understanding their requirements

3. To be employer of choice

4. Providing optimum added values for the stakeholders

The Vision and Mission were established by Decree of the Board of Directors No. KD-38/027/DIR dated August 29, 2014 on "PT Danareksa (Persero) Code of Conduct", approved by the Minister of SOEs based on letter No. S-125/MBU 2015 dated March 11, 2014 on the Ratification of the Long-Term Corporate Plan of PT Danareksa (Persero) 2014-2018.

Vision Description:

1. Vision is oriented to the customers' needs with a realistic scope and adapted to Danareksa's ability to grow and develop both organically and inorganically in the aspects of assets and capital.

2. The programs that have been prepared have taken into account the impacts of open regional markets, both as opportunities and threats according to the strengths and conditions in Danareksa.

Mission Description:

1. The public currently has sufficient knowledge on the Capital Market as well as its products and services.

2. More emphasis on commitment to be able to provide products and services that suit the interests of customers.

3. Highlighting the business model of one stop service as the ability to provide solutions and synergize with customers.

4. More emphasis on the importance of human resources (HR) as an asset of the company that need to be retained and maintained.

5. Enhance the company’s existence in providing added value for the Stakeholders.

V I S I O N & M I S S I O N

VISION MISSION


1. To encourage people to invest in the Capital Market by providing a range of best products and services

2. To support businesses by increasing value through transactions with Capital Market instruments

3. To increase the Company's added value by consistently implementing good governance

4. To promote the Indonesian economy through an active role in the capital market industry

The purpose and objectives have been approved by the Minister of SOEs based on letter No. S-125/MBU/2014 dated March 11, 2014 on Ratification of Long Term Corporate Plan 2014 – 2018 of PT Danareksa (Persero)

Description:

1. Purpose and objective in accordance with the Articles of Association of PT Danareksa (Persero).

2. The Stakeholder elements receive attention according to the existing purpose and objective of the company (investor community, business community and the State or Government), thereby reinforced by a commitment to consistently implement good governance.

3. Enhance the function or role of Danareksa in accordance with its business activities, which is to provide the best range of capital market products, services, transactions and instruments.

The purpose and objectives of the establishment of the company are:

P U R P O S E A N D O B J E C T I V E S


A D VA N TA G E S A N D A D D E D VA L U E

Proven experience in the Capital Market

Danareksa has more than 41 years of experience in settlement and execution of transactions in the Capital Market, with a total of more than Rp100 trillion of funds raised from the Indonesian Capital Market.

100% owned by the Government and synergy

Danareksa is 100% owned by the Government of Indonesia, by conducting and settling transactions inde-pendently, and in synergy with other SOEs to assist clients.

Comprehensive products and services

A non-banking financial institution with the most comprehensive products and services (financial advisory services, underwriters, securities brokers, direct financing, investment managers, private equity, multifinance and treasury).

Diversified funding alternatives

Danareksa provides funding directly or indirectly, through Money Market and Capital Market, with equity in-struments, debt instruments or a combination of both.

Experienced team and inter-group synergy

Danareksa has a dedicated and experienced team of more than 39 years in the Capital Market, as well as intergroup synergies with a focus on continuity and growth of client.

Top Rank in various Capital Market activities with awards from prominent media and institutions

Top 3 Debt Underwriting, Top 10 Equity Underwriting, Top 15 Equity Brokerage, Top 3 Debt Brokerage, Top 10 Investment Management, more than 70 local and regional awards since 2007.

Danareksa has close ties with various parties and Capital Market playersDanareksa has proven experience in interacting with Indonesia Stock Exchange, Bank Indonesia, OJK, KSEI, KPEI and cooperation with local and foreign financial institutions.


A D VA N TA G E S A N D A D D E D VA L U E C O R E B U S I N E S S

PT Danareksa (Persero)

1. PT Danareksa Sekuritas

2. PT Danareksa Investment Management

3. PT Danareksa Finance

4. PT Danareksa Capital

PT Danareksa (Persero) is the main entity/holding company with four subsidiaries engaged in various businesses in financial services industry.


PT DANAREKSA (PERSERO)

Business activities of the company according to the latest Articles of

Association*Business activities Products and services

1. Buy and sell securities of other companies that have been listed on both domestic and foreign Stock Exchanges with regard to the applicable laws and regulations;

Treasury

Manage the Company's investment by utilizing extensive resources and insights in the money market, to help customers manage their assets and liabilities (which are exposed to exchange rate and interest rate risks). In addition, Treasury has the main function as liquidity management.

Proprietary

Carry out portfolio management for the inter-est of the Company, in the form of shares and debt securities to obtain returns.

Direct Financing

Danareksa provides financing facilities to customers with flexible structure. The financing facility is provided with the following structures: � Financing to customers who will enter the

Capital Market (pre-IPO financing), project financing and companies that have not been bankable but have good growth potential.

� Financing of projects and infrastructure with clear off-takers from the start.

� Collateral in the form of shares that have been listed and/or fixed asset.

1. Direct Financing

2. Hedging, Liquidity Management

3. Macroeconomic Research

2. Issue, sell and/or buy investment share units whose funds are raised from the investors and investing them in securities;

3. Conduct custodial activities and activities that are commonly conducted by trust fund companies;

4. Conduct business in the capital market, money market, futures market and business as a financial institution and businesses related to such activities.

* Deed No. 13 dated October 9, 2009, made before Nelfi Mutiara Simanjuntak, SH; Notary in Jakarta.




5. Conduct research and consulting services in macroeconomics and Capital Market, as well as financial advisory services;

Institutional Coverage & Advisory (ICA)

The main functions of this division are Client Coverage and Client Solution. In relation to such functions and roles, the activities conducted by ICA include: Management of Customer Relations (Networking Management); Business Origination; Client Solution and Structuring of organizational and human resource restructuring that focuses on the function and role of ICA.

Danareksa Research Institute (DRI)

DRI provides economic research services for the Company’s internal, the Government as well as business in the public and private sectors. Some DRI reports include Early Economic Indicator, Consumer Confidence Index, Business Sentiment Index, Consumer Price Index (CPI), SBI Outlook, Yearly Outlook, Weekly Currency and Special Report. DRI uses a number of quantitative approaches such as macroeconomic modelings and prognoses for some macroeconomic variables.

6. Conduct business in the form of participation in other business entities as long as it supports the Company's purpose and objective.


Business activities of the company according to the

latest Articles of Association*Business activities Products and services

1. Securities brokerage

2. Securities trader

3. Underwriting

Underwriting

Danareksa provides services to prospective issuers for the process of offering equity securities and debt securities. Equity underwriting for initial public offering, and/or limited public offering for rights issue. In addition, Danareksa may act as arranger for private placement.

Danareksa also advises on appropriate strategies and instruments for issuance including an overview of Capital Market (local and international) for the IPO and other matters that support the underwriting process.

It also acts as arranger for other fixed income products, such as Medium Term Notes (MTN), and Negotiable Certificates of Deposits (NCD).

Financial Advisor

Danareksa provides recommendation, input and other financial consulting services to public and private companies; related to company or finance restructuring, mergers and acquisitions, corporate financing from equity, loans and others.

Securities Trading

Danareksa provides brokerage services for equity and debt securities for institutional and retail customers.

1. Equity Underwriter

2. Debt Underwriter

3. Financial Advisor

4. Equity Brokerage

5. Debt Brokerage

6. Equity Research

7. Debt Research

8. Customer Financing

The company provides online trading services through three D'ONE products:

1. TradePro - online transactions using application

2. WebTrade - web-based online trading transactions

3. Mobile - Online transactions using smartphones

* Deed No. 107 dated August 24, 1992 made before Achmad Bajumi, SH, Notary in Jakarta.

PT DANAREKSA SEKURITAS


Business activities of the company according to the

latest Articles of Association*Business activities Products and services

Online Transaction

The Company develops Danareksa Online technology where customers can conduct securities transactions online through three Danareksa Online products: TradePro: Online trading using application installed on client’s computer; WebTrade: web based online trading. Mobile: Online trading using mobile devices.

Equity Research

To support the "one-stop service" activity in the Capital Market industry, Danareksa provides research products on companies listed on the Stock Exchange, with the largest industrial sector research coverage in Indonesia.

Equity Research activities include: daily research (for retail customer distribution) and Investment Focus as well as monthly research for capital market strategy. The Valuation Guide is a guideline for quantitative analysis that provides up-to-date data and in-depth analysis of the company or market sector based on an assessment of the company's recent developments such as financial results, corporate actions, and regulatory changes.

These views and analysis are also presented directly to institutional clients through regular visits.

Debt Research

Similar to equity research, Danareksa also provides analysis and research on the Indonesian bond market, both for Government bonds and corporate bonds.

* Deed No. 107 dated August 24, 1992 made before Achmad Bajumi, SH, Notary in Jakarta.




Investment management for individual and institutional customers by conducting business activities as follows:

1. Conducting business activities in managing investment portfolios for customers or managing collective investment portfolios for a group of customers (investment managers) including but not limited to Mutual Funds;

2. Conducting activities to advise other parties on the sale or purchase of investment assets;

3. Conducting business activities to initiate or attempt to obtain a business license for a Mutual Fund (Mutual Fund promoter);

4. Conducting investment activities on private equity

5. Conducting other activities related to the above mentioned activities.

Mutual Funds

Danareksa provides a wide range of investment products in mutual funds, which are equity-based, debt, balanced fund, money market, capital protected fund, private equity fund and index fund. Danareksa also provides online transaction facility to invest in Mutual Fund.

Management of Third Party Funds

Danareksa provides fund management services for customers that are interested in allocating funds to the Capital Market and money market. Generally, these services are intended for institutions.

Management of Collective Investment

Contract of Asset Backed Securities (KIK-EBA)

Danareksa provides attractive KIK-EBA management services to originator/initial creditor or investor. For the originator, KIK-EBA is a long-term funding alternative from capital market. As for investors, KIK-EBA has returns for long-term investment.

(See data on the next page)

PT DANAREKSA INVESTMENT MANAGEMENT (DIM)

*Deed No. 108 dated August 24, 1992 made before Achmad Bajumi, SH; Notary in Jakarta


Mutual Fund Products

Danareksa Melati Pendapatan Tetap

Danareksa Melati Pendapatan Tetap II

Danareksa Gebyar Indonesia II

Danareksa Pendapatan Prima Plus

Danareksa Melati Pendapatan Utama

Danareksa Melati Pendapatan Utama II

Danareksa Melati Pendapatan Utama Syariah

Danareksa Melati Pendapatan Utama Multiplus

Danareksa Melati Pndpt Utama Indonesia Sehat

Danareksa Melati Pendapatan Tetap Utama

Danareksa Melati Obligasi Negara Indonesia

Danareksa Melati Dollar

Danareksa Melati Premium Dollar

Danareksa Gebyar Dana Likuid

Danareksa Seruni Pasar Uang II

Danareksa Seruni Pasar Uang III

Danareksa Gebyar Likuid II

Danareksa Seruni Pasar Uang VI

Danareksa Seruni Pasar Uang X

Danareksa Seruni Pasar Uang USD IV

Danareksa Mawar

Danareksa Mawar Fokus 10

Danareksa Mawar Konsumer 10

Danareksa Mawar Komoditas 10

Danareksa Mawar Rotasi Strategis

Danareksa Syariah Saham

Danareksa Mawar Ekuitas Plus

Danareksa Mawar Ekuitas Utama

Danareksa Anggrek Fleksibel

Danareksa Syariah Berimbang

Danareksa Proteksi Pendapatan Maxima IV

Danareksa Proteksi Pendapatan Maxima V

Danareksa Proteksi Pendapatan Maxima VI

Danareksa Proteksi Prima II

Danareksa Proteksi Syariah I

Danareksa Proteksi Syariah II

Danareksa Proteksi XVI Dollar AS

Danareksa Proteksi Stabil

Danareksa Proteksi XVII Dollar

Danareksa Proteksi XVIII

Danareksa Proteksi XX

Danareksa Proteksi XXI

Danareksa Proteksi XXII

Danareksa Proteksi XXIII

Danareksa Proteksi XXIV

Danareksa Proteksi 25





Collective Investment Contract of Asset Backed Securities (KIK-EBA) Products

Danareksa KIK EBA DBTN -01 Certificate Class B

Danareksa KIK EBA DBTN -02




Danareksa KIK EBA DIPP -01

Mutual Fund Products (continued)















Danareksa Proteksi 18 Dollar

Danareksa Indeks Syariah

Danareksa Investa Optima

DanaReksa Dana Strategis

Danareksa Pharma I 2013

Danareksa BUMN Fund 2013 Infrastruktur 3

Danareksa BUMN Fund 2014 Infrastruktur 4

Danareksa BUMN Fund 2014 Properti 1


Danareksa Multisectoral Fund






Association*

Business activities Products and services

1. Leasing

2. Factoring

3. Credit card

4. Consumer financing

Leasing

Danareksa Finance provides capital goods financing services either with option rights (finance lease) or without option rights (operating lease) to be used by a lessee for a certain period based on installment payments.

Factoring

Danareksa provides financing products on account receivable to assist customers in accelerating the realization of customer cash inflow. Factoring is recourse or without recourse.

Leasing and factoring

PT DANAREKSA FINANCE


Association**Business activities Products and services

1. Asset management

2. Financial advisory services

3. Management consulting services

1. Direct investment 2. Fund creation 3. Financial advisory 4. Private equity

1. Direct investment

2. Fund creation

3. Financial advisory

4. Private equity

PT DANAREKSA CAPITAL

*Deed No. 109 dated August 24, 1992, made before Achmad Bajumi, SH, Notary in Jakarta.

** Deed No. 16 dated December 15, 2010 and amendment No. 02 dated February 15, 2011; Bothin the presence of notary Mochamad Nove Faisal, SH, M.Kn. in Jakarta.

4 6

No Company NamePercentage of

sharesLine of Business

Year Established

Status

1 PT Danareksa SekuritasJl. Medan Merdeka Selatan 14, Jakarta 10110

99,99% � Financial Advisor � Underwriter � Securities Brokerage

1992 Operating

2 PT Danareksa Investment ManagementJl. Medan Merdeka Selatan 14, Jakarta 10110

99,99% � Mutual Fund Management

� Third Party Fund Management

� Investment Advisor

� Structured Product

1992 Operating

3 PT Danareksa FinanceJl. Medan Merdeka Selatan 14, Jakarta 10110

99,99% � Leasing � Factoring

1992 Operating

4 PT Danareksa CapitalJl. Medan Merdeka Selatan 14, Jakarta 10110

99,90% � Private Equity � Mezzanine Financing

� Project Financing

2010 Operating


SUBSIDIARIES

The ownership of PT Danareksa (Persero) in Subsidiaries is as follows:


No Company NamePercentage of shares

Line of BusinessTahun Berdiri

Status

1 PT Pemeringkat Efek Indonesia (PEFINDO)Panin Tower Senayan City, Lantai 17 ; Jl. Asia Afrika Lot.19; Jakarta 10270

7,76% Rating 1993 Operating

2 PT Kliring Perdagangan Berjangka IndonesiaGraha Mandiri Lantai 3, Jln. Imam Bonjol No.61, Jakarta

2,00% Clearing and guarantee

1984 Operating

3 PT Bursa Berjangka IndonesiaThe City Tower Building, 20th floor, MH. Thamrin No.81, Jakarta

3,45% Conduct and supervise transaction activities in future market

1999 Operating

4 PT Kustodian Sentral Efek IndonesiaGedung Bursa Efek Indonesia Tower 1 Lt.5; Jl. Jend. Sudirman kav. 52-53, Jakarta 12190

1,25% Deposit and settlement services for securities transaction

1997 Operating

5 PT Bursa Efek IndonesiaGedung Bursa Efek Indonesia Tower 1 Lt.5; Jl. Jend. Sudirman kav. 52-53, Jakarta 12190

0,50% Conduct and supervise transaction activities on the Stock Exchange

2007 (Merger of JDX

and SDX)

Operating

The ownership of PT Danareksa (Persero) and Subsidiaries in Associates are as follows:

ASSOCIATES

4 8

ShareholdersBoard of Commissioners and Committees under Board of Commissioners

Board of Directors and Committees under Board of Directors

Division Heads Subsidiaries

1 In accordance with the Decree of the Board of Directors No. KD-40/063/DIR dated December 23, 2016, on "Distribution of Duties and Authorities of Board of Directors and Organizational Structure of PT Danareksa (Persero)"


O R G A N I Z AT I O N A L S T R U C T U R E A N DS E N I O R O F F I C E R S


Legal, Asset Recovery & Compliance

Lukman Nur Azis

Shareholders

Audit Committee

Risk Management Committee

Human Capital Committee

Information Technology Committee

Asset Liability Committee

ProprietarySetiawan Q. Putera

Portfolio Management &

Business Synergy (vacant)

Institutional Coverage

& AdvisoryR. Muhammad Irwan

Internal AuditArini Imamawati

Corporate SecretaryDonny Susatio Adjie

TreasuryRika Muzni

Risk Man. & SOPRAM Irwan S. Utama

Accounting & Financial Control

Ahmad Fauzi

Trasury, Prop, Finance Ops

R. Maman S. Juniawan

General Affairs, Purchasing & Procurement

Erdian

DirectorBondan Pristiwandana

Director Marciano H. Herman

Director Hoesen

Economic ResearchDamhuri Nasution

Human CapitalA.Pawitra Indriati

PT Danareksa SekuritasPT Danareksa Investment

Management

Board of Commissioners

President DirectorHeru D. Adhiningrat

PT Danareksa Finance PT Danareksa Capital

Business Development

& Change Management

(vacant)

Chief EconomistKahlil Rowter

Board of Directors


PROFILE OF DIVISION HEAD/COORDINATOR OFMAIN/PARENT ENTITY

A. Pawitra IndriatiDivision Head ofHuman Capital

Ahmad FauziDivision Head ofAccounting & Financial Control

Arini ImamawatiDivision Head ofInternal Audit

Damhuri NasutionDivision Head ofEconomic Research

ErdianDivision Head ofGeneral Affairs, Purchasing & Procurement

Donny Susatio AdjieDivision Head ofCorporate Secretary

Lukman Nur AzisDivision Head ofLegal, Asset Recovery & Compliance

R. Maman S. JuniawanDivision Head ofTreasury, Proprietary, & Finance Operation

RAM Irwan S. UtamaDivision Head ofRisk Management & SOP

Rika MuzniDivision Head ofTreasury

R. Muhammad IrwanDivision Head ofInstitutional Coverage & Advisory

PT DANAREKSA PERSERO



Jenpino NgabdiPresident Director

ErizalDirector

Budi SusantoDirector

Saidu SolihinDirector

Santi SuryandariDirector

Boumediene H. SihombingDirector

PT DANAREKSA INVESTMENT MANAGEMENT

Marsangap P. TambaPresident Director

Egi Indrawati SantosaDirector

Upik SusiyawatiDirector


Poedji GoesariantoPresident Director

R. Happy HermantoDirector


Uriep Budhi PrasetyoDirector

PROFILE OF SUBSIDIARY BOARD OF DIRECTORS

53

(left to right) Eko Sulistyo, Dyah Kartika Rini

B O A R D O F D I R E C T O R S


Indonesian citizen, born in Kendal, March 30, 1968 (49 years).

Letter of Appointment

SK-204/MBU/10/2015 dated October 27, 2015

Position History

� Deputy IV for Political Communications and Information Dissemination at the Office of Presidential Staff (2015-present)

� Chairman of Solo City General Election Commission (KPUD), 2003-2008

� Coordinator of the Consortium for Monitoring and Empowerment of Public Institutions, Solo, 2001-2003

� Director of Research and Development of Information at Gita Pertiwi Ecological Studies Project (1999-2001).

� Coordinator of the Independent Election Monitoring Committee (KIPP), Solo, and KIPP Coordinator of Central Java (1996-1999).

Educational Background

Bachelor from the Faculty of Literature, Sebelas Maret University (1994). During his assignment, he attended training at the National Movement for Fair and Free Election (NAPFREL), the Philippines (1999). He also attended Participatory Budgeting training at the Institute for Popular Democracy (IPD) and Institutefor Political Governance (IPG), also in the Philippines (2000).

AffiliationThere is no affiliation with other members of the Board of Directors and members of the Board of Commissioners.

Eko Sulistyo Commissioner


Indonesian citizen, born in Jakarta, April 21, 1971 (46 years)

Letter of Appointment SK-204/MBU/10/2015 dated October 27, 2015

Position History � Commissioner of PT Spindoctor Indonesia (2010-2014)

� Commissioner of PT Ciptadaya Resources (2005-2014)

� Vice President, PT IG-Technologies (Aviation Technologies) 1999-2001

� Senior Manager, PT Schneider Indonesia (Electrical Devices)1995-1999

� Manager, PT Schlumberger Industries (Oil and Gas Industries) 1992-1995

Educational backgroundBachelor of Economics majoring in Marketing Management from University of Indonesia and Master of Communication Management from University of Indonesia and currently continuing education for Doctoral Program at University of Indonesia.

AffiliationThere is no affiliation with other members of the Board of Directors and members of the Board of Commissioners.

Dyah Kartika Rini Independent Commissioner

(left to right) Heru D. Adhiningrat, Bondan Pristiwandana


57



Heru D. AdhiningratPresident Director

Indonesian citizen born in Sanga Sanga in 1960 (57 years)

Letter of Appointment SK KEP-153/MBU/2009 dated July 23, 2009SK KEP-197/MBU/2013 dated March 27, 2013

Position history

� Currently serving as President Commissioner of PT Danareksa Investment Management, PT Danareksa Finance and PT Danareksa Capital

� Director of PT Danareksa (Persero), (2009-2013)

� Vice President Director of PT Semen Gresik (Persero) Tbk (2008-2009)

� President Director of PT Bukit Baiduri Energy (2007-2008)

� President Director of PT CIMB GK Securities Indonesia (2006-2007)

� President Director of PT Mandiri Sekuritas (2003-2006)

� Vice President Director of PT Mandiri Sekuritas (2002-2003)

� Director of PT Danareksa Sekuritas (1995-2002)

� Director of Investment Banking of PT Sung Hung Kai Securities (1994-1995)

� Director of Investment Banking of PT - Credit Lyonnais Capital Ind. (1993-1994)

� Director of PT Multicor Securities (1989-1993)

Educational background

MBA in Finance from West Coast University in LosAngeles, US, after graduating with a bachelor’s degree in Finance from California State University, Los Angeles, US (1986). Having attended various training programs, seminars and workshops in finance and capital market, including the ASEAN Global Leadership Program at the University of California - Berkeley, California, US.

Affiliation

There is no affiliation with other members of the Board of Directors and members of the Board of Commissioners.



Bondan PristiwandanaDirector

Indonesian citizen, born in Yogyakarta in 1965 (52 years)

Letter of Appointment

SK-197/MBU/2013 dated March 27, 2013

Position History

� Aside from serving as Director of the Company, he is currently active as Commissioner of PT Danareksa Sekuritas and Commissioner of PT Danareksa Finance

� Senior Vice President - Risk Management Division Head and Corporate Secretary of PT Danareksa (Persero) in 2009-2013

� Finance Director for PT Bukit Baiduri Energi (Gadjah Tunggal Group) in 2007 – 2009

� Executive Vice President – Chief Financial Officer PT Mandiri Sekuritas (2003 – 2007)

� In the period of 1996 - 2003, worked at Bank Bumiputera as Business and Product Development Group Head and last position as Vice President - Risk Management Group Head

� Area Financial Controller for General Hotel Management Group (1993 - 1996)

� Auditor at the Financial and Development Supervisory Board (BPKP) in 1988 - 1993

Educational Background

Graduated from the State College of Accountancy (STAN) in 1993. During his career, he has attended various training programs and seminars in finance and capital market, including the ASEAN Global Leadership Program at Judge Business School, Cambridge University, UK and at the University of California - Center for Executive Education, Berkeley, United States.

Affiliation

There is no affiliation with members of the Board of Directors and other members of the Board of Commissioners.


In line with organizational change and empowerment of subsidiaries, the implementation of strategic human capital initiative is aligned with the direction and target of change. Human Capital has an important role in determining the organization's capacity to meet its goals. Organizational change can be properly implemented with full support from Management in the transformation process.

Development of Organization and HR ManagementChanges in the Company’s organization and the empowerment of subsidiaries have a direct impact on the organizational structure. Development of organizational structure In order to build comprehensive functional structure of both business and operational/support functions in subsidiaries.In 2017, the HR management function has been conducted independently by subsidiaries. In order to support the full function of HR in subsidiaries, Human Capital of the company held sharing session for transfer knowledge on strategy, policy, SOP and application of HR functions.

Number, Age, Educational Background of Employees Throughout 2017, the consolidated number of permanent employees increased by 2.14%, with total new employees grew by 4.85%, consisting of 93% of permanent employees and 5% of contract employees. The composition of employees in the business and research departments was approximately 51%, and approximately 49% in the support and operations departments, is in line with the empowerment of subsidiaries, especially in the operational/support functions. In the fulfilment of human resources, Danareksa upholds the diversity principle without discriminating against gender, ethnicity, race and religion. By the end of 2017, the composition of consolidated total number of male and female employees was quite balanced, with 55% male and 45% female employees. The majority of employee education composition was 64.03% held bachelor’s degree and 17.86% held

master’s degree, the remaining 0.26% held doctoral degree, 15.82% held associate’s degree, and the lowest level of education was below associate’s degree at 2.04%.

Performance Management and Employee AppreciationEmployee performance management is a fundamental aspect in the company’s target achievement, therefore Danareksa pays attention to target distribution process of the company to become each employee’s target according to their respective job field. The job target is set forth in the Key Performance Indicator (KPI) with the Balanced Scorecard approach, prepared at the beginning of each year and evaluated every six months. The first half evaluation called the mid-year evaluation, which is for the supervisory function and the second half is called the year-end evaluation to measure performance achievement. Performance management is conducted through KPI Online system which is part of Danareksa Electronic Document Management System (EDMS) application.

Performance achievement is used to determine the employees’ incentives based on the contribution and objective factors. The company’s appreciation is given not only in the form of financial, but also in other forms, which is reflected in the annual appreciation program of Employee of the Year. The rewards of the employee's long service pay are given periodically, for service period of 8 (eight), 15 (fifteen) and 20 (twenty) years, as well as appreciation for retiring employees.

Human Resources Planning and ManagementHuman Resources Management Strategy that refers to the Integrated Talent Management system, integrates upstream-downstream management of HR pillars, since HR recruitment up to HR engagement. These transformation and empowerment encourage Human Capital to fulfil HR with optimal capacity, quality and competency based to become the focus of HR strategic initiatives. In the process of finding candidates, the recruitment is done through internal

H U M A N C A P I TA L


or external sourcing. The selection process is done in stages of interview, assessment, and final interview referring to the HR fulfilment with the potential people with adequate competencies.

Integrated human resources management is implemented to develop employee competency effectively according to the company’s needs, maintain and develop talent, motivate employees to achieve optimal performance, and encourage managers to become good line managers.

Improving the quality of Danareksa's human resources and preparing them to be ready in facing changes is one of the company's goals. In order to apply Competency Based Human Resources Management (CBHRM) consistently, the competency profile shall be updated according to the ongoing change and empowerment.

Career Management and Succession PlanningChange in standard of organizational structure aims to accommodate the application of strategic initiative, Dual Career Path. The career path at Danareksa consists of Structural Career Path and Specialist Career Path, which are based on job/position characteristics.

Danareksa Group’s career management strategy is based on Integrated Talent Management System, through Job Evaluation and Grading System which is integrated in Human Capital System with the aim to create an internal equity by placing a position according to its rank based on duties and responsibilities, applying a system of rank that is comparable with other similar industries.

The career management that accommodates employee career aspirations and the company’s needs becomes the foundation of effective Career Management at Danareksa. Criteria and procedures of fair, objective and transparent career policy, as well as clear career path and ranks are important factors in career management at Danareksa.

Identifying talent in the company is the initial step of succession planning. With the Talent Matrix (9-boxes) map, the Human Capital Division develops

an optimal development strategy for employees. Referring to succession planning, identification of critical positions in the company is required, to prioritize those positions to have a successor candidate. Employees in the Talent Pool are prepared to be succession candidates and receive the necessary mentoring and development plans. In 2017, in the implementation of succession planning, Danareksa Persero performed competency assessment for Division Head and Unit Head levels, as well as assessment of several Division Heads and Board of Directors of subsidiaries for talent pool.

Human Resources Learning and DevelopmentHuman resource learning and development activities develops Training Curriculum, Development Catalogue and Leadership Development Program based on Danareksa Competency Model. Danareksa has consistently conducted Individual Development Planning (IDP) to meet the Job Competency Model. Development programs are aligned with the needs of employees to meet both technical and non-technical competencies.

Compliance with the professional ethics to adhere to the rules of the current regulators has become the focus for Danareksa. Therefore, every salesperson and job function that is required to have a professional license as required by the regulator, is given the opportunity to study and take the exam for certification funded by the company.

Training: Realization and Cost The year 2017 was the year of development for more optimal empowerment of human resources. As a follow up to the IDP program that has been implemented, there has been a significant increase in the number of training/development programs undertaken and the number of employees who attended the programs. Throughout 2017, Danareksa has conducted training for 324 employees.

The training was provided through 61 In-House


Training/Product Knowledge programs; 150 times of Public Training (Domestic and Overseas) program.

The realization of training expenses in 2017 amounted to Rp4,537,997,843.23, with a usage rate of 64.32% of the total budget. The company paid attention to competency development of employees to build quality human resources.

Employee EngagementDanareksa's Engagement Index is made up of elements of Commitment and Satisfaction towards the Company, with key drivers that support the changes, as follows:A. Commitment: Trust, Delivering Result and

Creating AlignmentB. Satisfaction: Recognition, Connection and

Well-being

Danareksa's Employee Engagement Index was at the level of 82%, with 95% response rate from employees.

EqualityDanareksa recruits and promotes employees by providing equal opportunities in career development and implementation of duties professionally. Danareka provides equal opportunities and does not discriminate based on ethnicity, religion, race and gender

Employee WelfareThe Company supports the welfare of employees through a number of policies, including through the improvement of health facilities, pension benefit and others. Employee security and benefits in the long run are institutionalized and formalized in the Collective Labor Agreement (CLA).

Danareksa’s employees receive income composition that is above the minimum wage standard set by the Government. In addition to remuneration, the Company also provides facilities to employees by

registering employees to the BPJS Ketenagakerjaan programs, Pension Fund, and Danareksa Cooperative (Kopedana), registering employees and their immediate family to insurance program for inpatient care and reimbursement for outpatient care, as well as providing other facilities and benefits to employees based on their job rank (grade)which is stipulated in the Decree of the Board of Directors.

With the availability of Danareksa Club (Danareksa Labor Union), employees conduct regular activities together through various sports and art clubs to strengthen unity and teamwork among colleagues.

Occupational Health, Safety and EnvironmentDanareksa is aware that in conducting its business activities, safety, health and the environment are the main aspects. To realize this commitment and determination, Danareksa provides safety equipment at accessible locations within the working environment as well as standard security procedures. The Company improves the workplaceenvironment by:

� Apply and comply with HSE (Health & Safety Environment)/OHS (Occupational Health and Safety) principles in accordance with applicable regulations

� General Affairs division is in charge as building management (providing light fire extinguisher and holding fire drill)

� Availability of sports facilities/Executive Club, First Aid room, place of worship (mosque/prayer room) and lactation room

� In providing security in the workplace, security officers are available for 24 hours

In 2017, there were no minor or major workplace accidents. Danareksa always strived to achieve "zero accident". In the health aspect, Danareksa also paid attention to its employees, including in the form of preventive measures such as fogging in the working environment to prevent dengue fever.


Measurement of Key Performance Indicators

In organizing and managing manpower to strengthen focus on customer and business, customer satisfaction surveys are conducted annually. The results of customer satisfaction index are one of key performance indicators (KPI) of all employees, therefore every employee has the responsibility to provide optimal service to customers.

KPI components are determined with orientation to the employee development, business process and customer satisfaction to meet the expected performance, as a reflection of the aligned HR management strategy with the company’s overall strategy.

In accordance with the Board of Directors’ Decision regarding the Guideline of Performance Assessment, the results of performance assessment shall be considered for transfer, rotation, job adjustment, career development, raise or adjustment of salary or position.

Employee Planning and Career Management The driving factors in Manpower Planning are: � Development of Company activities: � Development of Organizational Structure; � Filling vacant positions due to employee

resignation; � Filling vacant positions due to Employee

transfer. � Regulatory changes related to organizational

elements.

The basis for assessment implementation for all employees and the employee development plan of Danareksa is by adapting to the Competency Model, so that the available human resources are competent according to the Company’s requirements as well as to avoid mismanagement and overlap in performing tasks.

Employee Engagement Diagram

6 6

Drivers (Reference)

� RJPP & RKAP � Organizational Structure � Business development � Vacant positions

Process Framework

� Identification of needs on manpower planning

� Manpower competence identification

Output

� Recapitulation of Manpower Needs Analysis based on function and Grade range

� Danareksa Talent Pool � Danareksa Talent Matrix

Supporting Factors:Job Profile (job description of competency model), Manpower Requirement Application Form.

Diagram of Manpower Planning & Management Mechanism

The flow of manpower planning & management at Danareksa is as follows:


Reward Frequency Employee Nomination

Bonus/Incentives Annual All eligible employees.

Promotion Annual Nomination

All employees who meet the criteria

Employee of the Year

Annual Nomination

All employees who meet the criteria

Length of service Term 8, 15, and 20 years of service

Employee Appreciation Table


2016 2017Status

2016 2017

Total % Total %

Female 175 45 185 45

Male 217 55 226 55

Total 392 100 411 100

Table of Employee Composition by Gender

The composition of male and female employees has been quite balanced, 55% male and 45% female.

Status2016 2017

Total % Total %

Up to Associate's degree (D3)

70 18 72 18

Bachelor's degree (S1)

251 64 268 65

Master's and Doctoral Degrees (S2 & S3)

71 18 71 17

Total 392 100 411 100

Table of Employee Composition by Educational Background

Along with the increasing level of education in Indonesian society, the composition of education level continues to shift upward with the employees’ average minimum education in S1 (bachelor’s degree).

Status2016 2017

Total % Total %

Permanent 373 95 381 93

Contract 19 5 30 7

MT 0 0 0 0

Total 378 100 411 100

Table of Employee Composition by Employment Status

Danareksa divides employment status into Permanent Employee, Contract Employee and Management Trainee (MT). In 2016 and 2017, Danareksa did not conduct the Management Trainee program.

MT – Management Trainee

2016 2017

2016 2017

Permanent

Up to D3

Female

Contract

Bachelor's Degree

Male

MT

Master's and Doctoral Degrees

6 8

2016 2017


Status2016 2017

Total % Total %

Top Management 40 10 39 10

Middle Management 170 43 169 41

Operational Staff 182 47 203 49

Total 392 100 411 100

Table of Employee Composition by Managerial Levels

Danareksa divides the Grade Range into six categories, namely Senior Vice President (grade 15-16), Vice President (grade 13-14), Assistant Vice President (grade 11-12), Manager (grade 9-10), Assistant Manager (Grade 7-8) and Associate (grade ≤6).The categories are regrouped in three groups as described in the table below:

Age(years)

2016 2017

Total % Total %

< 30 106 27 110 27

30-45 178 45 185 45

>45 108 28 116 28

Total 392 100 411 100

Table of Employee Composition by Age (years)

Top Middle Operational Staff

2016 2017


Measurement of Key Performance Indicators In organizing and managing manpower to strengthen focus on customer and business, customer satisfaction surveys are conducted annually. The results of customer satisfaction index are one of key performance indicators (KPI) of all employees, therefore every employee has the responsibility to provide optimal service to customers.

KPI components are determined with orientation to the employee development, business process and customer satisfaction to meet the expected performance, as a reflection of the aligned HR management strategy with the company’s overall strategy.

In accordance with the Board of Directors’ Decision regarding the Guideline of Performance Assessment, the results of performance assessment shall be considered for transfer, rotation, job adjustment, career development, raise or adjustment of salary or position.

Employee Planning and Career Management The driving factors in Manpower Planning are: � Development of Company activities: � Development of Organizational Structure; � Filling vacant positions due to employee

resignation; � Filling vacant positions due to Employee

transfer. � Regulatory changes related to organizational

elements.

The basis for assessment implementation for all employees and the employee development plan of Danareksa is by adapting to the Competency Model, so that the available human resources are competent according to the Company’s requirements as well as to avoid mismanagement and overlap in performing tasks.

TrainingIn order to improve the capability of its employees, Danareksa provides training both held by Danareksa and those held by third parties.

There have been 61 in-house training programs, including:

� Basic Financial Modeling � Excel Essential Batch 1 � Accelerated Learning Potential � Ms Excel Data Analysis � M&A � Excel Essential Batch 2 � WPPE,WPEE,WMI � Managing IT Investment & Services � Workshop on Legal Aspect of Collateral

Goods � The Prospect of the Indonesian Economy � Analysing Data with Power BI � Certified Risk Professional � KYC-AML � Internal Quality Auditor � Development and Prospects of the Indonesian

Economy � Business Valuation � Bond Valuation & Investing in Bond � Basic Financial Modelling � Excel Essentials Batch I � Microsoft Excel Data Analysis � Exel Chart & Presenting Data Batch I � Excel Essentials Batch II � Sharing Session: Merger & Acquisition � Sharing Session: Business Valuation � Sharing Session: IPO Process � Dissemination & Training of Service Excellence � Delivering Excellence Service


� Analyzing Data with Power BI � Legal Aspect of Collateral Goods � Capacity Building - Phase 1 (Sby) � Capacity Building - Phase 1 � Sharing Session & Try Out WPPE, WPEE, dan

WMI � Sharing Session Integrated Talent

Management � Seminar for Leaders : The Millenials, Next

Influencer � Sharing session: ASEAN Global Leadership

Programs (AGLPs) 2017 � Assessment of competence and TOEIC (all � employees) � Anayzing Data With Power BI � Anti Money Laundering Training (APU-PPT) � Prospects & Development of Indonesian

Economy � Basic Personal Leadership-Goal-Oriented � Other - Technical Skill Domestic � Human Capital � Other - Soft Skill Domestic � Basic of Capital Market And Financial Services

Knowledge � Computer Skill � Management Trainee Induction Program � Personal Branding and Effective

Communication � Financial Sharing Session - Business Valuation � Microsoft Excel Essential - Batch I � Microsoft Excel Essential - Batch II � Sharing Session and Try Out WPPE, WPEE,

WMI � Financial Sharing Session - Merger and

Acquisition � Financial Sharing Session - IPO Process � Microsoft Excel Chart and Present Data � Delivering Excellence Service � Analyzing Data with Power BI � Exam Preparation and Certified Risk

Professional Exam

� Anti Money Laundering and Terrorism Funding � Employee Benefits in SFAS No. 24 � Sharing Session Business Valuation � Sharing Session Transformational Leadership

AGLP

There were 141 training programs held by third parties in the country, including:

� James Gwee � ASEAN Fixed Income Conference 2017 � FRM exam preparation � Corp Criminal Liability: Challenges &

Opportunities For Businesses � Forensic Accounting changed to Change

Management Excellence � Financial Modeling for Fundamentals � Corporate income tax � Financial Modeling for Sensitivity & Scenario

Analysis � Basic Accounting � Mastering ITIL Foundation 2011 and Exam

Prep (incl, exam) � Strategy Into Performance Execution

Excellence (SPEx2) For Line Managers � Professional Financial Modeller � Competency Development & Career

Management Programme � Internal Audit for Managerial Level � QMS ISO 9001: 2015 INTERPRETATION &

INTERNAL AUDIT � Business Process Management � Self & Proactive Leaderships � Strategy to Develop Financial Model � WPPE � 8 Tests of Organization Structure Effectiveness � Corporate Valuation: Techniques &

Applications � Creative Thinking Technique � Effective Business Communication � GA Officer Program


� Improving Business Writing Skills � Mastering COBIT 5 Fundamental: A Practical

Approach (incl. exam) � Step by Step Preparing TP Doc � SFAS 71 � Beauty Workshop � Best Practise-Receivable & Payable

Management (PROTECTING, CONTROLLING RECEIVABLE&COLLECTION)

� Customer service excellence � Customer Statisfaction & Loyalty � Registration of Continuous Education Program

(PPL) Dir. Com � System Analysis and Design: Software

Processes, UML and Design Pattern � Mastering COBIT 5 Fundamental: A Practical

Approach � Understanding REITs Indonesia VS Singapore � Management for Professional Secretary � IT Asset Management � Office & Administration Series – Legal Drafting

to Prevent and anticipate business conflict & Dispute

� First Line Leadership: Becoming Effective Leader

� PPL Waperd � Procedures for Calculation and Filling of the

Corporate Annual Tax Return in accordance with the Latest Regulations

� Workshop PR Indonesia � MS Excel For Accountan � Copywriting for Effective Marketing

Communications � Drive Digital Innovation – Harnessing

Technology to Accelerate Your Business Transformation

� PMP (Project Management Professional) � Project Management Professional-Combo

Program � Asset Accounting Deepening and

Implementation According to Financial Statements of SOE & Subsidiary

� Workshop on Legal Aspect Deepening on Implementation of Sharia Principles in Capital Market

� 7 Languages of Fascinating Advantages � IT System Analysis & Design � Bond Market & Instruments � the IT Transformation and Hybrid Architecture � Advanced Competitive Marketing Strategy � Sertifikasi WAPERD � Software Quality Assurance � Sertifikasi WMI � PMP Exam Simulation � PPL WMI � 7th Secretary and Personal Asisstant 2017 � Behavioral Event Interview � Tiga Pilar Corporate dalam Meningkatkan

Reputasi � Be A Smart Personal Assistant � Certified Risk Management Officer (CRMO) � Program WMI Waiver � ASPM Keahlian Syariah Pasar Modal Waiver � General Affairs Management � WMI Waiver � ASPM Keahlian Syariah Pasar Modal Reguler � CFA Level 1 � Metrodata Solution Day 2017: Digital Business

& Disrupsion � 4th Asian Fixed Income Summit � Salary structure development � Seminar PWMII : the Implications of MiFID

II and FX Global Code of Conduct to Asset Management Firms in Indonesia

� Pelatihan Bloomberg � Professional Financial Modeller (PFM) � Interpretasi KPKU BUMN 2017 � Magnetic Sales Presentation � Training Budgeting & Forecasting � General Affairs Development Program � The 12th HR Expo 2017 � Financial Reporting Skill � Easy Way to Prepare TP Doc Reports according

to PMK 213/2016 and OECD TP Guidelines 2017

� Advance Competitive Marketing Strategy � Basic Finance for Non Finance � WMI license exams � Risk Management Certification of Executive

Program


� Basic Certification Financing - Commissioner � Opportunities and Challenges 2018 � Monitoring Law, Legal, And Violation � Understanding SFAS 24 Report � Other - Technical Skill Domestic � Workshop Copywriting for Effective Marketing

Communication � Workshop Credit Resiko � FRM Level 1 Batch 19 � Training Excel � Training Treasury � Winning Negotiation Skill � Procurement of Government Goods and

Services � Training Lokakarya Implementasi Internal

COSO � COSO Internal Implementation Workshop � Hospitality Training � Merger and Acquisition Seminar � Qualified Internal Auditor (QIA)Training � Training MPP Basic Photography+Intermediate

Photography+ Drone � Latest SFAS Convergence Under IFRS

Workshop � Professional General Affairs � Competence Development for Procurement of

Government Goods and Services Specialist � Intensive Course on Guarantee Law � Implementing Data Warehouse with Microsoft

SQL Server � IIA Conference � ASPAC HR Forum � The 6th International Accounting Conference � School of Diplomacy � Workshop on Advanced Qualitative Research

Methods � QIA Certification for Managerial Level � IIA Indonesia National Conference � Training MPP Basic Photography+Intermediate

Photography+ Photoshop Photography � Forecasting and Valuation � ASEAN PR Conference � Professional Project Management � Internal Audit Workshop - Internal Audit

Process and Techniques � Employee Engagement � Implementing a Data Models and Reports with

SQL Server 2014 � Deloitte Tax Update Seminar � Thomas PPA Certification � CISA Review Course Batch III

� Effective Team Work � Professional Financial Modeling � CIA Review Course � Minaut Indonesia Problem Solving & Decision

Making � Successful Organizational Transformation � Basic Credit Analysis � Legal Aspect and Settlement of CG & PG

Legal Dispute � Chamber of Commerce and Industry (Kadin)

Seminar � Talent Management � Operational Risk Management � Tax accounting � Practical Problem Solving � Bond and Fixed Income Valuation

There were 9 training programs organized by third parties overseas, including:

� ASEAN Global Leadership Program, United Kingdom.

� Executive Program in Corporate Strategy, Chicago USA.

� Valuation of Tech Startups, E-Commerce, and Internet Based Company

� Applied Investment and Risk Analytics with R (Intermediate), Singapore.

� Fintech World Forum 2017, United Kingdom. � Corporate Valuation � Fintech Innovation Forum, Singapore. � Portfolio Performance Measurement &

Attribution Analysis � SE Asia 2017 Legal Summit �


This page is intentionally left blank

7 4

Shareholder

Nominal value Rp1,000,000 per share (full value)

Number of shares

(full value)

Total nominal value (Rp) (Full value)

Percentage (%)

Authorized capital 2,800,000 2,800,000,000,000 -

Shareholder: Republic of Indonesia

701,480 701,480,000,000 100.00

Total issued and paid-up capital 701,480 701,480,000,000 100.00

Shares in portfolio 2,098,520 2,098,520,000,000 -


S H A R E H O L D E R C O M P O S I T I O N O F T H E C O M PA N Y

S H A R E H O L D E R C O M P O S I T I O N


Government of the Republic of Indonesia

Ministryof State Owned Enterprises

(SOEs)

100%

99,999% 99,999% 99,999% 99,900%

C O M PA N Y G R O U P S T R U C T U R E

7 6

Certificate Type Validity Issuer

ISO 9001-2015

PT Danareksa Investment Management. For "Investment Management Services". Certificate ID17/04056.

July 4, 2017 - May 27, 2020

ISO 9001-2015

PT Danareksa Sekuritas. For "Securities Company Operations, including Brokerage, Investment Banking, Underwriting, Financial Advisory, Fixed Income, Equity, Online Trading, Settlement & Operations".

Certificate Ref. L-MG/IV/18/424

until June 4, 2018

Table of Certifications


A W A R D S A N D C E R T I F I C AT I O N S

2 0 1 7 � Top Corporate Social Responsibility (CSR)Improvement 2017, BusinessNews Indonesia

� Good Performance Category - SOE Performance Excellence Award 2017, Forum Ekselen BUMN

� Infobank 8th BUMN Awards 2017 – SOE with Very Good Financial Performance category during 2016, Infobank

� Indonesian Financial Figures 2017, Investor Magazine

� Best Local Currency Bond Deal of the Year in Southeast Asia, Alpha Southeast Asia

� Most Innovative Ijarah Deal of the Year in Southeast Asia, Alpha Southeast Asia

� Best Loan Deal of the Year in Southeast Asia, Alpha Southeast Asia

� Top Banks in Corporate & Government Bond, The Asset

� Best Investment Bank and M&A House, Alpha Southeast Asia

� Most Admired Company, Warta Ekonomi

� Best Islamic Deal in Indonesia, The Asset

� Digital Brand, Reksa Dana – Dollar, Infobank

� Best Perform in Protected Mutual Fund, Danareksa Gebyar Dana Likuid, Warta Ekonomi

� Silver Champion of Best Conventional Equity Fund, Danareksa Mawar Rotasi Strategis, Bareksa Kontan 2017 Fund Awards.


Names and Addresses of Capital MarketSupporting Institutions

Indonesia Stock Exchange

Indonesia Stock Exchange Building, Tower 1Jl. Jend. Sudirman Kav 52-53Jakarta Selatan 12190, IndonesiaPhone : (62-21) 5150515Fax : (62-21) 5150330

PT Kustodian Sentral Efek Indonesia

Gedung Bursa Efek Indonesia,Tower 1 5th FlJl. Jend. Sudirman kav. 52-53,Jakarta 12190 , IndonesiaPhone : (62-21) 515 2855Fax : (62-21) 5299 1199

Trustee

PT. Bank Mega Tbk.Bank Mega Tower, 15th Fl,Jl. Kapten Tendean 12-14AJakarta 12790Phone : (62-21) 7917 5000Fax : (62-21) 7918 7100

Name and Address of Securities Rating Company

PT Pemeringkat Efek Indonesia (PEFINDO)

Panin Tower Senayan City, 17th FloorJl. Asia Afrika Lot.19Jakarta 10270, IndonesiaPhone: (62-21) 7278 2380Fax : (62-21) 7278 2370

External Auditor

Purwantono, Sungkoro & SurjaAnggota Ernst & Young International

Jakarta Stock Exchange BuildingTower 2, 7th FloorJl. Jend. Sudirman Kav. 52-53 Jakarta 12190, IndonesiaPhone: (62-21) 5289 5000Fax : (62-21) 5289 4100

C A P I TA L M A R K E T S U P P O R T I N G I N S T I T U T I O N S A N D P R O F E S S I O N A L S

HEAD OFFICE

PT Danareksa (Persero)Gedung Danareksa Jl Medan Merdeka Selatan 14,Jakarta 10110 Tel (021) 29-555-888Fax (021) 3500-989

PT Danareksa SekuritasGedung DanareksaJl Medan Merdeka Selatan 14, Jakarta 10110, Tel (021) 29-555-888Fax (021) 350-1817

PT Danareksa Investment ManagementGedung DanareksaJl Medan Merdeka Selatan 14, Jakarta 10110Tel (021) 29-555-888Fax (021) 350-1713

PT Danareksa FinanceGedung DanareksaJl Medan Merdeka Selatan 14, Jakarta 10110Tel (021) 29-555-888Fax (021) 352-2495

PT Danareksa CapitalGedung DanareksaJl Medan Merdeka Selatan 14, Jakarta 10110 Tel (021) 29-555-888Fax (021) 351-0581

C O M PA N Y N E T W O R K

NON EXCHANGE MEMBER SECURITIES COMPANIES PARTNERSHIP (PE NON AB)

PT Reksa Depok Sekuritas PE Non AB - SID DepokRukan Margonda Residence 12Jl Margonda Raya, Depok 16426Tel (021) 7721-2525Fax (021) 7721-2255

PT Star Reksa Sekuritas PE Non AB - SID BSDRuko BSD Plaza Sektor IVBlok RG 9 - BSDTangerang 15322Tel (021) 5315-2666Fax (021) 537-0153

PT Kopedana Mitra Usaha PE Non AB - SID BekasiKawasan Sentral Niaga KalimalangRuko Mutiara Bekasi Center Blok A8Jl Jend. A. Yani 1, Bekasi 17148Tel (021) 2928-6060Fax (021) 2928-5666

PT Star Reksa SekuritasPE Non AB - SID BalikpapanGedung KalstarJl R. Marsma Iswahyudi 12Gunung Bakaran - BalikpapanTel (0542) 721-4600Fax (0542) 721-4599


D A N A R E K S A | A N N U A L R E P O R T 2 0 1 7

SID Pondok IndahRukan Plaza 5 C/5Jl Margaguna RayaPondok Indah - Jakarta 12140Tel (021) 739-6988Fax (021) 7278-6330

SID Mangga DuaKomp. Pertokoan Rukan Mangga Dua MallJl Mangga Dua Raya II / 3Jakarta 10730Tel (021) 6230-1988Fax (021) 6230-1878

SID Kelapa GadingKomp. Pertokoan Rukan Mangga Dua MallJl Mangga Dua Raya II / 3Jakarta 10730Tel (021) 6230-1988Fax (021) 6230-1878

SID Universitas IndonesiaGd Pascasarjana Lt. DasarFE Universitas IndonesiaKampus Depok 16424Tel (021) 7884-9149Fax (021) 7884-9151

SID Pondok Indah Gerai FE TrisaktiUniversitas Trisakti - FEGd Hendriawan Sie Lt. DasarJl Kyai Tapa 1Grogol, Jakarta BaratTel (021) 5696-9061Fax (021) 5696-9061

SID BandungGedung PinsilJl Gatot Subroto 1Bandung 40257Tel (022) 730-3588Fax (022) 730-2511

SID FEB UGMGd Program DiplomaFak. Ekonomi dan Bisnis UGM (FEB-UGM)Jl Prof. Notonagoro - Bulaksumur, Yogyakarta 55281Tel (0274) 551-181Fax (0274) 551-050

SID FEB UGMGerai Universitas Sanata DharmaFakultas EkonomiJl. Gejayan, MricanTromol Pos 29, Yogyakarta 55002

SID FEB UGMGerai FE UPNJl. SWK No. 104 (Lingkar Utara)Condong Catur - Yogyakarta 55281Telp. (0274) 487-275Fax. (0274) 487-275

SID FEB UGM Gerai FEB UKSWFakultas Ekonomika dan Bisnis Univ. Kristen Satya WacanaJl. Diponegoro No. 52-60Salatiga 50711Telp. (0298) 321-117

SID FEB UGM Gerai IAIN SurakartaJl Pandawa Pucangan KartasuraJawa Tengah

SID FEB UGM Gerai Pojok Bursa MM UGMGd. Program Studi Magister Manajemen (MM) Lt. 2 FEB-UGMJl Teknika Utara 1, Yogyakarta 55281Tel (0274) 589-601Fax (0274) 551-050

SID FEB UGM Gerai MM UndipProg Studi Mag. Manajemen, Universitas DiponegoroJl Erlangga Tengah 17SemarangTel (024) 844-1636Fax (024) 845-2268

SID FEB UGM Gerai FH UNSUniv. Sebelas MaretGd. 2 Fakultas HukumJl. Ir. Sutami No. 36 AKentingan, Surakarta - Solo 57126 - Jawa TengahTelp. (0271) 789-0470

SID FEB UGM Gerai KP BEI SoloGd. Graha Prioritas Lt. 1Jl. Slamet Riyadi No. 302-304Surakarta 57141 - Jawa Tengah

SID MakassarRuko GTC Blok GA8 No. 26Jalan Metro Tanjung BungaMakassar 90231Tel (0411) 811-4011Fax (0411) 811-1799

SID SurabayaGedung Pakuwon Center, lantai 22 Jl Embong Malang 1Surabaya 60261Tel (031) 9924-2555

SID Surabaya Gerai Univ Ma’Chung Malang Gd Bhakti Persada Lt. 2Jl Villa Puncak Tidar N-01Malang 65151Tel (0341) 329-888Fax (0341) 550-171

SID MedanKomp Ruko Apartemen RoyalJl. Palang Merah No. 5Medan 20111Tel (061) 452-8100Fax (061) 452-7100

SID PalembangUniv Islam Negeri (UIN) Rd Fatah; Gd. Fakultas Ekonomi dan Bisnis Islam (FEBI) Lt. 1, Jl. Prof. KH. Zainal Abidin Fikri No. 1Palembang 30126Tel (0711) 365-050 Fax (0711) 363728

7 9

DANAREKSA INVESTMENT CENTER (SID)

81

M A N A G E M E N T D I S C U S S I O N

A N D A N A LY S I S O N C O M PA N Y P E R F O R M A N C E

"Danareksa continually strives to improve its

market position and market share, as well as

quality of services in securities underwriting,

financial advisory services, securities brokerage,

financing and investment management in

accordance with its vision to become the

preeminent, preferred and trusted company in

financial services."

8 2 M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S O N C O M PA N Y P E R F O R M A N C E

1. Economic Indicator 2017

The end of 2017 marked by the upward trend of world oil prices. World oil prices (Brent) at the closing of December 2017 was recorded at USD66.73/barrel and West Texas Intermediate (WTI) crude oil price was recorded at USD60.42/barrel. In addition, the US Federal Fund Rate (FFR) increased by 25 basis points (bps) on December 13, 2017, which was the third time in 2017, so the total increase of the FFR by the end of 2017 was 150 bps or 1.50% and increased by 75 bps throughout 2017 compared to the end of 2016 at 0.75%.

Meanwhile at home, the report on the realization of Non-Tax State Revenues in 2017, saw a significant increase, reaching Rp308.4 trillion or 118.5% of the target in Revised State Budget of Rp260.2 trillion and showing growth of 17.7 % from achievement in 2016 of Rp262 trillion. The achievement of Non-Tax State Revenues was supported by the increase of natural resources revenues, dividend income of SOEs, improvement of services and utilization of information technology as well as increased revenue of Public Service Agencies.

Development of Rupiah Exchange Rate

At the end of the period in 2017 the Rupiah exchange rate closed at the level of Rp13.548/USD. The closing rate was a decline of 0.83% when compared to the closing rate by end of 2016 at the level of Rp13,436/USD. In the fourth quarter, rupiah weakened by 0.41%, from Rp13,492/USD at the end of September and had reached the lowest level of Rp13,630/USD on October 27.

The weakening of Rupiah exchange rate at the final quarter of 2017 was also experienced by almost all world currencies that weakened against the USD. The strengthening of the USD exchange rate globally was one of the financial market responses to the dynamics of

the central bank's head nomination process, the normalization of monetary policy as well as an rising expectation to interest rate hike and tax reform plan in the US.

Trading in the Indonesia Stock Exchange

The development of domestic stock market until December 2017 showed a positive performance in line with the improvement of domestic economic data amid the global economic slowdown. The Jakarta Composite Index (JCI) at the end of 2017 was at 6,365.55 or an increase of 20.17% compared to 2016 at the level of 5,296.71.

In addition, trading frequency increased by 20% indicating the Indonesia's capital market as one of the more liquid capital markets of other exchanges in ASEAN. In the capital market data for Initial Public Offering (IPO) in 2017, a total of 37 companies conducted IPO with average oversubscription of 2.2x and the market capitalization value at the end of 2017 was Rp7,072.09 trillion. The total value of capital market transactions in late 2017 trade amounted to Rp28.38 trillion from 26.08 billion shares traded. The development of the capital market throughout 2017 in addition to providing benefits for domestic investors, also provided benefits for foreign investors with total foreign investment amounted to Rp1,958 trillion, an increase of 15.78% compared to the end of 2016 at Rp1,691 trillion.

Sectoral growth in the JCI varied. At the final quarter of 2017, most sectors increased except for property, infrastructure and agricultural sectors that were down by 0.83%, 2.69% and 9.54%, respectively. Meanwhile, other sectors experienced their respective increase of 14.52% in consumer goods, 12.54% in finance, 12.02% in manufacturing, 11.45% in basic industries, 11.11% of mining, 3.80% in various industries and trade 0.11%.

G E N E R A L R E V I E W


Development of Interest Rates and Inflation

In the final quarter of 2017, domestic inflation was 0.01% in October, 0.20% in November and 0.71% in December, resulting in accumulated inflation of 0.92%. The highest price hike occurred in the foodstuff sector by 2.17%; food, beverages, cigarettes and tobacco 0.81%; transportation and communication 0.70%; health 0.66%; housing, water, electricity, gas and fuel 0.48%; clothing 0.43% and education, recreation and sports 0.33%.

Throughout the year of 2017 (January-December), the inflation rate was 3.61% with the spending group experienced inflation included foodstuffs at1.26%; food, beverage, cigarette and tobacco 4.10%; housing, water, electricity, gas and fuel 5.14%; clothing 3.92%; health group 2.99%; education, recreation and sports 3.33% and the transport, communication and financial services group at 4.23%.

With a controlled and targeted inflation rate, Bank Indonesia through the Board of Governors Meeting (RDG) maintained the benchmark 7-day Reverse Repo Rate remained at 4.25%, with the Deposit Facility at 3.50% and the Lending Facility at 5.00%. The benchmark interest rate has been maintained since September 2017, after two consecutive decline of 25 bps each in August and September respectively.

The performance of foreign trade in exports and imports in 2017 showed a cumulative improvement, with export values reached USD168.73 billion or an increase of 16.2% (y-o-y). The increase came mainly from oil & gas exports with growth of 20.1% (y-o-y) and non-oil & gas exports grew by 15.8% to USD153.99 billion. While imports also experienced a growth of 15.7% (yoy) reaching USD156.89 billion so that the performance of imports and exports throughout 2017 had a trade balance surplus of USD11.84 billion with non oil & gas surplus of USD20.40 billion while oil & gas still had deficit of USD 8.57 billion.

With these developments, Indonesia's foreign exchange reserves at the end of December 2017 posted record highs in history at USD130.2 billion. The foreign exchange reserves were sufficient to finance 8.6 months of imports or 8.3 months of imports and payment of Government foreign debt, as well as were above international standards for 3 months of imports.

It is estimated that the Indonesian economy will be able to grow within the range of 5.1% - 5.2% (y-o-y) by the end of the 2017 period and if achieved, the economic growth would be higher than 5% growth rate in 2016. Economic growth is predicted mainly from stronger domestic demand in line with increase in investment, household consumption and fiscal stimulus. Meanwhile, exports were expected to maintain positive growth along with the continuing recovery of the global economy and commodity prices that remained high.

2. Capital Market Industry

Underwriting

The Jakarta Composite Index (JCI) at the end of 2017 was 6,365.55 or an increase of 20.17% if compared to 2016 at the level of 5,296.71. As for the market capitalization of Indonesia Stock Exchange (IDX) by the end of December 2017 was recorded at Rp7,072 trillion. With 570 companies listed in IDX, total value of trade reached Rp1,808 trillion with an average daily trading value of Rp7.6 trillion. As for Initial Public Offering (IPO) in 2017, there were 37 companies conducted IPO with a total value of Rp9.6 trillion.

Indonesia's 10-year bond yield at the end of 2017 was recorded at 6.32% or decreased by 165 bps as compared to the end of 2016 of 7.97%. The performance of bond market during 2017, has increased significantly. Danareksa Government Bonds recorded total Return Index during 2017


at 17.3% or higher compared to total return in 2016 of 14.1%, where in the period of 10-year bond yield decreased by 102 bps.

Realization of Government bonds issue (gross) in 2017 reached Rp708.9 trillion with the amount of maturity and buyback of Rp275.9 trillion. On the other hand, the corporate bonds issue increased significantly from 2016 of Rp113.3 trillion to Rp154.7 trillion.

Securities Brokerage Transaction

JCI growth in 2017 was one of the best in the Asia Pacific region and increased participation of domestic investors. Total trading value of IDX reached Rp1,808 trillion with an average daily trading value of Rp7.6 trillion.

While the activities in the secondary market for Government bonds during 2017 reached Rp3,060 trillion, with an average of Rp17.2 billion per transaction which was an increased by 10.25% compared to 2016 of Rp15.6 billion per transaction, although the volume of transactions in 2016 was greater at Rp3,067 trillion. In terms of the corporate bond market, total volume of transactions in 2017 in the secondary market reached Rp245.9 trillion with an average of Rp9.4 billion per transaction and was higher when compared to the secondary market performance during 2016 of Rp182.5 trillion, with average transaction amounted to Rp8.4 billion per transaction.

Management of Mutual Funds

The growth of the mutual fund industry showed a positive growth in terms of Asset Under Management (AUM) growth as well as the number and innovation of investment products offered in the market. Total AUM in 2017 amounted to Rp685.6 trillion or an increase of 31% when compared to 2017. Year to date (y-t-d) growth of each mutual fund product can

be seen in the table.

Government in 2017 in implementing infrastructure development, improved alternative product instruments with asset securitization or better known as asset- Collective Investment Contract of Asset Backed Securities (KIK EBA).

Some asset securitization products issued in 2017, among others:

EBA SP SMF-BTN 03 issued by PT Sarana Multigriya Finansial (SMF).

EBA SP SMF-MRI 03 issued by PT Sarana Multigriya Finansial (SMF).

KIK EBA Mandiri JSMR01 issued by PT Mandiri Manajemen Investasi (MMI).

KIK EBA DIPP-01 issued by PT Danareksa Investment Mangement (DIM).

The mutual fund industry, recorded an increase of 34.4% to Rp456.1 trillion from interest rate sensitive mutual funds, namely fixed income mutual funds, protected mutual funds and money market mutual funds of Rp43.7 trillion, Rp24.8 trillion and Rp22.3 trillion respectively. The three types of mutual funds also recorded the highest increase of investment units from all mutual fund products in the industry.

For equity funds, there was an increase of Rp16 trillion or about 13.2% from the previous year. Although the AUM increase was lower than the increase in JCI, although the increase of AUM was followed by a 19.2% growth of shareholders.

From the total proportion of mutual funds, equity funds still recorded the largest proportion at 30%, but decreased compared to 2016, due to the significant increase in fixed income and money market mutual funds.

In fixed income mutual funds, growth was driven by increasing corporate and government bonds issued to finance infrastructure development projects. In addition, the increase of Investment

Table of Economic Indicator - December 2017

No. Economic Indicator 2014 2015 2016 2017

1 Exchange Rate Rp/USD Rp12,440 Rp13,785 Rp13,436 Rp13,548

2 JCI 5,226.95 4,593.01 5,296.01 6,365.55

3 Foreign Exchange Reserves (USD billion)

111.86 105.93 116.36 130.20

4 BI Rate/BI 7-day Reverse Repo (%) 7.75 7.50 4.75 4.25

Source: Danareksa Research Institute, Indonesia Stock Exchange, Bank Indonesia


Grade Indonesia to BBB- and BBB respectively by S & P and Fitch Rating, became one of the supporters of bond market growth in Indonesia. The factors above caused the performance of most fixed income mutual fund products in the industry recorded a good performance so that investors have been increasingly interested to invest in these instruments.

Economic Growth

At the end of 2017, the BI Rate/BI 7-day Reverse Repo was at 3.61% (2016 = 4.75%). Inflation in 2017 was at the level of 3.02% (2016 = 3.02%).

3. Business Prospects 2017

In relation to the world economic conditions and challenges, the efforts have been carefully undertaken. However, the results have not met the target budgeted at the beginning of 2017.


70,09% 71,83%Comparison to 2016 Comparison to Target

2017Performance Review

Operating revenues PT Danareksa (Persero) in 2017 reached 70.09% compared to revenues in 2016.

Compared to the target of the beginning of the year, achievement by PT Danareksa (Persero) reached 71.83%.

Operating revenues from interest, dividends and finance leases met RKAP targets, although not followed by other operating revenues.

F I N A N C I A L R E V I E W

1. Financial Performance

No. Economic IndicatorRealization

2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Operating Revenues 636,942 446,414 621,491 70.09% 71.83%

2 Total Expenses 491,584 585,320 506,272 119.07% 115.61%3 Operating Income 145,358 (138,906) 115,219 (95.56%) (120.56%)

4 Other income (expenses) 3,248 8,532 (2.200) 262.76% (387.81%)

5 Net income before tax 148,606 (130,374) 113,019 (87.73%) (115.36%)

6 Income Tax (expenses) benefit (32,347) (17,200) (58,345) 53.17% 29.48%

7 Net Income 116,259 (147,574) 54,674 (126.94%) (269.92%)

8 Net Income per Share (Full Rupiah)

165,734 (210,375) n/a - -

Summary of Financial Performance (in Rp million)

1.1. Operating revenues

119.07% 115.61%Comparison to 2016 Comparison to Target


Total consolidated expenses in 2017 increased by 119.07% compared to total expenses in 2016.

Total expenses were 115.61% compared to the target in budget 2017.

The increase in total expenses was due to an increase in some of the Company's expenses in 2017.

1.2. Total Expenses


(87.78%) (115.36%)Comparison to 2016 Comparison to Target


In 2016 the Company posted Income before tax of Rp148.61 billion. In 2017 the pre-tax loss was Rp130.37 billion.

Income (Loss) Before Tax did not meet the initial target of 2017.

This decrease was due to the decrease in revenues and increased expenses.

1.3. Income Before Tax



Tax contribution to the State reached 53.17% compared to 2016.

Tax contribution to the State reached 29.48% of the target in beginning of the year.

The decline in tax contribution was in line with the decline in transactions that occurred in 2017.

1.4. Danareksa Contribution to the Tax State Revenue

(126.94%) (269.92%)Comparison to 2016 Comparison to Target


In 2016, the Company recorded a net profit of Rp116.26 billion. While in 2017 the company recorded a net loss of Rp147.57 billion.

In 2017 the Company posted losses.

The net loss in 2017 was due to the decrease in revenues and increased expenses.

1.5. Net Income

1.6. Other Comprehensive Income

Danareksa in 2017 earned other comprehensive income of Rp13,514 billion from profit revaluation due to defined benefit plan and changes in fair value of securities. As for the year 2016, other comprehensive income amounted to Rp4,914 billion.

1.7. Comprehensive Income

In 2017, the Company posted comprehensive losses.


No. DescriptionRealization

2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Total Assets 3.607.389 3.644.235 3.539.796 101,02% 102,95%

2 Total Liabilities 2.236.621 2.407.527 2.162.387 107,64% 111,34%3 Total Equity 1.370.768 1.236.708 1.377.408 90,22% 89,79%

4 Total Liabilities and Equity 3.607.389 3.644.235 3.539.796 101,02% 102,95%

Table of Financial Position (in Rp million)


2016 (1)

Realization 2017

(2)

Budget2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Cash and cash equivalents 475,382 420,319 509,617 88.42% 82.48%2 Securities portfolio 450,761 694,223 296,581 154.01% 234.07%3 Account Receivable 838,897 616,230 765,720 73.46% 80.48%4 Receivables from Securities

Activities 680,686 707,194 1,031,512 103.89% 68.56%

5 Receivables from Investment Management Activities

12,596 12,476 11,750 99.05% 106.18%

6 Receivables from Financing Activities

107,740 141,335 109,509 131.18% 129.06%

7 Other Receivables 123,781 144,284 76,822 116.56% 187.82%8 Tax & Prepaid Expenses 24,258 64,376 11,319 265.39% 568.76%9 Current assets 2,714,101 2,800,437 2,812,830 103.18% 99.56%

Table of Current Assets (in Rp million)

2. Financial Position

2.1. Current Assets



Current assets at the end of 2017 amounted to Rp2,800.48 billion or 103.18% of current assets at the end of 2016.

Compared to the initial target of the year, current assets at the end of 2017 reached 99.56%.

Current assets increased due to an increase in securities portfolio and financing activities.



2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Portfolio of HTM Securities 166,770 111,085 34,585 66.61% 321.19%2 Deferred Tax Assets 31,687 36,982 21,171 116.71% 174.69%3 Other Assets 61,869 43,279 32,813 69.95% 131.90%4 Investment 12,728 32,728 10,628 257.13% 307.94%5 Fixed Assets 620,234 619,724 627,769 99.92% 98.72%6 Non-Current Assets 893,288 843,798 726,966 94.46% 116.07%

Table of Non-Current Assets (in Rp million)

2.3. Total Assets


2016 (1)

Realization 2017

(2)

Budget 2016

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Total Assets 3,607,389 3,644,235 3,539,796 101.02% 102.95%

Table of Total Assets (in Rp million)

2.2. Non Current Assets

94.46% 116.07%Comparison to 2016 Budget Comparison 2017 Performance Review

Non-current assets at the end of 2017 reached 94.46% from non-current assets by the end of 2016.

Compared to the initial target of the year, non-current assets reached 116.07% by the end of 2017.

Non-current assets decreased due to reduced portfolio of HTM securities and other assets.

101.02% 102.95%Comparison to 2016 Comparison to Budget


Total Assets at the end of 2017 reached 101.02% of non-current assets by the end of 2016.

Compared to the initial target of the beginning of the year, total assets reached 102.95% by the end of 2017.

The increase in total assets was due to the increase of securities portfolio and prepaid taxes and expenses.


2.4. Short Term Liabilities

Table of Short-term Liabilities (in Rp million)


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Short-term loan 1,050,000 1,460,000 1,025,000 139.05% 142.44%

2 Account payable 624 522 870 83.65% 59.98%

3 Payables from Securities Trading Activities

327,698 486,610 726,150 148.49% 67.01%

4 Payables from Investment Management Activities

1,785 3,192 1,660 178.85% 192.31%

5 Interest & accrued expenses

140,053 119,206 98,795 85.12% 120.66%

6 Taxes payable 19,798 12,587 5,396 63.58% 233.26%

7 Other payables 17,382 26,259 19,776 151.07% 132.78%

8 Short Term Liabilities 1,557,340 2,108,376 1,877,647 135.38% 112.29%

2.5. Long Term Liabilities


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Long Term Liabilities 679,281 299,150 284,741 44.04% 105.06%

Table of Long Term Liabilities (in Rp million)



The short-term liabilities of PT Danareksa (Persero) in 2017 increased to 135.38% compared to 2016.

Compared to the initial target of the beginning of the year, achievement by PT Danareksa (Persero) reached 112.29%

This increase in short-term liabilities was primarily due to the increase in short-term loans and other matters to boost Danareksa Group's business.



Long-term liabilities of PT Danareksa (Persero) in 2017 decreased to 44.04% as compared to 2016.

Compared with initial target in the budget 2017, achievement by PT Danareksa (Persero) reached 105.06%.

Long-term liabilities decreased as Danareksa's bonds and short-term liabilities matured.


2.6. Total Liabilities


2016 (1)

Realization 2017

(2)

Budget2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Short Term Liabilities 1,557,340 2,108,376 1,877,647 135.38% 112.29%

2 Long Term Liabilities 679,281 299,150 284,741 44.04% 105.06%

3 Total Liabilities 2,236,621 2,407,526 2,162,387 107.64% 111.34%

Table of Total Liabilities (in Rp million)

2.7. Equity


2016 (1)

Realization 2017

(2)

Budget2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

1 Equity 1,370,768 1,236,708 1,377,408 90.22% 89.79%

Table of Equity (in Rp million)



The Company's equity has reached 90.22% compared to 2016.

Compared to the beginning of year target, achievement by PT Danareksa (Persero) reached 89.79%.

The decrease in equity was primarily due to the recording of net loss.

107.64% 111.34%Comparison 2016 Comparison to Budget


Total liabilities reached 107.64% compared to 2016.

Compared with the target at the beginning of the year achievement in 2017 reached 111.34%.

The increase in total liabilities was due to the increase in short-term liabilities.


3.2. Profitability

Return on Average Equity (ROAE)It measures the ratio between net income and average total equity which is used to reflect the value of expected returns for shareholders. The following are ROAE of Danareksa: (in Rp million)

The two ratios showed that the return to shareholders at the end of 2017 decreased to 8.87% compared to the same period in the previous year due to net losses posted.

3.1. Liquidity

Current RatioIt measures the ratio between current assets to current liabilities, which is used to explain the liquidity of the Company to pay its short term liabilities. The following are current ratios of Danareksa: (in Rp million)

The company's current ratio decreased compared to the same period in the previous year mainly due to the increase of short term liabilities.

2.8. Cash Flow

Table of Cash Flow Details as of December 31, 2017 and 2016 (In Rp million)


2016 (1)

Realization2017

(2)

Increase/(decrease) in2017 to 2016

(3)

1 Net cash flows from operating activities 281,039 (170,117) (451,156)2 Net cash flows for investment activities (5,249) 79,777 85,026 3 Net cash flows for financing activities (245,000) 35,000 280,000

Performance during 2017 resulted in a decrease of net cash flows generated to be used for operations compared to cash flow activities in 2016.

2016 (x)

2017 (x)

1.74 1.32

2,714,101 /1,557,340

2,800,437 / 2,108,376

2016 (%)

2017 (%)

8.87 (11.32%)116,259 /

1,310,182(147,574) / 1,303,738

3. Ability to Pay Debt and Other Ratios


Return on Average Assets (ROAA)This ratio is essentially used to measure the company's ability to generate profits from its assets. The difference in ratio is as follows: (in Rp million)

It can be seen that the company's ROAA at the end of 2017 decreased compared to the same period last year due to the posted loss of the company.

3.3. Leverage

Debt to Equity RatioThis ratio is essentially used to show the relative proportion between equity and liabilities to finance the company's assets. The ratio can be seen fas follows: (in Rp million)

Debt to equity ratio at the end of 2017 increased due to an increase in current liabilities.

Collectability of Receivables

Collectability of Receivables ratio can not be applied to measure Danareksa's performance. This ratio is not an indicator commonly used in the industry for financial companies such as Danareksa.

4. Capital Structure

All shares are wholly owned by the Government of the Republic of Indonesia. Danareksa's authorized capital is Rp2,800,000,000,000.00 and total issued and paid-up capital is Rp701,480,000,000.00 consisting of 701,480 shares with par value per share of Rp1,000,000.00.

Capital Structure Policy

Danareksa’s Capital Structure Policy manages capital with the main objective to protect the ability of the Company to maintain business continuity and to maximize value for Shareholders.

The Company manages the capital structure and settlement of the structure depending on economic conditions. To maintain or adjust the capital structure, the Company may adjust the amount of dividend payment to Shareholders, return the capital to Shareholders or issue new shares.

Policy Implementation

There have been no changes in purpose, policy or process in managing capital during the years ended December 31, 2017 and 2016.

Danareksa ensured its subsidiaries, PT Danareksa Sekuritas and PT Danareksa Investment Management, have complied with minimum requirements of the Adjusted Net Working Capital (ANWC) regulated under BAPEPAM-LK Regulation No.V.D.5 and BAPEPAM-LK regulation No. X.E.1, for securities firms operating as securities brokers, investment managers and underwriters, among others by continuously evaluating the level of working capital requirements based on regulations and monitoring the development of regulations on the required net working capital and preparing for the required minimum limit in accordance with regulations that may occur from time to time in the future.

The objective of this policy was to anticipate various sanctions ranging from fines to termination

2016 (%)

2017 (%)

3,17 (4,07)116.258 / 3.663.361

(147.574) / 3.625.812

2016 (x)

2017 (x)

1.63 1.942,236,621/ 1,370,768

2,407,527/ 1,236,708


of some or all business activities. The subsidiaries have met the requirements of ANWC on December 31, 2017.

1. Material Commitment for Capital ExpendituresDanareksa does not have any material commitments for capital expenditure. All capital expenditures are used for internal purposes and financed by working capital.

2. Capital Goods Investmenta. Type of Investment

The types of investment include building renovation and procurement of office facilities, computer equipment and information system, as well as two- and four-wheeled vehicles.

b. Investment PurposeThe purpose of investment is for the Company’s own use.

3. Material information and facts occurring after the date of the accountant's reportThere was no significant event with material impact on the financial condition and results of operations of the Company which occurred after the date of the Independent Auditor's Report dated March 2, 2018 to the Consolidated Financial Statements ended on December 31, 2017, which have been audited by the Public Accounting Firm Purwantono, Sungkoro & Surja, member of global firm Ernst & Young (EY), with unqualified opinion in all material respects.

4. DividendDanareksa's dividend policy refers to the Shareholders' Resolution in the GMS. For the last 3 three years Danareksa did not pay any dividends.

5. ESOP / MSOP Danareksa has yet to become a public company. Therefore, there is no policy or implementation of the employee stock option program/management stock option program (ESOP/MSOP).

6. Report on Realization of the Use of Proceeds from Public OfferingsA report on the realization of the use of proceeds from public offering has been submitted related to the issuance of Danareksa Bonds. The report has been submitted in letter No. S-39/006/DIR dated January 12, 2015, to the Executive Chief of Capital Market Supervisory, Financial Services Authority.

7. Material information regarding investment, expansion, divestiture, merger/consolidation, acquisition or debt/capital restructuringIn 2017, Danareksa did not make any investments, expansion, divestment, merger/

consolidation, acquisition and debt/capital restructuring. Danareksa's investments are

related to the company's operations such as purchase of shares and private equity business.

8. Material information with conflicts of interest and/or transactions with affiliatesDuring 2017, Danareksa made transactions with related parties/affiliates, including:

Danareksa Affiliates: Danareksa Employee Cooperative, Danareksa Pension Fund, Danareksa Employee Welfare Foundation, PT Reksa Sentosa Dinamika.

State-owned Banks: Bank Mandiri, Bank BRI, Bank BNI, Bank BTN

Other SOEs: PT Antam Tbk, PT Angkasa Pura I (Persero), PT Angkasa Pura II (Persero), PT Asabri (Persero), and others More details are presented in the "Notes to the Financial Statements" section.

9. Regulatory changes that significantly affect the companyThere were no regulatory changes that significantly affected the company in 2017.


10. Changes in accounting policies applied by the companyThere were no changes in accounting policies that significantly affected the Company's financial statements.

UnitWeight

(1)

Realization 2017

(2)

Budget 2017

(3)

Score (2)/(3)

(4)

Total Score (1)x(4)

(5)

Key Indicators

Profitability % 52.50 3.05 (3.84) 80.00 42.00Liquidity x 8.75 1.47 1.33 90.48 7.92

Solvency x 8.75 1.64 1.51 92.07 8.06

Additional Indicators

Profit Margin % 10.00 16.47 (29.24) 80.00 8.00

Operating Ratio % 10.00 123.74 114.56 108.01 10.80

Manpower Productivity Rp million/manpower

10.00 1,297.48 1,172.34 90.36 9.04

Total Score

83.02

Financial Health Level: Not HealthyRating: > 110

100 -11090 - 100

< 90

Very Healthy

HealthyLess HealthyNot Healthy

Table of Financial Health Level


Table of revenue details of each business activity (in Rp million)

DescriptionRealization

2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

PT Danareksa (Persero) 371,456 216,234 188,398 58.21% 114.77% Treasury 61,964 37,984 16,460 61.30% 230.76% Proprietary 14,449 1,837 13,150 12.71% 13.97% Direct Financing 137,831 44,728 37,788 32.45% 118.36% Asset Recovery 1 969 31,314 1,000 3,231.61% 3,131.43% Others 2 156,243 100,371 120,000 64.24% 83.64%

PT Danareksa Sekuritas 247,183 140,740 308,729 56.94% 45.59%Investment Banking 131,929 54,044 118,901 40.96% 45.45%Equity Capital Market 49,478 38,008 68,544 76.82% 55.45%Retail Capital Market 38,346 34,544 84,578 90.08% 40.84%Debt Capital Market 21,528 12,721 36,706 59.09% 34.66%Others 5,902 1,422 - 24.10% -

PT Danareksa Inv. Management 108,393 124,893 124,375 115.22% 100.42%Investment Management 107,218 124,827 124,375 116.42% 100.36%Others 1,175 66 - - -

PT Danareksa Finance 20,337 24,497 63,785 120.45% 38.41%Leasing & Factoring 19,813 24,497 63,785 123.64% 38.41%Others 525 - - - -

PT Danareksa Capital 41,984 39,345 56,204 93.72% 70.00%Danareksa Capital 41,912 39,240 55,404 93.62% 70.83%Others 72 105 800 146.22% 13.16%

Eliminasi 2 (152,411) (99,295) (120,000) 65.15% 82.75%Total 636,942 446,414 621,491 70.09% 71.83%

Total operating revenues in 2017 amounted to Rp446.41 billion, which was 71.83% compared to the 2017 budget. Details of revenues from each business activity are as follows:

The performance of each business activity in each of the main/parent entity and subsidiaries in 2017 are de-scribed on the following pages.

1 Excluding Provision Restitution2 Dividend dan intercompany charging

B U S I N E S S R E V I E W


1. PT DANAREKSA (PERSERO)


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

PT Danareksa (Persero) 371,456 216,234 188,398 58.21% 114.77%

Treasury 61,964 37,984 16,460 61.30% 230.76%

Proprietary 14,449 1,837 13,150 12.71% 13.97% Direct Financing 137,831 44,728 37,788 32.45% 118.36%

Asset Recovery 1 969 31,314 1,000 3,231.61% 3,131.43%

Others 2 156,243 100,371 120,000 64.24% 83.64%

Table of Revenues of PT Danareksa (Persero) (in Rp million)



Revenue from operations of PT Danareksa (Persero) in 2017 decreased to 58.21% compared to revenues in 2016.

Compared to the beginning of the year target, achievement by PT Danareksa (Persero) reached 114.77%.

Revenue of PT Danareksa (Persero) in 2017 reached the budget target set at the beginning of the year.

1 Excluding Provision Restitution2 Dividend dan intercompany charging


A. TREASURY


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

Operating Revenues 61,964 37,984 16,460 61.30% 230.76%

Interest income 47,447 32,097 9,320 67.65% 344.38%Foreign Exchange Transactions 3,966 1,040 5,500 26.22% 18.91%Revenues from Securities Transaction

8,718 6,141 340 70.44% 1,806.19%

Mutual Funds 1,832 (1,294) 1,300 - -

Table of Treasury Revenue (in Rp million)



Revenue from the Treasury business in 2017 was 61.30%, lower compared to revenues in 2016.

Compared to the beginning of the year target, the achievement of Treasury reached 230.76%.

Interest income earned from fund placements in call money and time deposits (Rupiah and USD) as well as other short-term money market instruments contributed the most to the consolidated funds.



Revenues from proprietary activities reached 12.71% compared to revenues in 2016.

Compared to the beginning of the year target, this achievement reached 13.97%.

The decrease in stock and debt securities portfolios was due to the preparation of the holding company establishment of the finance SOEs.

B. PROPRIETARY


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Revenues from Securities Transaction

10,498 (3,033) 9,850 - -

Equity Securities 7,485 (4,103) 7,450 - - Debt Securities 3,013 1,070 2,400 35.52% 44.59%

Interest Income and Dividend 3,951 4,870 3,300 123.25% 147.58%

Table of Proprietary Revenues (in Rp million)


C. DIRECT FINANCING


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Interest income 137,831 44,728 37,788 32.45% 118.36%

Table of Direct Financing Revenues (in Rp million)



Revenues from Direct Financing activities during 2017 reached 32.48% compared to the revenues in 2016.

Compared to the target of the beginning of the year, this achievement reached 118.36%.

The decrease in the financing portfolio was due to the preparation of the holding company establishment of the finance SOEs.

D. ASSET RECOVERY


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

Operating Revenues 969 31,314 1,000 3,231.61% 3,131.43%

Other Interest Income 969 31,314 1,000 3,231.61% 3,131.43%

Table of Asset Recovery Revenues (in Rp million)

* Recorded not as part of the company's operating revenues

E. OTHERS


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Interest Income 156,243 100,371 120,000 64.24% 83.64%

Table of Other Revenues (in Rp million)

P T D A N A R E K S A ( P E R S E R O )

1 0 2 M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S O N C O M PA N Y P E R F O R M A N C E

2. PT DANAREKSA SEKURITAS


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

PT Danareksa Sekuritas 247,183 140,740 308,729 56.94% 45.59%

Investment Banking 131,929 54,044 118,901 40.96% 45.45%Equity Capital Market 49,478 38,008 68,544 76.82% 55.45%Retail Capital Market 38,346 34,544 84,578 90.08% 40.84%Debt Capital Market 21,528 12,721 36,706 59.09% 34.66%

Others 5,902 1,422 - 24.10% -

Table of PT Danareksa Sekuritas Revenue (in Rp million)


2017Performance Overview

Revenues of PT Danareksa Sekuritas decreased compared to 2016.

Compared to the target of the beginning of the year, this achievement reached 45.59%

Decline in performance in 2017 due to the decline in the value of IPO transactions

D A N A R E K S A | A N N U A L R E P O R T 2 0 1 7 1 0 3

B. EQUITY CAPITAL MARKET


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Brokerage Services 40,990 35,252 56,888 86.00% 61.97%Sales Service (Underwriting) 8,509 2,616 11,656 30.75% 22.45%Revenues from Securities Transaction

(21) 139 - - -

Table of Equity Capital Market Revenue (in Rp million)

76.82% 55.45%Comparison 2016 Comparison to Target


Revenues from Equity Capital Market (ECM) activities reached 76.82% of the same period in 2016.

Total revenues of Rp38.01 billion were 55.45% of the budget 2017.

Service revenues from this activity were generated from fees on stock transactions conducted by institutional clients, especially securities, fund managers, pension funds and insurance. There were also revenues from the sale of first issue of stock (fix allotment fee).

A. INVESTMENT BANKING


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Underwriting Services 55,454 20,680 60,456 37.29% 34.21%Equity Underwriting Services 41,956 8,319 52,093 19.83% 15.97%Bond Underwriting Services 13,498 12,361 8,363 91.58% 147.80%

Financial Advisory Services 28,055 34,459 33,250 122.83% 103.64%

Funding and Investment Services 48,420 (1,095) 25,195 - -

Table of Investment Banking Revenues (in Rp million)



Investment Banking revenues amounted to 40.96% compared to revenues in 2016.

Total Investment Banking revenues was Rp54.04 billion or 45.5% of total budget 2017.

Decrease in performance in 2017 due to declining value of IPO transactions as well as funding and investment services.


D. DEBT CAPITAL MARKET


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

Pendapatan Usaha 21,528 12,721 36,706 59.09% 34.66%

Jasa Perantara Perdagangan 6,628 2,492 8,672 37.59% 28.73%Jasa Penjualan (Penjaminan Emisi) 12,643 7,930 11,584 62.72% 68.46%Pendapatan Bunga 1,489 2,693 2,500 180.84% 107.72%Pendapat Bunga dan Hasil Transaksi Efek

768 (394) 13,950 - -

Table of Debt Capital Market Revenues (in Rp million)

C. RETAIL CAPITAL MARKET


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Stock Brokerage Service 28,042 18,477 77,516 65.89% 23.84% Margin Trading Interest Revenues 7,702 13,242 1,500 171.93% 882.81% Sales Services (Underwriting) 1,034 - 1,350 - - Mutual Fund Brokerage Service 1,569 2,825 4,212 180.07% 67.06%

Table of Retail Capital Market Revenues (in Rp million)



Revenues from Debt Capital Market (DCM) activities in 2017 reached 59.09% compared to the results of the same activities in 2016.

The revenues of Rp12.72 billion were equivalent to 34.66% of the total budget in 2017.

Achievement was still low due to several factors, such as unoptimized same day trading activities.



Revenues from Retail Capital Market in 2017 reached 90.08% of the revenues in 2016.

Compared to the target of the beginning of the year, the achievement was 40.84%.

Service revenue from stock brokerage activities in 2017 generated from fees charged on stock transactions conducted by retail customers. In 2017, there were more than 4,000 new retail customers.


D. OTHERS

UraianRealization

2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)

Operating Revenues 5,902 1,422 - 24.10% -

Interest Income 5,902 1,422 - 24.10% -

Table of Other Revenues (In Rp million)

In 2017, other revenues of PT Danareksa Sekuritas amounted to Rp1.42 billion from idle cash placement.

P T D A N A R E K S A S E K U R I TA S


3. PT DANAREKSA INVESTMENT MANAGEMENT


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Mutual Fund Management Services

86,175 109,587 114,375 127.17% 95.81%

Interest Income and Revenues from Securities Transactions

21,042 15,240 10,000 72.42% 152.40%

Others 1,175 66 - - -

Table of PT Danareksa Investment Management Revenues (in Rp million)



Revenues of PT Danareksa Investment Management (DIM) increased to 115.22% of revenues in 2016.

Compared to the beginning of the year target, DIM's revenues reached 100.42%.

In 2017, AUM (Asset Under Management) of DIM Mutual Funds increased by 45.5% from Rp18.7 trillion at the end of December 2016 to Rp27.2 trillion at the end of December 2017, with management fees of Rp109.2 billion.


P T D A N A R E K S A I N V E S T M E N T M A N A G E M E N T


4. PT DANAREKSA FINANCE


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Leasing 13,438 17,301 41,436 128.75% 41.75%

Factoring 6,301 7,046 22,024 111.84% 31.99%Others 598 149 325 24.75% 45.85%

Table of PT Danareksa Finance Revenues (in Rp million)

120.45% 38.41%Comparison 2016 Comparison to Target


Revenues of Danareksa Finance (DF) increased by 120.45% compared to 2016.

Compared to the beginning of the year target, DF’s operating revenues reached 38.41%.

Activities in 2017 still focused on the financing of factoring to several SOEs and national private companies. The portfolio position at the end of 2017 for factoring was 28.30% and leasing at 71.70%.


P T D A N A R E K S A F I N A N C E


5. PT DANAREKSA CAPITAL


2016 (1)

Realization 2017

(2)

Budget 2017

(3)

(2)/(1) (4)

Achievement (2)/(3)

(5)


Interest Income 28,781 25,065 28,904 87.09% 86.72%

Financial Advisory Services 12,927 13,911 21,000 107.61% 66.24%Securities Transaction 203 263 5,500 129.64% 4.79%

Others 73 106 800 145.21% 13.25%

Table of PT Danareksa Capital Revenues (in Rp million)



Revenues of Danareksa Capital (DC) reached 93.71% compared to 2016.

Compared to the beginning of the year target, DC operating revenues reached 70.00%.

The increase in revenue of financial advisory services in 2017 was not followed by an increase in interest income.


P T D A N A R E K S A C A P I TA L


1. RESEARCH

As a preeminent, preferred and trusted company in financial services industry, Danareksa relies on research in taking important measures including identifying opportunities and competitions in running its business. Research becomes one of the foundations in every business activity with various required reports.

Research also contributes to internal training programs such as seminars and training held in order to improve personal competencies and external programs to maintain Danareksa's reputation. For institutional and retail customers, research helps them in making investment decisions in the capital market. For certain stakeholders of Danareksa, such as Ministry of Finance, Ministry of SOEs, Coordinating Ministry of Economic Affairs Office, Vice Presidential Office, research supports them in the form of information, prediction and presentation of other research reports as one of the references in decision making for public policy.

In addition, Danareksa's research reports are also published on Economic Consensus, IdeaGlobal, Reuters, Bloomberg, Dow Jones and other financial media.

a. Economic ResearchEconomic Research conducts activities through Danareksa Research Institute (DRI) which provides a macro economic outlook. DRI activities that have been conducted in 2017 include:

Regular activities, consisting of:

Reporting, such as Consumer Confidence Survey, Business Sentiment Survey, Early Economic Indicators, Consumer Price Index (CPI) and SBI Outlook (monthly), Special Report, Yearly Outlook and Weekly Currency.

Contribution to the Economic Consensus, IdeaGlobal, Reuters, Bloomberg and Dow Jones.

The preparation of a macroeconomic model consisting of Macroeconomic Model: Long-Term Forecast (Yearly) and Short-term Forecast, including GDP, Inflation Rate, Interest Rate.

Export-Import, Exchange Rate and Money

Supply. In addition, it is also active in the activities of making early indicator model, such as Leading Economic Indicator and Rupiah Short Term Indicator, Consumer Confidence Index and Business Sentiment Index from survey conducted every month.

Provide an overview of the macro economy for internal and external parties, to provide regular briefings to Board of Directors and Finance Minister, as well as to make economic presentations at ALCO meetings.

Non-regular activities, consisting of:

Assisting sales team and Investment Banking in conducting IPO, right issue and others. Becoming a speaker at seminars outside the company representing Danareksa and dRi. Participating in internal training and seminars. Conducting tailor made research as per client's requirement, among others, BCA.

Supporting activities consist of:

Communicating dRi products to the public through press releases to print and electronic media.

Conducting below the line activities through seminars, dRi staff become a source on several TV and radio shows, media collaboration in articles on dRi products and DRI staff writing articles in print media.

b. Equity ResearchIn performing its activities, Equity Research serves to provide data and analysis to assist customers in making share transaction. Until December 2017, activities undertaken are as follows:

� The researches of 58 public companies, including banking, agriculture, cement, retail, property, telecommunications and consumer infrastructure, construction, automotive, heavy equipment and mining sectors. The results of the research were set forth in the form of reports issued daily or monthly. During this period, 419 company reports and 3 IPO/Right Issue Reports (new

O P E R AT I O N A L R E V I E W


c. Debt ResearchDebt Research activities focus on three main pillars, namely:

Assisting customers in making investment decisions in both primary and secondary market.

Plays a role for internal investment decision making and underwriting.

Plays a role in the development of the debt market by actively participating in the development of fixed income products, such as credit scoring, project financing, municipal bonds to the development up of yield curve, bond index and its application and conducting prediction of bond yields.

During 2017, activities that have been implemented by Debt Research include:

� The preparation of corporate report (IPO) for bonds of 16 companies, namely PT Pupuk Indonesia (Persero); PT Adhi Karya (Persero) Tbk; PT Bank Negara Indonesia (Persero) Tbk; PT Bank Tabungan Negara (Persero) Tbk; PT BPD Lampung; PT Bank Mandiri Taspen Pos; PT Global Mediacom Tbk; PT Indosat Tbk; PT Mayora Indah Tbk; PT Perusahaa Listrik Negara (Persero); PT Semen Indonesia (Persero) Tbk; PT Pegadaian (Persero); PT Timah (Persero) Tbk; PT Waskita Karya (Persero) Tbk; PT Kereta Api Indonesia (Persero); PT BPD Maluku and Maluku Utara.

� Daily Watch report preparation of 235 units. Daily Technical Report 235 units. Weekly Review reports 22 units. Danareksa Bond Valuation report of 51 units. Monthly Report of 5 units.

� Sectoral Report preparation of 2 units. Preparation of Auction Yield Estimate report of 46 units.

� Development and maintenance of Bond Cloud system, an internal trading system and bond market database used by Debt Brokerage, DIM, IB, RM, Prop, and Debt Research.

issue), 7 Strategy Reports and 1 Market Outlook Report. They were also reviewed and published daily.

� Internal/external marketing: through daily morning meetings with institutional and retail sales every week or month in the ALCO meeting forum.

� Preparing Market Outlook and IPO Reports. In addition, the research team also publishes daily equity snapshot containing: company news, report alerts, data of operations and recommendations for each issuer.

Public Company Research Report

The research results were distributed internally through daily or monthly morning meetings in the ALCO meeting forum.

External marketing conducted through:

Reports are distributed electronically, faxed or sent by courier; Analyst call to priority investors both domestic and overseas, on the results of the reports; Investor gathering by inviting several companies whose shares were recommended by Danareksa.

Conference call among investors, Danareksa and sources; Visits to overseas institutions in Singapore and domestic institutions; Presentation to domestic investors both institution and retail.

Accommodating foreign investors visiting Jakarta; participating in the gathering events held by SID.

Participating in providing data on the industry as presenter (about related industry) regarding Investment Banking industry.

Becoming a contributor to Bloomberg, IBES/First Call and S&P Emerging Market Indices. The company is responsible for sending financial projection/Investment statistics data of public companies, reasearch report and stock trading data weekly and/or monthly.


� Conducting bond market update presentation to Danareksa's clients to find potential customers in the domestic bond market.

� Assisting the preparation and marketing of Retail State Bonds (ORI) and Retail Sukuk (SR) in the form of technical proposal of ORI and SR and assisting the preparation of SR roadshows to several regions.

� Providing input for dealers for portfolio selection. Providing portfolio advisory services to clients primarily on pension funds and banking.

� Assisting Danareksa stakeholders, the Directorate General of Debt Management and Bapepam-LK, in the form of actively providing inputs and assisting the implementation of training for employees of the Ministry of Finance conducted by Danareksa.

2. INSTITUTIONAL COVERAGE & ADVISORY

Institutional Coverage & Advisory serves and plays a role in assisting the Board of Directors of PT Danareksa (Persero) in developing Danareksa Group business by focusing on Client Relationship & Business Origination activities. The synergy among all subsidiaries is the key to achieve the company’s goals. The main functions of this division are Client Coverage and Client Solution. In connection with these functions and roles, here are the activities undertaken by ICA in 2017:

Management of Customer Relationship

Also referred to as client management, to support the achievement of subsidiaries’ target as per budget 2017, which was conducted by: expanding networking with potential customers through gatherings, client referral, and independent addition of client base;

Conducting client deepening for active customers, especially key customers to gain new sustainable business potential

Conducting client visits regularly with key customers and other potential customers to improve and establish better relationships. To strengthen brand image for new customers.

Conducting Business Origination

Conducting marketing activities to provide general advisory services to potential customers (SOEs, Corporations, etc.)

Coordinating and cooperating with Danareksa Sekuritas (IB) related to the plan on underwriting and arranger businesses needed by customers.

Coordinating and cooperating with Danareksa Capital related to funding business through private equity, RDPT equity, etc. As well as coordinating and cooperating with Danareksa Group for other new business potential.

Client Solution

Making a study of non-apital market services in the form of assignment from the Ministry of SOEs Provide other general pre-advisory services that have the potential to become transactional business for Danareksa Group.

Reforming the organizational structure and human resources that focus on new function and role of ICA.

Addition of Client Solution business unit by focusing on making non-capital market research; Addition of 2 (two) management trainees to assist general advisory work as the assignment of the ministry of SOEs and SOEs and/or their subsidiaries.

3. MARKETING AND MARKET SHARE

Morning meeting is held every weekday with institutional and retail sales staff and other stakeholders. In addition, marketing efforts are also implemented through:

� Distribution of Research reports electronically, fax, or sent by courier.

� Analyst calls for several priority investors.

� Domestic investor gathering by inviting several companies whose shares are recommended by Danareksa.

� Conference call between investors, Danareksa, and speakers.

� Visits to overseas and domestic institutions

� Presentation to domestic investors, both institutions and retail.


� Accommodating the visit of foreign investors to Jakarta.

� Conducting marketing communications through various media including social media.

� Organizing gatherings of small and focus groups, especially for retail products.

� Participating in various exhibitions related to financial services including capital market.

In addition to Danareksa Investment Center (SID),

Danareksa has provided outlets in major cities of Indonesia ito expand customer networking and services. As of the end of 2017, the Company has had 31 (thirty-one) points of distribution networks located in cities across Indonesia, both the company’s own SID (10 points), partnerships in the form of franchise with Non-Exchange Member Securities Firms (4 partners), referrals and cooperation with several universities (12 outlets).

Thus, the Company can facilitate the community, especially students, to learn more about the investment world of Indonesian Capital Market. Aside from opening branch offices, the Company's marketing strategy is supported by online trading services accessible via mobile phones. The following are the Company's market segments based on subsidiaries:


Institutional: State-owned enterprises and private companies from various sectors, for investment banking services, advisory, and brokerage services.

Retail: individual customers for brokerage services. The development of Danareksa Online trading service and the expansion of distribution/branch network shows the seriousness of Danareksa in developing the retail business.

PT DANAREKSA INVESTMENT MANAGEMENT

Institutional: State-owned enterprises and private companies from various sectors for Mutual Fund services, Fund Management Contracts (KPD), Limited Participation Mutual Fund (RDPT), and collective investment contract - asset-backed securities (KIK EBA).

Retail: Individual customers for Mutual Fund services.

To anticipate the intense competition in the Mutual Fund industry, DIM has been re-packaging products of Mutual Fund investment program regularly to expand the customer base and increase asset under management.


The products are intended to invite and help the community to prepare for future financial welfare early by investing in capital market, especially Mutual Fund. In addition, DIM also expanded its marketing network through the establishment of "E-Retail" that provides convenience to investors to make purchase transactions of Participation Unit wherever they are through Danareksa website.


Institutional: State-owned enterprises and private companies from various sectors, to serve factoring and leasing across Indonesia.

To meet customers' needs for financing and following up the Financial Services Authority (OJK) regulation issued in November 2015, Danareksa Finance (DF) has expanded products covering investment financing, working capital, multi-purpose and/or other financing activities based on OJK approval.

The industrial sector funded by DF currently are in the sectors; Infrastructure, oil and gas, energy-electricity and property. In the future, other sectors will be more intensified and added, such as in the maritime industry, transportation and logistics sectors.

DF also has established communications and syndicated cooperation with banks or other financial institutions.

Along with the development in 2017, DF financing strategic policy has changed, in which Factoring focused on providing financing to SOEs and SOE subsidiaries, while leasing/investment financing can still finance non-SOEs with collateral of goods financed by the leasing and other additional collateral with a maximum financing of 80% of the value of investment goods.


Institutional: Local and foreign Non-SOE companies and private companies, either as an investee or investor.

In accordance with DC strategy & action plan, the focus of the company in 2017 was the assignment and implementation of asset recovery and restructuring of PT Danareksa (Persero) portfolio managed by DC as well as infrastructure strengthening, which aimed

to have an impact on team capacity in new business development and meeting 2017 financial targets.

4. INFORMATION TECHNOLOGY

According to the long-term plan in the IT Master Plan, 2017 is the year of system integration at Danareksa. With this support, product and business development process at Danareksa has begun the era of product development is based on data and analytics supported by integrated system and technology.

Implementation of Service Oriented based system integration also supports Digital Transformation for the company and opens great opportunities to expand cooperation with third parties in the Digital Business-based product development in the future.

Activities conducted by Information Technology (IT) Division are as follows:

Main Activities

a. Integration and Consolidation of System, Data and Information.The years 2016-2017 are the years of system integration and digital transformation in Danareksa. In line with the plan, the integration has been conducted of systems and data communication within Danareksa Group as well as the integration of data and information in every work unit in Danareksa.

The integration of system and data communications aims to integrate and standardize data exchange process between systems in Danareksa Group and between systems outside Danareksa, both with business partners and regular parties.

This integration is Middleware technology based on Service Oriented Architecture (SOA), which facilitates the process of making data communication interface, management and standardization of data exchange process between systems.

This technology enables security setting of data exchange between systems. In addition to the principle of reusability, the SOA allows all data exchange services to be utilized and reused for the needs to exchange new data of the same type. Another advantage of SOA-based Middleware is that there is a segmentation of system changes while developing a new system, where older systems are linked, there will be no interruption and do not require to be updated because the new system only needs to communicate with Middleware. This will greatly speed up the system development process and make it easier for businesses to launch new products or business services.


As a continuation of Middleware system implementation, then in 2017 some stages of completion were implemented.

By the end of 2017, the system was expected to be fully integrated through this Middleware system. Until the first quarter of 2017, the pilot project has been implemented since 2016. The pilot project has been fully operational in the first quarter of 2017 and has integrated all major systems of all entities for the process of sending the accounting journals to Danareksa General Ledger (SUN-GL) system.

In addition to the integration of systems and data communications, data and information has also been integrated to collect all data related to Danareksa Group business and operational needs. All of this data and information are integrated and consolidated in a centralized system using Data Warehouse technology.

The data and information integration is in line with the Company's Long Term Plan of consolidating data and information from all business activities of Danareksa Group, which aims as a system of monitoring, reporting, analysis up to business intelligence.

The data and information integration known as Data Warehouse and Business Intelligence (DW & BI) project is divided into 3 (three) stages:

Phase I: Needs Assessment and DW & BI Design. At this stage, DW & BI needs analysis is conducted at all business units and operations of Danareksa Group, followed by the design of Data Warehouse and Business Intelligence. The result is a recommendation of the right technology solution for Danareksa and roadmap of implementation in the next stage. This stage has been completed by the end of 2016.

Phase II: Implementation of DW & BI Phase I (Pilot Project). At this stage the selection of DW and BI technology solutions and implementation of phase I (pilot project) in accordance with the recommendations of phase I above. This phase has been completed by the end of third quarter of 2017

Phase III: Implementation of DW & BI Phase II. This stage is the final stage of a series of DW and BI implementation development projects and at the end of this stage all the data and information needed are integrated in Danareksa Data Warehouse. Furthermore, the information is processed and entered into the reporting system/dashboard and can perform further analysis by using Business Intelligence system and other tools.


b. Renewal and Rejuvenation of Information Technology System and Infrastructure In 2017 the entire renewal and renovation process were targeted to have been completed. Some activities that were still running in 2017 were as follows:

Replacement of Back-Office System of PT Danareksa Sekuritas. Replacement of PT Danareksa Sekuritas (DS) back-office system aimed at integrating all existing systems, especially for back office (Equity, Cash Management, Custodian, Bond and others) of Danareksa Sekuritas. The new Back-Office system uses the S21+ system, which has also been used by more than 50 stock exchange members/securities companies. Implementation of S21+ system began in 2014. In its development, there have been many adjustments to the business process of Danareksa Sekuritas.

Progress of S21+ system implementation In 2017, the system implementation has entered the final stage where since the beginning of the third quarter parallel run process of T+0 has begun, with this system has been operated in parallel on the same day with the old system. It was expected that in early 2018 the system would

be fully operational to run back office brokerage business process of Danareksa Sekuritas.

Rejuvenation of Transactional System of Capital Market Retail Business. Rejuvenation of transactional support systems for Retail Trading System (RTS) business has begun in the first quarter of 2015.

The system renewal aims to improve the quality and reliability of transaction support systems for both frontliners at the branche offices and for online customers (Danareksa Online).

In the first quarter of 2017, this system has been fully operational and has served customers’ transactions either through Online or Branch. The process of customer migration from the old system to the new system has also been running since the first quarter and by the end of the second quarter almost 75% of total number of customers has used this system. It was expected that by the end of 2017, all customers have migrated and used this system.


Separation of Human Resource Information System (HRIS) based on subsidiaries.In connection with subsidiary decentralization program within the Danareksa Group where all subsidiaries in the entity can manage their business processes independently. Therefore HRIS as one of the main systems in Danareksa currently fully managed by PT Danareksa (Persero), will also be decentralized. The system will be independently managed by each subsidiary.

Proses pemisahan sistem ini telah mulai dilakukan pada triwulan II dan telah mulai beroperasional pada akhir Agustus 2017. Hingga akhir kuartal IV 2017, sistem telah beroperasional penuh dengan melayani seluruh nasabah ritel Danareksa Sekuritas baik dari berbagai channel aplikasi (Dekstop, web dan Mobile).

As a continuation of IT infrastructure rejuvenation, at the beginning of the third quarter 2017, the capacity of server and storage devices have been increased. The additional capacity was also in line with the development/renewal of some Core-Systems for both front-end and back-end systems. The entire additional server and storage capacities have been completed by the end of the fourth quarter of 2017.

Aside from additional server and storage capacity, in 2017 we conducted rejuvenation of network devices/network phase II. Device rejuvenation was done with replacing some network devices such as switch/core switch and router, which have and were to enter the end of support period in 2017. In addition, the replacement aimed to increase the speed of Danareksa’s local network bandwidth from 100 Mbps to 1 Gbps (Gigabit network). The second phase of network equipment rejuvenation began at the end of third quarter of 2017 and planned to finish and be completed by early 2018 (First Quarter of 2018).

c. IT governance

IT Policy Update In order to support and as preparation for IT transformation as stated in the IT long term plan with IT 2017 strategy and target of work, from 2016 until early 2017, IT Policy has been updated and adjusted. The IT policy referred to the Regulation of the Minister of SOEs No. 02 of 2013 on " Guidelines for SOE Information Technology Management Preparation" and adopted the best practices in the current IT industry. The update of IT Policy was adjusted to the current company policy as well as the condition and environment of the company in

general. At the end of second quarter of 2017, the new IT Policy has been formalized and approved by BOD of PT. Danareksa (Persero) and would apply to all entities within Danareksa Group.

Renewal of IT Service Contracts with subsidiaries In line with IT organizational change, in which decentralization and empowerment from Parent Entities to Subsidiaries will be done more comprehensively, IT Division of Danareksa Sekuritas, who manages IT services, must also renew and transform into a more professional service provider. The renewal of IT services based on these conditions will have an impact on contract renewal of IT service cooperation within the Danareksa Group. At the end of the first quarter of 2017, the contract renewal process has entered the final stage and would continue to the second quarter with the initial phase of cooperation with PT Danareksa Investment Management (DIM) as the pilot project. At the end of the second Quarter of 2017, a pilot project with DIM has been undertaken and would continue with other entities in the Danareksa Group environment.

Renewal of ISO 9001-2015 CertificationTo improve the quality of business process in PT Danareksa Sekuritas, especially IT Division, the ISO 9001-2008 certification in 2017 has been renewed to ISO 9001-2015. The process started in the third quarter of 2017 and completed early in 2018.

Supporting Activities

In order to support the Mutual Fund trading system and KSEI’s S-Invest project, which enable all mutual fund transactions to be reported and conducted through KSEI (S-Invest system), Danareksa Sekuritas as one of the Mutual Fund sales agents kept making adjustments in the Mutual Fund industry. System adjustments continued throughout 2017.

The support for regulatory adjustments and business development on the ongoing system, especially adapted to the Retail Capital Market division. Some changes and adjustments have been made to the end of the first Quarter of 2017, with the development of customer monitoring reports such as margin reports, forced sell reports and adjustments to the Sales/Account Executive commission system.

The paperless document management and workflow program, the implementation of Electronic Document Management System (EDMS)


Synergistic and integrated technology support is absolutely necessary in order to maintain Danareksa's competitive advantage. The availability of facilities that enable Danareksa customers to access their investment portfolio individually, and anywhere with internet access, can be done through Danareksa Online system.

this year would continue to be developed. Until the end of 2017, the business processes that have been implemented include:

Development of document management for divisions and business units. Improvement and renewal of the KPI Online system and the Individual Development Program (IDP) scoring system.

Implementation of paperless workflow for meeting room reservations in the head office environment. Application of paperless workflow separation for nomination of manpower for each entity. These programs were continuous programs that are continued and developed in 2017.

In line with the Compliance and Audit activities conducted by both External and Internal parties, IT department actively supports the activities, by working together to provide information and facilities for the audit and compliance process. Some audit activities that were fully supported by the IT

department as follows:

Annual audit period 2017 (EY) Supreme Audit Agency (BPK) Audit IDX Audit KPKU 2016/2017

In 2017, audit was performed again on Microsoft License Audit/Assessment of Microsoft software licenses owned and used by Danareksa. This audit process was properly performed and so far Danareksa remained in the comply category. An official report from Microsoft has been submitted at the end of third quarter 2017 and Danareksa Mircosoft License has been declared comply.


Router, which have entered End of Support period in 2017 and 2018. The project commenced at the end third quarter of 2017 and was planned to complete in the first quarter of 2018.

5. GENERAL AFFAIRS, PURCHASING & PROCUREMENT

The Division of General Affairs, Purchasing and Procurement (GAPP) is a division of Danareksa Group Financial Conglomeration (KKGD), supporting division of the company that are divided into GAPP work units. The duties and functions of each work unit are as follows:

General Affairs (GA)

The duties and functions are as follows: � Repair and Maintenance of Building, Building

General Facilities as well as Work Facilities and Area, including electricity, elevator, central AC, clean water, garbage and waste, Occupational Health and Safety (OHS).

� Management of vehicles for directors and operations.

� Maintaining the security of office facilities and company assets.

Purchasing & Procurement (PP)

First established in 2007, the division of Purchasing & Procurement (PP) is one of the supporting divisions of the company that have duties and functions as the operator in the Procurement of Goods and Services, within the Company. Principles of the reference are: Efficient, Effective, Competitive, Transparent, Fair and Proper, and Accountable. The basic principles of the procurement of goods and services are in accordance with the provisions and policies of the company that are based on the regulations of the Government and the Ministry of SOEs specifically related to Good Corporate Governance practices.

In addition, it is also tasked to record fixed asset of the Company along with the Accounting department.

Project Activities

Project activities during 2017 are as follows:

System Integration Project (Middleware) II - Pilot Project ImplementationA continuation of the Integration system project by choosing Middleware system solutions and implementation for Pilot Project recommended in the phase I project. The project has been fully completed and operating.

Data Warehouse and Business

Intelligence Project phase II - Pilot Project Implementation

This project is a continuation of the first phase of DW & BI project, with the selection of solutions and implementation of DW & BI system for Pilot Project recommended in the first phase I project. The project commenced at the beginning of the second quarter of 2017 and has been completed by the end of third quarter of 2017.

Retail Trading System (RTS) Project ImplementationImplementation of Retail customers’ support transaction system for both branch and online needs has been fully operating. By the end of 2017 the entire series of projects has been completed, the system has been fully operating and all clients have been migrated to this system and have used it.

Project Implementation of Danareksa Sekuritas Back Office system Implementation of Danareksa Sekuritas Back-Office system using S21-Plus system, has officially run in 2014 and at the end of third quarter of 2017 has entered the final phase of parallel run, which in September 2017 parallel run T+0 (system operated in the same day as the old system) has commenced. The project was targeted to be fully operational early 2018.

Server and Storage Capacity Building ProjectThis project has started in September 2017 and was completed at the end of the fourth quarter of 2017.

HRIS Systems Separation Project The project aims to decentralize the use and operational HRIS systems for each entity / subsidiary within the Danareksa Group. The project started in late July 2017 and was completed and operational in early September 2017.

Network Device Rejuvenation Project phase II.Device rejuvenation was done to replace some network devices such as Switch/Core Switch and


6. LEGAL, ASSET RECOVERY & COMPLIANCE

Support services of Legal, Asset Recovery & Compliance ("LAR-COM") Division, cover all lines of operational activities business transaction in Danareksa Group either directly or under coordination of supervision of legal aspects, asset recovery and Compliance. LAR-COM has been involved in maintaining the legal aspects of both advisory and provision of legal documents and assistance in operational activities related to business transactions from the beginning of the proposed transaction process, assistance or power of attorney in negotiations to prepare and complete legal binding documents, monitoring of transactions and legal aspects of the terms of transactions along with business transaction binding documents as well as business transactions guarantee to achieve business purpose and goals according to the risks set by Danareksa Group management. LAR-COM's motto in legal services for business transactions is "Danareksa Business is Legally Secured".

LAR through Asset Recovery unit also actively performs any recovery efforts of non performing assets caused by the complexity of high business risk, both in the strategy planning stage of handling, the process of implementing the restructuring stages up to the implementation of negotiations and mediation, advisory and/or prosecution and lawsuit both inside and outside the court, as well as in carrying out various restructuring efforts together with business unit and risk management. LAR’s motto in the recovery of non performing assets is "Comercially sound and Legally Secured".

Meanwhile, the Compliance function in this division is tasked with the following:

a. Monitoring and supervising the activities and transactions of business units of PT Danareksa (Persero) is carried out in accordance with internal and external regulations;

b. In the capacity of the Integrated Compliance Unit at Danareksa Group, coordinating with each of the subsidiary in Danareksa Group to monitor and oversee compliance functions in activities and transactions is carried out in accordance with internal and external regulations;

c. Reviewing the completeness of documents and the fulfillment of operational activities prerequisites;

d. Reviewing the KYC (Know Your Customer) and Customer Due Diligence (CDD) practices in the Company and coordinating to ensure that the systems and procedures are implemented in each subsidiary in the Danareksa Group;

e. Identifying money laundering activities in transactions conducted by Business units to enforce the AML (anti money laundering) principle.

The motto of Compliance is "Top speed requires great and Reliable brakes".

7. ACCOUNTING & FINANCIAL CONTROL

Prepare and ensure that the company's financial reporting process complies with Standard of Financial Accounting issued Financial Accounting Standards Board of Indonesian Institute of Accountants (DSAK-IA), the Financial Services Authority regulations (formerly Bapepam-LK) for entities under its supervision, and other accounting rules commonly applicable in capital market.

Thus, the financial information presented is reliable, and serves an important instrument for decision making in the field of finance, operations and other activities in order to improve the effectiveness and efficiency of the company's operations.

8. TREASURY, PROPRIETARY & FINANCE OPERATION

Treasury, Proprietary, Finance Operation (TPFO) Division as one of the divisions supporting the Business division with duties and responsibilities in the Settlement and Administration Process as well as Reporting on transactions within PT Danareksa (Persero) including:

� Treasury transactions covering Foreign Exchange (Forex Spot, Forex Forward and Forex Swap) transactions as well as Money Market and Asset Liability Management (Call Money Borrowing, Deposit on Call, Time Deposit and Intercompany transaction as well as Proprietary Mutual Funds);

� Proprietary Transactions which include Fixed Income (Bonds, MTN) and Equity/Stock that are Trading oriented;

� Direct Financing, for Customer Financing transaction with stock/asset guarantee.

� In addition, TPFO is also the support division of Non Performing Asset (NPA) transaction activities managed by Legal, Asset Recovery & Compliance Division.


9. BUSINESS DEVELOPMENT DAN CHANGE MANAGEMENT

As one of the supporting divisions that have the functions of PMO (Project Management Office) and SMO (Strategic Management Office), it is responsible for preparing infrastructure for business development needs and overseeing all project activities in Danareksa to run according to the plan and reduce the stakeholders’ reluctance for any changes that will occur with the system or policy to be implemented.

This division also supports and helps monitor strategic and tactical policies as well as enhances innovation activities in the implementation of long-term and short-term plans of the company.

Since its activation at the end of 2015, the division is also directly involved in the Company's strategic projects such as Middleware and Data Warehouse, cooperating with other divisions in various activities to prepare for change, as well as involved in the preparation of the Company's report to Stakeholders.

Pressure on changes in the way of transactions in the Financial Industry, as the era of Financial Technology (Fintech) has penetrated in all lines of procedure of transactions in the Capital Market (Finance) Industry, therefore the Division is also appointed to analyze and follow up on issues that will be faced in the near future and compile the needs of all subsidiaries based on customer centric and technology with competent risk management.

The Business Development & Change Management Division in 2017 collaborated with other divisions in performing assessment of the Criteria for Performance Excellence Assessment (KPKU) which became the company's assessment standard from the Ministry of State-Owned Enterprises (SOEs) and monitored the follow-up with the Corporate Secretary Division in the effort to become a Worldclass SOE.

In the framework of empowerment, currently the IT support and IT development function for the interests of Divisions at Danareksa Persero, have become part of its portfolio. With All of these factors are expected to accelerate the utilization of information technology as a Business Enabler in the Company.

129

G O O DC O R P O R AT E

G O V E R N A N C E

Through the implementation of Good

Corporate Governance (GCG) principles,

Danareksa can optimize the company's

performance, build corporate image

and increase the trust of customers and

stakeholders, as well as ensure sustainable

growth of Danareksa.

G O O D C O R P O R AT E G O V E R N A N C E1 3 0

Commitment

The Board of Commissioners and the Board of Directors are committed to building a healthy and sound corporate system in order to grow sustainably by implementing the principles of Good Corporate Governance (GCG) in the management. The sound implementation of GCG principles will raise investor confidence and become an added value for other stakeholders.

The implementation of Good Corporate Governance (GCG) principles at Danareksa are as follows:

Transparency

� Danareksa clearly and timely discloses all the information, which are accessible to all Stakeholders according to their respective authorities with due regard to personal rights under the laws and regulations.

� Danareksa applies transparency of financial condition to the public by following disclosure provisions stipulated by the Financial Services Authority based on applicable accounting standards.

� Danareksa publishes Annual Report containing Danareksa's financial conditions and transparency of non financial conditions.

Accountability

Danareksa applies the accountability principle within Danareksa's organization that is clearly in line with vision, mission and goals of Danareksa. Danareksa applies this Accountability principle by observing the following aspects :

� Complete governance structure of Danareksa both at the levels of Board of Directors and Board of Commissioners, including risk management system, internal control system, Internal monitoring system, reporting mechanism for suspected irregularities within Danareksa (whistleblowing system), information technology governance and code of conduct.

� Clarity of duties and responsibilities of each Danareksa organizational function and unit in accordance with the goals of Danareksa.

� Establishment of corporate plans and Corporate Work Plan and Budget (RKAP) of Danareksa which is passed down to the organizational unit level and evaluates the achievement of performance regularly.

� Establishment of a reward and sanction system capable of supporting the achievement of RKAP and corporate plans of Danareksa.

I M P L E M E N TAT I O N O F G C G P R I N C I P L E S


Responsibility

� Danareksa is committed to continuously implementing prudential practices and ensuring compliance with laws and regulations.

� Responsible and committed to the conservation of natural environment and the efforts of social care.

� Danareksa formed a Compliance Work Unit to always ensure compliance with applicable laws and regulations.

� Danareksa established independent units such as the Risk Management Work Unit and Internal Audit Work Unit to ensure risk management and internal control are implemented in every Danareksa activity.

� Danareksa follows up on external findings such as the Supreme Audit Agency (BPK), BPKP and recommendations from external auditors and other external supervisors.

� Danareksa follows up on customer complaints and takes immediate action, which is necessary to maintain customer satisfaction.

Independence

� Danareksa conducts its activities and makes decisions professionally, free from the influence/pressure of any party.

� Each organ of Danareksa should avoid dominance by any party, unaffected by certain interests and avoid any conflict of interest.

� In order for a check and balance in the operations of Danareksa, the appointed Independent Party’s portion to occupy the position in the Board of Commissioner level shall be at least 20% (twenty percent) of total members of Board of Commissioners.

Independent Commissioners have competence in auditing, finance and accounting, as well as understand Danareksa’s Business activities.

� The Board of Directors, the Board of Commissioners and all Division Heads ensure that there is no conflict of interest in decision making in any transaction of Danareksa.

Fairness and Equality

� Danareksa applies the principle of fairness and equality in fulfilling the Stakeholders’ rights arising under the agreement as well as laws and regulations.

� Danareksa provides an opportunity for Stakeholders to provide input and suggestions for Danareksa to improve the contribution and quality of its services and to open access to information in accordance with the transparency principle.

� Danareksa provides fair treatment to Stakeholders in accordance with the benefits and contributions provided to Danareksa.

� Danareksa provides equal treatment to employees to pursue their career and perform their duties professionally without discrimination based on gender, religion, ethnicity or physical disabilities.

� Any form of transaction, purchase, or other important decisions shall be made by observing the fairness principle.


Danareksa's references to GCG implementation in the company are as follows:

� Law Number 8 of 1995 regarding the Capital Market.

� Law Number 19 of 2003 regarding State Owned Enterprises.

� Law Number 40 of 2007 regarding Limited Liability Company.

� Regulation of the Minister of State-Owned Enterprises Number PER-01/MBU/2011 dated August 1, 2011 on the Implementation of Good Corporate Governance within State-Owned Enterprises, as amended by Regulation of the Minister of State-Owned Enterprises No. PER-09/MBU/2012 dated July 6, 2012 on Amendment to the Regulation of the State Minister of State-Owned Enterprises Number PER-01MBU/2011 dated August 1, 2011 on the Implementation of Good Corporate Governance within State-Owned Enterprises.

� Decree of the Secretary of the Ministry of State-Owned Enterprises No. SK16/S. MBU/2012 regarding the Indicators/ Parameters of Assessment and Evaluation of the Implementation of Good Corporate Governance within State-Owned Enterprises.

� Financial Services Authority (OJK) Regulation 18/POJK.03/2014 dated November 18, 2014 regarding Integrated Governance Implementation for Financial Conglomeration.

� GCG Indonesia General Policy issued by the National Committee on Governance Policy (KNKG).

� The Articles of Association of PT Danareksa (Persero).

� Joint Decree of the Board of Directors and Board of Commissioners of PT Danareksa (Persero) Number KD-41/035/DIR and Number KEP-04/DK-DR/X/2017 on Financial Conglomeration Integrated Governance Guidelines of Danareksa Group.

� Decree of the Board of Directors of PT Danareksa (Persero) No.KD-38/027/DIR dated August 29, 2014 on Code of Conduct of PT Danareksa (Persero).

� Decree of the Board of Directors of PT Danareksa (Persero) No.KD-37/029/CS-DIR dated July 25, 2014 and amended by Decree of the Board of Directors of PT Danareksa (Persero) No.KD-38/025/DIR dated August 6, 2014 regarding Guidelines and Board of Directors Charter of PT Danareksa (Persero).

� Decree of the Board of Commissioners No.KEP-03/DKDR/VII/2013 dated April 9, 2014 regarding the Board of Commissioners Charter.

� Joint Regulation of the Board of Directors and Board of Commissioners of PT Danareksa (Persero) with Regulation of Board of Directors No.KD-37/039/DIR and Board of Commissioners No. PER-01/DK-DR/XI/2013 dated November 29, 2014 regarding Reporting Policy on Whistleblowing System of PT Danareksa (Persero) and its Subsidiaries and Affiliates.

� Decree of the Board of Directors of PT Danareksa (Persero) Number KD-41/017/DIR dated May 16, 2017 on Obligation of Submission of State Official Wealth Report in the environment of PT Danareksa (Persero) and Subsidiaries.

� Decree of the Board of Directors of PT Danareksa (Persero) Number KD-41/004/DIR dated February 6, 2017 regarding Internal Audit Charter of PT Danareksa (Persero).

� Circular Letter of Board of Directors of PT Danareksa (Persero) No.SE-40/005/DIR dated June 16, 2016 regarding Rejection, Acceptance, Offer of Gratification (Gift/Souvenir and Entertainment).

� The Integrated Governance Committee Charter of 2017 dated August 9, 2017

� The latest revised Audit Committee Charter dated February 6, 2017.

� Decree of the Board of Directors No. KD-41/028A/DIR dated August 28, 2017 on Compliance Program of PT Danareksa (Persero).

R E F E R E N C E S / L E G A L B A S I S


P U R P O S E O F G C G I M P L E M E N TAT I O N

The purposes of GCG implementation within Danareksa are as follows

� To encourage the achievement of a healthy and sustainable corporate growth through the management of company based on the principles of transparency, accountability, responsibility, independence and fairness and equality.

� To empower the functions and independence of each organ of the Company, namely the Board of Directors, the Board of Commissioners and the General Meeting of Shareholders.

� To encourage members of the Board of Directors, members of the Board of Commissioners and Shareholders to make decisions and carry out their actions based on high moral values and compliance with applicable laws and regulations, as well as awareness of the Company's social responsibility to stakeholders and preservation of the environment around the Company.

� To optimize the value of the Company to Shareholders with due regard to other Stakeholders.


Principles of the Code of Conduct

The Code of Conduct is an internal regulation ofthe Company that contains a value system, businessethics, work ethics, commitments and enforcementof Company regulations for the Board ofCommissioners, Board of Directors and employeesof PT Danareksa (Persero), its subsidiaries andaffiliates in conducting business and other activities,as well as interact with stakeholders.

This Regulation was updated by Decree of the Boardof Directors Number KD-38/027/DIR dated August29, 2014, on "Danareksa Code of Conduct". Thecontents of Danareksa Code of Conduct are:

a. Danareksa Code of Conduct is an internal guideline of the Company that contains values, business ethics, work ethics, commitments and enforcement of the Company’s regulations for Danareksa personnel in conducting business and other activities, as well as in interacting with stakeholders.

b. Danareksa Code of Conduct contains points of general corporate ethics, while broader and operational elaboration of these points are stipulated in the prevailing internal regulations of Danareksa.

c. Danareksa Code of Conduct applies to all individuals acting on behalf of Danareksa, Subsidiaries and Affiliates under common control, Shareholders and all other stakeholders or partners who conduct business transactions with Danareksa.

d. Danareksa continuously encourages compliance with the Code of Conduct and is committed to its implementation and requires all leaders of all levels within the company to be responsible for ensuring that the Code of Conduct is adhered to and implemented in their respective lines.

Dissemination

Code of Conduct information is disseminated to all Danareksa personnel through the book "Danareksa Code of Conduct", Company website, email distribution and other means of publication. Every personnel of Danareksa shall sign the Danareksa Code of Conduct, comply with and implement the commitments contained in the Danareksa Code of Conduct, to improve and maximize the work performance for the development of Danareksa.

Enforcement of the Code of Conduct

All personel of Danareksa are required to uphold Code of Conduct in their respective capacity of duty.

Any Danareksa personnel, if clearly proven to have violated the Danareksa Code of Conduct, shall be liable to sanctions in accordance with the rules stipulated in the Danareksa Internal Regulations and the applicable laws and regulations.

Commitment

The leadership of each work unit shall ensure thatthe Danareksa Code of Conduct has been properlyimplemented. Therefore, every head of the workunit must monitor and review the implementationof Danareksa Code of Conduct. In addition,the implementation of Code of Conduct is alsoperiodically reviewed through the GCG Assessment.

Corporate Culture

The corporate culture has been established in theDecree of the Board of Directors Number KD-38/027/DIR dated August 29, 2014 on "DanareksaCode of Conduct" Article 4, paragraph 3, whichcan be seen in the diagram "Culture-Core Values".

C O D E O F C O N D U C T


Government of the Republic of Indonesia

Ministryof State-Owned Enterprises

(SOEs)

100%

Integrity Danareksa personnel are required to uphold ethics, both in carrying out their duties for the Company and their personal life.

Fairness Danareksa strives to act fair and proper to Shareholders, Danareksa personnel and Customers

Accountability Danareksa personnel are required to be responsible in every implementation of duties.

Skill/ Professionalism Customer handling will be done by Danareksa personnel whose competencies have been proven in the field that they manage. The competencies create a fast and appropriate service, in accordance with Customer's requirements and without compromising compliance with applicable laws and regulations

Transparency Danareksa ensures the disclosure of material and relevant information about performance, financial condition and other information is implemented clearly, adequately, timely and accessible to stakeholders according to their rights. The transparency principle does not undermine the obligation to protect confidential information concerning Danareksa and the Customer in accordance with applicable laws and regulations.

M A J O R I T Y A N D C O N T R O L L I N G S H A R E H O L D E R S

Culture - Core Values


General Meeting of Shareholders

Audit Committee

Board of CommissionersBoard of Directors

Diagram of GCG Structure

The General Meeting of Shareholders (GMS)

The General Meeting of Shareholders (GMS) is the highest corporate organ in the Company. The GMS has authority that is not delegated to the Board of Directors and Board of Commissioners within the limits specified in the Laws and/or Articles of Association as stipulated in Article 1 point 4 of Law No.40 of 2007 on Limited Liability Companies.

The GMS has the rights to, among others, appoint and dismiss Board of Directors and Board of Commissioners, to determine the remuneration of the Board of Directors and Board of Commissioners, to approve the amendment of the Articles of Association, changes of the Company’s name, the Company’s purpose, objectives and business activities, the amount of authorized capital, reduction of issued and paid-up capital, the change of status from non-listed company to publicly listed company or vice versa.

Discussion on the implementation of GMS 2017 is in another section of the "Good Corporate Governance" chapter.

G C G S T R U C T U R E

Risk Management Committee

Human Resources Committee

Information Technology Committee

Asset & Liability Committee

Corporate Secretary

Internal Audit

Risk Management

Corporate Social Responsibility


Charter

The Board of Commissioners Charter was stipulated in Decree of Board of Commissioners No. Kep-03/ DK-DR/IV/2013 dated April 9, 2013 on the Board of Commissioners of PT Danareksa. The Board of Commissioners Charter stipulates, among others, the duties, authorities and obligations of the Board of Commissioners, supporting organs of the Board of Commissioners, Board of Commissioners Meetings and Distribution of the Board of Commissioners' duties.

Duties, Authorities and Obligations

The duties, authorities and obligations of the Board of Commissioners are also established and described in Article 15 of the Articles of Association of PT Danareksa (Persero), as follows:

Duties of Commissioners

The Board of Commissioners has the duties to oversee the policies, general management of the Company and the Company's business conducted by the Board of Directors, and to provide advice to the Board of Directors including oversight on the implementation of the Company's Long Term Plan, Work Plan and Budget as well as the Articles of Association and General Meeting of Shareholders Resolutions, as well as applicable laws and regulations, for the interest of the Company and in accordance with the purposes and objectives of the Company.

In performing their duties, each member of the Board of Commissioners must:

1. Comply with the Articles of Association, laws and regulations and the principles of professionalism, efficiency, transparency, independence, accountability, responsibility, and fairness;

2. Have good intention, be prudent and responsible in performing the oversight and advisory to the Board of Directors for the interest of the Company and in accordance with the purposes and objectives of the Company;

B O A R D O F C O M M I S S I O N E R S

Authorities of the Commissioner

1. Access to books, letters, and other documents, checking cash for verification purposes and other securities, as well as checking the assets of the Company;

2. Entering the yard, buildings, and offices used by the Company;

3. Requesting explanations from the Board of Directors and/or other officials regarding any issues related to the management of the Company;

4. To acknowledge all policies and measures that have been and will be carried out by the Board of Directors;

5. Requesting Board of Directors and/or other officials under the Board of Directors with the knowledge of the Board of Directors to attend the Board of Commissioners meeting;

6. To appoint and dismiss the Secretary of the Board of Commissioners, if deemed necessary;

7. Suspend members of the Board of Directors in accordance with the provisions of this articles of association;

8. Establishing Committees other than the Audit Committee, if deemed necessary by considering the capabilities of the company;

9. Engaging experts for certain matters and within a certain period at the expense of the Company, if deemed necessary;

10. Conducting the Company’s management in certain circumstances for a certain period in accordance with the provisions of Articles of Association;

11. Attending the Board of Directors’ meetings and providing views on matters discussed;

12. Carrying out other oversight authority to the extent not in conflict with the laws and regulations, articles of association, and/or resolutions of the General Meeting of Shareholders.


Obligations of Commissioners

1. Giving advice to the Board of Directors managing the Company;

2. Conducting Research, analysis and signing the Company Long Term Plan and Corporate Work Plan & Budget prepared by the Board of Directors, in accordance with the provisions of Articles of Association;

3. Providing opinions and suggestions to the General Meeting of Shareholders concerning the Company Long Term Plan and the Corporate Work Plan & Budget on the reasons of the Board of Commissioners signed the Company Long Term Plan and Corporate Work Plan & Budget;

4. Observing the development of the Company's activities, providing opinions and suggestions to the General Meeting of Shareholders on any matter deemed important for the management of the Company;

5. Reporting immediately to the General Meeting of Shareholders in case of the Company’s declining performance indications;

6. Examining and reviewing periodic reports and annual report prepared by the Board of Directors and signing the annual report;

7. Providing explanations, opinions and suggestions to the Annual General Meeting of Shareholders on the Annual Report, if requested;

8. Preparing an annual work program to be included in the Corporate Work Plan & Budget;

9. Establishing an Audit Committee;

10. Proposing a Public Accountant to the General Meeting of Shareholders.

11. Making minutes of meetings of the Board of Commissioners and keep the copies;

12. Reporting to the Company regarding their ownership of shares and/or their family to the Company and other Company;

13. Providing a report on the oversight duties that have been carried out during the past fiscal year to the General Meeting of Shareholders;

14. Carrying out other obligations of oversight and advisory duties, as long as they are not against the laws and regulations, articles of association, and/or resolutions of the General Meeting of Shareholders;

15. Each member of the Board of Commissioners shall be personally liable for the Company’s losses whenever the concerned party is guilty

or negligent in performing his/her duties as referred to in the Duties section (paragraph 1 of Article 15).

16. In the case of the Board of Commissioners consists of 2 (two) members or more, the responsibilities referred to in this paragraph shall apply jointly to each member of the Board of Commissioners.

17. Members of the Board of Commissioners shall not be liable for damages as referred to in paragraph 4 of this Article if they can prove:a. to have conducted oversight in good

faith and prudentially for the interest of the Company and in accordance with the purposes and objectives of the Company;

b. to have no direct or indirect personal interest in the actions of management of the Board of Directors that result in losses; and

c. to have advised the Board of Directors to prevent or incur any such losses.

Distribution of Duties and Responsibilities The composition of the Board of Commissioners as of December 31, 2017 was as follows:

� Eko Sulistyo as Commissioner

� Dyah Kartika Rini as Independent Commissioner

The above composition changed from the composition of Board of Commissioners as of December 31, 2016, based on the Decree of the Minister of SOEs No. SK-204/MBU/10/2015 dated October 27, 2015, the composition of the Board of Commissioners of PT Danareksa (Persero) is as follows:

� Indrasjawari K.S. Kartakusuma as President Commissioner (retired as of March 7, 2017)

� Eko Sulistyo as Commissioner

� Dyah Kartika Rini as Independent Commissioner

For effective oversight function of the Board of Commissioners, based on the Decree of the Board of Commissioners Number KEP-04/DK-DR/X/2015 dated October 28, 2015 on the Division of Duties


of the Board of Commissioners of PT Danareksa, the division of duties of the Board of Commissioners is as follows:

� Indrasjawari K.S. Kartakusuma as coordinator of the implementation of oversight duties of the Board of Commissioners;

� Eko Sulistyo is responsible for oversight of the Board of Directors and staff in charge of support functions.

� Dyah Kartika Rini is responsible for overseeing the Board of Directors and staff in charge of business functions.

Meeting Frequency and Attendance Rate

The Board of Commissioners regularly holds meetings to carry out oversight and advisory functions to the Board of Directors. The meetings consist of internal meeting held by the Board of Commissioners and joint meetings with the Board of Directors. The frequency of meetings and attendance of the Board of Commissioners are as described in the following table.

Training and Development To support, optimize and improve oversight function, the Board of Commissioners has assigned Mrs. Dyah Kartika Rini to attend workshop and training as described in the table below.

Table of BOC Meeting Attendance

NameBOC Meeting

Total Meetings

Attendance %

Indrasjwari K.S* 7 3 40

Eko Sulistyo 7 7 100

Dyah Kartika Rini 7 7 100

* Retired on March 7, 2017

NameBOC - BOD Meeting

Total Meetings

Attendance %

Indrasjwari K.S.* 8 2 30

Eko Sulistyo 8 5 60

Dyah Kartika Rini 8 8 100

Table of BOC - BODMeeting Attendance

* Retired on March 7, 2017

Date Topic Place

Sept. 11-15, 2017

ASEAN Global Leadership Programme "Leadership in Transformational Digital Era"

Cambridge, Inggris

Oct. 10-11, 2017

Internal Audit Conference 2017 "Moving Forward"

Bandung, Indonesia

Table of BOCTraining and Development


Performance Assessment Assessment Implementation ProceduresThe implementation procedures for performance assessment of the Board of Commissioners are as follows:

� The Board of Commissioners submits the Work Plan including the Key Performance Indicator in the Corporate Work Plan and Budget (RKAP).

� On the Fiscal Year accountability, the Board of Commissioners submits the Report of Oversight Duties to the Shareholders and submits the KPI results in Corporate Management Report.

� Shareholders perform evaluation and provide resolutions on the report of the Board of Commissioners in the General Meeting of Shareholders.

Assessment Implementation CriteriaThe criteria for assessment of the Board of Commissioners consists of 4 (four) aspects, namely:a. Planning Aspectb. Oversight and Advisory Aspectsc. Reporting Aspectd. Dynamic Aspect

Each aspect has weight and total score of 100, with criteria of success rate as follows:

100 ≥ x > 95 : Excellent95 ≥ x > 80 : Good80 ≥ x > 65 : Acceptable65 ≥ x > 50 : PoorX ≤ 50 : Very poor

Party conducting the AssessmentThe assessment is conducted by Shareholders and included in the resolution of the General Meeting of Shareholders on the Annual Report Approval.

Procedure of Remuneration Determination

The determination of the Board of Commissioners’ remuneration is closely related to the remuneration of the Board of Directors considering the remuneration of the President Commissioner is the percentage

of the President Director’s and the remuneration of Commissioners is the percentage of the President Commissioner’s. The procedures for determining the remuneration of the Board of Commissioners are as follows:

a. The Board of Directors submits remuneration proposal to the Board of Commissioners.

b. The Board of Commissioners evaluates the Board of Directors’ proposal, if approved, the Board of Commissioners submits it to the Shareholder.

c. The Shareholder conducts an evaluation based on the performance achieved by the Board of Directors and Board of Commissioners.

d. The Shareholder determines the remuneration in the General Meeting of Shareholders.

1. Remuneration Structure Based on the Regulation of the Minister of SOEs Number PER-4/MBU/2014 dated March 10, 2014 on Guidelines of Remuneration Determination for the Board of Directors, Board of Commissioners and Board of Supervisors of State-Owned Enterprises, the remuneration structure of the Board of Commissioners can be seen in the table on this page.

2. Remuneration Amount The amount of remuneration of the Board of Commissioners is determined based on the Regulation of Minister of SOEs Number PER-4/MBU/2014 dated March 10, 2014 on Guidelines of Remuneration Determination for the Board of Directors, Board of Commissioners and Supervisory Board of State-Owned Enterprises. Total remuneration of the Board of Commissioners for 2017 amounted to Rp4,275,786,000.


No. ASPECT AND PARAMETER PERIODOUTPUT

UNITWEIGHT

(%)OUTPUT

PLANREALIZATION SCORE

(1) (2) (3) (4) (5) (6)

I. Planning Aspect

1 Preparing the Work Plan & Budget and KPI of the Board of Commissioners 2017

Annually 1 10 1 1 10

Sub Total I 10 10.00

II. Oversight and Advisory Aspect

1. Providing a response/recommendation to the Shareholders regarding:

a. Corporate Work Plan and Budget Annually Letter 5 1 1 5

b. Annual Report Annually Letter 6 1 1 6

c. Quarterly Performance Analysis Quarterly Letter 5 3 2 3.33

2. Advising the Board of Directors according to the duties of the Board of Commissioners.

One year Letter/Minutes

12 12 17 17

3. Board of Commissioners Meeting

a. Number of meetings Monthly Times 9 12 15 11.25

b. Meeting attendance Monthly % 5 100 86.67 4.3335

c. Completion of meeting minutes Monthly Minutes 5 12 15 6.25

4. Board of Commissioners Meetings with Related Units

One year Minutes 6 12 14 7

5. Working visit of the Board of Commissioners

One year Visits 4 2 3 6.00

6. Realization of work plan of the Board of Commissioners’ Committees

One year % 3 100 100 3.00

Sub Total II 60 69.17

III. Reporting Aspect

1. Report on the realization of KPI implementation of the Board of Commissioners

Quarterly Report 5 2 3 7.50

2. Report on oversight of the Board of Commissioners

Annually Report 10 1 1 10.00

Sub Total III 15 17.50

IV. Dynamic Aspect

1. External Auditor Proposal to the Shareholder

Annually Letter 4 1 1 4

2. Competence Enhancement through seminars, workshops, etc.

One year Times 4 3 2 2.67

3. GCG Assessment Results of the Board of Commissioners (self assessment/Independent Consultant)

Annually Score 4 25 32.84 5.2544

4. Response to Follow Up on Findings of Auditor/SPI/GCG Assessor

One year Letter 3 1 2 6

Sub Total IV 15 17.92

Total I + II + III + IV 100 115.00

Results on Board of Commissioners' Assessment 2017: EXCELLENT

Table of Board of Commissioners' Assessment Results 2017


3. Work Plan and Implementation of Oversight Duties The work plan and Implementation of the BOC's Duties for 2017 can be viewed in the table on the next page.

4. Independent CommissionerIn accordance with the Decree of the Minister of SOEs No. SK-24/MBU/10/2015 dated October 27, 2015 on "Dismissal, Appointment and Transfer of Duties of Members of the Board of Commissioners of PT Danareksa (Persero)," Mrs. Indrasjwari K.S. Kartakusuma was transferred from the Commissioner to the President Commissioner as well as the Independent Commissioner. The decree also appointed Mrs. Dyah Kartika Rini as Independent Commissioner.

No Type of Income Description

1 Honorarium President Commissioner: 45% of President Director’s;Commissioner: 90% of President Commissioner’s

2 Benefits

Religious Holiday allowance 1 (one) time honorarium

Transportation Allowance 20% of honorarium

Retirement Insurance Contributions for retirement insurance including accident and life insurance

3 Facilities

Health as applied to the Board of Directors

Legal aid Provided in the event of any action/deeds for and on behalf of his/ her position relating to the purpose and objectives of the company's business activities

4 Tantiem/Performance Incentives

Tantiem/Performance Incentives

Established in the Annual GMS

Long Term Incentive Established in the Annual GMS

Table of the Board of Commissioners' Remuneration Structure

5. Affiliation with Shareholder and Board Directors(See the "Company Profile" section - on Board of Commissioners Identity).


No. Work Plan Implementation of Oversight Duty

1 Reporting on the oversight duties that have been carried out during the fiscal year 2016 to the General Meeting of Shareholders.

Report on oversight duties that have been conducted during the fiscal year 2016 to the General Meeting of Shareholders, was submitted through Letter of the Board of Commissioners Number: S-03/DK-DR/II/2017 dated February 28, 2017 on the reporting of Implementation of oversight duties of Board of Commissioners 2016.

2 Performing evaluation on the effectiveness of external audit implementation as general auditor of Financial Statements of the Company for fiscal year 2016.

Evaluation of external audit effectiveness for Financial Statements of the Company 2016 was submitted through letter of Board of Commissioners Number: S-06/DK-DR/III/2017 dated March 31, 2017 on Response on audited management report of PT Danareksa (Persero) for fiscal year 2016.

3 Propose candidate of Public Accounting Firm to General Meeting of Shareholders for general auditor of Financial Statements of the Company and Subsidiaries, as well as implementation of Partnership and Community Development Program for fiscal year 2017.

The proposal of Public Accounting Firm candidates to the General Meeting of Shareholders for the general auditor of the Financial Statements of the Company and Subsidiaries as well as the implementation of the Partnership and Community Development Program for the fiscal year 2017 was contained in the letter of the Board of Commissioners Number: S-05/DK-DR/III/2017 dated March 31, 2017, concerning matters that need to be approved by the Shareholders in the GMS of PT Danareksa (Persero) on the Approval of the Annual Report and the Ratification of Annual Consolidated Calculation for Fiscal Year 2016 and through letter No. S-16/DK-DR/VIII/2017 dated August 2, 2017 regarding Revised Letter of Proposal on Appointment of Public Accounting Firm as general auditor in 2017 for PT Danareksa (Persero).

4 Reviewing the accounting policies and preparation financial statements and their implementation through discussions with external auditor.

Being discussed in kick off meeting with PAF on September 21, 2016 before the concerned PAF conducting audit and in Progress Meeting with PAF on December 27, 2017.

5 Discussing the Board of Directors' compliance with laws and regulations.

During 2017 there were no special discussions between the Board of Commissioners and the Board of Directors on the latter's compliance with laws and regulations, however the Board of Commissioners always reminded the Board of Directors in every meeting and letters issued and in the meetings discussing SPI performance realization.

6 Preparing the BOC's annual work plan and budget (RKAP) for the fiscal year 2018 and to be included in the RKAP 2018.

The Board of Commissioners has prepared the Work Plan and Budget of the Board of Commissioners 2018 and RKAP of BOC has been included in the book of th Company's RKAP 2018.

7 Reviewing and deepening the Company's Work Plan and Budget (RKAP) 2018 prepared by the Board of Directors, and providing input and approval.

The RKAP 2018 has been discussed with the Board of Directors on October 18, 2017.

Table of Work Plan and Implementation of Duties of Board of Commissioners for 2017


8 Reviewing and deepening the quarterly reports submitted by the Board of Directorsand providing suggestions and advice if the results did not meet the targets set by the RKAP 2017.

The review and deepening as well as advice on quarterly reports were presented submitted by letter number: S-11a/DK-DR/VI/2017 dated June 21, 2017 regarding Response to the management report of PT Danareksa (Persero) first quarter of 2017, letter number: S-18/DK-DR/IX/2017 dated September 6, 2017 regarding Response to management report of PT Danareksa (Persero) first half of Fiscal Year 2017. It was also conveyed through a joint meeting of the Board of Commissioners and Board of Directors regarding the same discussion.

9 Reviewing the performance of the Boardof Directors based on criteria, targets and key performance indicators covered in the Management Contract and to submit the assessment results to the GMS.

The review of the performance of the Board of Directors based on the key performance indicators, target and performance covered by the Management Contract is submitted in response letter to the Quarterly Management Report 2017 and also submitted by letter number: S-23/DK-DR/XI/2017 dated November 3, 2017 on the Recovery of Corporate Performance of 2017.

10 Visiting several SIDs for oversight and advisory duties on policy of quality and services.

During 2017, the Board of Commissioners for oversight and advisory duties on quality and service policy visited two SID offices, SID Surabaya on March 24-25, 2017 and SID Makassar on May 3-5, 2017.

11 Conducting reviews on:

a. Policy/design of internal control system and its implementation and effectiveness of internal audit as well as follow-up monitoring of internal/external audit results/findings.

Review on policy/design of internal control system and its implementation and effectiveness of internal audit as well as follow-up monitoring of internal/external audit results/findings was submitted by the Board of Commissioners through letter number: S-02/DK-DR/II/2017 dated February 16, 2017 on internal audit in the fourth quarter of 2016 and follow-up report of inspection and letter number: S-24/DK-DR/XI/2017 dated November 29, 2017 regarding Follow up to Audit Report of Q2/2017.

b. Policy and implementation of corporate risk management.

Review on the Company's risk management policy and implementation was contained in two letters of the Board of Commissioners, letter number: S-06/DK-DR/III/2017 dated March 31, 2017 regarding Response to audited management report of PT Danareksa (Persero) fiscal year 2016 and letter number: S-24/DK-DR/XI/2017 dated November 29, 2017 regarding Follow-up to Audit Report of Q2/2017.

c. Policy of the company’s information technology system and its implementation.

Review of the Company's information technology system policy and its implementation was contained in the letter of the Board of Commissioners number: S-06/DK-DR/III/2017 dated March 31, 2017 regarding Response to audited management report of PT Danareksa (Persero) fiscal year 2016.

Table of Work Plan and Implementation of Duties of Board of Commissioners for 2017 (continued)


No. Work Plan Implementation of Oversight Duty

11 Conducting reviews on: (continued)

a. Human resources policies and implementation.

Review of the Human Resource Policy contained in the letters of the Board of Commissioners, letter number: -11a/DK-DR/VI/2017 dated June 21, 2017 regarding Response to management report of PT Danareksa (Persero) for first quarter of 2017, letter number: S -06/DK-DR/III/2017 dated March 31, 2017 regarding Response to audited management report of PT Danareksa (Persero) for fiscal year 2016 and letter number: S-24/DK-DR/XI/2017 dated November 29, 2017 regarding Follow Up to Audit Report of Q2/2017.

b. Management of subsidiaries. Review of Subsidiary Management was contained in letter of Board of Commissioners number: S-06/DK-DR/III/2017 dated March 31, 2017 regarding Response to audited management report of PT Danareksa (Persero) for fiscal year 2016.

c. Management of subsidiaries. Review of the implementation of the Good Corporate Governance principles was contained in the letters of the Board of Commissioners number: S-06/DK-DR/III/2017 dated March 31, 2017 regarding Response to audited management reports of PT Danareksa (Persero) for fiscal year 2016 and letter number: S-24/DK-DR/XI/2017 dated November 29, 2017 regarding Follow-up to Audit Report for Q2 / 2017.

d. Company related complaints received by the Board of Commissioners.

The Board of Commissioners during 2017 did not receive any complaints related to the company.

12 Attending training/seminars on Financial Services industry.

* As per table of training/seminar of the Board of Commissioners in 2017.

13 Discuss and grant approval/authorization/recommendation of the Board of Commissioners on the actions of the Board of Directors requiring the recommendation/approval of the Board of Commissioners in accordance with applicable regulations and/or articles of association.

* As per table of letters of the Board of Commissioners in 2017.

14 Convening Board of Commissioners meetings

* As per table of the Board of Commissioners meetings in 2017.

Table of Work Plan and Implementation of Duties of Board of Commissioners for 2017 (continued)


Table of letters of approval/authorization/recommendation of the Board of Commissioners issued during 2017

No. Letter Number and Date Subject

1 S-02/DK-DR/II/2017February 16, 2017

Internal audit results in the fourth quarter of 2016 and follow-up of examination report.

2 S-03/DK-DR/II/2017February 28, 2017

Submission of report on the implementation of oversight duties of the Board of Commissioners in 2016.

3 S-05/DK-DR/III/2017March 31, 2017

Discussion on RKAP 2018 was conducted with the Board of Directors on October 18, 2017.

4 S-05/DK-DR/III/2017March 31, 2017

Matters that required Shareholders’ approval in the GMS of PT Danareksa (Persero) on the Approval of Annual Report and Ratification of Consolidated Annual Calculation for Fiscal Year 2016.

5 S-06/DK-DR/III/2017March 31, 2017

Response to audited management report of PT Danareksa (Persero) for fiscal year 2016.

6 S-07/DK-DR/V/ 2017May 24, 2017

Procurement of Public Accounting Firm to audit financial statements and PKBL implementation report for fiscal year 2017.

7 S-08/DK-DR/V/2017May 24, 2017

GMS Resolution of PT Danareksa (Persero) regarding the appointment of Public Accounting Firm (KAP).

8 S-09/DK-DR/V/2017May 30, 2017

Request for recommendation on stock placement plan of PT Danareksa (Persero) in PT BUMNDes Nusantara.

9 S-10/DK-DR/V/2017May 31, 2017

Application for official travel of members of the Board of Commissioners.

10 S-11/DK-DR/VI/2017June 14, 2017

Procurement of Public Accounting Firm (KAP) PT Danareksa (Persero) for Fiscal Year 2017.

11 S-11A/DK-DR/VI/2017June 21, 2017

Response to management report of PT Danareksa (Persero) for first quarter of 2017.

12 S-13/DK-DR/VII/2017July 19, 2017

Replacement of Corporate Secretary of PT Danareksa (Persero).

13 S-14/DK-DR/VIII/2017August 2, 2017

Application for Approval of Organizational Change of PT Danareksa (Persero).


Proposal for appointment of Public Accounting Firm as general auditor 2017 of PT Danareksa (Persero)


Revised Letter of Proposal for appointment of Public Accounting Firm as general auditor 2017 of PT Danareksa (Persero)

16 S-17/DK-DR/IX/2017September 6, 2017

Appointment of Public Accounting Firm for audited Consolidated Financial Statements of PT Danareksa (Persero) and Subsidiaries, and Financial Statements of Partnership and Community Development (PKBL) 2017.


Response to management report of PT Danareksa (Persero) for first half of Fiscal Year 2017.


No. Letter Number and Date Subject


Suggestion from the Board of Commissioners Related to Collateral on Non Performing Loan of PT Danareksa (Persero).


Request for Information on Follow-up of Danareksa Finance Acquisition Plan.


Submission of report on Oversight Duty Implementation of Board of Commissioners for First Half of 2017.

21 S-22/DK-DR/X/2017October 25, 2017

Submission of report on Oversight Duty Implementation of Board of Commissioners for Third Quarter of 2017.

22 S-23/DK-DR/XI/2017November 3, 2017

Recovery of Corporate Performance 2017.

23 S-24/DK-DR/XI/2017November 29, 2017

Follow up on Audit Report for Q2/2017.

24 S-25/DK-DR/XII/2017December 27, 2017

The term of office of members of the Board of Directors of PT Danareksa (Persero).

Table of letters of approval/authorization/recommendation of the Board of Commissioners issued during 2017 (continued)




Charter

The Board of Directors Charter is stipulated in Decree of the Board of Commissioners No: KD-38/025/-DIR dated August 6, 2014 on the Guidelines of Board of Directors of PT Danareksa (Persero). The Board of Directors Charter stipulates, among others:

� Number, Composition, Criteria and the Independence of the Board of Directors.

� Family Relationship of the Board of Directors and Board of Commissioners

� Concurrent Positions of the Board of Directors’ Members

� Share Ownership of the Board of Directors’ Members

� Duties, Authorities and Obligations of Board of Directors

� Procedures for the Board of Directors' Meeting � Conflict of Interest � Company Introduction Program, Work Ethics

and Working Time of the Board of Directors � Terms of Leave and Substitute Director

Duties and Authorities

In accordance with article 11 of the Articles of Association of PT Danareksa (Persero), which has been published in Supplement to State Gazette of the Republic of Indonesia number 71 dated September 3, 2010; Duties, Authorities and Obligations of the Board of Directors are as described in the review below.

Duties of the Board of Directors

The Board of Directors shall be responsible for carrying out all actions related to the management of the Company for the interest of the Company and in accordance with the purposes and objectives of the Company as well as representing the Company both inside and outside the Court on all matters and

events with restrictions as stipulated in laws and regulations, Articles of Association and/or General Meeting of Shareholders’ Resolutions.

Authorities of the Board of Directors

1. To establish management policies of the Company.

2. Managing the delegation of powers of the Board of Directors to one or more members of the Board of Directors to make decisions on behalf of the Board of Directors or represent the Company in and out of court.

3. Managing the delegation of powers of the Board of Directors to one or several employees of the Company either individually or collectively or to others, to represent the Company in and out of court.

4. Managing the provisions on employment of the Company including the determination of salaries, pension or old-age security and other income for the Company's employees under applicable laws and regulations, with the provision of salaries, pensions or old-age security and other income for employees exceeding the obligations established by laws and regulations, must be approved in advance by the General Meeting of Shareholders.

5. To appoint and dismiss the Company's employees based on regulations on employment of the Company and applicable laws and regulations.

6. To appoint and dismiss the Corporate Secretary.

7. Carrying out any actions and other deeds regarding management and ownership of the Company's assets, binding the Company with other parties and/or other parties with the Company, as well as representing the Company in and out the court of all matters and events, with limitations as stipulated in




laws and regulations, Articles of Association and/or Resolution of the General Meeting of Shareholders

Obligations of the Board of Directors

1. To operate and ensure the implementation of the Company's business and activities in accordance with its purpose and objectives as well as its business activities.

2. To prepare in due course the Corporate Long Term Plan, Work Plan and Budget, as well as their revisions and submit them to the Board of Commissioners and Shareholders for the approval of the General Meeting of Shareholders.

3. To provide an explanation to the General Meeting of Shareholders regarding the Corporate Long Term Plan and the Corporate Work Plan and Budget.

4. To prepare Shareholder Register, Special Register, Minutes of General Meeting of Shareholders, and Minutes of Board of Directors Meetings.

5. To prepare Annual Report as a form of responsibility of the management of the Company, as well as the Company's financial documents as referred to in Law on Corporate Documents.

6. To prepare Financial Statements based on Financial Accounting Standards and submit to the Public Accountant to be audited.

7. To submit the Annual Report including the Financial Statements to the General Meeting of Shareholders for approval and ratification, and reports on the rights of the Company which are not recorded by the accounting as a result, among others, write-off of account receivables,

8. To provide explanations to the General Meeting of Shareholders regarding Annual Report.

9. To deliver the Balance Sheet and Income Statement as established by the General Meeting of Shareholders to the Minister in charge of Justice and Human Rights in accordance with the provisions of the laws and regulations.

10. To submit report on changes in the composition of the Shareholders, Board of Directors and Board Commissioner to the Minister in charge of Justice and Human Rights.

11. To maintain Shareholder Register, Special Register, Minutes of General Meeting of Shareholders, Minutes of Meeting of Board of Commissioners and Minutes of Board of Directors' Meetings, Annual Report and corporate financial documents as referred to in letter b points 4) and 5) of the paragraph, and the Company’s other documents.

12. To save in the domicile of the Company: Shareholder Register, Special Register, Minutes of General Meeting of Shareholders, Minutes of Board of Commissioners Meetings and Minutes of Board of Directors Meetings, Annual Report and Financial Documents of the Company and the Company’s other documents as referred to in letter b point 11) of the paragraph.

13. To establish an accounting system in accordance with the Financial Accounting Standards and under the principles of internal control, especially the functions of management, recording, storage, and supervision.

14. To provide periodic reports in the manner and time in accordance with the applicable provisions, as well as other reports each time requested by the Board of Commissioners and/or the Shareholders.

15. To prepare the organizational structure of the Company complete with details and duties.

16. To provide explanations of all matters inquired or requested by members of the Board of Commissioners and Shareholders.

17. To report any participation in other business entities that become the main activities.

18. To prepare and establish the blueprint of the organization of the Company.

19. To carry out other obligations in accordance with the provisions stipulated in the Articles of Association and established by the General Meeting of Shareholders based on the laws and regulations.

In performing its duties, the Board of Directors shall commit the energy, mind, attention and dedication to the duties, obligations and achievements of the Company's goals. In performing their duties, members of the Board of Directors shall comply with the Articles of Association of the Company and the laws and

regulations and shall implement the principles of professionalism, efficiency, transparency, independence, accountability, responsibility and fairness.


Each member of the Board of Directors shall in good faith and full of responsibilities perform their duties for the Company's interests and business with due regard to applicable laws and regulations.

Each member of the Board of Directors shall be per-sonnaly fully liable if the person concerned is guilty or negligent in performing his/her duties for the Company's interest and business cause losses to the Company, unless such member of the Board of Di-rectors can prove that:

a. the loss is not due to his/her fault or negligence;

b. having conducted management in good faith and prudentially for the interest and in accordance with the purposes and objectives of the Company;

c. having no direct or indirect conflicts of interest on the management that result in a loss; and

d. having taken action to prevent the occurrence or extent of such losses.

Actions taken by members of the Board of Directors outside those decided by the Board of Directors' meeting shall be personal liability of the concerned member until such action is approved by the Board of Directors’ meeting.

The actions of the Board of Directors below shall first obtain written approval from the Board of Com-missioners to:

a. Assign fixed assets for short-term credit withdrawals.

b. Forming cooperation with business entities or other parties in the form of licensing cooperation agreement, management contract, renting assets, Joint Operation (KSO), Build Operate Transfer (BOT), Build Own Transfer (BOwT), Bangun Serah (Build Transfer Operate/BTO) and other cooperation with a certain value or period determined by the General Meeting of Shareholders.

c. Receiving or granting medium/long term loans, except loans (account payable or receivables) arising from business transactions, and loans granted to the Company's subsidiaries on the condition that the loans to the subsidiaries of the Company are reported to the Board of Commissioners.

d. Writing off bad debts and inventory of dead stock from the accounting.

e. Releasing fixed assets that move with the economical age prevalent in the industry,

which in general is up to 5 (five) years.

f. Establishing an organizational structure 1 (one) level below the Board of Directors.

g. Within 30 (thirty) days since the receipt of the complete application or explanation documents from the Board of Directors, the Board of Commissioners shall make the decision as referred to in paragraph 8 of the Article.

The following actions may only be made by the Board of Directors upon receiving a written response from the Board of Commissioners and the approval of the General Meeting of Shareholders to:

a. Assign fixed assets for medium/long-term credit withdrawals.

b. Establish subsidiaries and/or joint ventures.

c. Release equity participation in subsidiaries and/or joint ventures.

d. Merger, amalgamation, acquisition, separation and dissolution of subsidiaries and/or joint ventures.

e. Bind the Company as a guarantor (borg or avails).

f. Form cooperation with business entities or other parties in the form of licensing cooperation, management contracts, renting assets, Joint Operations (KSO), Build Operate Transfer (BOT), Build Own Transfer (BOwT), Build Transfer Operate (BTO) and other cooperation that exceeding value or period determined by the General Meeting of Shareholders as referred to in paragraph 8 letter b of the Article.

g. Do not charge any bad debts that have been written off.

h. Release and write-off of the Company's fixed assets with economic age prevalent in the industry, which is generally more than 5 (five) years.

i. Establish the organization blue print of the Company;

j. Establish and change the Company’s logo;

k. Carry out other actions and deeds referred to in paragraph 8 of the Article which have not been established in the Corporate Work Plan and Budget;


l. Establish foundations, organizations and/ or associations either directly or indirectly related to the Company that may affect the Company;

m. Charge the Company’s fixed and regular expenses for foundations, organizations and/or associations whether directly or indirectly related to the Company;

n. Nominate the Company's Representative to become a member of the Board of Directors and Board of Commissioners of the joint venture and/or its subsidiaries that contribute significantly to the Company and/or with strategic value established by the General Meeting of Shareholders, except those requiring special approval/licensing from the authorized institution whose shares partly owned by the Company.

Establishment of subsidiaries/joint ventures in order to join a tender and/or to undertake projects as long as necessary, does not require the approval of the General Meeting of Shareholders as referred to in paragraph 10.

If within 30 (thirty) days since the receipt of the application or explanation/additional data: from the Board of Directors, the Board of Commissioners

does not provide any written response, the General Meeting of Shareholders may decide without a written response from the Board of Commissioners.

The Board of Directors shall request the approval of the General Meeting of Shareholders for:

a. transfer of the Company's assets; or

b. making the Company's assets as debt guarantee which is more than 50% (fifty percent) of the Company's net assets in 1 (one) transaction or more, whether related to each other or not.

Transactions as referred to in paragraph 13 letter a shall be transactions of the transfer of net assets of the Company which occurred within 1 (one) fiscal year.

The legal act of transferring or making as a debt guarantee or relinquishment of rights to the assets of the Company referred to in paragraph 13 of the Article shall be approved by the General Meeting of Shareholders attended or represented by the Shareholders with at least 3/4 (three quarters) of total shares with valid voting rights and is approved by at least 3/4 (three quarters) of the total votes. In terms of attendance quorum is not reached, a second General Meeting of Shareholders may be held in the presence of at least 2/3 (two thirds) of the total shares with valid voting rights and approved by

at least 3/4 (three quarters) of the total votes.

The transfer, release of rights or assign all or part of fixed assets which are merchandise or inventory, including those inventory from the settlement of bad debts arising from the operations of the main business activities, does not require the approval of the General Meeting of Shareholders as referred to in paragraph 10 and paragraph 13.

The transfer, release of rights or assign as debt guarantee all or part of fixed assets of investment assets does not require the approval of the General Meeting of Shareholders as referred to in paragraph 10 and paragraph 13.

The General Meeting of Shareholders may reduce restrictions on the actions of the Board of Directors as established in the Articles of Association or to determine other restrictions to the Board of Directors other than those established in the Articles of Association.

The Company, if not otherwise determined by the Board of Directors, the President Director shall be entitled and authorized to act for and on behalf of the Board of Directors and to represent the Company on the condition that all actions of the President Director are approved by the Board of Directors.

If the President Director is absent or unavailable for any reason whatsoever, which is not required to be proven to any third party, then one of the members of the Board of Directors is appointed in writing by the President Director shall have the authority to act for and on behalf of the Board of Directors and perform the duties of the President Director.

In the event that the President Director does not make an appointment, member of the Board of Directors with the longest term in office is authorized to act for and on behalf of the Board of Directors and perform the duties of the President Director.

In the event that there is more than 1 (one) member of the Board of Directors with the longest term in office, then member of the Board of Directors with the longest term in the office and the oldest in the age is authorized to act for and on behalf of the Board of Directors and perform the duties of the President Director.

In the event that any member of the Board of Directors other than the President Director is unavailable for any reason whatsoever, which is not required be proven to any third party, then the other members of the Board of Directors appoint one of the members of the Board of Directors to perform the duties of the absent Board members.


Directors for certain acts of their own responsibility shall be entitled to appoint any person or more as their representative or proxy, by granting him/her or them power for such certain acts as governed by a power of attorney.

The distribution of duties and authorities of each member of Board of Directors shall be determined by the General Meeting of Shareholders. In the event that the General Meeting of Shareholders does not specify the distribution of duties and authorities, then the distribution of duties and authorities members of Board of Directors shall be determined based on the decree of the Board of Directors.

The Board of Directors in managing the Company carries out the direction given by the General Meeting of Shareholders as long as it is not contrary to the laws and regulations and/or Articles of Association.

Distribution of Duties and Responsibilities

In order to make the Board of Directors more effective, with the approval of the Board of Commissioners, the Board of Directors shall determine division of duties as shown in the Table of Distribution of Duties and Responsibilities,based on the Decree of Board of Directors No. KD-41/026/DIR dated August 3, 2017, as amended most recently by Decree of the Board of Directors No. KD-41/038/DIR dated November 27, 2017.

Concurrent Positions of Board of Directors

To perform the oversight function at subsidiaries, the Board of Directors of the Main Entity also serves as the Board of Commissioners of the subsidiaries with the allocation as shown in the table of Concurrent Positions of the Board of Directors.


The Board of Directors regularly holds weekly attended by the Board of Directors of the Main Entity, related Division Head of the Main Entity and the Board of Directors of the Subsidiaries. Total Board of Directors' meetings held in 2017 and the frequency of attendance of each member of the Board of Directors are presented in the table at the

end of this chapter.

Training and Development

To develop and deepen insights, the Board of Directors has attended workshops and training courses as shown in the table of Training and Development of Board of Directors

Performance Assessment

The procedures of performance assessment of the Board of Directors are as follows:

� The Board of Directors submits the Work Plan including Key Performance Indicator (KPI) in the Corporate Work Plan and Budget (RKAP).

� In the Fiscal Year accountability section, the Board of Directors submits the Management Report to Shareholders and submits KPI results in the Company Management Report.

� Shareholders conduct an evaluation and provide a decision on the Report of the Board of Directors in the General Meeting of Shareholders.

Remuneration Determination Procedures

The procedures for determining the remuneration of the Board of Directors are as follows:

� The Board of Directors submits a remuneration proposal to the Board of Commissioners.

� The Board of Commissioners evaluates the Board of Directors’ proposal, if approved, the Board of Commissioners submits to the Shareholders.

� Shareholders conduct an evaluation based on the performance achieved by the Board of Directors and Board of Commissioners.

� The Shareholder establish the remuneration in the General Meeting of Shareholders.

Remuneration Structure

Based on the Regulation of the Minister of SOEs Number PER-4/MBU/2014 dated March 10, 2014 regarding Guidelines for Determination of Remuneration of the Board of Directors, Board of Commissioners and Board of Supervisors of State- Owned Enterprises, the remuneration structure of Danareksa's Board of Directors is as described in the table of Remuneration Structure.


Remuneration Amount

The amount of remuneration of the Board of Directors shall be determined based on Regulation of the Minister of SOEs Number PER-4/MBU/2014 dated March 10, 2014 regarding Guidelines for Determination of Remuneration of Board of Directors, Board of Commissioners and Board of Supervisors of State-Owned Enterprises. The total remuneration of Board of Directors for 2017 amounted to Rp14,989,339,000.

Name Position Duties and Responsibilities

Heru D. Adhiningrat

President Director Responsible for running the Company comprehensively and coordinating the duties and authorities of other members of Board of Directors, as well as directly supervising the Corporate Secretary, Internal Audit, Legal Asset Recovery & Compliance divisions, Danareksa Research Institute, Chief Economist, Treasury, Proprietary, Institutional Coverage & Advisory, Business Development & Change Management and Portfolio Management & Business Sinergy.

Bondan Pristiwandana

Director Director in charge of risk management and finance functions and support functions, and directly supervising Risk Management & SOP, Human Capital, Accounting & Financial Control, Treasury, Proprietary & Finance Operations and General Affairs, Purchasing & Procurement divisions.

Table of Distribution of Duties and Responsibilities of the Board of Directors

Affiliation with Shareholder and Board of Commissioners

(See Company Profile - Board of Commissioners Identity)

Name Total Meetings

Frequency of Attendance

%

Heru D. Adhiningrat

15 15 100


15 12 80

Marciano H. Herman1 15 8 53

Hoesen2 15 7 46

Table of Attendance of BOD Meeting 2017

Name Total Meetings

Frequency of Attendance

%

Heru D. Adhiningrat

8 3 37


8 7 87

Marciano H. Herman1 8 3 37

Hoesen2 8 1 12

Table of Attendance of BOD-BOC Meeting 2017

Note:1 Retired since October 28, 20172 Retired since July 20, 2017

Note:1 Retired since October 28, 20172 Retired since July 20, 2017


Name PT Danareksa Sekuritas

PT Danareksa Investment Management

PT Danareksa Finance

PT Danareksa Capital

Heru D. Adhiningrat-

President Commissioner

President Commissioner

Commissioner

Bondan Pristiwandana President Commissioner

- Commissioner -

Table of Concurrent Position of Board of Directors

Date Topic Organizer Location

April 26, 2017

Executive Leadership Program - 1 Ministry of SOEs Gadog, West Java

June 10 -18, 2017

Executive Program in Corporate Strategy (EPCS)

Chicago Booth Executive Education

Chicago, United States

November 21-22, 2017

FinTech World Forum 2017 Fintech London United Kingdom

London, United Kingdom

Table of BOD Training and Development

No Type of Remuneration Description

1 Salary President Director : 100% ; Director : 90% of President Director

2 Benefits

Religious Holiday allowance

1 (one) time monthly salary

Housing Allowance Housing allowance includes utility fees on a monthly basis according to region.

Retirement Insurance Contributions for retirement insurance that includes accident and death insurance.

3 Facilities

Company vehicle 1 (one) unit of company vehicle

Health As per company regulations

Legal aid Provided in the event of any action/ deeds for and on behalf of his/her position relating to the purpose and objectives of the company's business activities.

4 Tantiem/Performance Incentives

Determined in the Annual GMS

Long Term Incentive Determined in the Annual GMS

Table of BOD Remuneration Structure


Table of Key Performance Indicators (KPI) of the Board of Directors - 2017

No. KPKU PERSPECTIVE WEIGHT (%) FormulaIndicator

Unit

RKAP Target 2017

Realization 2017

Achievement 2017(Weighted)

(1) (2) (3) (4) (5) (6)

I Leadership, Governance and Social Responsibility

16.00 100.00 17.93%

I-1 Timely delivery of periodic reports of SOEs electronically

6.00 38.00 Timely % 100.00 100.00 7.20%

I-2 Score achievement of Corporate GCGimplementation

2.50 15.63 GCG Assessment Results

% 91.00 92.02 2.53%

I-3 Score achievement of Corporate and KPKU GCGimplementation

2.50 15.63% KPKU Assessment Results

% 525.00 562.25 2.68%

I-4 Effectiveness PKBL Distribution

5.00 31.25 90% Disbursed

% 90.00 99.50 5.53%

II Customer Focus 22.00 100.00 23.82%

II-1 Customer Satisfaction Survey

8.00 36.36 Customer Satisfaction Index

% 85.00 87.55 8.24%

II-2 Customer Satisfaction Survey

7.00 31.82 Customer Loyalty Level

% 84.00 86.20 7.18%

II-3 Number and Product of New Services

7.00 31.82 Number of New Products and Services

Nominal 5.00 16.00 8.40%

III Manpower Focus 17.00 100.00 13.90%

III-1 Revenue per Employee 8.00 47.06 Operating revenues1

Rp billion 1.29 1.08 6.70%

III-2 Net Profit per Employee 9.00 52.94Operating revenues1 Rp million 114.00 0 7.20%


1 Number of Permanent Employees + Contracted Employees2 Income Before Tax + Depreciation + Interest Expenses)3 Total Expenses

KPIs refer to Letter of Secretary for Ministry of SOEs No. S-441/MBU/Wk/08/2014; Letter of the Minister of SOEs No. S-17/Wk.MBU/2013 dated October 30, 2013 on "Shareholder Aspiration for Preparation of RKAP 2014";

Letter of Deputy of Service Business No. S-27/D4.MBU/2014 on "Alignment of KPIs using KPKU"

No. KPKU PERSPECTIVE WEIGHT (%) FormulaIndicator

Unit

RKAP Target 2017

Realization 2017

Achievement 2017

(Weighted)

(1) (2) (3) (4) (5) (6)

IVEffectiveness of Product and Process

20.00 100.00 21,00%

IV-1 Mutual Fund Management

5.00 25.00 Total AUM Nominal 23.00 27.22 6.00%

IV-2 SOE Synergy 5.00 25.00 Number of Synergies

Nominal 5.00 10.00 6.00%

IV-3 ISO Certification 5.00 25.00 Certification of ISO 90001 : 2015

% 100.00 100.00 5.00%

IV-3 SOE Roadmap Realization

5.00 25.00 Holding process completed

% 100.00 Awaiting Government Regulation on Holding

4.00%

V Finance and Market 25.00 100,00 20.00%

V-1 EBITDA Margin 6.00 24.00 Operating revenues2

% 45.02 4.48 4.80%

V-2 BOPO 6.00 24.00 Operating revenues3

% 60.88 131.12 4.80%

V-3 Average Daily Transaction Volume

6.00 24.00 Average Daily Transaction Volume

Nominal 200.00 100.00 4.80%

V-4 Market Share of Brokerage

7.00 28.00 Market Share of Brokerage

% 2.50 1.30 5.60%

TOTAL 100 96.65%


No Shareholders' Directives Follow up

1 The books of RKAP, RKA PKBL, RKA of the Board of Commissioners and RKA and KPI (Key Performance Indicators) of the Board of Commissioners of 2017 have been approved and ratified in the General Meeting of Shareholders (GMS), as well as Board of Commissioners’ Response Letter Number: S-30/DK-DR/XII/2016 dated November 25, 2016 is an integral part of the Minutes of GMS Resolution and serves as a guideline for the Board of Directors in implementing its work program and performance targets in 2017 as well as means of monitoring and oversight for the Board of Commissioners

In carrying out business activities and operations in 2017, the Board of Directors always considered advices and opinions of commissioners as stated in the letter and other advices given by Board of Commissioners during 2017.

2 The Board of Directors is required to: During 2017 the Board of Directors has conducted:

� Conduct a comprehensive evaluation and improvement of the company's businesses for continues improvement of the company's performance with due regard to provisions of applicable regulations and principles of good corporate governance

Penguatan struktur Internal dari sisi pengelolaan risiko, standarisasi prosedur serta human capital dengan peningkatan kompetensi dengan berpedoman kepada Pedoman Tata Kelola Perusahaan yang Baik (GCG Code).

� Pay serious attention to optimization of subsidiaries, especially for subsidiary Danareksa Sekuritas, to be in line with the direction of Shareholders Aspirations, which states that a subsidiary should essentially capable of increasing the value of SOE and/or its business activities to support the performance of the parent company so as not to become the parent’s liability.

Increased synergy among subsidiaries to strengthen structure based on operational excellence.

� Prepare all matters relating to Financial Services Holding to facilitate and improve the performance of Financial Services SOEs.

Conducting activities necessary for supporting the preparation of FInancial Services Holding establishment to be running smoothly.

Danareksa’s activities in 2017 were carried out based on the directives of Shareholders in the General Meeting of Shareholders on Ratification of Corporate Work Plan and Budget (RKAP) as well as Work Plan and Budget of Partnership and Community Development Program (RKA PKBL) 2017. The follow up of Shareholders' directives in 2017 are as follows:

G E N E R A L M E E T I N GO F S H A R E H O L D E R S


No Shareholders' Directives Follow up

3 Performance Incentives (Tantiem) allocated in RKAP 2017 were in accordance with the applicable regulations, with the maximum amount that can be charged and the realization of its implementation based on the achievement of performance targets of 2017 established in the Annual GMS.

Performance Target and Performance Incentives with realization of PT Danareksa (Persero) always complied with applicable regulations.

4 In the SOE partnership program with small businesses and community development (PKBL), it is necessary to observe the following matters:

In implementing PKBL in 2017, the Board of Directors shall always observe the following matters:

� Delivering periodic reports in a timely manner within the time limit stipulated in Regulation of the Minister of SOEs Number: PER-08/MBU/2013 dated September 10, 2013 as amended the latest by Regulation of Minister of SOEs Number: PER-09/MBU/07/2015 dated July 3, 2015 on PKBL

Publishing PKBL report on time through the PKBL Portal

� The implementation of RKA PKBL 2017, GMS may approve RKA PKBL 2017 based on final discussion result between Deputy Assistant Office for Social and Environmental Responsibility with the Board of Directors of PT Danareksa (Persero)

Prudent in the selection process of Partnership Program and Community Development Program to avoid overlapping with Government program


Referring to Regulation of the Minister of State-Owned Enterprises Number: PER-12/MBU/2012 dated August 24, 2012 on the Supporting Organs of the Board of Commissioners/Supervisory Board of SOEs, in performing the oversight and advisory functions, the Board of Commissioners is assisted by Organs of Board of Commissioners consisting of Secretary of the Board of Commissioners and Audit Committee.

Duties and ResponsibilitiesThe Secretariat of the Board of Commissioners is responsible for conducting activities to assist the Board of Commissioners in performing its duties in the form of:

a. Preparing for meetings, including the invitation and briefing sheet of the Board of Commissioners;

b. Making minutes of meetings of the Board of Commissioners;

c. Administering documents of the Board of Commissioners, whether incoming mail, outgoing mail, minutes of Meetings or other documents;

d. Drafting the Work Plan and Budget of the Board of Commissioners;

e. Drafting the Reports of the Board of Commissioners;

f. Carrying out other duties of the Board of Commissioners.

g. Secretary of the Board of Commissioners as head of the Secretariat, performs other tasks as follows:

� Ensure that the Board of Commissioners comply with laws and regulations and implement GCG principles;

� Provide information required by the Board of Commissioners on a regular basis and/or at any time if requested;

� Coordinate members of the Committee, if necessary to facilitate the duties of the Board of Commissioners;

� As a liaison officer of the Board of Commissioners with other parties.

� In order to carry out proper administration and implementation of good corporate governance, the Secretariat of the Board of Commissioners shall ensure that the documents of the activities are properly maintained in the Company.

� The Secretary of the Board of Commissioners is obliged to maintain the confidentiality of confidential documents and safeguard the security of all documents.

Remuneration

Remuneration of the Secretary of the Board of Commissioners shall be regulated in accordance with the Regulation of the Minister of SOEs number PER-12/MBU/2012 on Supporting Organ for Board of Commissioners/Supervisory Board of SOEs; especially article 4 on Remuneration of the Board of Commissioners’ Secretary; which consists of:

� Honorarium, a maximum of 15% (fifteen percent) of the salary of the President Director of the Company

� Facilities

� Benefits, and/or tantiem or performance incentives

In 2017, the position of Secretary of the Board of Commissioners was held by Mr. Wiratmoko Prasidhanto, based on Decree of the Board of Commissioners of PT Danareksa (Persero) Number KEP-07/DK-DR/VI/2016 dated June 2, 2016 regarding Dismissal and Appointment of Secretary of the Board of Commissioners of PT Danareksa (Persero).

B O A R D O F C O M M I S S I O N E R S ' S E C R E TA R Y


A U D I T C O M M I T T E E

BackgroundPT Danareksa (Persero) ("Company") is a State Owned Enterprise (SOE) engaged in financial services. The limited liability company was founded in 1976 undertook major activities in capital market and money market, including securities brokerage, underwriters, fund management, financing and investment. The Company is committed to running the company in accordance with the good corporate governance principles, one of which is to comply with all regulations established by the Government and by the Financial Services Authority, in relation to the Company's activities in the financial services and the Company as Issuer.

In bid to encourage the Company to be managed in accordance with good corporate governance principles, the Board of Commissioners has formed an Audit Committee to assist the Board of Commissioners of the Company in carrying out its duties of establishing an effective oversight system. The Audit Committee works collectively in carrying out its duties to assist the Board of Commissioners. The Audit Committee is independent in performing its duties as well as reporting and directly reports to the Board of Commissioners.

Reference - Audit Committee Charter The Charter of the Audit Committee is established by the Board of Commissioners as a reference and guidelines for the implementation of the Audit Committee's work in carrying out its duties and responsibilities independently and objectively, based on the provisions as follows:

a. Law Number 19 of 2003 regarding State-Owned Enterprises;

b. Law Number 40 of 2007 regarding Limited Liability Company;

c. Government Regulation Number 45 of 2005 on the Establishment, Management and Dissolution of State-Owned Enterprises;

d. Regulation of the State Minister of State Owned Enterprises Number: PER-01/

MBU/2011 on the Implementation of Good Corporate Governance within State-Owned Enterprises;

e. Regulation of the State Minister of State Owned Enterprises Number: PER-12/MBU/2012 regarding the Supporting Organ of the Board of Commissioners/Supervisory Board of State-Owned Enterprises;

f. Financial Services Authority Regulation No. 55/POJK.05/2015 on establishment and Working Guidelines of Audit Committee.

Duties and ResponsibilitiesIn performing its function, the Audit Committee has

the following duties and responsibilities:

� Assist the Board of Commissioners to ensure the effectiveness of the Internal control system and implementation of duties of external and internal auditors;

� Assess the implementation of activities and audit results conducted by internal and external auditors, as well as oversee the implementation of follow-up actions by the Board of Directors on the findings of internal and external auditors;

� Provide recommendations on improving the internal control system and its implementation;

� Ensure that there is adequate evaluation procedure for all information issued by the Company;

� Reviewing the financial information to be issued by the Company to the Public and/or the authorities, among others, the Consolidated Financial Statements of the Company and Subsidiaries, the Corporate Long Term Plan, the Corporate Work Plan and Budget, and other reports related to the Company's financial information;

� Review the Company's compliance with laws and regulations related to the Company's activities;


� Give an independent opinion in the event of a difference of opinion between Management and Public Accounting Firm for the services it provides;

� Provide recommendations to the Board of Commissioners regarding the appointment of the Public Accounting Firm based on independence, scope of assignment and Fees;

� Review the implementation of risk management activities conducted by the Board of Directors, if the Company does not have a risk monitoring function under the Board of Commissioners;

� Review complaints relating to the accounting and reporting process The Company's finances;

� Review and advise the Board of Commissioners regarding potential conflict of interest of the Company;

� Identify issues that require the attention of the Board of Commissioners and other duties granted by the Board of Commissioners related to the Company's activities.

� Maintain the confidentiality of documents, data and information of the Company either from internal or external parties and only used for the purpose of performing their duties.

Term of Office � Term of office of members the Audit Committee

of who is not a member of the Board of Commissioners, is no later than 3 (three) years and may be extended once for two (2) year term, without reducing the rights of the Board of Commissioners to dismiss them at any time (in accordance with the Regulation of the Minister of State State Owned Enterprises Number: PER-12/MBU/2012).

� The term of office is more conservative than the term stipulated in the Financial Services Authority Regulation Number 55/POJK.05/2015 dated December 23, 2015 on the establishment and implementation guidelines of the Audit

Committee. According to the Financial Services Authority Regulation No. 55/POJK.05/2015 on the formation and and implementation guidelines of the Audit Committee, the term of office of the Audit Committee’s members shall not be longer than the term of the Board of Commissioners as stipulated in the Articles of Association and may be re-elected only for one subsequent period.

Communication ProtocolIn performing its duties and responsibilities, the Audit Committee builds and maintain free and open communication with the Independent Auditor, Internal Auditor and the Management of the Company while maintaining the objectivity and independence of the Audit Committee either collectively or individually;

Communications for the performance of the Audit Committee's duties relating to the Independent Auditor (if different from the Company's Independent Auditor), Internal Auditor, Risk Management and the Management of Subsidiaries, are conducted in coordination with the Corporate Secretary or the Company's Internal Auditor.

Activity ReportDuring 2017, the Company's Audit Committee has conducted the following activities:

1. Review the monthly performance and Quarterly Management Report for the fiscal year 2017.

2. Review the management report 2016 of the Company and Subsidiaries.

3. Audit Committee evaluation of Public Accounting Firm EY for audit of fiscal year 2016.

4. Review the (audited) consolidated financial statements 2016 of PT Danareksa (Persero).

5. Review the Letter Management related to the audit of the consolidated financial statements of PT Danareksa (Persero) and Subsidiaries for the year ended December 31, 2016.


6. Review of internal audit of Q1/2017, Q2/2017 and Q3/2017 and follow-up of examiniation results.

7. Review the effectiveness of internal control system and its implementation, the effectiveness of activities of Internal Audit (IA) Division as well as the follow-up monitoring of the examination results, and then provide recommendations on the improvement of the internal control system and its implementation.

8. Report to the Board of Commissioners on the Evaluation Result on the Implementation of Audit Service Provision of Annual Historical Financial Information by Public Accountant and/ or Public Accounting Firm for fiscal year 2016.

9. Review the results of the KAP services procurement report 2017 by the Committee Procurement of KAP Services and provide recommendation on the use of Public Accountant and Public Accounting Firm Purwantono Sungkoro & Surja (EY) for audit of historical financial information of 2017.

10. Prepare Work Program 2018 to be forwarded to the Board of Commissioners.

11. Report to the Board of Commissioners of the Internal Audit Result of the IIA Audit attended by the Audit Committee as well as the recommendations that can be applied in PT Danareksa (Persero).

12. Review the PKPT 2018 submitted by the Internal Audit and provided recommendations to be considered by the Board of Commissioners.

Other Oversight Functions of Board of

Commissioners1. Visiting Sentra Investasi Danareksa (SID)

Surabaya on March 24, 2017 and SID Makassar on May 2, 2017.

2. Identify and provide input to the Board of Commissioners which matters requires the attention of the Board of Commissioners

Good Corporate GovernanceDiscussion meeting with Corporate Secretary concerning GCG implementation through the adequacy of internal control and integrated compliance implementation.

Continuing Education of Audit CommitteeThroughout 2017, the Audit Committee has attended the following training and seminars:

� National Conference Institute of Internal Auditors - Indonesia Chapter (IIA Internal Audit Conference), Bandung.

� Internal Audit Workshop, IKAI, Jakarta.

Continuing Education of Audit Committee

Name Position

Dyah Kartika Rini Chairperson

Djasriadi Member

Imbuh Sulistyarini Member

Table of Committee Audit Members December 31, 2017

Name Frequency of Attendance

%

Dyah Kartika Rini 1 20

Djasriadi 6 100

Imbuh Sulistyarini 5 90

Table of Audit Committee Meeting AttendanceTotal Meetings during 2017:6


Name Position

Dyah Kartika Rini, Chairperson (See Company Profile - Identity of Board of Commissioners)

Djasriadi, Member

Indonesian citizen born in Jambi May 28, 1956 earned a Bachelor of Economics, with major in Management in Jakarta in 1987. Djasriadi has held a number of positions in the Ministry of SOEs with the rank/group of Junior Administrator/IVC. Attended a number of courses and training. During his career, he has been assigned as Commissioner in several companies such as PT Kimia Farma Trading & Distribution, PT Indofarma Global Medika, PT Industri Soda Indonesia (Persero) and PT Dahana (Persero).

Appointed as a Member of the Audit Committee based on the Decree of the Board of Commissioners of PT Danareksa (Persero) number KEP-01/DK-DR/I/2014 dated January 3, 2014.

Imbuh Sulistyarini, Member

Indonesian citizen, born in Kebumen in 1971, earned a degree Bachelor of Economics from Accounting Department, Faculty of Economics, University of Indonesia in 1996, Master of Accounting from Faculty of Economics, University of Indonesia in 2006 and is a Certified Audit Committee Practices. She had been a member of the Audit Committee at PT PGN (Persero) Tbk. and PT Adhi Realty. Previously she served as Deputy Head of SME Center at Faculty of Economics, University of Indonesia, and became examiner of Malcolm Baldridge Criteria and evaluator of Assessment Criteria For Performance Excellence of SOEs (KPKU BUMN). She is currently a lecturer at the Faculty of Economics and Business University of Indonesia, consultant at Management Institute Faculty of Economics and Business University of Indonesia.

Appointed as a Member of the Audit Committee based on the Decree of the Board of Commissioners of PT Danareksa (Persero) number KEP-01/DK-DR/II/2017 dated February 22, 2017.

Table of Audit Committee Member Profile

Committee Member Profile

Based on Decree of the Board of Commissioners Number: KEP-01/DK-DR/II/2017 dated February 22, 2017, the structure and composition of the Audit Committee are as follows:


A U D I T C O M M I T T E E


Policy Risk control across all business lines must be applied consistently and continuously based on an integrated, comprehensive, and proactive concept of Enterprise Risk Management (ERM). Thus, the Company's risk management function can play an optimal role in maintaining the sustainability of the Company's growth.

The Risk Management Committee has the authority to make decisions related to risk taking activities, policy formulation and in the process of determining risk appetite & risk tolerance. In addition, the Risk Management Committee also reviews the risk profile periodically using the information presented on the dashboard and also in the Asset Liabilities Management forum.

Decision-making by Risk Management Committee (KPR) is mostly done through the mechanism of document circulation, but when necessary, decision-making is done in a face-to-face forum. These efforts are also accompanied by improved transaction processing procedures, compliance with applicable laws and regulations, and implementation of business ethics standards and work ethics. As such, Danareksa has laid the groundwork for establishing a comprehensive operational risk management framework.

Duties and responsibilities

Duties and responsibilities of Danareksa Management Committee in the integrated risk management are as follows:

1. Making rules in the form of guidelines and policies that apply within PT Danareksa (Persero) and Danareksa Group.

2. Conducting evaluation (review) on all business activities of the company, both in terms of portfolio management and activities undertaken by business unit of subsidiaries.

3. Reviewing the adequacy of policies, procedures and establishing limits of integrated risk management.

4. Reviewing the adequacy of identification,

measurement, monitoring, integrated risk control and integrated risk management information system and comprehensive internal control system on integrated risk management implementation.

5. Integrated capital management to comply with the provisions of the Financial Services Authority regarding the integrated capital adequacy, which includes:

� formulating integrated policies, strategies and capital procedures in accordance with the size, characteristics, business complexity and risk level of financial conglomeration; and

� implementing integrated capital management policies, strategies and procedures.

6. Conducting consolidated risk management activities including risk management at PT Danareksa (Persero) and subsidiaries by an Integrated Risk Management Committee;

7. Conducting periodic evaluations of the maturity level of risk management and risk register within Danareksa groups through coordination with all entities within Danareksa Group;

8. Making decisions and recommendations related to integrated risk management that must be complied and implemented by KPR of PT Danareksa (Persero) and subsidiaries;

9. Making decisios or recommendations on proposed transaction or product that must be complied and implemented by each entity within Danareksa Group.

10. Establishing Integrated Risk Management Unit and Integrated Internal Control Unit and Integrated Compliance Work Unit.

11. Conducting other matters deemed necessary under applicable laws and regulations, directions from Shareholders and Commissioners, and the inputs and considerations of relevant stakeholders to be undertaken based on the review of the KPR.

R I S K M A N A G E M E N T C O M M I T T E E


The authorities and responsibilities of KPR are as follows:

� Coordinate and supervise all risk management activities at all work units of the Company.

� Establish business or operational policies and regulations with due regard to applicable laws and regulations, the directives of the Shareholders and the Board of Commissioners and the interests of the stakeholders.

� Set the limits on the authority of transactions and decision-making for officials within the Company.

� Propose, establish or approve other matters as authorized by the Board of Directors in the Articles of Association, regulation and/or directives/rules of shareholders.

Implementation of Activities

Referring to the Risk Management function, among others, identifying, measuring, controlling and monitoring business risks from all transactions and recommending things that needed to be heeded by management, which was also in line with the implementation of empowerment to subsidiaries, the activities of the Risk Management Division during 2017 emphasized the full details can be found in the "Risk Management" section of this Report.

Profile of Committee MembersProfile of Risk Management Committee Member, as follows:

Name, Position and Profile

Heru D. Adhiningrat, Chairman (See Company Profile - Identity of the Board of Directors)

Bondan Pristiwandana, member (See Company Profile - Identity of the Board of Directors)

RAM Irwan Satya Utama, member

Indonesian citizen. Graduate of State College of Accountancy. He has more than 12 years experience in Risk Management, especially in the financial industry. He began his career as an Auditor at the Financial and Development Supervisory Board until 1994, then as Executive Administrator & Analyst at Malindo Ventura Nusantara prior to his career at Bank Bumiputera up to the position of Head of Corporate Planning and Risk Management in 2006. Then for more than 5 years working at Mandiri Sekuritas as Head of Risk Management; and in 2011 joined Danareksa as Head of Risk Management Division to date.


H U M A N C A P I TA L C O M M I T T E E

Policy Human Capital or Human Resources (HR) Committee is an executive committee that has the responsibility of establishing policies on human resources as required for the development, organizational changes withing Danareksa Group.

Independence

Members of the Human Capital Committee are independent and have no financial relationship with the Company other than remuneration for their services as members of the HC Committee, nor do they have any family or business relationship with members of the Board of Commissioners, the Board of Directors or Shareholders.

Duties and responsibilities

The duties and responsibilities of the Human Capital and Remuneration Committee are to establish strategic policies on human resources, evaluate the policies to remain as support to the Company's strategy, and reviewing other human resource issues that have large impact on the environment of the Parent/Main Company and Subsidiaries, and/or have potential risks.


The Human Capital Committee's activities during 2017 emphasized on human resources as an important asset of the company. Human Capital's commitment was implemented through the policy of "Integrated Talent Management" consisting of career management, talent and succession plan, refinement of compensation and benefit as well as learning and development plan.

Furthermore, the implementation of the committee's activities in 2017 was focused on:

a. Competence-based pro-active recruitment process and expanding sources of HR search.

b. Maintaining continuity of the competency system to remain competitive with market conditions, including foreign houses.

c. Implementing employee engagement to measure employee commitment and satisfaction.

d. Improving systems, procedures and other applicable provisions in line with the development and needs of the organization.

e. Preparing qualified cadres through the Management Trainee program.

f. Implementation of Job Evaluation & Grading System for PT Danareksa (Persero) and Subsidiaries.

g. Competency Assessment for Division Head of Danareksa Holding.

h. Assessment of Talent Pool with Competencies established by KBUMN (Domestic and Global) for the level below the Board of Directors of the Company, including the Board of Directors of Subsidiaries.


During 2017, Human Capital Committee Meeting has been held with attendance of members as follows:

Name Position Freq. of Attendance

%

Heru D. Adhiningrat Chairman 18 100


Member 17 94

Marciano H. Herman1 Member 13 72

Hoesen2 Member 12 67

Jenpino Ngabdi Member 3 17

Marsangap P Tamba3 Member 1 5

Poedji Goesarianto Member 3 17

Uriep Budhi Prasetyo

Member 3 17

A. Pawitra Indriati Member/Secretary

18 100

Table Human CapitalCommittee MeetingNumber of Meetings during 2017: 18 (eighteen)

1 Retired on October 10, 2017 2 Retired on July 20, 20173 Started working on October 16, 2017


Name, Position and Profile



Marciano H. Herman1, member

Hoesen2, member

Jenpino Ngabdi, member

Indonesian citizen. President Director of PT Danareksa Sekuritas. Master of Applied Science from Macquire University, Australia (1993) after earning a Bachelor of Economics from the same University (1992). Joined PT Danareksa Sekuritas since 2013. Started career at PT Credit Lyonnais Capital Indonesia (1994-1995), PT Sung Hung Kai (1995-1996), PT Danareksa Sekuritas (1996-2002) with the last position as Director of Investment Banking, PT NC Securities (2002-2006) as Managing Director of Investment Banking, Domba Mas Group (2006-2007) as Executive Director of Corporate Finance, PT Bahana Securities (2007-2010) as Senior Vice President Investment Banking and PT Ciptadana Capital (2010-2012) As Senior Vice President Corporate Finance.

Marsangap P. Tamba3, member

Indonesian citizen. President Director of PT Danareksa Investment Management. Graduated with Bachelor of Science (Accounting) from University of Indonesia (1996), Master of Science in Finance and Financial Management Services from University of Houston, USA (1998) and received WMI license in 2015. He started his career at PT Duta Kirana Finance as Business Development Staff (1996 -1997), Financial Staff at American Lawyer Media, New York, USA (2000-2001), PT DBS Vickers Securities Indonesia as Equity Analyst (2000-2002), PT Prudential Life Assurance Indonesia, as Fixed Income/Credit Analyst (2002-2003) and in PT Sun Life Financial Indonesia served as Group Investment Head in 2006-2015.

Poedji Goesarianto, member

Indonesian citizen, he has been the President Director of PT Danareksa Finance since May 2009. Bachelor of Accounting from Gajayana University and Law Degree from State University of Malang. He started his career as an Audit Supervisor for Public Accounting Firm (PAF) Drs. Nasikin, Akt in 1989-1992, then as Instructor of Business Development of Small Enterprises and Cooperative - Scope of PT Perum Jasa Tirta and continued in Indomobil Group (1992-1997) and PT Mandala Multifinance Tbk. Until May 1997. Appointed as Director of PT Danareksa Finance from May 2007 to 2009.

Uriep Budhi Prasetyo, member

Indonesian citizen, currently President Director of PT Danareksa Capital. MBA in Managementfrom the College of Notre Dame; BSc from San Francisco State University, California, USA. Prior to joining Danareksa, he was a Director of PT Bursa Efek Indonesia (2009-2015), Commissioner of PT Kustodian Sentral Efek Indonesia (2006-2009) and Director of PT Dhanawibawa Arthacemerlang Sekuritas. In addition, he also served as Director at companies such as PT Megatech Global Partners, PT Floreta Purwa Artha, PT BPR Cinere Arta and Business Analyst at PT Tata Upadi Pratama and PT Trikora Lloyd. Imelco Trading Company, Inc. in San Francisco, California, USA is where he began his experience in finance, as Assistant Manager (1989-1992).

A. Pawitra Indriati, member

Indonesian citizen. She has served as Human Capital Division Head since June 2015, having served as Deputy Head of Human Capital Division since January 1, 2015. She holds a Master f Commerce degree from University of New South Wales, Sydney, Australia in 2000, and she previously studied at the Department of Architecture Parahyangan Catholic University, Bandung. Experienced in Finance, she has attended various training related to finance and Capital Market. Joined in 2000 as Management Trainee and underwent various assignments, especially in the Management Reporting & Budget Control up to the position of Head Unit (2007-2014).

Table of Human Capital Committee Member Profiles

1 Director, retired as of October 10, 2017; 2 Director, retired as of July 20, 2017; 3 Started working as of October 16, 2017


Table of InformationTechnology Committee Members Profile

I N F O R M AT I O N T E C H N O L O G Y C O M M I T T E E

Policy

The Information Technology Division (ITP) contributes to the Company by providing various means of access to investment and transaction services. Danareksa's online service is accessible through applications on PCs (personal computers), websites specifically for transactions, smartphones, or tablet PCs that are increasingly widespread and used by customers.

Danareksa continues to increase the proportion of transactions through online media, which is established to be one of the Company's key services. as support to that, the Information Technology Division conducted various activities during 2017.

Duties and Responsibilities

The Information Technology Committee conducts evaluation and recommends development plan and Information Technology Governance for short-term and long-term.


The activities of the Information Technology Committee during 2017 emphasized the development of transactional support system and enhancement of distribution line services with the latest development of online and mobile trading, especially to face the increasing business competition.

Implementation of the Information Technology Committee's activities is presented in the "Information Technology" area in the "Management Discussion and Analysis of the Company Performance" chapter.

Profile of Committee Members

The Information Technology Committee is chaired by the President Director of the Company, consisting of directors of the Company and Head of Information Technology Division. Acting as secretary in this committee is Head of Information Technology Division.

Name and Position




Hoesen2, member

Darwis Fadhli, member

Indonesian citizen. Having experience of more than 15 years in information system development, he currently serves as Head of Information Technology Division since March 2013; After previously leading IT Business Support and IT Business Architects and Analysts for approximately 3 years. Shortly after joining Danareksa, Darwis led the Application Development Unit for more than 6 years; various applications that have been developed helped Danareksa in doing business in Indonesian Capital Market; Including the development of Online Transactions (D'ONE).

He completed Master’s degree in Information Technology from University of Indonesia and holds various licenses and special skill merit badge awards in Information Technology from various institutions.1 BOD, retired as of October 10, 20172 BOD, retired as of July 20, 2017


Name and Position




Hoesen2, member

RAM Irwan Satya Utama, member (See Company Profile - Identity of the Board of Directors)

Rika Muzni, member

Indonesian citizen. Bachelor of Accounting from Faculty of Economics, Trisakti University. She has served as Head of Treasury Division since 2013, having previously served as Head of Trading and Liquidity for several years. She has more than 15 years of experience in the Company's liquidity field, asset and liability management in addition to direct transactions of Mutual Funds, bonds and foreign exchange - to maximize the Company's revenues.

Table of Asset and LiabilityCommittee Member Profile

Policy and Independence

In order to achieve the optimum overall liquidity of the Company, it is necessary to review and determine the policies in the management of the Company's assets and liabilities.

The members of the Asset and Liability Committee are independent and have no other financial relationship with the Company, nor do they have any family or business relationship with members of the Board of Commissioners, the Board of Directors or Shareholders.


The Asset and Liability Committee performs risk management related to the Company's overall liquidity; including market risk, interest rate risk and foreign exchange risk.

Implementation of ActivitiesDuring 2017, the Asset and Liability Committee carried out activities with the Risk Management Committee in managing matters relating to assets and liabilities; especially to optimize the Company's liquidity.

Profile of Committee MembersThe Asset and Liability Committee is chaired by the President Director of the Company, and consists of the directors of the Company, Head of Treasury Division and Head of Risk Management Division.

A S S E T A N D L I A B I L I T Y C O M M I T T E E

1 BOD, retired as of October 10, 20172 BOD, retired as of July 20, 2017


1. Determination

Public Accountant appointed to audit the Financial Statements of PT Danareksa (Persero) and its subsidiaries in 2017, was determined through a procurement process based on the following matters:

a. Resolutions of the General Meeting of Shareholders (GMS) contained in the Minutes of GMS of the Company dated May 10, 2017 on the Approval of the Annual Report 2016 and Ratification of the Financial Statements for the Fiscal Year 2016, which among others delegate the authority to the Board of Commissioners of the Company in the procurement of Public Accounting Firm (PAF) to audit the Financial Statements and Financial Statements of Partnership and Community Development Program (PKBL) Implementation for fiscal year 2017.

b. Letter of the Minister of SOEs as the Company's GMS regarding the determination of Public Accounting Firm on the Company's Financial Statements and Financial Statements of PKBL for Fiscal Year 2017 as stipulated in letter No.S-496/MBU/09/2017 dated September 5, 2017;

c. Letter of the Board of Commissioners No.S-17/DK-DR/IX/2017 dated September 6, 2017 on Determination of PAF for the Audit of Consolidated Financial Statements of the Company and Subsidiaries and Financial Statements of PKBL 2017.

d. Work Order (SPK) to PAF Purwantoro, Sungkoro and Surja (EY) No.SPK-41/061/DR-EY dated November 27, 2017 on Appointment and General Audit Work Order to PAF for Audit on Financial Statements of the Company and Subsidiaries and for Financial Statements of PKBL for Fiscal Year 2017, and No.SPK-41/061A/DR-EY dated November 27, 2017 on Appointment and Working Order of PAF to Implement the Agreed Procedures for Evaluation Report on the Performance of the Company and Subsidiaries as of December 31, 2017 and for the year then ended

2. Period

Public Accounting Firm Purwantoro, Sungkoro and Surja (EY) has audited the Financial Statements of the Company for fiscal years 2015 and 2016. Up until fiscal year 2017, it was the third audit period for Public Accounting Firm Purwantoro, Sungkoro and Surja (EY).

3. Cost

In the fiscal year 2017 the cost of PAF Purwantono, Sungkoro and Surja (EY) services amounted to Rp1,625,000,000, - (one billion six hundred twenty five million Rupiah) consisting of fees for the audit services of the Consolidated Financial Statements of the Company and Subsidiaries and Financial Statements of Partnership and Community Development Program (PKBL) at Rp1,585,000,000, - (one billion five hundred eighty five million Rupiah) and Rp160,000,000 (one hundred and sixty million Rupiah), the remainder was the cost of implementing Agreed Upon Procedure (AUP) on the Performance Evaluation Report of the Company and Subsidiaries, which included Value Added Tax (VAT), Out of pocket expenses (OPE) and Income Tax (PPh).

4. Scope

The scope of work for appointed PAF are:

a. Carry out general audits of Consolidated Financial Statements of the Company and Subsidiaries, and on the Financial Statements of each Subsidiary for the year ended December 31, 2017 based on auditing standards established by the Indonesian Institute of Certified Public Accountants. The subsidiaries included in the scope of this assignment are PT Danareksa Sekuritas, PT Danareksa Investment Management, PT Danareksa Finance and PT Danareksa Capital.

P U B L I C A C C O U N TA N T


b. Carry out an audit on compliance with laws and regulations, and internal control of the Company and Subsidiaries in accordance with Statement of Audit Standard No.62 (PSA No. 62) for the year ended December 31, 2017.

c. Carry out an audit on the Financial Statements of Partnership and Community Development Program (PKBL) of the Company for the year ended December 31, 2017.

d. Prepare a Summary of Commentaries, Suggestions and Responses of Management addressed to the Boards of Commissioners and Directors of the Company and each Subsidiary including but not limited to written advice, on evaluation of internal control, information technology, accounting treatment, other matters to save group assets, regulatory compliance and efficiency improvements.

e. Implement Agreed Upon Procedures (AUP) and issue AUP Report on the Performance Evaluation Report of the Company and Subsidiaries as of December 31, 2017.

5. Other Services

No other services were conducted by PAF Purwantono, Sungkoro & Surja within Danareksa Group environment other than those mentioned above.


Job Description Corporate Secretary is the organ of the company responsible for the smooth communication between the company and the stakeholders, and ensures the availability of information that can be accessed by stakeholders in accordance with the reasonable needs of the stakeholders. The Corporate Secretary reports to the President Director. The Corporate Secretary also manages relationships with the mass media to maintain the company's image.

Corporate Secretary FunctionThe functions of the Corporate Secretary of the Company are described in the duties and responsibilities of the Corporate Secretary as stipulated in the Work Guidelines of the Corporate Secretary of PT Danareksa (Persero) No.KD-41/020/DIR dated June 16, 2017 and Corporate Secretary Job Profile revised on August 1, 2017 as follows:

a. To lead, manage, develop and implement corporate communication strategies and programs;

b. Ensure that the Company complies with regulations on disclosure requirements in line with the application of the GCG principles.

c. As a liaison officer with Shareholders, Regulators and other Stakeholders.

d. Provide support and information required by the Board of Directors and Board of Commissioners on a regular basis and/or at any time if requested.

e. Provide input to the Board of Directors and Board of Commissioners to comply with applicable laws and regulations, including Financial Services Authority regulations and other regulations on transparency requirements in line with GCG principles.

f. Following the regulatory development, including the laws and regulations of the Financial Services Authority and GCG.

g. Administer and maintain company documents, including but not limited to Shareholder Register, Special Register (ie. the list of share ownership of members of the Board of Commissioners, Board of Directors and their Families, either in

the company or other companies), minutes of Board of Directors meetings, minutes of Board of Commissioners meetings, minutes of GMS in accordance with applicable rules.

h. Conducting public relations function for the company in managing and developing a positive corporate image that includes external and internal communications through public relations activities, media handling, and maintaining corporate image so that the company’s image management, reputation risk and compliance risk can be managed in a more coordinated manner;

i. Establish strategies and implementation of corporate communication programs for various target audiences to maintain the company's reputation.

j. Building confidence in the management capabilities in running the company and building long-term value for Stakeholders.

k. Assisting the Board of Directors and Board of Commissioners in the implementation of corporate governance including:

� Disclosure of information to the public, including the availability of information on the Company's Web site.

� Submission of reports to Regulators and Shareholders in a timely manner.

� Convening and documentation of t GMS, Board of Directors' meeting and/or Board of Commissioners meetings.

� Implementation of the company's introduction/orientation program for the newly appointed Board of Directors and Board of Commissioners.

l. Responsible for implementing an introduction/orientation program about the condition of the company in general for newly appointed members of the Board of Directors and Board of Commissioners for the first time to ensure that members of the Board of Directors and Board of Commissioners understand all aspects related to their roles and responsibilities as Board of Directors and/or Board of Commissioners, able to know each other and establish cooperation

C O R P O R AT E S E C R E TA R Y


as a solid team, and able to perform their duties effectively. The Company introduction programs include:

� Implementation of GCG principles in the company;

� Information on the duties and responsibilities of the Board of Directors and Board of Commissioners and other matters that are not allowed;

� The description of the company related to the vision and mission, corporate values and culture, corporate goals and strategies, business units and subsidiaries, financial and operating performance, short-term and long-term business plans, information technology applications, risk management, business competition condition, and other strategic issues;

� Information related to authority delegation, internal control system, internal and external audit and the Committees under the Board of Directors and Board of Commissioners;

Implementation of Duties During 2017 the Corporate Secretary of the Company has carried out the following activities:

1. Convening Board of Directors meetings and joint meetings of the Board of Directors and Board of Commissioners.

2. Convening the Annual General Meeting of Shareholders for the fiscal year 2016 and the GMS of RKAP for fiscal year 2017.

3. Conducting self-assessment and evaluation (review) of the GCG implementation and application of the Company and subsidiaries in 2016 in cooperation with appointed independent parties.

4. Conducting self assessment on implementation of Integrated Governance of Danareksa Group Financial Conglomeration for First Half of 2017 and Integrated Annual Governance Report of Danareksa Group Financial Conglomeration 2016.

5. Preparing Unaudited and Audited Management Report 2016 and submitting the report to the Board of Commissioners and Shareholders through FIS BUMN Portal.

6. Preparing Corporate Management Report Quarter I - IV of 2017 and submitting the report to the Board of Commissioners and Shareholders through the FIS BUMN Portal.

7. Preparing and distributing Annual Report for the fiscal year 2016.

8. Responsible for the preparation of RKAP 2018, including preparing the presentation material of the Board of Directors, coordinating the implementation of meetings for the preparation of RKAP and others.

9. Responsible to submit RKAP 2018 to the Board of Commissioners and to Shareholders through FIS BUMN Portal.

10. Responsible for the preparation of KPKU report 2017.

11. Preparing gratification acceptance report 2017.

12. Conducting Customer Satisfaction Survey 2017.

13. Preparing and distributing religious greeting cards, 2018 new year cards and 2018 calendar.

14. Regularly updating Danareksa.com website and KBUMN Portal.

15. Preparing marketing materials for business divisions and subsidiaries, including backdrop for Retail, DIM, advertising materials Danareksa Online print and Mutual Fund.

16. Develop corporate communicatioforn materials of Danareksa Group, such as publication of financial reports through mass media and others.

17. Developing and implementing the distribution of Partnership Program in East Java Province and distribution of Community Development Program in regions in need within the territory of the Republic of Indonesia in accordance with the regulations of the Minister of SOEs.

18. Routine and continuous monitoring of Partnership Program and Community Development implementation.


19. Developing and implementing CSR programs and Danareksa sponsorship activities in line with company policy.

20. Represent the Board of Directors in relation to government agencies /institutions or private sector.

21. Coordinating and controlling the organization of internal events, such as the anniversary of Danareksa, the ceremonies of national holidays of Indonesia, halal bihalal in celebration of eid and others.

22. Prepare minutes of the GMS of the subsidiaries.

23. Making decisions of the Board of Directors, joint decisions of the Board of Directors and Board of Commissioners, power of attorney of the Board of Directors and other legal products, including but not limited to the Guidelines for Integrated Governance of Financial Conglomerations of Danareksa Group. Forming cooperation agreement between the company and a third party.

24. Updating information and reviewing rules or regulations that must be complied with by the Company and its administration, including the review of the Regulation of the Financial Services Authority and other regulations.

25. Administering corporate documents of the Company, among others, the Company's Articles of Association, Licensing, Board of Directors' Meetings, Shareholder Register, Special List of Board of Directors and Board of Commissioners and others. Preparing letters/reports to the Board of Commissioners, Ministry of SOEs, OJK, Indonesia Stock Exchange and others.

26. Maintaining online reporting to OJK and Stock Exchange in relation to the obligation to submit company reports to OJK and Stock Exchange.

27. Processing the renewal of company licenses that are due.

28. Conducting the management of Company's guests, including and not limited to managing student visits to the Company.

29. Carrying out the payment function of cost center for the Company and its subsidiaries.

Competence Improvement Program of Corporate Secretary 2017 As a liaison with external parties, the Corporate Secretary must always keep abreast of capital market developments and consistently improve his competence in Law/Legal, Accounting and Secretariat. Therefore, Corporate Secretary regularly attended various training that were beneficial to maximize his role in the company.

Brief history, appointment and term of officeThe Corporate Secretary is held by Donny Susatio Adjie. Information on brief history, appointment and term of office as presented in the following table.


Profile

Donny Susatio Adjie

Born in Jakarta, in 1967, earned a law degree from University of Indonesia in 1992. He graduated from Pre MBA Program from LCP International Institute - Azusa, California in 1993 and Law Program from American University School of Law, Washington D.C in 1994.

He started his career as In House Lawyer at PT Satelindo in 1995, appointed as Director of PT Indo Fastnet Informatika, then he worked for Indonesia Bank Restructuring Agency (IBRA) as Shareholder Settlement, Risk Management Investment and Senior Investment. He then appointed as Commissioner of PT Arvensis Indo Resources.

Prior to his appointment as Corporate Secretary of the Company in July 2017, he began his career at PT Danareksa Investment Management with the last position as Vice President, Head of Product and Alternative Investment. His assignment as Corporate Secretary was based on Letter of Board of Directors No. S-41/122/HC dated July 21, 2017 and approval of the Board of Commissioners through letter No.S-13/DK-DR/VII/2017 dated July 21, 2017.


The Company's internal audit function is carried out by the Internal Audit Division. Internal Audit is an independent and objective assurance and consulting activities with the aim of increasing the value and improving the Company's operations through a systematic approach, by evaluating and improving the effectiveness of risk management, control, and corporate governance process.

Structure and PositionThe structure and position of the Internal Audit are stipulated in:

a. Decree of the Board of Directors Number KD-40/063/DIR dated December 23, 2016 on Distribution of Duties and Authorities of the Board of Directors and Organizational Structure of PT Danareksa (Persero).

b. Decree of the Board of Directors Number KD-41/004/DIR dated February 6, 2017 on Internal Audit Charter of PT Danareksa (Persero).

Internal Audit Division is led by a Division Head and directly reports to the President Director. Auditors who are placed in the Internal Audit Division directly reports to the Head of Internal Audit Division. Internal Audit may communicate directly with the Board of Directors, Board of Commissioners, and/or Audit Committee.

Description of Internal Audit CharterThe Company already has an Internal Audit Charter which is always reviewed to suit the Company's development. The Internal Audit Charter is a guideline for the Internal Audit Division to perform its duties and responsibilities competently, independently and objectively so that it can be accounted for.

This Internal Audit Charter is created to realize an adequate supervision mechanism and system as well as attention to the Good Corporate Governance principles which are Transparency, Independence, Accountability, Responsibility and Fairness. The Internal Audit Charter defines the position of the Internal Audit Division within the Company, its responsibilities, authorities, codes of conduct,

requirements, and responsibility as well as explaining what is prohibited by the Internal Auditor.

Scope, Duties and ResponsibilitiesThe scope of work of the Internal Audit Division covers all areas of operations of the Company and Subsidiaries (in accordance with applicable governance), conducts examinations and evaluations of the adequacy and effectiveness of the implementation of internal control, risk management and corporate governance process in accordance with laws and regulations, as well as the company’s policies, in the achievement of the company’s goals and objectives. In performing its duties, the Internal Audit Division may audit subsidiaries either individually, joint audit, or based on a report from the Internal Audit Division of subsidiaries.

Internal Audit duties and responsibilities are as follows:

� Prepare and implement a risk-based annual audit plan as established in the Annual Oversight Work Program (PKPT).

� Assess and evaluate the implementation of internal control and risk management system in accordance with the company’s policies.

� Conduct examination and assessments of efficiency and effectiveness in finance, accounting, operations, human resources, marketing, information technology and other activities.

� Provide suggestions for improvements and objective information with regard to activities examined at all levels of management.

� Prepare audit report and submit the report to the President Director and the Board of Commissioners.

� Monitor, analyze and report on the implementation of recommended improvements.

� Working closely with the Audit Committee. � Develop a program to evaluate the quality of

internal audit activities it undertakes; � Conduct special examination when

necessary.

I N T E R N A L A U D I T


Implementation of DutiesInternal Audit's duties and responsibilities are to examine and evaluate the implementation of internal control and risk management system, as well as conduct inspections and assessments of the efficiency and effectiveness of work units based on PKPT (Annual Supervisory Work Program) prepared at the beginning of the year and approved by the President Director. PKPT is prepared based on Risk Based Audit approach.

In 2017, Internal Audit has conducted regular audit activities on 6 (six) examination objects and 2 (two) physical examinations (stock opname), consisting of hysical examination of fixed assets and securities. In addition, in its examination, the Internal Audit also assessed the adequacy of internal policies and procedures.

Aside from examination, the Internal Audit also monitored the follow up of audit results conducted by Internal Audit, External Auditor and GCG ssessment results.

In order to implement the Integrated Governance of Danareksa Group Financial Conglomeration, the Internal Audit as an Integrated Internal Audit Work Unit (SKAIT) has performed monitoring tasks on the internal audit of each LJK (Financial Services Institution) within Danareksa Group Conglomeration conducted every semester, and report it to the Director appointed to perform supervisory function on LJK in the Financial Conglomeration and the BOC of the Main Entity and the Director overseeing compliance function of the Main Entity.

During 2017, Internal Audit has become a counterpart for the Financial Services Authority (OJK) for on site review of the Integrated Governance of Danareksa Group Financial Conglomeration and Public Accounting Firm Purwantono, Sungkoro & Surja - Ernst & Young for audit on Financial Statements Fiscal Year 2017. In addition, Internal Audit also became counterpart for independent assessors in order to conduct the GCG KBUMN assessment.

Number of Internal Audit EmployeesAs of December 31, 2017, the Internal Audit Division had 5 employees, consisting of 1 Division Head, 1 Unit Head and 3 Audit Officers. Including one QIA certified officer.

The party who appoints and dismisses the Head of Internal Audit DivisionThe Head of Internal Audit Division is appointed and dismissed by the President Director upon the approval of the Board of Commissioners. The President Director may dismiss the Head of the Internal Audit Division, after obtaining approval from the Board of Commissioners, if the Head of Internal Audit Division does not meet the requirements as the auditor of the Internal Audit Division and/or fails or is incompetent in performing his/her duties.

Profile of Internal Audit Head

Arini Imamawati Head of Internal Audit Division

Arini Imamawati; Indonesian citizen, graduated from the Faculty of Economics, Accounting Department of Trisakti University in 2000 and Executive Business Management Master's Program, Prasetiya Mulya Business School 2012. She has served as Internal Audit Division Head since October 1, 2014. Previously she served as member of Audit Committee of PT Danareksa (Persero) in 2009 to 2015. She has worked for 2 years as an auditor at Public Accounting Firm Purwantono, Sarwoko and Sandjaja (EY) and 5 years at PAF Haryanto Sahari and Associate, a member of PricewaterhouseCoopers Global.


In the business world, Risk and Return can not be separated from each other. At high performance targets, it automatically attaches increased risk exposure. Therefore, Danareksa has determined that the ability to manage risk is one of the core competencies that must always be able to balance the dynamics of business activities to achieve the targets that have been set.

Risk management process is a continuous cycle where in each cycle there will be lesson learnt for improvement in the next cycle. Along with the maturity in the risk culture, the commitment to always get better in the risk management process will go hand in hand with the ability to improve performance.

The Risk Management Division together with the related unit is responsible for managing/ coordinating all financial risks faced by the Company, ie financial risk consisting of market risk, financing risk, liquidity risk and guarantee risk including proposing risk management policies and guidelines. The Head of Risk Management Division reports to the Board of Directors.

Reference

The Enterprise Risk Management (ERM) Framework Guidelines for Danareksa Group have been established in 2015, with reference to the guidelines of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the international standard ISO 31000. The guidelines state that "risk management is a core capability and an integral part of all activities of the company".

The Financial Services Authority Regulation number 17/POJK.03/2015 on Integrated Risk Management Implementation for Financial Conglomeration, issued in order to realize the financial system stability with sustainable growth and becomes a reference for integrated risk management within Danareksa Group.

Structure and Position

The focus of risk management activities is to manage the balance and continuity of investment and financing activities and the provision of other financial services, emphasizing the quality of productive assets and services provided as well as financial conditions and performance to maintain creditor confidence. Along with the decentralization and empowerment program of Subsidiaries, Risk Management Division of the Company participates in the program including by strengthening the implementation of integrated risk management in Subsidiaries.

The Risk Management Division at PT Danareksa (Persero) is under the Director in charge of risk management. At Danareksa Group, in addition to the Parent Company, risk management is performed independently in Subsidiaries, namely PT Danareksa Sekuritas and PT Danareksa Investment Management. However, risk management coordination is carried out in accordance with the concept of ERM implementation consistently and in harmony with the Centralization and Empowerment Policy which become the guidelines for interaction and synergy among entities within the Danareksa Group.

Scope of Duties and Responsibilities

Danareksa Group's risk management has been implemented through Enterprise Risk Management (ERM) since 2015. ERM implementation is part of the improvement of work culture where risk awareness is disseminated not only as a responsibility of the structural function of risk management but it is the responsibility of all functions of all risks inherent in each of these functions.

The Champion of ERM program is an oversight function in the Main/Parent Entity and Subsidiaries. The Champions holds regular coordination meetings to discuss and align the ERM implementation work programs.

R I S K M A N A G E M E N T


� ERM Implementation

ERM implementation at Danareksa Group is reflected in Danareksa ERM Dashboard which is a risk and performance oriented management information system presented to Board of Directors of Parent Company and Subsidiaries as well as officers responsible for risk management, to monitor performance, as well as inherent risk in business activities of the entire Danareksa Group. Using this dashboard, the Directors of the Main/Parent Entity and Subsidiaries, as well as the Risk Officers are able to monitor current positions, both performance and risk exposure.

� Early Warning System

In line with the determination of risk appetite and tolerance, Danareksa Dashboard will bcome the Early Warning System device that determines its criteria as an indicator used to trigger the required response actions, whose parameters are reviewed periodically to adjust to the situation and conditions and applicable regulations.

� Risk Management

The risk management process starts from the planning stages in which the financial targets and position whose impact shall be considered on the company's ability to assume risk to maintain business continuity. This process refers to the evaluation of the performance results and the effectiveness of risk management based on the achievement of the previous period. Along with the implementation of activities

to achieve the targets that have been set, the process is then continued with the identification of material inherent risks in any risk taking activities. Materiality & significance of each risk are considered not only based on financial impact but also nonfinancial impacts, especially regarding reputation and compliance.

� Risk Measurement

Using Danareksa ERM Dashboard, every condition and position reflects the changes in the risk profile, so that every moment can be described of the dynamics of risk profile in line with the movement and changes that occur in the market and the influence of customer conditions.

� Priority Risk

Danareksa is exposed significantly to credit risk and market risk, especially interest rate risk, equity and liquidity risk, both liquidity of funding and market liquidity. In addition, compliance risk and reputation risk also gain big weight in risk priorities.

� Liquidity Risk

Market Liquidity becomes a concern to Danareksa related to the position of collateral in the form of marketable securities. Risk mitigation that relies on the adequacy of collateral should also closely observe the development of market liquidity as one of the exit strategies for the settlement of customer liabilities.

Diagram of Risk Management Organization Structure

Director

Head of Risk Management & SOP Division

Unit HeadPolicy & Standard

Operating Procedure

Unit HeadAsset & Liability

Monitoring

Unit HeadMarket & Financing

Risk Review

Unit HeadEnterprise

Risk Management


� Credit Risk

Credit risk arising from the financing provided is a dominant risk for Danareksa Group so that it is thoroughly monitored through periodic monitoring of customer reports and visits to the Customers. In addition, the analysis is also conducted by observing the results of research conducted by DRI (Danareksa Research Institute), which includes macroeconomic research, stock market and debt as a lead indicator of economic and industrial conditions that can affect the quality of productive assets in the form of financing provided by Customers.

� Market Risk

The monitoring of market risk is carried out intensively by observing compliance with various limits and indicators used as a measurement of market risk profile faced by Danareksa. Monitoring of market risk is also done by measuring the inherent risks in any position within Danareksa Group. Measurements using methods such as VaR and DV01 are applied to observe the inherent risks of existing positions. Simulation and sensitivity analysis are also conducted to measure the impact of movement of market risk causes, whether on interest margin, adequacy of guarantee and profitability of trading positions.

� Equity Risk

Danareksa is exposed to equity risk in the form of price movements of equity securities traded on the IDX. Expose of inherent equity risk to trading positions, as well as position of financing with guaranteed traded securities.

� Underwriting Risk

Danareksa Sekuritas which has a business license as an underwriter, is closely related to the risk of underwriting, ie the risk of unsold securities offered to the market and must be absorbed into individual position by Danareksa Sekuritas.

� Risk control

To improve the reliability and relevance of risk control tools, the development of risk management based on information systems supported by integrated database is being conducted with the aim that risk owners’ involvement in the risk management process becomes more intense and clarify responsibilities in the reporting process and so that data available for monitoring and control can be disseminated to the relevant officials to be able to take necessary follow-up actions immediately.

� Risk Analysis and Reporting

Risk analysis is performed both for existing positions and for transactions to be performed. Analysis of position is mainly based on early warning indicator and trigger action that has been determined, analysis is done either automatically or through valuation process done daily for certain position. Analysis of transactions is done for the approval process of the transactions to be made. Approval of transactions is conducted by applying the "Four Eyes Principle", in which the Risk Taking Unit prepares proposals for transactions which will then be reviewed by the Risk Management Unit to be proposed to the Risk Management Committee (KPR).

Implementation of ActivitiesRisk Management Activity Report During 2017. In relation to Risk Management function, among others, identifying, measuring, controlling and monitoring business risks from all transactions and making recommendation of matters that need to be considered by management, as well as in line with the implementation of subsidiary empowerment, the activities of Risk Management Division during 2017 focused on the following:


1. ERM (Enterprise Risk Management)a. Developing an ERM model as a benchmark

for analyzing and reporting the company’s existing risks and managing those risks based on the ERM model that has been made.

b. Identify, evaluate, mitigate and monitor the company's strategic and operational risks.

c. Ensure that business activities are conducted in accordance with the Risk Management Policy and SOP.

d. Creating Risk Matrix and Risk Correlation of PT Danareksa (Persero).

2. Evaluate and recommend the Risk Evaluation Memo to analyze business risks on new business proposals, new products and new facilities to customers and counterparty in the form of Risk Evaluation Memorandum (MER).

3. Provide reports on transaction activity positions, the company’s asset and liabilities position of and reports on the position and running of Net Open Position management on the Company's foreign exchange position.

4. Organizing and reporting at monthly ALCO meetings and daily portfolio position recapitulation report.

5. Update and develop Danareksa ERM Dashboard.

6. Develop, update and coordinate in the making of policies and business operating procedures (SOP) required by the Company.

7. Cooperate with Corporate Secretary to be KPKU (Criteria of Performance Excellence Assessment) team facilitator.

8. Serves as a Management Unit Integrated Risk in the implementation of Integrated Risk Management in Danareksa Group Financial Conglomeration.

Implementation of Duties 2017

In accordance with the scope of duties, the following are the focus of work that have been conducted in 2017:

a. Reviewing various proposed financing transactions and trading transactions, including review on the counterparty transaction limit provided as well as trading position limits.

b. Conducting improvements to Danareksa ERM Dashboard and updating its contents in accordance with data updating from the officer in charge of data.

c. Conducting improvements to policies and SOPs to adapt to current arrangements as well as to the dynamics of transactions taking place.

Profile of Risk Management Division Head

Risk Management Division is headed by RAM Irwan Satya Utama, whose profilr is presented in the Risk Management Committee section above.


Financial Control, Operational Control and

Compliance with Laws

The Internal Control System is a mechanism affected by the Board of Commissioners, the Board of Directors, the Management and all employees, which are designed for the purpose of providing adequate assurance on the achievement of the company’s objectives related to operational objectives, reporting and compliance with applicable laws and regulations.

The Internal Control System at Danareksa is implemented with the concept of three lines of defense, consisting of the first line of defense, namely the business (front-line)/operational division; the second line of defense, namely the Risk Management & SOP Division and Compliance Division; and the third line of defense carried out by the Internal Audit Division.

Internal control system is implemented in Danareksa with the following objectives:

a. Ensure the effectiveness and efficiency of the company's operational activities, including operational and financial performance objectives, and safeguarding and securing the company’s assets.

b. Ensure the availability of financial and non-financial reports, both internal and external, reliable, timely, transparent as determined by the regulator, in accordance with applicable standards and company policies.

c. Ensure compliance with applicable laws and regulations, including regulations issued by the Government, the financial services authority, as well as the company's internal policies and regulations.

Evaluation of effectiveness of internal control system

Evaluation of effectiveness of internal control system is done continuously. The evaluation is undertaken to ensure the functionality of internal control components, operate together in an integrated, and effective manner, and identify deficiencies in internal control. The evaluation is performed on several components of internal control that are interrelated, namely:

a. Control environment

b. Assessment of business risk management

c. Control activities

d. Information and communication systems

e. Monitoring

During 2017, the effectiveness of the overall internal control system continued to increase. The top risks can be controlled to the acceptable level by the company. The Board of Directors and Management are committed to improving the effectiveness of the internal control system and following up on the monitoring results conducted by the Internal Audit Division.

Conformity of the internal control system with a recognized International framework (COSO-internal control framework)

Danareksa implements the internal control system activities of with reference to an internationally recognized framework, the COSO Internal Control - Integrated Framework, enabling the company to effectively and efficiently develop and maintain internal control systems that can increase the likelihood of achieving the company’s goals and adapt to changes in the business and operational environment.

I N T E R N A L C O N T R O L S Y S T E M


As part of the GCG implementation, especially regarding information disclosure as mandated by the Law of the Republic of Indonesia No. 14/2008, Danareksa is committed to the implementation of the information disclosure, whether for employees, customers, shareholders and other stakeholders - as long as it does not conflict with matters related to customer confidentiality and applicable laws and regulations.

Therefore, to enable the stakeholders to make decisions on the risks and returns of their investments, the Company provides adequate and accurate information. Such information concerning operational policies, financial condition, and business risks are presented through quarterly and annual reports.

Media that can be used to access and spread information about Danareksa and its activities are:

1. Company WebsiteThrough the website: www.Danareksa.co.id, public can access general information about Danareksa; including available products and ser-vices; Educational information about Indonesian Capital Market and its products, account open-ing information, Financial Statements as well as service information to customers.

2. Annual ReportDanareksa discloses information about the Company's during one year, both on company performance, business development, manage-ment information, social responsibility activi-ties and other important matters in an annual report. This report can be downloaded through the Company's main website.

3. Print and Electronic MediaIn addition to updating in print media, such as newspapers, magazines or through brochures; In line with technological developments, in distributing information and serving customers, potential customers and other stakeholders, Danareksa is actively updating via SMS broadcasts and social networks such as Facebook and Twitter.

4. Call CenterDanareksa is committed to establishing long time relationships with its customers. Therefore, Danareksa builds a two-way communication relationship in the form of Call Center to enable customers to contact Danareksa during working days and hours.

5. Press ReleaseDanareksa also regularly publishes press releases with aim to spread information on Danareksa activities. During 2017, press releases that have been published include:

No Date Subject

1 July 20, 2017

25 Years of PT Danareksa Investment Management

2 October 3, 2017

End of Third Quarter - 2017: Asset Under Management of Danareksa Grew 39%

A C C E S S T O C O R P O R AT E I N F O R M AT I O N A N D D ATA


Reference

The Whistleblowing System (WBS), in its implementation, refers to a joint Decree between the Board of Directors and Board of Commissioners No. KD-37/039/DIR and PER-01/DKDR/ XI/2013 dated November 29, 2013 regarding Reporting on Suspicion of Irregularities within PT Danareksa (Persero) and Subsidiaries.

Whistleblowing System

Whistleblowing System can be done using the following media:

a. Written letterA written letter is sent to the Ombudsman. This letter can only be opened by the Ombudsman Team or Ombudsman.

b. Electronic mail (e-mail)The e-mail used is a specific e-mail ([email protected]) for the receipt of reports and not personal e-mail with the aim of maintaining the confidentiality of the Whistleblower and preventing the employees’ reluctance to file a report. The e-mail can only be opened by Ombudsman Team or Ombudsman. Neither Ombudsman Team nor the Ombudsman is permitted to delete any e-mails at this particular e-mail address.

Protection

The facilities and protection that may be provided to the Whistleblowers are:

a. Reporting media facilities that ensures the confidentiality of the Whistleblower’s identity and reported case.

b. The Whistleblower who provides clear identity and information about the case reported, may be given protection of the Whistleblower’s identity and confdentiality.

c. Protection from counterattack by the Reported Party covering protection from Pressure, postponement of promotion, dismissal, defense from lawsuits and unfavorable records in his/her personal data files.

d. The Company may grant immunity for internal administrative sanctions to whistleblower with goodwill. This immunity is granted to the whistleblower who is voluntarily involved or "forced" in the irregularities, but then, in good faith, report the violation.

e. Information on follow-up action, in the form of when and how and to which institution follow-up action is submitted.

Complaint Handling

Handling of evidence or documents and maintenance of database related to WBS are as follows:

a. All reporting documents, supporting data and evidence found during the investigation process are confidential and must be properly stored and administered for further investigation by the authorities or for verification at the Court.

b. Documentation and evidence of irregularities cases can only be accessed by the authorized parties and placed in a secure location. This is to prevent the theft, alteration and deletion of all related evidence.

c. The storage and maintenance of reporting evidence and documentation related to WBS policy is the responsibility of the ombudsman.

Number of complaints and follow-up

In 2017, there were no complaints of violations at PT Danareksa (Persero) and Subsidiaries.

Dissemination

WBS dissemination is implemented through:

� Employee Gathering

� Helpdesk – provide information to all email users on Danareksa network

� Attention of the Board of Commissioners

W H I S T L E B L O W I N G S Y S T E M


The Company does not regulate the composition diversity of the Board of Directors and Board of Commissioners because the appointment of the Board of Directors and Board of Commissioners is the full authority of the Shareholder, in this case is the Minister of SOEs. However, the current composition of the Board of Commissioners and Board of Directors is as follows:

Name Education/Field of Study

Work Experience Age (Years)

Gender

Eko Sulistyo Bachelor's degree in Literature from Sebelas Maret University, Surakarta

Also serving as Deputy IV for Political Communication and Information Dissemination at the Office of Presidential Staff, and active in the Regional Election Commission (KPUD), Monitoring Consortium and the Independent Election Monitoring Committee (KIPP) of Solo.

49 Male

Dyah Kartika Rini

Bachelor's degree in Economics, University of Indonesia and Doctoral Candidate at University of Indonesia

Active in various organizations engaged in the management of public communications. Experienced in Real Estate sector, including Deputy Secretary General of Central Leadership Board (DPP) Real Estate Indonesia

46 Female

Table of Composition Diversity of Board of Commissioners

C O M P O S I T I O N D I V E R S I T Y O F B O A R D O F C O M M I S S I O N E R S A N D B O A R D O F D I R E C T O R S


Name Education/Field of Study

Work Experience Age (Years)

Gender

Heru D. Adhiningrat MBA in Finance from West Coast University, Los Angeles, United States

Over 30 years of experience in financial industry and Indonesian Capital Market. Several leading financial institutions and having held various positions of Director and President Director before appointed President Director of PT Danareksa (Persero) in 2013.

57 Male

Bondan Pristiwandana Accountant from State College of Accountancy

Experienced in finance and risk management at several institutions such as BPKP, General Hotel Management, Bank Bumiputera, PT Mandiri Sekuritas, PT Bukit Baiduri Energi before joining PT Danareksa (Persero) as Senior Vice President, Head of Risk Management Division and Corporate Secretary; until he became Director of PT Danareksa (Persero) in 2013.

52 Male

Marciano H. Herman1 Accountant, from Faculty of Economics, University of Indonesia

Experienced in finance and capital market at some institutions such as accounting firm Ernst & Young, Financial Analyst at Chrysler Corporation - Michigan. Experienced in Investment Banking and served as President Director of PT Danareksa Sekuritas before serving as Director of PT Danareksa (Persero) in 2015.

49 Male

Hoesen2 Master in Finance Management, from Pelita Harapan University

Experienced in Indonesian Capital Market. Several Capital Market institutions such as Indonesian Clearing and Guarantee Corporation (KPEI) as Director, and Indonesia Stock Exchange as Director of Corporate Valuation before serving as Director at PT Danareksa (Persero) in 2015.

51 Male

Table of Composition Diversity of the Board of Directors

1. Retires as of October 10, 20172. Retired as of July 20, 2017


Background of the Case

A civil case between the Company and the other creditors (as the Plaintiffs) against the Defendants and Co-Defendants who are parties implicated in the issuance of Medium-Tterm Notes by PT Hutama Karya (Persero), where in this civil case PT Hutama Karya (Persero) as Co-Defendant I.

The background of this litigation was due to a suspicion of an unlawful act on the proceeds from the issuance of Medium Term Notes and the validity of the issuance of the Medium-Term Notes. On November 24, 2009, the Supreme Court of the Republic of Indonesia issued a ruling No.457 PK/Pdt/2008 which rejected the Judicial Review filed by PT Hutama Karya (Persero) and won the consortium.

StatusCurrently, the Company and other consortium members are coordinating to complete the execution of the Supreme Court of the Republic of Indonesia's ruling on a civil case between the Company together with other creditors (as Plaintiffs) against the Defendants and the Co-Defendants who are parties implicated in the issuance of medium term notes by PT Hutama Karya (Persero).

Impact

The Board of Directors is of the opinion that the above case will not have a material effect on the business and financial condition of the Company.

G C G S C O R E

Assessment Aspect/Indicator/ Parameter Weight Achievement 2017 RemarksScore Achievement

(%)

I Commitment to Sustainable Good Corporate Governance Implementation

7 6.55 93.52% Very Good

II Shareholders and GMS/Capital Owners

9 8.87 98.56% Very Good

III Board of Commissioners/Supervisory Board

35 32.84 93.81% Very Good

IV Board of Directors 35 33.42 95.48% Very Good

V Disclosure of Information and Transparency

9 7.85 87.20% Good

VI Other Aspects 5 2.50 50.00% -

OVERALL SCORE 100 92.02 92.02 % Very Good

Classification of GCG Implementation Quality Very Good

Table of GCG Score

M AT E R I A L L I T I G AT I O N B E I N G F A C E D B Y T H E C O M PA N Y, S U B S I D I A R I E S , B O A R D O F C O M M I S S I O N E R S A N D B O A R D O F D I R E C T O R S

191

INTEGRATED GOVERNANCE

As one of the efforts to support the commitment

of implementing Good Integrated Governance

in Danareksa Group Financial Conglomeration

(KKGD), the Guidelines for Integrated

Governance are jointly established by the

Board of Directors and Board of Commissioners

as a reference and in carrying out duties and

responsibilities independently, objectively and

independently.

1 9 2 I N T E G R AT E D G O V E R N A N C E

F R A M E W O R K F O R I N T E G R AT E D G O V E R N A N C E G R O U P D A N A R E K S A F I N A N C I A L C O N G L O M E R AT I O N

Background

Danareksa as the Main Entity of Danareksa Group Financial Conglomeration is committed to running the company in accordance with the integrated good corporate governance principles in Danareksa Group Financial Conglomeration (KKGD). One of the Company’s efforts to realize this is to develop an Integrated Governance Guideline, referred as "Danareksa Group Financial Conglomeration Integrated Governance Guidelines".

Implementation of Integrated Governance of KKGD aims to create performance excellence and add economic value to Shareholders and other Stakeholders, ensure KKGD operations in accordance with legislation, business ethics, and GCG principles.

Reference

The Guidelines for Integrated Governance are jointly established by the Board of Directors and Board of Commissioners as a reference in carrying out duties and responsibilities independently, objectively and independently, based on the following provisions:

� Law Number 21 Year 2011 regarding the Financial Services Authority;

� Regulation of the Minister of State-Owned Enterprises No. PER-01/MBU/2011 on the Implementation of Good Corporate Governance in State-Owned Enterprises, which is amended by Regulation of the Minister of State-Owned Enterprises No. PER-09/MBU/2012 on Amendment to Regulation of the Minister of State-Owned Enterprises No. PER-01/MBU/2011 on the Implementation of Good Corporate Governance in State-Owned Enterprises;

� Regulation of the Minister of State Owned Enterprises Number PER-12/MBU/2012 on the Supporting Organs of the Board of Commissioners/Supervisory Board of State-Owned Enterprises;

� Regulation of the Financial Services Authority No.18/POJK.03/2014 dated November 19, 2014 on the Implementation of Integrated Governance for Financial Conglomeration.

� Regulation of the Financial Services Authority No.26/POJK.03/2015 dated December 4, 2015 on the Minimum Capital Adequacy Requirement for Financial Conglomeration.

� Circular Letter of the Financial Services Authority No.15/SEOJK.03/2015 dated May 25, 2015 on the Implementation of Integrated Governance for Financial Conglomeration;

� Articles of Association of PT Danareksa (Persero) and amendments.

� Joint Decree of the Board of Directors and Board of Commissioners number KD-41/035/DIR and number KEP-04/DK-DR/X/2017 dated October 18, 2017 on "Danareksa Group Financial Conglomeration Integrated Governance Guidelines".

Integrated Governance Framework

1. Board of Directors

� Integrated Risk Management Unit (SKMRT) � Integrated Internal Audit Unit (SKAIT) � Integrated Compliance Unit (SKKT)

2. Board of Commissioners

� Integrated Governance Committee


I N T E G R AT E D R I S K M A N A G E M E N TU N I T ( S K M R T )

The Company requires each Financial Services Institution (LJK) in the KKGD to implement effective and efficient risk management. Therefore, the Board of Directors established the Risk Management Division of the Main Entity as an Integrated Risk Management Unit (SKMRT), and established an Integrated Risk Management Committee.

SKMRT is also a communications forum between the Main Entity and Subsidiaries in the KKGD represented by Director in charge of the Risk Management Function of each Subsidiary Company in order to prepare, develop and improve the Integrated Risk Management.

Duties and responsibilitiesThe implementation of risk management through SKMRT is conducted by identifying, assessing, monitoring and controlling risks to all significant risk factors in an integrated manner and monitoring business risks effectively.

The risk management is continuously adjusted to the objectives, business policies, size and complexity of business and capability of the company, in accordance with the requirements and procedures established in the Financial Services Authority Regulation and with reference to best practices.

1. Establishment of SKMRT aims to ensure that the risks faced by the Parent Company and Subsidiaries are integrally identified, measurable, monitored, controlled and reported properly through the application of appropriate risk management frameworks.

2. The Main Entity through SKMRT shall conduct the process of identification, measurement, monitoring, and risk control on all risk factors that are significant in an integrated manner.

3. Implementation of identification, measurement, monitoring, and risk control process is supported by:

� Adequate integrated Risk Management information system; and

� reports on the performance, financial condition, and risk exposure of financial conglomeration and each LJK in KKJJ

4. In implementing the Integrated Risk Management, the Main Entity shall ensure the following: � Adequacy of KKGD capital; � Liquidity management is done effectively; � Integrated inter-group risk monitoring; � Risk management of the provision of funds

includes the provision of large funds (large exposures) effectively; and

� The integrated governance is implemented effectively.

In the management of risks associated with Information Technology, the duties and responsibilities are as follows:

1. Each LJK in KKGD shall provide a communication network that meets the principles of confidentiality, integrity and availability.

2. Each LJK in KKGD shall have an Information Technology Strategic Plan which supports the strategic plan of LJK business activities.

3. Information Technology Strategic Plans as referred to in paragraph (1) shall be included in the LJK Corporate Work Plan and Budget (RKAP).

4. Every LJK in KKGD is required to apply risk management effectively in the use of Information Technology.

5. Implementation of risk management shall be conducted in an integrated manner in every stage of Information Technology application since the process of planning, procurement, development, operation, maintenance up to termination and removal of Information Technology resources.

6. In carrying out the development and procurement of Information Technology, LJK shall perform control measures to produce systems and data with maintained confidentiality and integrated, as well as support the achievement of the company’s goals, among others:


� Establish and apply procedures and methodologies for the development and procurement of Information Technology consistently;

� Implement project management in system development;

� Conduct adequate trial during system development and procurement, including a pilot with a user's work unit, to ensure the accuracy and functioning of the system according to user requirements and compatibility of one system with another;

� Documentation of system development and maintenance;

� Has a management of application system change;

� Ensure LJK Information Technology system is able to reproduce the information in its entirety; and measure the urgency of making an escrow agreement on software deemed essential for the continuity of LJK operations in the case of software created by other parties and the source code not provided to LJK.

Membership

SKMRT Membership between the Main Entity and Subsidiaries in KKGD is represented by the Director in charge of the Risk Management Function of each Subsidiary Company in order to prepare, develop and improve the Integrated Risk Management. In 2017, SKMRT is under coordination of RAM Irwan Satya Utama


I N T E G R AT E D I N T E R N A L A U D I TU N I T ( S K A I T )

Each Financial Services Institution (LJK) in Danareksa Group Financial Conglomeration (KKGD), shall apply the internal audit function effectively in accordance with the requirements and procedures as stipulated in the regulations of the Financial Services Authority. In its implementation, each LJK in KKGD has formed SKAI which is an independent of the operational units so that the internal audit function can run effectively. Therefore, the SKAI is required to prepare and update the work guidelines, systems and procedures as stipulated in the Financial Services Authority regulations.


The duties and responsibilities of the Internal Audit Division of the Main Entity as SKAIT are but not limited to:

� Evaluate and provide input on the adequacy of the Subsidiary's SKAI methodology, policies and procedures for Internal Audit either in the stages of audit planning, audit implementation, reporting of audit results and monitoring of follow-up actions.

� Submit a report on the results of an integrated audit to the President Director of the Main Entity, the Board of Commissioners of the Main Entity and the Director overseeing the Compliance Function of the Main Entity.

� Monitor follow-up of integrated audit results and report the results to the President Director of the Main Entity, the Board of Commissioners of the Main Entity and the Director overseeing the Compliance Function on the Main Entity.

SKAIT may audit the Subsidiaries either individually, jointly audited or based on the report of the Subsidiaries’ SKAI. The SKAIT is independent of the operational units.

Membership

In order to carry out the integrated internal audit function, the Internal Audit Division of the Main Entity is designated as SKAIT in KKGD. In 2017, this function was under coordination of Arini Imamawati.


I N T E G R AT E D C O M P L I A N C EU N I T ( S K K T )

Each LJK in KKGD is required to have a unit or employee carrying out the Compliance Function, which is a set of actions or steps to ensure that the policies, rules, systems, procedures and business activities conducted by LJK comply with the laws and regulations.

This function is to assist the Board of Directors in ensuring compliance with laws and regulations, including the laws and regulations of the Financial Services Authority and/or other relevant regulations.

Duties and responsibilitiesThe duties and responsibilities of the Internal Audit Division of the Main Entity as SKAIT are but not limited to:

� monitor and evaluate the implementation of the Compliance Function in each Subsidiary in KKGD, which includes:

à Aligning the compliance risk management methodology, including the implementation of Anti Money Laundering (APU) and Terrorism Financing (PPT) programs.

à Integrate and align the policies and procedures of the Compliance Function, including the policies and procedures of the APU and PPT.

à Coordinate the compliance monitoring process with internal and external reporting obligations.

à Coordinate in the development of Human Resources of SKK in KKGD.

� Submit report on the implementation of duties and responsibilities of SKKT to the Director in charge of Compliance Function in the Main Entity or the Director appointed to perform the oversight function at LJK in KKGD.

� Prepare and create report on the implementation of integrated compliance duties and responsibilities Directors in charge of the Compliance in the Main Entity or Director appointed to perform oversight function of the LJK in KKGD to be submitted to the Board of Directors and the Board of Commissioners of the Main Entity.

independent of the operational unit. Relationships, working mechanisms, authorities and responsibilities, communication and interaction between SKKT and Subsidiaries are regulated in a separate regulation.

Membership

In order to implement the Integrated Governance in KKGD, the Compliance Division of the Main Entity is designated as SKKT in KKGD. In 2017, this function was under coordination of Lukman Nur Azis.


I N T E G R AT E D G O V E R N A N C E C O M M I T T E E

The Board of Commissioners has established an Integrated Governance Committee (TKT Committee) that assists and facilitates the Board of Commissioners in performing its duties and functions as follows:

1. Oversee the implementation of Good Corporate Governance at each Financial Services Institution (LJK) in Danareksa Group Financial Conglomeration (KKGD) to comply with the Integrated Governance Guidelines;

2. Oversee the implementation of duties and responsibilities of Danareksa Board of Directors, as well as

3. Provide directives or advices to Danareksa Board of Directors on the implementation of Integrated Governance Guidelines; and

4. Evaluate the Integrated Governance Guidelines, including directing for improvements in compliance with applicable laws and regulations.

The TKT Committee works collectively and independently in the performance of its duties as well as reporting and directly reports to the Board of Commissioners.


In performing its functions, the TKT Committee has the following duties and responsibilities:

1. Evaluating the implementation of Integrated Governance through assessment:

a. Adequacy of Integrated Internal Control.

� Evaluating that Danareksa and Subsidiaries have established an integrated internal control system in accordance with best practice applicable through a review of the Integrated Governance Guidelines implemented at Danareksa.

� To monitor and evaluate the effectiveness of integrated internal

control application through the review of the Periodicl Report and Report on Examination Result issued by the Integrated Internal Audit Unit.

� Conduct periodic meetings with the Integrated Internal Audit Unit to discuss matters related to the integrated internal control system and its implementation.

� Monitor and evaluate the implementation of follow-up actions by the Board of Directors of Danareksa and Subsidiaries on the findings of the Integrated Internal Audit Unit, Public Accounting Firm, and the results of the supervision of the Financial Services Authority concerning the weaknesses in the system and the implementation of integrated internal controls.

� Report periodically on monitoring results and provide inputs on matters related to integrated internal controls that should be of concern to the Board of Commissioners of Danareksa and Subsidiaries.

b. Integrated Compliance Function Implementation

� Monitor and evaluate the compliance of Danareksa and Subsidiaries with the applicable laws and regulations in the Capital Market and the regulations of the Financial Services Authority and other regulations related to the Company's business, securities and financing through coordination with the Integrated Compliance Unit.

� Review periodic reports and inspection results report related to compliance with internal and external regulations issued by the Integrated Compliance Unit and external auditors.


� Hold periodic meetings with the Integrated Compliance Unit to discuss matters related to compliance of Danareksa and Subsidiaries with internal and external regulations.

� Monitor and evaluate the implementation of follow-up actions by the Board of Directors of Danareksa and Subsidiaries on the findings of the Integrated Compliance Unit, Public Accounting Firm, and the results of the supervision of the Financial Services Authority regarding system weaknesses and implementation of integrated compliance functions.

� Report periodically on monitoring results and provide input on matters related to the compliance of Danareksa and Subsidiaries with internal and external regulations that should be of concern to the Board of Commissioners of Danareksa and Subsidiaries.

2. Provide recommendations to the Board of Commissioners of Danareksa to improve the Guidelines for Integrated Governance.

Membership

Charter of the Integrated Governance Committee was established by the Board of Commissioners as reference and guidelines of the TKT Committee in carrying out its duties and responsibilities independently, objectively and independently, based on provisions as follows:

� Membership of the Integrated Governance Committee consists of at least:

� An Independent Commissioner who becomes Chairperson of one of the committees at Danareksa, as chairperson concurrently member;

� An independent Commissioner representing and appointed from Subsidiary Company in KKGD, as a member;

� An independent party, as a member;

� A member of the Sharia Supervisory Board of the Financial Services Institution in the KKGD as member, if KKGD provides sharia services.

The number and composition of Independent Commissioners who are members of the Integrated Governance Committee are tailored to the needs of the Financial Conglomeration as well as the efficiency and effectiveness of the implementation of the duties of the Integrated Governance Committee, taking into account at least representation of each financial services sector.

Membership of Independent Commissioners in the Integrated Governance Committee, may be permanent or non permanent membership, in accordance with the needs of financial conglomeration.

Term of Office

During this period, the Chairperson and members of the Integrated GCG Committee respectively are also Independent Commissioners and members of Audit Committee of Danareksa, therefore the term of office of the Chairperson and members of the Integrated Governance Committee are the same with Independent Commissioner or Audit Committee members of Danareksa, and may be reappointed for only 1 (one) term in the following period, without prejudice to the right of the Board of Commissioners to terminate it at any time (in accordance with Regulation of the Minister of State-Owned Enterprises No. PER-12/MBU/2012).

Activity Implementation Report

During 2017, the Corporate Governance Committee has conducted activities as follows:

� Convened meetings with related units to discuss matters related to Integrated Internal Audit Unit Report for Q2 of 2016, Risk Profile and Draft Integrated Risk Management Guidelines, results of TKT self assessment for first half of 2017.


� Discussed, analyzed and reviewed the draft Guidelines of Integrated Governance and Guidelines for the Management of Subsidiaries;

� Conducted discussion and analyzed of integrated compliance implementation and internal control in the financial conglomeration of PT Danareksa (Persero) and Subsidiaries.

� Conducted discussion and intensive evaluation on the implementation of Integrated Governance in Corporate Secretary Division, Corporate Legal Unit, and Human Capital Division through the adequacy of internal control and compliance function in an integrated manner;

� Reviewed the Integrated Internal Audit Unit Report for first half of 2017 and recommendations made for improvements and reported them to the Board of Commissioners of the Main Entity.

Work Mechanism

The working arrangements of the TKT Committee are as follows:

� The Chairman of the Committee is responsible for coordinating all activities of the Integrated Governance Committee to meet the objectives of the committee in accordance with its establishment, as follows:

à Lead the meeting of the Integrated Governance Committee.

à In the event that the Chairman of the Committee for any reason is unable to attend, the presence of the Chairman of the Committee at the meeting of the Integrated Governance Committee may be represented by the Committee Member who is from Independent Commissioner of Danareksa.

� The Chair of the Committee together with the committee members shall be tasked with and responsible for:

à Determine the annual work plan of the Integrated Governance Committee.

à Determine the schedule of meetings of the Integrated Governance Committee.

à Attend meetings of the Integrated Governance Committee.

à Take an active role and contribute to the activities of the Integrated Governance Committee.

à Prepare periodic report on the activities of the Integrated Governance Committee as well as matters that are necessary to be of concern to the Board of Commissioners of Danareksa and Subsidiaries.

à Perform Self Assessment on the effectiveness of the Integrated Governance Committee’s activities.

In the event that any member of the Committee is unable to attend, the presence of the Committee Members at the Integrated Governance Committee meeting can not be represented.

Secretary of Integrated Governance

Duties and Responsibilities of Secretary

� Make and distribute the meeting invitation to all participants in writing, however in urgent circumstances it is possible to invite the meeting verbally.

� Prepare the facilities and supplies needed in the meeting.

� Recording and administering Minutes of Meeting.

� Distribute minutes of meetings to all members of the Integrated Governance Committee.

� Making notes and monitor the follow-up minutes of the Meeting and submit the follow-up report to the Board of Commissioners

� Report the frequency as well as attendance of each Meeting.


� Maintain the confidentiality of all information, documents and data related to the implementation of the Committee's duties.

� If necessary, the TKT Committee may invite sources from members of the Board of Commissioners, Board of Directors, or other parties, both internal and external parties of the Main Entity and Financial Service Institutions member of financial conglomeration.

Integrated Governance Committee Meetings

The rules regarding TKT Committee meetings are as follows:

� TKT Committee Meeting is held at least once every 3 (three) months.

� The Integrated Governance Committee meeting is considered valid if it is attended by at least 51% (fifty one percent) of the total members including athe Independent Commissioner of Danareksa and Independent Party.

� The meeting is chaired by the Chairman of TKT Committee.

� Meeting recommendation is based on deliberation for consensus.

� Dissenting opinion that occurs in the committee meeting shall be clearly stated in the minutes of the meeting and the reasons for the dissent.

� TKT Committee Meeting shall be set forth in minutes of meetings signed by all members present and well documented.

� During 2017, the Integrated Governance Committee convened 8 (eight) meetings a year, with the following attendance:

Name Frequency of

Attendance

%

Dyah Kartika Rini 5 62,5

Djasriadi 8 100

Harry Setiawan* 1 12,5

Imbuh Sulistyarini** 5 62,5

Table of Integrated Governance Number of Meetings in 2017: 6

Name Position Brief Profile

Dyah Kartika Rini Chairperson (concurrently serves as Independent Commissioner and Chairperson of Audit Committee of Main Entity)

Her profile has been presented in the Board of Commissioners Profile section

Djasriadi Member (also member of Audit Committee) His profile has been presented in the Board of Commissioners Profile section

Imbuh Sulistyarini Member (also member of Audit Committee) Her profile has been presented in the Board of Commissioners Profile section

* Retired since February 22, 2017** Effective since August 2, 2017

Table of Members of Integrated Governance Committee

Composition of Members of the Integrated Governance Committee

Based on the Decree of the Board of Commissioners Number KEP-03/DK-DR/III/2016 dated March 22, 2016 in conjunction with Decree of the Board of Commissioners Number KEP-03/ DR-DR/VIII/2017 dated August 2, 2017, the current composition of TKT Committee of Danareksa members is as follows:



203

PARTNERSHIP AND COMMUNITY DVELOPMENT

PROGRAM AND CORPORATE SOCIAL RESPONSIBILITY

Through Corporate Social Responsibility (CSR)

activities, Danareksa is expected to strengthen

its reputation as a company that consistently

demonstrates community awareness, inspires

stakeholders to raise awareness for the people

and environment of Indonesia.

2 0 4 C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

Activities and Fees

Partnership ProgramThe loans must be disbursed very carefully and have certainty in repayment installments. PKBL Unit applies scoring methods in screening and determining potential fostered partners.

Partners who receive loans are scattered in Malang, Blitar, Pasuruan, Gresik, Batu, Tulungagung. For efficiency, most loans are concentrated in Malang. The number of fostered partners receiving loans and total funds disbursed in 2017, are shown in the table on the following page:

ReferenceDanareksa refers to the prevailing provisions, rules and regulations regarding the implementation of Partnership and Community Development Program (PKBL) in 2017 referring to the following provisions:

• Regulation of Minister SOEs No. PER-20/MBU/2012 dated December 27, 2012;

• Circular Letter No. S-92/D5.MBU/2013 dated April 3, 2013;

• Circular Letter No. S-119/D5.MBU/2013 dated April 29, 2013;

• Regulation of Minister SOEs No. PER-05/MBU/2013 dated May 1, 2013;

• Regulation of Minister SOEs No. PER-07/MBU/2013 dated June 27, 2013;

• Regulation of Minister SOEs No. PER-08/MBU/2013 dated September 10, 2013;

• Regulation of Minister SOEs No. PER-09/MBU/07/2015 dated July 3, 2015;

• Regulation of Minister SOEs No. PER-03/MBU/12/2016 dated December 19, 2016

• Regulation of Minister SOEs No. PER-02 /

MBU / 07/2017 dated July 5, 2017

PolicyPartnership Program is intended for Small Businesses that have not been bankable to be independent and able to compete in the industry. Danareksa provides low interest loans and training programs to enhance the capabilities of the fostered partners. In implementing Partnership Program activities, Danareksa cooperates with LPPM Brawijaya University, Malang.

Community Development Program in Danareksa refers to activities that have been determined by the Shareholders according to the provisions. Danareksa cooperates with various institutions for the implementation of the program.

President DirectorPT Danareksa (Persero)

Division HeadCorporate Secretary

Implementation UnitPKBL

Diagram of Management

Structure of PKBL

Region RKA 2017

Realization 2017

%

East Java 40 40 100

Table of Total Fostered Partners

PA R T N E R S H I P A N D C O M M U N I T Y D E V E L O P M E N T P R O G R A M ( P K B L )

Management Structure

The company has established a Special Unit which handles Partnership Program and Community Development Program ("PKBL") under the Corporate Secretary Division of PT Danareksa (Persero) and reports to the Board of Directors.


DescriptionBudget

2017Realization

2017%

Partnership Loan

1.474.000 1.500.000 102

Partnership Development

0 0 0

Total 1.474.000 1.500.000 102

Table of Fund Disbursement (Rp thousand)

Activity Total

Education 107.452,5

Health Promotion 65.000,0

Worship Facilities 91.967,9

Total 264.420,4

Table of Total Fund Disbursement (Rp thousand)

Community Development Program

The Community Development Program of Danareksa is aimed at providing assistance to communities covering natural disaster relief, education assistance, health promotion, public infrastructure assistance, nature preservation, social community, and training related to the Partnership Program. The activities during 2017 are as follows:

1. Health Promotion

Approximately 1,000 families (KK) in Badegan District, Ponorogo, East Java who have not had toilet and defecated in the garden or river. Danareksa with the local military command (Koramil) held an introduction to sanitation program through provision of toilet in each family’s house. The provision of toilet program referred to as "jambanisasi" is a collaboration program with Koramil and as one of the mainstay programs. In 2017, the program has built toilets for 400 families.

By involving the local community, gradually the awareness for sanitation will increase. Other health promotion activities were mass circumcision in Danareksa office.

2. Worship Facilities Assistance

Meanwhile, spiritual and mental development for people and citizens of Indonesia is equally

*For the year 2017, there was no disbursement of funds for natural disasters, public facilities, nature conservation, social community, and training.

important with other physical development. Therefore in 2017, Danareksa contributed to the construction assistance of Al-Amin Mosque, Sleman, Yogyakarta; Baitul Amin prayer room, Brawijaya University, Malang; construction Quran Learning Center (TPA) of Mosque At-Taqwa Tangerang; renovation of prayer room of State Junior High School 49, Jakarta; renovation of prayer room Al Istiqomah, South Tangerang; TPA Al-Ikhlas, Serang, West Java.

3. Education and Training Assistance

The assistance of this category that has been implemented in 2017, among others, scholarships for junior high school students in Yogyakarta; provision of computers for junior high school SMP Kanisius, Wonosari, Yogyakarta; and construction of kindergarten Hasan Munadi building, Ponorogo. Danareksa also cooperated with PT Angkasa Pura I in the implementation of BUMN Hadir untuk Negeri.


Method of ImplementationIn the implementation, CSR Program covers aspects related to the Company's social responsibilities as follows:

1. Occupational Health, Safety and Security (OHSS)

2. Consumer3. Environment 4. Community

1. Corporate Social Responsibility to Oc-cupational Health, Safety and Security (OHSS)

Reference The policies implemented by Danareksa regarding Social Responsibility to OHS are Law Number 13 of 2003 regarding "Employment" and Collective Labor Agreement (CLA) of PT Danareksa (Persero) and Employees.

PolicyEmployment, occupational health and safety are always a priority. As part of the responsibility, the Company shall ensure that the employment, health and safety principles adopted in accordance with applicable Government regulations and international standards as well as ensuring the welfare of Danareksa employees are met.

Activities

� Equal Employee RightsAccordance with Law Number 13 of 2003, especially Chapter III on "Equal Opportunities and Treatment, without Discrimination from: Employer", every Danareksa employee has the right to associate by forming an employee or association organization within the Company, including being its management. The Danareksa Employees Union is called "Danareksa Club", which is supported by management and is regulated and guaranteed in the Collective Labor Agreement signed by representatives of the Employees Union with the Company’s representative.

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y P R O G R A M

� Training and Career DevelopmentDanareksa Training and Career Development organizes training and development for employees based on the interests, talents of each employee and tailored to the needs of the organization. Danareksa provides equal opportunities for male and female employees, as well as establishing career path system based on job qualification and employee competence integrated with performance assessment system. Other matters about OHS can be seen in the HR section on the Company Profile page.

CostNo cost is used to carry out the OHS activities especially for "Equal Employee Rights". The cost of "Career Training and Development" activities can be seen in the Human Resources section of Company Profile.

2. Corporate Social Responsibility to Consumer

Reference The policies implemented by Danareksa regarding Social Responsibility to Consumers are Law No. 8/1999 on "Consumer Protection" and the Financial Services Authority Regulation No. 1/POJK.07/2015 on "Consumer Protection of Financial Services Sector".

PolicyTo provide customers with a sense of security and trust, the Company always complements its products and services with quality after-sales facilities.

This facility includes the provision of information, procedures, complaints process and complaints facilities in ways that are easily accessible to customers and potential customers. Among the media is the website, call center, social media, or come directly to the nearest Danareksa location.


More information can be found in the "Access Information and Company Data" section of this Annual Report.

Customer Service Improvement Programa. Call Centerb. Customer Education Servicec. Education of Capital Market and Education

in small groups d. Receive academic/school/college visit to

Danareksa Building to learn about capital market business. As Danareksa Building has been under renovation, during 2017 there was no student visit to Danareksa Building

e. Conducting visits with customers to issuersf. Customer Satisfaction Survey

CostFor Corporate Social Responsibility to Consumers activities, the required costs are taken from the marketing activities of each subsidiary, in accordance with the characteristics of the activities conducted.

3. Corporate Social Responsibility to Environment

PolicyIn conducting its business or operational activities, Danareksa directly or indirectly affects the environment where its activities are carried out. The consumables and energy are the two main materials that always need to be considered in their use.

ActivitiesMaterial UseSince several years ago, Danareksa took the initiative to gradually reduce the use of paper in business operations, such as for the use of memos, minutes of meetings and others. This initiative is realized, among others, by:

a. Using photocopiers that can convert documents to PDF format. With the use of this machine, there will be more electronic documents than physical documents in paper form.

b. Development and implementation of electronic memo applications and the application form for business travel can also be filed electronically as well.

c. Dissemination of information via Company email.

d. Use both sides of paper.

Energy ConsumptionThe Company always strives to save energy in the entire process of business and operational activities. One of the implementation of this initiative is done by using more energy efficient devices, but with equal output.

Another example is the use of separate air conditioners (AC split) in some areas due to the nature of business activities, often used over normal working time. With the use of AC-split, the AC is only needed to be activated in particular area, unlike AC central that is used to cool an entire floor. Another example is turning off the lights during the day in the rooms adjacent to the windows, given the natural light in Indonesia is sufficient for lighting the normal work area.

Similar initiatives are also carried out at all lines within the Company, with frequent reminders to all employees to be concerned about the energy.

Coral Reef Planting (CSR)Coral reef planting has been conducted on Badul Island, Pandeglang, Banten, in collaboration with Paniis Lestari group, a community group around Badul Island engaged in the environment of underwater biota. The activities have been conducted to rehabilitate damaged reefs.

Jambanisasi (Community Development)The Jambanisasi (latrine provision) project has been implemented in in Badegan District, Ponorogo, in cooperation with local military command (Koramil). This project introduced the importance of sanitation for more than 1,000 families, who were still defecate in the river. By involving the local community, the awareness of sanitation would gradually increase.


Mangrove Planting (CSR)Located on Rambut Island, Lancang Island and Tidung Island, in Thousand Islands; since 2009 the Company has planted more than 15,000 seedlings. In 2017, the Company planted 4,000 seedlings on Untung Jawa Island in Thousand Islands. As a buffer zone of Jakarta, the islands of Thousand Islands are needed for protection from from abrasion. Mangrove can strengthen the soil from eroding caused by the waves as well as useful as a home for some marine biota.

CostCorporate Social Responsibility to the Environment required a cost of Rp179.6 million from the CSR budget for coral reef and mangrove plants, while for jambanisasi (toilet provision) was taken from the health improvement budget for Community Development amounted to Rp65 million.

4. Corporate Social Responsibility to Community

PolicyThe Company has responsibilities as well as an active role in empowering individuals, groups or communities. It is the Company's effort in developing, empowering and improving the community's quality of life.

ActivityScholarship The Company provides scholarships for outstanding students with scholarship programs at senior high school level in Yogyakarta and junior high school in SMP Kanisius, Wonosari, Gunung Kidul.

Program BUMN Hadir untuk NegeriBUMN Hadir untuk Negeri program is an annual event that is participated by all state-owned enterprises (SOEs) as one of the Ministry of SOEs programs in an effort to contribute to society.

Welfare ImprovementIn realizing the community empowerment of, the Company contributed in improving public facilities and infrastructures such as mosque renovation and fishermen’s home renovation. The company also provided food aid in Bantul, Yogyakarta.

CostCorporate Social Responsibility to the Community required Rp890.6 million in funds from the CSR budget.

Type of CSR program (Rp)

Scholarship 50.000

Mosque Renovation 10.000

Fishermen's Home Renovation

130.000

Low-price Staple Foodstuff 55.000

Scholarship for SMP Kanisius

37.320

Scholarship for Senior High School

22.500

Coral Reef Planting 110.000

Mangrove Planting 69.630

BUMN Hadir untuk Negeri 406.186

Total 890.636

Table of Total Fund Disbursement (Rp thousand)


Recognizing the importance of the role of State-Owned Enterprises (SOEs) which is not only to provide high revenues from taxes or dividends to the State, it is also a development agent for the nation, the Ministry of SOEs and SOEs, through the momentum of the 70th anniversary of the independence of the Republic of Indonesia in 2015 launched the program of "BUMN Hadir Untuk Negeri" (SOE for the Nation) which was implemented simultaneously in 34 provinces in Indonesia.

In 2017, Danareksa received the mandate to celebrate the 72nd Independence of the Republic of Indonesia in Central Sulawesi Province with another SOE, PT Angkasa Pura I (Persero). It was a pride for Danareksa to be able to make a real contribution to society.

The program launched in 2017 consisted of the August 17 Flag Ceremony, 5 KM Healthy Walk, 17th Contest, Child Watch, Training for Former Prisoners, Provision of Clean Water Facility, Provision of Daycare in Market, Coaching by Former Athletes, Bazaars, Village Development, Veterans Home Renovation, Siswa Mengenal Nusantara (Students Exchange), and BUMN Mengajar (SOE Teaching Program).

References

• Letter of the Minister of SOEs of the Republic of Indonesia number: S-22/MBU/01/2017 dated January 4, 2017 on BUMN Hadir Untuk Negeri Program 2017

• Letter of the Minister of SOEs of the Republic of Indonesia number: S-284/MBU/05/2017 dated May 8, 2017 on Revision of BUMN Hadir Untuk Negeri 2017

• Letter of the Minister of SOEs of the Republic of Indonesia number: S-284/MBU/05/2017 dated May 8, 2017 on Revision of BUMN Hadir Untuk Negeri 2017

Purpose and Goals

The purpose of the program "BUMN Hadir untuk Negeri " (SOEs for the Nation) in commemorating the anniversary of Republic of Indonesia Independence in 2017 was to create conditions and encourage SOEs in Indonesia to give the best contribution for the country and people of Indonesia. In accordance with its role as a regulator, the Ministry of SOEs strives to make SOEs the backbone for Indonesia's economic development.

The target of " BUMN Hadir Untuk Negeri" activities, especially in Central Sulawesi Province, was the general public in Central Sulawesi, especially those from middle to lower economic groups. To foster a sense of pride as a nation with diverse domestic wealth as well as a real manifestation of the role of SOEs in the community.

Raising the awareness of stakeholders on the role of SOEs as Development Agents to participate in building national capacity. Building a good perception of SOEs that have played a role in improving the welfare of the nation, through real work with direct impact.


The activities of "BUMN Hadir untuk Negeri" consisted of several events as summarized below.

• Flag CeremonyThe flag ceremony event in commemoration of the 72nd Anniversary of Independence of the Republic of Indonesia was held on August 17, 2017 and took place at PT Pelindo IV (Persero) of Pantoloan Palu Branch, Central Sulawesi. The August 17th Flag Ceremony was attended by Mr. Sahala Lumban Gaol, Expert Staff of Minister of SOEs; Mr. Danang S. Baskoro, President Director of PT Angkasa Pura I (Persero); Mr. Heru D. Adhiningrat, President Director of PT Danareksa (Persero); Director of Operations of PT Angkasa Pura I (Persero); General Manager of PT Pelindo IV (Persero) of Pantoloan Branch; Veterans of Republic of Indonesia Representative of Maluku Province.

B U M N H A D I R U N T U K N E G E R IP R O G R A M


• 5 km Healthy Walk.The event of 5 KM Healthy Walk was held on August 13, 2017 was participated by more than 2,000 participants, consisting of officials and employees of PT Angkasa Pura I (Persero) and PT Danareksa (Persero); Palu City Government Agencies; SOEs and Regional Owned Enterprises of Central Sulawesi in Palu city, students of junior and senior high schools, as well as the general population in Palu and its surrounding areas.

• Other Competition EventsThe competition events on August 17, 2017 to commemorate Independence Day August 17, centered in Passenger Terminal Field of PT Pelindo IV (Persero) of Pantoloan Branch, Palu. This competitions were participated by children and adults of the community around PT Pelindo IV (Persero) of Pantoloan branch.

• Siswa Mengenal Nusantara In the program of Siswa Mengenal Nusantara (SMN), PT Angkasa Pura I (Persero) and PT Danareksa (Persero) were mandated by Ministry of SOEs for Central Sulawesi Province, to organize the exchange student program with PT Bukit Asam and PT Perkebunan Nusantara V (Persero). The SMN program was held from July 31 to August 6, 2017, both in Palu and Riau.


Flag ceremony in commemoration of the 72nd Independence Day of the Republic of Indonesia took place in the Field of PT Pelindo IV (Persero) of Pantoloan Branch, Palu.

2 1 2

Employees of Danareksa planting seeds manually by diving on Badul Island, Pandeglang, Banten.

Colonies of coral reef seeds on the racks, ready to grow to become fish house later.

C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

D O C U M E N TAT I O N O F A C T I V I T I E S


Mangrove planting on Untung Jawa Island; an island located in the cluster of Thousand Islands with 4,000 seedlings planted.


Computer assistance and scholarship for SMP Kanisius Wonosari, Yogyakarta


low price staple foodstuff assistance for playground Amanah Bunda - Piyungan.

217

REFERENCE OF FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 29/POJK.04/2016 CONCERNING ANNUAL REPORT OF

ISSUER OR PUBLIC COMPANY

2 1 8 R E F E R E N S I P E R AT U R A N O J K N O . 2 9 / P O J K . 0 4 / 2 0 1 6

I. General

1 In proper and correct Indonesian language, it is recommended to also present thereport in English.

Available

2 Annual report shall be made in such a way that they are easy to read. Picture, charts,tables, and diagrams are presented with the title and/or clear explanation.

Available

3 Annual report shall be printed on light-colored paper of good quality, A4 size, bound, and can be reproduced by photocopy.

Available

4 Annual report shall clearly state the identity of the company.Company name and year of annual report are displayed on:1. Front cover; 2. Side; 3. Back cover; and4. Every page.

Available

5 Annual report ishall be available on the Company's website Available

II. Summary of Financial Highlights

1 A summary of financial highlights is presented in the comparative form over 3 (three) fiscal years or since the start of business if the Company runs its business activities for less than 3 (three) years

12

2 The Company's financial position information in comparative form over 3 (three) fiscal years or since the start of business if the Company runs its business activities for less than 3 (three) years. The information includes:

1. Net working capital. 2. Total investment in other entities.3. Total assets. 4. Total liabilities. 5. Total equity.

12

3 Financial ratios in in comparative form over 3 (three) fiscal years or since the start of business if the Company runs its business activities for less than 3 (three) years. The information contains general and relevant financial ratios with the company's industry, including:

1. Ratio of profit (loss) to total assets.2. Ratio of profit (loss) to equity.3. Ratio of profit (loss) to income.4. Current ratio. The ratio of liabilities to equity.5. Ratio of liabilities to total assets.6. Other relevant information and financial ratios

12

4 Information in the form of tables and charts containing:1. Total outstanding shares.2. Market capitalization. 3. Highest, lowest and closing share prices.4. Volume of shares traded for each quarter in the last 2 (two) fiscal years (if any).

12-15

5 In the event of a corporate action, such as stock split, reverse stock, stock dividends, bonus shares, and a decline in the par value of shares. Share price information must add:

1. Date of implementation of corporate action;2. Ratio of stock split, reverse stock, stock dividend, bonus shares, and decline in par value

of shares;3. Total outstanding shares before and after corporate action;4. Share price before and after corporate action.

13

No. Criteria & Description Page(s)

D A N A R E K S A | L A P O R A N TA H U N A N 2 0 1 7 2 1 9


6 In the event that the stock trading of the company is suspended within the fiscal year, the annual report shall contain an explanation of reasons for the suspension.

13

7 In the event that the suspension referred to in number 4) continues until thepublishing date of the annual report, the Issuer or Publicly-listed Company must alsoexplain the actions taken by the Company to resolve the problem.

13

8 Information on bonds, sukuk (Islamic bond) or convertible bonds outstanding in thelast 2 (two) fiscal years. The information contains:

1. The number of outstanding bonds/sukuk/convertible bonds2. Interest rate/income.3. Maturity date. Ratings of bond/sukuk.

13

III. Board of Commissioners and Board of Directors Report

1 Board of Commissioners’ Report. Containing the following:1. Assessment on the performance of the Board of Directors in managing the company.2. View on the prospects of the company’s business as established by the Board of

Directors, and.3. Changes in the composition of the Board of Commissioners (if any).

16

2 Board of Directors Report.Containing the following:1. Analysis on the Company's performance including strategic policies, the comparison

between the results achieved and targeted, and challenges faced by the Company.2. Business Prospects. 3. PenerapanImplementation of Good Corporate Governance by the Company.4. Changes in the composition of the Board of Directors (if any).

20

3 Signatures of members of the Board of Commissioners and Board of Directors.Containing the following:1. Signatures are placed on a separate page.2. Statement that the Board of Directors and Board of Commissioners are fully responsible

for the accuracy of the contents of the annual report.3. Signed all members of the Board of Commissioners and members of the Board of

Directors by stating their names and positions.4. Written explanation in a separate letter from each member of the Board of

Commissioners or the Board of Directors who does not sign the annual report, or written explanation in a separate letter from other members in the absence of written explanation from the member concerned.

27

IV. Company Profile

1 Name and complete address of the company and/or branch or representative offices.The information contains name and address, zip code, Phone No., Fax No., email, andwebsite.

30, 78-79

2 Brief history of the company.Include: date/year of establishment, the company’s name and change of name(if any).

31

3 Line of business. Description includes: 1. Line of business as established in the articles of association; and2. Description of products and/or services produced.

37-47

4 Organizational structure.In chart form, includes the name and structural position of one level below Board of Directors.

49

5 Vision and mission of the company.Include:1. Vision and mission of the company; and2. Information that the vision and mission have been approved by the Board of Directors

and Board of Commissioners.

34



6 Identity and brief biography of the members of the Board of Commissioners. Information contains, among others:1. Name. 2. Position (including position in other company or institution).3. Age. 4. Education. 5. Work experience. 6. Date of the first appointment as a member of the Board of Commissioners.7. Type of training for competence development.8. Disclosure of affiliation with other Board of Commissioners and Shareholders (if any).

54-55

7 Identity and brief biography of members of the Board of Directors.Information contains, among others:1. Name. 2. Position (including position in other company or institution).3. Age. 4. Education. 5. Work experience. 6. Date of the first appointment as a member of the Board of Commissioners.7. Type of training for competence development.8. Disclosure of affiliation with other Board of Commissioners and Shareholders (if any).

58-61

8 Include Changes in the composition of the Board of Directors and Commissioners occurring after the fiscal year ending up to the deadline for submission of the report.The last and previous composition of the Board of Commissioners and Board of Directors

-

9 Number of employees (2 years comparative) and description of their competence development (i.e. aspects of employee education and training).Information contains, among others:1. Number of employees for each level of organization.2. Number of employees for each level of education.3. Employee training that has been done by reflecting equal opportunity to all employees.4. Expenses incurred.

62-72

10 Shareholder composition and percentage.Containing among others: 1. Name of shareholders who own 5% or more shares.2. Name of Commissioners and Directors who own shares.3. Public shareholder group whose each ownership less than 5%, and percentage of the

shareholding.

74

11 Information on the majority and controlling shareholders of the Issuer.1. Both direct and indirect. 2. Individual owners. 3. Presentation in the form of a scheme or diagram.

74-75

12 List of Subsidiaries and/or associated entities.Information contains, among others: 1. Name of subsidiary/associated entity. 2. Percentage of shareholding.3. Description of the subsidiary or associated entity's line of business.4. Description of the operating status of subsidiary or associated entity (already in operation

or not yet in operation).5. Address of subsidiaries.

46-47

13 Chronological listing of shares.Containing among others: 1. Chronological listing of shares. 2. Type of corporate action that causes a change in the number of shares.3. Change in the number of shares from the beginning of listing to the end of the fiscal year.4. Name of the stock exchange where the Company's shares are listed.

13




14 Chronological listing of other Securities. Containing, among others: 1. Chronological listing of other securities.2. Type of corporate action that causes a change in the number of other securities.3. Change in the number of other securities from the beginning of listing to the end of

fiscal year.4. Name of stock exchange where the other securities of the Company are listed.

13

15 Name and address of Capital Market supporting institutions and / or professions.Information includes, among others:1. Name and address of BAE.2. Name and address of Public Accounting Firm. 3. Name and address of Rating Company.4. Cost of each profession.5. Assignment Period.

77

16 Award an/or certification received by the Company both on national or international scale.Information includes, among others:1. Name of award and/or certificate.2. Year of acceptance. 3. Awarding and/or certification bodies.4. Validity period (for certification).

76

V. Management Discussion and Analysis on Company Performance

1 Operational review per business segment.Containing description on:1. Production, including process, capacity and development.2. Sales/operating revenues. 3. Profitability. 4. For each business segment disclosed in the financial statements (if any).

96-114

2 Description of the Company's financial performance.Financial performance analysis which includes comparison between financial performance of the current year and the previous year (in the form of narration and table) regarding, among others: 1. Current assets, non-current assets and total assets; 2. Short-term liabilities, long-term liabilities and total liabilities;3. Equity; 4. Revenues, expenses, profit (loss), other comprehensive income and comprehensive total

profit (loss);5. Cash flow.

86-95

3 Discussion and analysis of ability to pay debt by presenting relevant ratios. The ability topay debts, both in short and long terms

92

4 Discussion and analysis of receivables collectability by presenting relevant ratios. Collectability of receivables

93

5 Discussion on capital structure, and management policy on capital structure policy.Explanation on:1. Capital structure. 2. Management policy on capital structure (capital structure policy).

93



6 Discussion of material commitments for capital investment.Explanation on: 1. Purpose of the commitment.2. Sources of funds expected to fulfill these commitments.3. Currency that is denominated. 4. The company's action plans to protect the risk from related foreign currency position.

Note: Disclose if the Company does not have any commitments related to investment in capital goods.

94

7 Material information and facts occurring after the date of the accountant's report.Description of important events after the date of the accountant's report including its impact on future performance and business risks.

Note: Disclose if there is no important event after the date of the accountant's report.

94

8 Description of the Company's business prospects.The description of the Company's prospects is linked to industry and the economy in general accompanied by quantitative supporting data from reliable data sources.

82-85

9 Comparison between target/projection at the beginning of the following year. Including:1. Revenues, profit (loss); 2. Capital structure; 3. Dividend policy; 4. Others deemed important to the Company.

-

10 Targets/projections to be achieved by the Company for 1 (one) year at the latest.Including:1. Revenue; 2. Profit; 3. Capital structure; 4. Dividend policy; 5. Or others deemed important to the Company.

-

11 Description of the marketing aspects on the Company's products and/or services, including marketing strategy and market share

118-120

12 Description of dividend policy and total cash dividend per share and total dividend per year announced or paid for the last 2 (two) fiscal years.Containing description on: 1. Total dividend; 2. Total dividend per share; 3. Payout ratio for each year.

Note: Disclose the reason if there is no dividend distribution.

94

13 Realization of the use of proceeds from the public offering (in the case of the company is still required to submit reports on the realization of the use of funds).Containing description on: 1. Total proceeds; 2. Plan for uses of funds; 3. Details of uses of funds; 4. Fund balance; and5. Date of GMS approval of changes in uses of funds (if any).

94

14 Material transaction information containing conflict of interest and/or transaction with affiliates. Containing description on: 1. Date, value and transaction object;2. Name of parties involved in the transaction and the nature of affiliated relationship; 3. The nature of affiliated relationship (if any);4. Explanation on transaction fairness;5. Compliance with relevant rules and regulations.

Note: Disclose if there is no such transaction.

94




15 Description of regulatory changes that have a significant effect on the Company. Thedescription includes, among others: regulatory changes and its impact on the CompanyNote: Disclose if there are no regulatory changes that have a significant effect.

94

16 Description of changes in accounting policy.The description includes, among others: changes in accounting policies, reasons andimpacts on financial statements.

95

VI. Corporate Governance

1 Description of the Board of Commissioners. The description contains, among others: 1. Description of implementation of the Board of Commissioners’ duties.2. Disclosure of procedures, basis of determination, and amount of remuneration of

members of the Board of Commissioners.3. Disclosure of Company policy and its implementation regarding the frequency of

meetings of the Board of Commissioners, including joint meetings with the Board of Directors, and the attendance of members of the Board of Commissioners in the meetings.

137

2 Description of the Board of Directors.The description contains, among others: 1. Scope of work and responsibilities of each member of the Board of Directors.2. Disclosure of the basic procedures for determination and amount of remuneration and

the relation between remuneration and the Company's performance.3. Disclosure of company policy and its implementation, on the frequency ofmeetings of

the Board of Directors including joint meetings with the Board of Commissioners and attendance at the meetings.

4. Resolutions of the previous GMS and their realization during the fiscal year, as well as the reasons for unrealized resolutions.

5. Disclosure of Company policy on the performance assessment of members of the Board of Directors (if any).

149

3 Audit Committee. Including, among others: 1. Name. 2. Position history, work experience and legal basis of appointment.3. Education History. 4. Term of office of members of the Audit Committee. 5. Disclosure of the independence of the Audit Committee.6. Disclosure of Company policy and its implementation, about frequency of committee

meetings and attendance of committee members in the meeting.7. Brief description of the activities of the Audit Committee in the fiscal year as stated in

the Charter of the Audit Committee.

161

4 Other committees established in support of the functions and duties of the Board of Directors and/or Board of Commissioners such as the Nomination Committee. Including, among others: 1. Name. 2. Position history, work experience and legal basis of appointment.3. Education history. Term of office of committee members. 4. Disclosure of Company policy on the independence of the committee.5. Description of duties and responsibilities.6. Disclosure of Company policy and its implementation, about frequency of committee

meetings and attendance of committee members in the meeting.7. Brief description of the implementation of committee activities in the fiscal year.

166-171

5 Description of duties and functions of the Corporate Secretary. Including, among others: 1. Name. 2. Position history, work experience and legal basis of appointment.3. Education history. 4. Term of office. 5. Brief description of the implementation of duties of Corporate Secretary in the fiscal

year.

174



6 Description of internal audit unit. Including, among others: 1. Name. 2. Position history, work experience, legal basis of appointment.3. Qualification/certification as an internal audit professional.4. Structure or position of internal audit unit.5. Duties and responsibilities of internal audit unit are in accordance with the internal audit

unit charter.6. Brief description of the implementation of internal audit unit duties in the fiscal year.

178

7 Description of the internal control system.1. Financial and operational control, as well as compliance with other laws.2. Review of the internal control system effectiveness.

184

8 Description of the Company's risk management. Including, among others: 1. An overview of the company's risk management system.2. Types of risk and their management.3. Review of system effectiveness.

180

9 Material litigation currently faced by the Company, subsidiaries, members of the Board of Directors and/or the Board of Commissioners serving in the annual reporting period.Including, among others: 1. Merit of the case. 2. Status of settlement of case/lawsuit; and3. The effect on the Company's condition.

Note: Disclose if there is no litigation.

189

10 Information on administrative sanctions imposed on Issuers or publicly-listed companies,members of the Board of Commissioners and Board of Directors, by Capital Marketauthorities and other authorities in the last fiscal year.

13

11 Discussion on code of conduct. Containing descriptions, among others:1. Principles of code of conduct. 2. Principles of corporate culture.3. Form of dissemination. 4. Disclosure that the code of conduct applies to all levels of the organization.

134

12 Employee or management stock ownership program. Including, among others: 1. Number; 2. Period; 3. Requirements for eligible employee/management;4. Exercised price (if any).

94

13 Disclosure of whistleblowing system.Containing description of whistleblowing system mechanisms including:1. Violation reporting; 2. Protection for whistleblower;3. Complaint handling; 4. The party handling the complaint;5. Result of complaint handling.

186

14 Description of corporate social responsibility related to the environment.Including information on:1. Policy; 2. Activities coducted; and3. Financial impacts from activities related to social and community development, such

as the employment of local manpower, empowerment of communities around the company, improvement of social facilities and infrastructure, other forms of donations, and others.

205,207

15 Description of corporate social responsibility related to employment, occupational healthand safety. Including information on:1. Policy; 2. Activities conducted; and3. Financial impacts of activities related to employment, occupational health and safety

practices, such as gender equality and job opportunity, facilities and occupational safety, employee turnover rate, workplace accidents, training and others.

206




16 Description of corporate social responsibility related to social and communitydevelopment. Including information on:1. Policy; 2. Activities conducted and financial impacts from activities related to social and

community development, such as the employment of local manpower, empowerment of communities around the company, improvement of social facilities and infrastructure, other forms of donations, and others.

208

17 Description of corporate social responsibility related to product responsibility. Including information on:1. Policy; 2. Activities conducted; and3. Financial impacts from activities related to product responsibility, such as consumer

health and safety, product information, facilities, quantities and consumer complaint handling, and others.

205, 208

VII. Financial Information

1 Statement Letter of the Board of Commissioners and the Board of Directors on Boardof Directors' Responsibility on the Financial Statements.Compliance with Bapepam-LK regulation No. X.K.6 on the responsibilities of the Board of Commissioners and the Board of Directors on the Financial Statements

Appendix

2 Opinion of independent auditor on financial statements Appendix

3 Description of the independent auditor in the opinion. The description contains:1. Name and signature; 2. Date of audit report;3. PAF license number and Public Accountant license number.

Appendix

4 Comprehensive financial statements. Containing all elements of financial statements: 1. Financial position (balance sheet) statement;2. Comprehensive profit/loss statement;3. Statement of changes in equity; 4. Statement of cash flows; 5. Notes to the financial statements;6. Statement of financial position at the beginning of the comparative period presented

when the Entity applies a retrospective accounting policy or prepares a restatement of financial statement items, or when the Entity reclassifies the items in its financial statements (if relevant).

Appendix

5 Disclosure in the notes to the financial statements when an Entity applies an accounting policy retrospectively or prepares a restatement of accounts in the financial statements, or when the Entity reclassifies the items in its financial statements. Disclosure according to SFAS

Appendix

6 Comparison of profitability.Comparison of current year profit (loss) with the previous year.

Appendix

7 Statement of cash flows. Meet the following conditions:1. Grouping into three categories of activities: operations, investments, and funding;2. Use of direct method to report cash flows from operating activities;3. Separation of presentations between cash receipts and/or cash disbursements during the

current year of operations, investing and funding activities;4. Disclosure of non-cash transactions in notes to the financial statements.

Appendix

8 Summary of accounting policies. Including at least: 1. Statement of compliance with FAS;2. Basis of measurement and preparation of financial statements;3. Recognition of revenues and expenses;4. Fixed assets; 5. Financial instruments.

Appendix


2 2 6 R E F E R E N C E O F O J K R E G U L AT I O N N O . 2 9 / P O J K . 0 4 / 2 0 1 6


9 Disclosure of related party transactions. The elements to be disclosed include:

1. Name of related party, as well as the nature and relationship with related parties;2. Transaction value and its percentage to related total revenues and expenses;3. Total balance and its percentage to total assets or liabilities;4. Terms and conditions of transactions with related parties.

Appendix

10 Disclosure relating to Taxation. Elements to be Disclosed:

1. Explanation of the relation between tax expenses (income) and accounting profit;2. Fiscal reconciliation and current tax expense calculation;3. Statement that the amount of Taxable Profit as calculated through reconciliation is in

accordance with the Tax Return;4. Details of deferred tax assets and liabilities recognized on the financial position statement

for each reporting period, and the amount of deferred tax expenses (income) recognized in the profit/loss statement in the event that the amount is not recognizable from the amount of deferred tax assets and liabilities presented on the financial position (balance sheet;

5. Disclosure of whether or not there is a tax dispute.

Appendix

11 Disclosures related to property and equipment. Things to be Disclosed:

1. Depreciation method used;2. Description of the selected accounting policies between the revaluation model and cost

model;3. The methods and significant assumptions used in estimating the fair value of fixed assets

(revaluation model) or disclosure of fair value of fixed assets (cost model);4. Reconciliation of the gross book value and accumulated depreciation of fixed assets at

the beginning and end of the reporting period, by showing any addition, reduction and reclassification.

Appendix

12 The latest developments in Financial Accounting Standards and other regulations. Description of FAS/regulations that have been issued but not yet effective, which have not been applied by the Company, by disclosing:

1. Type and effective date of the new FAS/regulations;2. The nature of the changes that have not been effective or changes in accounting policies;

and3. The impact of initial application of new FAS and regulations on financial statements.

Appendix

13 Disclosures of other regulations on financial instruments. Elements to be disclosed:

1. Accounting terms, conditions and policies for each group of financial instruments;2. Classification of financial instruments;3. Fair value of each group of financial instruments;4. Explanation of risks related to financial instruments: market risk, credit risk and liquidity

risk;5. Financial risk management objectives and policies.

Appendix

14 Publication of financial statements.Elements to be disclosed include:1. Date of financial statements authorized for publication; and2. The party responsible for authorizing the financial statements.

Appendix

227

FINANCIAL STATEMENTS


2 2 8


PT Danareksa (Persero) dan Entitas Anaknya/and Its Subsidiaries Laporan keuangan konsolidasian tanggal 31 Desember 2017 dan untuk tahun yang berakhir pada tanggal tersebut beserta laporan auditor independen/ Consolidated financial statements as of December 31, 2017 and for the year then ended with independent auditors’ report

The original consolidated financial statements included herein are in

the Indonesian language.

PT DANAREKSA (PERSERO) DAN ENTITAS ANAKNYA

LAPORAN KEUANGAN KONSOLIDASIAN TANGGAL 31 DESEMBER 2017 DAN

UNTUK TAHUN YANG BERAKHIR PADA TANGGAL TERSEBUT

BESERTA LAPORAN AUDITOR INDEPENDEN

PT DANAREKSA (PERSERO) AND ITS SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2017 AND FOR THE YEAR THEN ENDED

WITH INDEPENDENT AUDITORS’ REPORT

Daftar Isi Table of Contents

Halaman/ Page Laporan Auditor Independen Independent Auditors’ Report Consolidated Statement Laporan Posisi Keuangan Konsolidasian ............. 1 - 2 ................................. of Financial Position Laporan Laba Rugi dan Penghasilan Consolidated Statement of Profit or Loss Komprehensif Lain Konsolidasian ................. 3 - 4 .......... and Other Comprehensive Income Consolidated Statement Laporan Perubahan Ekuitas Konsolidasian ......... 5 - 6 ................................ of Changes in Equity Laporan Arus Kas Konsolidasian ......................... 7 - 8 ........ Consolidated Statement of Cash Flows Catatan atas Laporan Keuangan Notes to the Consolidated Konsolidasian ................................................ 9 - 130 ................................ Financial Statements Informasi Keuangan Tambahan Supplementary Financial Information Statement of Financial Position - Laporan Posisi Keuangan - Entitas Induk ............ Appendix 1 ............................................. Parent Entity Laporan Laba Rugi dan Penghasilan Statement of Profit or Loss and Other Komprehensif Lain - Entitas Induk ................ Appendix 2 .... Comprehensive Income - Parent Entity Laporan Perubahan Ekuitas - Statement of Changes in Equity - Entitas Induk ................................................. Appendix 3 ............................................. Parent Entity Statement of Cash Flows - Laporan Arus Kas - Entitas Induk ......................... Appendix 4 ............................................. Parent Entity Catatan atas Laporan Keuangan - Notes to the Financial Statements - Entitas Induk ................................................. Appendix 5 ............................................. Parent Entity

************************

The original consolidated financial statements herein are in the

Indonesia language

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan

keuangan konsolidasian.

The accompanying notes to the consolidated financial statements form an integral part of these

consolidated financial statements.

1


LAPORAN POSISI KEUANGAN KONSOLIDASIAN

Tanggal 31 Desember 2017 (Disajikan dalam ribuan Rupiah,

kecuali dinyatakan lain)

PT DANAREKSA (PERSERO) AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of December 31, 2017 (Expressed in thousands of Rupiah,

unless otherwise stated) 31 Desember/ Catatan/ 31 Desember/ December 31, 2017 Notes December 31, 2016 ASET ASSETS Kas dan setara kas 420.319.305 3,38 475.381.895 Cash and cash equivalents Portofolio efek, setelah dikurangi cadangan Marketable securities, kerugian penurunan nilai net of allowance for impairment Rp542.679.908 pada tanggal of Rp542,679,908 as of 31 Desember 2017 dan December 31, 2017 and Rp539.127.279 pada tanggal Rp539,127,279 as of 31 Desember 2016 805.307.993 4,38 617.531.470 December 31, 2016 Piutang usaha, setelah dikurangi cadangan Accounts receivables, kerugian penurunan nilai net of allowance for impairment Rp98.794.517 pada tanggal Rp98,794,517 as of 31 Desember 2017 dan December 31, 2017 and Rp54.412.234 pada tanggal Rp54,412,234 as of 31 Desember 2016 616.230.224 5,38 838.896.761 December 31, 2016 Piutang kegiatan perantara perdagangan efek, setelah dikurangi cadangan Brokerage activities receivables, kerugian penurunan nilai net of allowance for impairment Rp54.803.500 pada tanggal Rp54,803,500 as of 31 Desember 2017 dan December 31, 2017 and Rp39.317.502 pada tanggal Rp39,317,502 as of 31 Desember 2016 707.193.809 6,38 680.686.488 December 31, 2016 Piutang kegiatan manajemen Investment management investasi 12.475.776 7,38 12.595.754 activities receivables Piutang kegiatan pembiayaan, setelah dikurangi cadangan Financing activities receivables, kerugian penurunan nilai net of allowance for impairment Rp46.854.347 pada tanggal Rp46,854,347 as of 31 Desember 2017 dan December 31, 2017 and Rp25.824.750 pada tanggal Rp25,824,750 as of 31 Desember 2016 141.334.564 8,38 107.740.088 December 31, 2016 Piutang lain-lain 144.284.180 9,38 123.780.967 Other receivables Pajak dibayar dimuka 55.320.739 20a 18.154.475 Prepaid taxes Beban dibayar dimuka 9.055.318 10 6.102.989 Prepaid expenses Penyertaan saham 32.727.844 11 12.727.844 Investment in shares of stocks Aset pajak tangguhan 36.982.382 20d 31.686.778 Deferred tax assets Aset tetap, Fixed assets, setelah dikurangi akumulasi net of accumulated penyusutan Rp82.858.470 depreciation Rp82,858,470 pada tanggal 31 Desember 2017 as of December 31, 2017 dan Rp75.929.631 pada tanggal and Rp75,929,631 as of 31 Desember 2016 608.609.831 12 609.198.016 December 31, 2016 Aset lain-lain, setelah dikurangi cadangan Other assets, kerugian penurunan nilai net of allowance for impairment Rp42.612.750 pada tanggal Rp42,612,750 as of 31 Desember 2017 dan December 31, 2017 and Rp42.314.374 pada tanggal Rp42,314,374 as of 31 Desember 2016 54.393.010 13,38 72.905.439 December 31, 2016

TOTAL ASET 3.644.234.975 3.607.388.964 TOTAL ASSETS


Indonesia language





2


LAPORAN POSISI KEUANGAN KONSOLIDASIAN (lanjutan) Tanggal 31 Desember 2017

(Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain)


CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)


unless otherwise stated)

31 Desember/ Catatan/ 31 Desember/ December 31, 2017 Notes December 31, 2016 LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY LIABILITAS LIABILITIES Pinjaman bank 1.085.000.000 14,38 800.000.000 Bank loans Utang usaha 521.788 15 623.414 Account payables Utang kegiatan perantara perdagangan efek 486.610.365 16,38 327.698.390 Brokerage activities payables Utang kegiatan manajemen Investment management investasi 3.192.408 17,38 1.784.615 activities payables Utang pajak 12.586.735 20b 19.798.059 Taxes payable Bunga masih harus dibayar 12.607.604 18,38 14.391.394 Accrued interest Biaya masih harus dibayar 106.598.755 19,38 125.661.886 Accrued expenses Efek-efek yang diterbitkan 624.053.604 22 872.055.414 Securities issued Liabilitas imbalan kerja Liability for employee karyawan 50.096.672 37 57.225.628 service entitlements Utang lain-lain 26.258.613 21 17.381.760 Other payables

TOTAL LIABILITAS 2.407.526.544 2.236.620.560 TOTAL LIABILITIES

EKUITAS EQUITY Ekuitas yang dapat diatribusikan Equity attributable to equity holders kepada pemilik entitas induk : of the parent entity : Modal saham Share capital Modal dasar - 2.800.000 saham Authorized capital - 2,800,000 dengan nilai nominal shares with par value of Rp1.000.000 (nilai penuh) per Rp1,000,000 (full amount) per saham share Modal ditempatkan dan disetor Issued and paid up penuh - 701.480 saham 701.480.000 24 701.480.000 capital - 701,480 shares Agio saham 2.743 2.743 Capital paid in excess of par value Tambahan modal disetor lainnya 85.924.242 25 85.924.242 Other additional paid-up capital Kerugian belum direalisasi Unrealized losses from changes dari perubahan nilai wajar efek in fair value of available-for-sale-net yang tersedia untuk dijual-neto (51.942.476) (59.030.389) marketable securities Keuntungan revaluasi aset tetap 493.830.000 12 493.830.000 Gain on revaluation of fixed asset Saldo laba (defisit): Retained earnings(deficits): Telah ditentukan penggunaannya 78.520.859 78.520.859 Appropriated Belum ditentukan penggunaannya (71.258.524) 69.901.574 Unappropriated

Total ekuitas yang dapat diatribusikan Total equity attributable to equity kepada pemilik entitas induk 1.236.556.844 1.370.629.029 holders of the parent entity Kepentingan non pengendali 151.587 23 139.375 Non controlling interest

TOTAL EKUITAS 1.236.708.431 1.370.768.404 TOTAL EQUITY

TOTAL LIABILITAS DAN EKUITAS 3.644.234.975 3.607.388.964 TOTAL LIABILITIES AND EQUITY


Indonesia language





3

PT DANAREKSA (PESERO) DAN ENTITAS ANAKNYA

LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN

Untuk tahun yang berakhir pada tanggal 31 Desember 2017



CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended December 31, 2017

(Expressed in thousands of Rupiah, unless otherwise stated)

Tahun yang berakhir pada tanggal 31 Desember/ Year ended December 31,

Catatan/ 2017 Notes 2016

PENDAPATAN USAHA OPERATING REVENUES Pendapatan jasa 217.055.395 27,38 204.545.032 Service fee income Bunga, dividen, dan sewa Interest, dividends, pembiayaan 179.331.223 26,38 310.155.038 and lease income Pendapatan jasa penjaminan Underwriting and securities emisi dan penjualan efek 31.230.595 29,38 74.753.575 selling services income Keuntungan dari Gain on trading perdagangan dan and changes in fair value of perubahan nilai wajar efek 18.797.170 28 47.488.036 marketable securities

446.414.383 636.941.681

BEBAN KEUANGAN FINANCE EXPENSE Bunga 142.805.275 30,38 191.332.197 Interest

BEBAN USAHA OPERATING EXPENSES Gaji dan kesejahteraan karyawan 229.180.940 32,37,38 226.552.337 Salaries and employee welfare Umum dan administrasi 55.198.559 33 58.122.765 General and administrative Sistem informasi 33.081.352 34 37.255.224 Information system Pengembangan usaha 36.822.711 35 32.004.208 Business development Penyusutan aset tetap 7.586.139 12 8.224.156 Depreciation of fixed assets Penyisihan (pemulihan) kerugian Provision (reversal) of allowance for penurunan nilai atas aset impairment losses on keuangan 80.644.944 31 (61.907.287) financial assets

442.514.645 300.251.403

Total beban 585.319.920 491.583.600 Total expenses

(RUGI) LABA USAHA (138.905.537) 145.358.081 OPERATING INCOME Bunga jasa giro 9.587.688 10.903.823 Interest on current accounts Keuntungan (kerugian) selisih kurs - Gain (loss) on foreign exchange - bersih 2.488.923 (3.025.881) net Lain-lain - bersih (3.544.831) (4.630.340) Others - net

Penghasilan lain-lain - bersih 8.531.780 3.247.602 Other income - net

(RUGI) LABA SEBELUM PAJAK FINAL (LOSS) INCOME BEFORE FINAL TAX DAN (BEBAN) MANFAAT PAJAK AND INCOME TAX (EXPENSES) PENGHASILAN (130.373.757) 148.605.683 BENEFIT

Pajak final (6.104.068) 20c (6.204.270) Final tax

(RUGI) LABA SEBELUM (BEBAN) INCOME BEFORE INCOME TAX MANFAAT PAJAK PENGHASILAN (136.477.825) 142.401.413 (EXPENSE) BENEFIT

Pajak kini (17.855.941) (36.651.350) Current tax Pajak tangguhan 6.759.580 10.508.835 Deferred tax Beban pajak penghasilan - bersih (11.096.361) 20c (26.142.515) Income tax expense - net

(RUGI) LABA BERSIH (147.574.186 ) 116.258.898 NET (LOSS) INCOME


Indonesia language





4

PT DANAREKSA (PESERO) DAN ENTITAS ANAKNYA

LAPORAN LABA RUGI DAN PENGHASILAN KOMPREHENSIF LAIN KONSOLIDASIAN

(lanjutan) Untuk tahun yang berakhir pada tanggal

31 Desember 2017 (Disajikan dalam ribuan Rupiah,



CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(continued) For the year ended December 31, 2017




Penghasilan komprehensif lain: Other comprehensive income: Pos yang tidak akan direklasifikasi Items that will not be reclassified ke laba rugi to profit or loss Pengukuran kembali keuntungan Remeasurement of gain (loss) (kerugian) karena program arising from defined imbalan pasti - setelah pajak 6.426.457 37 (8.515.740) benefit plans - net of tax Pos yang akan direklasifikasi Items that will be reclassified ke laba rugi to profit or loss Perubahan nilai wajar efek Changes in fair value of available- yang tersedia untuk dijual-neto 12.526.138 18.461.941 for-sale marketable securities-net Jumlah yang ditransfer ke Amounts transferred to laba rugi (5.438.252) (5.032.668) profit or loss

TOTAL PENGHASILAN TOTAL COMPREHENSIVE KOMPREHENSIF (134.059.843) 121.172.431 INCOME

(RUGI) LABA BERSIH CURRENT YEAR TAHUN BERJALAN NET INCOME DIATRIBUSIKAN KEPADA: ATTRIBUTABLE TO: Pemilik entitas induk (147.586.677) 116.242.495 Equity holder of the parent entity Kepentingan non-pengendali 12.491 16.403 Non-controling interest

(147.574.186) 116.258.898 TOTAL PENGHASILAN KOMPREHENSIF TAHUN TOTAL CURRENT YEAR BERJALAN YANG DAPAT COMPREHENSIVE DIATRIBUSIKAN INCOME KEPADA: ATTRIBUTABLE TO: Pemilik entitas induk (134.072.185) 121.155.938 Equity holder of the parent entity Kepentingan non-pengendali 12.342 16.493 Non-controling interest

(134.059.843) 121.172.431 (RUGI) LABA BERSIH PER (LOSS) EARNING PER SHARE SAHAM DASAR YANG DAPAT ATTRIBUTABLE TO DIATRIBUSIKAN KEPADA EQUITY HOLDER OF PEMILIK ENTITAS INDUK THE PARENT ENTITY (Rugi) laba usaha per saham Operating income per share (nilai penuh) (198.018) 36 207.216 (full amount) (Rugi) laba bersih per saham Net income per share (nilai penuh) (210.375) 36 165.734 (full amount)

The original consolidated financial statements included herein are in the Indonesian language.

Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements.

5

PT DANAREKSA (PERSERO) DAN ENTITAS ANAKNYA LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN

Untuk tahun yang berakhir pada tanggal 31 Desember 2017 (Disajikan dalam ribuan Rupiah, kecuali dinyatakan lain)

PT DANAREKSA (PERSERO) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended December 31, 2017 (Expressed in thousands of Rupiah, unless otherwise stated)

Dapat diatribusikan kepada pemilik entitas induk/Attributable to equity holders of the parent entity

Keuntungan/ (kerugian) yang belum direalisasi atas surat-surat berharga dalam kelompok tersedia Saldo laba (defisit)/ untuk dijual - bersih/ Keuntungan Retained earnings (deficit) Unrealized Revaluasi Kepentingan Agio saham/ Tambahan modal gain/(loss) on Aset/ Telah Tidak non-pengendali/ Capital paid disetor lainnya/ available-for-sale Gain on ditentukan ditentukan Non- Total Catatan/ Modal saham/ in excess of Additional paid-up marketable Revaluation penggunaannya/ penggunaannya/ controlling ekuitas/ Notes Share capital par value capital securities - net of Asset Appropriated Unappropriated Total interest equity

Saldo Balance as of 31 Desember 2015 24,25 701.480.000 2.743 85.924.242 (72.459.532) 493.830.000 78.520.859 (37.825.221) 1.249.473.091 123.517 1.249.596.608 December 31, 2015

Keuntungan yang belum Unrealized gain on direalisasi atas efek available- for-sale tersedia untuk dijual - - - 13.429.143 - - - 13.429.143 130 13.429.273 securities

Pengukuran kembali kerugian Remeasurement loss on atas program imbalan pasti defined benefit plans- - setelah pajak tangguhan 37 - - - - - - (8.515.700)*) (8.515.700) (40) (8.515.740) net of deferred tax Pembagian dividen oleh Dividend distribution by entitas anak 23 - - - - - - - - (635) (635) subsidiary Laba bersih tahun 2016 - - - - - - 116.242.495 116.242.495 16.403 116.258.898 Net income for 2016

Saldo pada tanggal Balance as of 31 Desember 2016 24,25 701.480.000 2.743 85.924.242 (59.030.389) 493.830.000 78.520.859 69.901.574 1.370.629.029 139.375 1.370.768.404 December 31, 2016


Catatan atas laporan keuangan konsolidasian terlampir merupakan bagian yang tidak terpisahkan dari laporan keuangan konsolidasian.

The accompanying notes to the consolidated financial statements form an integral part of these consolidated financial statements.

6


LAPORAN PERUBAHAN EKUITAS KONSOLIDASIAN (lanjutan) Untuk tahun yang berakhir pada tanggal 31 Desember 2017


PT DANAREKSA (PERSERO) AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

For the year ended December 31, 2017 (Expressed in thousands of Rupiah, unless otherwise stated)

Dapat diatribusikan kepada pemilik entitas induk/Attributable to equity holders of the parent entity

Keuntungan/ (kerugian) yang belum direalisasi atas surat-surat berharga dalam kelompok tersedia Saldo laba (defisit)/ untuk dijual-bersih/ Keuntungan Retained earnings (deficit) Unrealized Revaluasi Kepentingan Agio saham/ Tambahan modal gain/(loss) on Aset/ Telah Tidak non-pengendali/ Capital paid disetor lainnya/ available-for-sale Gain on ditentukan ditentukan Non- Total Catatan/ Modal saham/ in excess of Additional paid-up marketable Revaluation penggunaannya/ penggunaannya/ controlling ekuitas/ Notes Share capital par value capital securities - net of Asset Appropriated Unappropriated Total interest equity

Saldo pada tanggal Balance as of 31 Desember 2016 24,25 701.480.000 2.743 85.924.242 (59.030.389) 493.830.000 78.520.859 69.901.574 1.370.629.029 139.375 1.370.768.404 December 31, 2016

Keuntungan yang belum Unrealized gain on direalisasi atas efek securities available- tersedia untuk dijual-bersih - - - 7.087.913 - - - 7.087.913 (27) 7.087.886 for-sale-net Pengukuran kembali kerugian Remeasurement loss on atas program imbalan pasti defined benefit plans- - setelah pajak tangguhan 37 - - - - - - 6.426.579*) 6.426.579 (122) 6.426.457 net of deferred tax Pembagian dividen oleh Dividend distribution by entitas anak 23 - - - - - - - - (130) (130) subsidiary Rugi bersih tahun 2017 - - - - - - (147.586.677) (147.586.677) 12.491 (147.574.186) Net loss for 2017

Saldo pada tanggal Balance as of 31 Desember 2017 24,25 701.480.000 2.743 85.924.242 (51.942.476) 493.830.000 78.520.859 (71.258.524) 1.236.556.844 151.587 1.236.708.431 December 31, 2017

*) Saldo laba yang tidak ditentukan penggunaannya termasuk *) Unappropriated retained earnings include pengukuran kembali atas program imbalan pasti remeasurement on defined benefits plan






7


LAPORAN ARUS KAS KONSOLIDASIAN Untuk tahun yang berakhir pada tanggal




CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended December 31, 2017 (Expressed in thousands of Rupiah,

unless otherwise stated) Tahun yang berakhir pada tanggal 31 Desember/ Year ended December 31,


ARUS KAS DARI AKTIVITAS CASH FLOWS FROM OPERATING OPERASI ACTIVITIES Penerimaan pendapatan usaha 208.167.397 297.184.489 Proceeds from operating revenues Pembayaran beban usaha (466.567.554) (494.476.575) Payments of operating expenses Pembayaran bunga (144.589.065) (199.223.941) Payments of interest Penerimaan bunga dan dividen 158.828.010 221.860.923 Proceeds from interest and dividend Penerimaan piutang usaha - bersih 190.498.206 151.546.087 Receipt from account receivables - net Penerimaan (pembayaran) sehubungan dengan Proceeds (payments) relating to transaksi pasar modal - bersih 132.404.654 58.154.919 capital market transactions - net (Purchase) sale of (Pembelian) penjualan efek - bersih (217.576.407) 308.335.953 marketable securities - net Pembayaran pajak penghasilan (13.494.412) 20 (26.206.622) Payments of income taxes Pembayaran pajak final (3.706.019) 20c (6.204.270) Payments of final taxes Pembayaran untuk (Payment for) proceeds from aset lain-lain - bersih (22.613.725) (54.373.482) other assets - net (Pembayaran untuk) penerimaan (Payment for) receipt of dari (beban) pendapatan non-operating (expenses) non-operasional - bersih (3.544.830) 13.146.131 income - net Penerimaan pendapatan lainnya - bersih 12.076.610 11.295.023 Proceeds from other income - net

Kas bersih yang (digunakan untuk) Net cash (used in) provided by diperoleh dari aktivitas operasi (170.117.135) 281.038.635 operating activities

ARUS KAS DARI AKTIVITAS CASH FLOWS FROM INVESTING INVESTASI ACTIVITIES Pembelian aset tetap (7.091.854) 12 (5.504.034) Purchase of fixed assets Hasil penjualan aset tetap 327.727 12 360.000 Proceed from sale of fixed asset Penyertaan saham (20.000.000) 11 (350.000) Investment in shares Penerimaan efek dimiliki hingga Proceeds from held-to-maturity jatuh tempo 106.541.455 245.039 marketable securities

Kas bersih yang diperoleh dari (digunakan untuk) Net cash (provided by) aktivitas investasi 79.777.328 (5.248.995) used in investing activities

ARUS KAS DARI AKTIVITAS CASH FLOWS FROM FINANCING PENDANAAN ACTIVITIES Penerimaan pinjaman Proceeds from jangka pendek - bersih 285.000.000 14 375.000.000 short-term bank loans - net Pelunasan obligasi (250.000.000) 22 (500.000.000) Payment of bonds issuance Pelunasan medium term notes - 22 (120.000.000) Payment of medium term notes

Kas bersih yang diperoleh dari (digunakan untuk) Net cash provided by (used in) aktivitas pendanaan 35.000.000 (245.000.000) financing activities

(PENURUNAN) KENAIKAN BERSIH (NET DECREASE) INCREASE IN KAS DAN SETARA KAS (55.339.807) 30.789.640 CASH AND CASH EQUIVALENTS KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTS AWAL TAHUN 475.381.895 445.800.178 AT BEGINNING OF YEAR

Pengaruh perubahan kurs Effect of foreign exchange mata uang asing atas rate differences on saldo kas dan setara kas 277.217 (1.207.923) cash and cash equivalent

KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTS AKHIR TAHUN 420.319.305 3 475.381.895 AT END OF YEAR






8


LAPORAN ARUS KAS KONSOLIDASIAN (lanjutan) Untuk tahun yang berakhir pada tanggal




CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

For the year ended December 31, 2017 (Expressed in thousands of Rupiah,

unless otherwise stated) Tahun yang berakhir pada tanggal 31 Desember/ Year ended December 31,

Catatan/ 2017 Notes 2016 Kas dan setara kas terdiri dari: Cash and cash equivalents consist of: Kas 319.569 3 279.863 Cash on hand Kas di Bank 224.809.736 3 280.202.032 Cash in Bank Deposito on call 195.190.000 3 194.900.000 Deposits on call

420.319.305 475.381.895



DAN ENTITAS ANAKNYA CATATAN ATAS LAPORAN

KEUANGAN KONSOLIDASIAN Tanggal 31 Desember 2017 dan

untuk tahun yang berakhir pada tanggal tersebut (Disajikan dalam ribuan Rupiah,



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2017 and for the year then ended


9

1. UMUM 1. GENERAL

a. Pendirian a. Establishment

PT Danareksa (Persero) ("Perusahaan") adalah perseroan terbatas yang didirikan di Indonesia berdasarkan Akta No. 74 tanggal 28 Desember 1976 juncto No. 59 tanggal 17 Februari 1977 keduanya dibuat dihadapan Juliaan Nimrod Siregar Gelar Mangaradja Namora, S.H., Notaris di Jakarta. Anggaran Dasar Perusahaan tersebut telah disahkan oleh Menteri Kehakiman dengan Surat Keputusan No. Y.A.5/353/21 tanggal 12 Juli 1977 dan diumumkan dalam Berita Negara Republik Indonesia No. 82 tanggal 14 Oktober 1977, Tambahan No. 619. Perusahaan memulai aktivitas operasinya pada tahun 1976.

PT Danareksa (Persero) (the "Company") is a limited liability company established in Indonesia by virtue of Notarial Deed of Notary Juliaan Nimrod Siregar Gelar Mangaradja Namora, S.H., No. 74 dated December 28, 1976 juncto No. 59 dated February 17, 1977. The Company's Articles of Association were approved by the Ministry of Justice through its Decision Letter No. Y.A.5/353/21 dated July 12, 1977 and published in the State Gazette of the Republic of Indonesia No. 82 dated October 14, 1977, Supplement No. 619. The Company started its commercial operations in 1976.

Anggaran Dasar Perusahaan telah mengalami

beberapa kali perubahan. Perubahan untuk menyesuaikan Anggaran Dasar Perusahaan, dengan Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas yang dituangkan dalam Akta No. 93 tanggal 13 Agustus 2008 dibuat dihadapan Imas Fatimah, S.H., notaris di Jakarta, yang telah disetujui oleh Menteri Hukum dan Hak Asasi Manusia dengan Surat Keputusannya No. AHU-69641.AH.01.02. Tahun 2008 tanggal 25 September 2008 dan diumumkan dalam Berita Negara Republik Indonesia No. 28 tanggal 7 April 2009, Tambahan No. 9817 dan terakhir diubah dengan dan Akta No. 13 tanggal 9 Oktober 2009 dibuat dihadapan Nelfi Mutiara Simanjuntak, S.H., pada waktu itu notaris pengganti dari Notaris Imas Fatimah, S.H., dan telah diberitahukan kepada Menteri Hukum dan Hak Asasi Manusia sebagaimana tertera dari surat Penerimaan Pemberitahuan Perubahan Anggaran Dasar Perusahaan No. AHU-AH.01.10-19291 tanggal 2 November 2009 dan diumumkan dalam Berita Negara Republik Indonesia No.71 tanggal 3 September 2010, Tambahan No. 1161.

The Company's Articles of Association have been amended several times. The last amendment was to conform the Articles of Association with the Law No. 40 Year 2007 regarding limited liability company covered by Notarial Deed No. 93 dated August 13, 2008 of Notary Imas Fatimah, S.H., a notary in Jakarta, that has been approved by Ministry of Law and Human Rights through its Decision Letter No. AHU-69641.AH.01.02. Year 2008 dated September 25, 2008 and were published in the State Gazette of Republic Indonesia No. 28 dated April 7, 2009, Supplement No. 9817 and the latest amended by Notarial Deed No. 13 dated October 9, 2009 of Notary Imas Fatimah S.H., and was reported to Ministry of Law and Human Rights that stated in Admission Notification Amendment No. AHU-AH.01.10-19291 dated November 2, 2009 and was published on the State Gazette of Republic Indonesia No. 71 dated September 3, 2010, Supplement No. 1161.

Sesuai dengan Pasal 3 Anggaran Dasar

Perusahaan, maksud dan tujuan pendirian Perusahaan adalah sebagai berikut:

In accordance with Article 3 of the Company's Articles of Association, the purposes and objectives of the Company are as follows:

a. Melakukan usaha dengan mempercepat

proses pengikutsertaan masyarakat dalam pemilikan saham perusahaan-perusahaan serta meningkatkan partisipasi masyarakat dalam pengerahan dana dan mengelola dana tersebut untuk menghasilkan jasa yang bermutu tinggi dan berdaya saing kuat untuk mendapatkan/mengejar keuntungan guna meningkatkan nilai Perusahaan dengan menerapkan prinsip-prinsip Perusahaan Terbatas.

a. To perform business by speeding up the process of public participation in ownership of shares of companies and increase public participation in fund accumulation and manage the fund to generate high-quality service and competitive advantage to get/raise profit in order to increase the value of the Company by applying the principles of Limited Liability Companies.











10

1. UMUM (lanjutan) 1. GENERAL (continued)

a. Pendirian (lanjutan) a. Establishment (continued)

b. Untuk mencapai maksud dan tujuan tersebut, Perusahaan dapat melaksanakan kegiatan usaha sebagai berikut:

b. In order to achieve those purposes and objectives, the Company may carry out the following activities:

1. Membeli dan menjual efek

perusahaan lain yang telah terdaftar dalam Bursa Efek baik di dalam maupun di luar negeri dengan mengindahkan peraturan perundang-undangan yang berlaku;

1. To purchase and sell other companies' shares listed in both Indonesia and foreign stock exchanges in compliance with the existing prevailing regulations;

2. Menerbitkan, menjual dan/atau

membeli unit penyertaan investasi yang dananya dihimpun dari masyarakat pemodal dan menanamkannya dalam efek-efek;

2. To issue, to sell and/or to buy investment units of investment funds collected from public investors and invest it in securities;

3. Melakukan kegiatan kustodi dan

kegiatan yang biasa dilakukan perusahaan wali amanat (trust fund);

3. To conduct custodian and trust fund activities;

4. Melakukan usaha-usaha di bidang

pasar modal, pasar uang, pasar berjangka dan usaha sebagai lembaga pembiayaan serta usaha-usaha yang berhubungan dengan kegiatan tersebut;

4. To perform businesses in capital markets, money markets, futures markets and financing activities and other related activities associated with;

5. Melakukan jasa riset dan konsultan

pada bidang makro ekonomi dan pasar modal, serta jasa penasehat keuangan;

5. To conduct research and consultancy services in the macro economy and capital markets and financial advisory services;

6. Melakukan usaha-usaha dalam

bentuk penyertaan pada badan usaha lainnya sepanjang menunjang maksud dan tujuan Perusahaan.

6. To perform businesses through investments in other business entities in accordance with the purposes and objectives of the Company.

Perusahaan berkedudukan di Jalan Medan

Merdeka Selatan No. 14, Jakarta. Pada tanggal 31 Desember 2017 dan 2016, Perusahaan dan entitas anak masing-masing mempunyai sejumlah 381 dan 342 orang karyawan tetap (tidak diaudit).

The Company is located at Jalan Medan Merdeka Selatan No. 14, Jakarta. As of December 31, 2017 and 2016, the Company and its subsidiaries have 381 and 342 permanent employees, respectively (unaudited).

Pada tanggal 31 Desember 2017 dan 2016,

Perusahaan memiliki unit audit internal yang dikepalai oleh Arini Imamawati.

As of December 31, 2017 and 2016, the Company has an internal audit unit which headed by Arini Imamawati.

Pada tanggal 31 Desember 2017, Sekretaris Perusahaan adalah Donny Susatio Adjie dan pada tanggal 31 Desember 2016, Sekretaris Perusahaan adalah Fattah Hidayat.

As of December 31, 2017, the Company's

Corporate Secretary is Donny Susatio Adjie and as of December 31,2016, the Company's Corporate Secretary is Fattah Hidayat.











11


b. Dewan Komisaris, Direksi, dan Komite Audit b. Boards of Commissioners and Directors, and Audit Committee

Pada tanggal 31 Desember 2017 dan

2016, susunan Dewan Komisaris dan Direksi Perusahaan adalah sebagai berikut:

As of December 31, 2017 and 2016 the Company's Boards of Commissioners and Directors are as follows:

31 Desember 2017/ 31 Desember 2016/ December 31, 2017 December 31, 2016 Dewan Komisaris Board of Commissioners Komisaris Eko Sulistyo Eko Sulistyo 1) Commissioner Komisaris Independen Dyah Kartika Rini Dyah Kartika Rini 1) Independent Commissioner Direksi Board of Directors Direktur Utama Heru Djojo Adhiningrat Heru Djojo Adhiningrat President Director Direktur Bondan Pristiwandana Bondan Pristiwandana Director Direktur - Marciano H. Herman 3) Director Direktur - Hoesen 4) Director

1) Eko Sulistyo dan Dyah Kartika Rini ditetapkan sebagai komisaris dan komisaris independen

berdasarkan akta pernyataan keputusan Menteri Badan Usaha Milik Negara dalam Rapat Umum

Pemegang Saham PT Danareksa (Persero) No. 15 tanggal 6 November 2015 dari Notaris

Masjuki, S.H.

2) Marciano H. Herman dan Hoesen ditetapkan sebagai direktur berdasarkan akta pernyataan

keputusan Menteri Badan Usaha Milik Negara dalam Rapat Umum Pemegang Saham

PT Danareksa (Persero) No. 12 tanggal 15 September 2015 dari Notaris Mochamad Nova

Faisal, S.H., M.Kn.

3) Berdasarkan keputusan Menteri BUMN selaku RUPS PT Bahana Pembinaan Usaha

Indonesia No. SK-235/MBU/10/2017 tanggal 27 Oktober 2017, Marciano H.Herman telah

diangkat sebagai Direktur Utama PT Bahana Pembinaan Usaha Indonesia dan sesuai PP

No. 45 Tahun 2005 tentang Pendirian, Pengurusan, Pengawasan dan Pembubaran BUMN pasal

21 masa jabatan Marciano H. Herman sebagai Direktur Perseroan berakhir terhitung sejak

terjadinya perangkapan jabatan.

4) Berdasarkan keputusan Menteri BUMN selaku RUPS PT Danareksa (Persero)

No. SK-154/MBU/08/2017 tanggal 11 Agustus 2017 telah dikukuhkan pemberhentian dengan

hormat Hoesen sebagai Direktur Perseroan yang berlaku efektif terhitung tanggal 20 Juli 2017.

1) Eko Sulistyo and Dyah Kartika Rini were appointed as commissioner and independent commissioner based

on the deed of Minister of State-Owned Companies as Annual Shareholders Meeting of PT Danareksa (Persero)

No. 15 dated November 6, 2015 of Notary Masjuki, S.H.

2) Marciano H. Herman dan Hoesen were appointed as directors based on the deed of Minister of State-Owned

Companies as Annual Shareholders Meeting of PT Danareksa (Persero) No. 12 dated September 15, 2015 of

Notary Mochamad Nova Faisal, S.H., M.Kn. 3) Based on the Deed of Minister of State-Owned Companies in accordance with the Annual Shareholder Meeting

of PT Bahana Pembinaan Usaha Indonesia No. SK-235/MBU/10/2017 dated October 27, 2017, Marciano H.

Herman has been appointed as President Director of PT Bahana Pembinaan Usaha Indonesia and according to

Government Regulation No. 45 Year 2005 regarding the Establishment, Enforcement, Overseeing, and

Liquidation of State-Owned Companies article 21 the period of the appointment of Marciano H. Herman as

President Director has ended since the double appointed position.

4) Based on the Deed of Minister of State-Owned Companies in accordance with the Annual Shareholder Meeting

of PT Danareksa (Persero) No. SK-154/MBU/08/2017 dated August 11, 2017, it has been confirmed of dismissal

of Hoesen as a Director of the Company effective since July 20, 2017.

Ruang lingkup tugas dan tanggung jawab masing-masing direksi Perusahaan pada tanggal 31 Desember 2017 berdasarkan Surat Keputusan Direksi No. KD-41/038/DIR tanggal 27 November 2017 adalah sebagai berikut:

The scope of duties and responsibilities of the Company’s directors as of December 31, 2017 based on the Board of Directors’ Decision Letter No. KD-41/038/DIR dated November 27, 2017, are as follow:

Posisi/ Nama/ Tugas dan tanggung jawab/ Position Name Duties and responsibilities Direktur Utama/ Heru Djojo Adhiningrat Bertanggung jawab terhadap jalannya Perusahaan secara President Director keseluruhan dan mengkoordinasikan tugas dan wewenang

Direksi lainnya, serta secara langsung mensupervisi divisi corporate secretary, internal audit, legal, asset recovery & compliance, treasury, proprietary, institutional coverage & advisory, business development & change management, portofolio management & business sinergy, chief economist dan Danareksa Research Institute/Responsible to the Company’s operation as a whole and coordinate duties and authorities among Directors, and also to directly supervise corporate secretary, internal audit, legal, asset recovery & compliance, treasury, proprietary, institutional coverage & advisory, business development & change management, portofolio management & business sinergy, chief economist and Danareksa Research Institute .











12


b. Dewan Komisaris, Direksi, dan Komite Audit (lanjutan)

b. Boards of Commissioners and Directors, and Audit Committee (continued)

Posisi/ Nama/ Tugas dan tanggung jawab/ Position Name Duties and responsibilities Direktur/ Bondan Pristiwandana Membidangi fungsi pengelolaan risiko dan keuangan dan fungsi Director pendukung, dan secara langsung mensupervisi divisi risk

management & SOP, accounting & financial control, human capital, general affairs, purchasing & procurement dan treasury proprietary & finance operation/Overseeing risk management and finance function and support function, and directly supervise risk management & SOP, accounting & financial control, human capital, general affairs, purchasing & procurement and treasury, proprietary, & finance operation.

Besarnya kompensasi yang diberikan kepada

Dewan Komisaris dan Direksi Perusahaan untuk tahun yang berakhir pada tanggal 31 Desember 2017 dan 2016 (tidak diaudit) adalah sebagai berikut:

Total remuneration for Boards of Commissioners and Directors of the Company for the years then ended December 31, 2017 and 2016 (unaudited) are as follows:


2017 2016

Direksi 14.989.339 16.224.747 Directors Komisaris 4.275.786 5.834.428 Commisioners

Total imbalan kerja jangka pendek 19.265.125 22.059.175 Total short-term benefits

Susunan anggota Komite Audit pada tanggal

31 Desember 2017 dan 2016 adalah sebagai berikut:

As of December 31, 2017 and 2016, the members of the Audit Committee are as follows:

2017 2016

Komite Audit Audit Committe Ketua Dyah Kartika Rini Dyah Kartika Rini Chairman Anggota Imbuh Sulistyarini**) Harry Setiawan *) Member Anggota Djasriadi Djasriadi Member *) Efektif sejak 1 Juni 2016 *) Effective from June 1, 2016 **) Efektif sejak 22 Februari 2017 **) Effective from February 22, 2017











13


c. Struktur Entitas Anak c. Structure of Subsidiaries

Entitas anak yang tercakup dalam laporan keuangan konsolidasian pada tanggal 31 Desember 2017 dan 2016 adalah:

The subsidiaries included in the consolidated financial statements as of December 31, 2017 and 2016 are as follows:

Total aset dan persentase kepemilikan/ Total assets and percentage of ownership 31 Desember/ 31 Desember/ Entitas anak/ Domisili/ Bidang usaha/ December 31, December 31, Subsidiaries Domicile Line of business 2017 % 2016 %

Perusahaan/Company PT Danareksa Sekuritas Jakarta Perantara perdagangan efek dan penjamin emisi efek/ Securities brokerage and Underwriting 1.191.212.420 99,999 1.150.064.664 99,999 PT Danareksa Investment Pengelolaan dana/ Management Jakarta Funds management 206.376.783 99,997 190.891.161 99,997 PT Danareksa Finance Jakarta Pembiayaan/Multifinance 157.928.488 99,999 135.629.557 99,999 PT Danareksa Capital Jakarta Investasi/Investments 175.000.728 99,900 283.681.308 99,900

Seluruh entitas anak didirikan dan mulai beroperasi secara komersial pada tahun 1992 kecuali PT Danareksa Capital.

All the above Subsidiaries were incorporated and commenced their commercial operations in 1992, except for PT Danareksa Capital.

2. KEBIJAKAN AKUNTANSI 2. ACCOUNTING POLICIES

Kebijakan akuntansi utama yang ditetapkan dalam penyusunan laporan keuangan konsolidasian Perusahaan dan entitas anak selanjutnya disebut “Grup” adalah sebagai berikut:

The principal accounting policies applied in the preparation of the consolidated financial statement of the Company and subsidiaries hereinafter referred to as “Group” are as follows:

a. Dasar penyusunan laporan keuangan

konsolidasian a. Basis of preparation of consolidated

financial Statements

Pernyataan kepatuhan Statements of compliance

Laporan keuangan telah disusun sesuai dengan Standar Akuntansi Keuangan di Indonesia yang dikeluarkan oleh Dewan Standar Akuntansi Keuangan Ikatan Akuntan Indonesia (DSAK-IAI), peraturan Otoritas Jasa Keuangan (OJK) (dahulu Bapepam dan LK) untuk entitas yang berada di bawah pengawasannya, dan ketentuan akuntansi lainnya yang lazim berlaku di Pasar Modal.

The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards (“SAK”), issued by the Financial Accounting Standards Board of the Indonesian Institute of Accountants (DSAK-IAI), the Financial Services Authority (OJK) (formerly BAPEPAM-LK) regulation for entities under its supervision, and other accounting policies relevant to Capital Market.











14

2. KEBIJAKAN AKUNTANSI (lanjutan) 2. ACCOUNTING POLICIES (continued)

a. Dasar penyusunan laporan keuangan konsolidasian (lanjutan)

a. Basis of preparation of consolidated financial Statements (continued)

Pernyataan kepatuhan (lanjutan) Statements of compliance (continued)

Laporan keuangan konsolidasian, yang disajikan dalam ribuan Rupiah kecuali jika dinyatakan lain, telah disusun berdasarkan basis akrual menggunakan nilai historis, kecuali untuk beberapa akun tertentu yang disajikan berdasarkan penilaian lain seperti dijelaskan dalam kebijakan akuntansi masing-masing akun yang bersangkutan.

The consolidated financial statements, presented in thousands of Rupiah unless otherwise stated, have been prepared on the accrual basis using the historical cost concept, except for certain accounts which are presented on the basis of other measurements, as stated in the respective accounting policies of relevant accounts.

Laporan arus kas konsolidasian menyajikan penerimaan dan pengeluaran kas dan setara kas yang diklasifikasikan menjadi aktivitas operasi, investasi, dan pendanaan dengan menggunakan metode langsung.

The consolidated statement of cash flows present cash and cash equivalent receipts and payments classified into operating, investing, and financing activities using the direct method.

Mata uang pelaporan yang digunakan dalam

laporan keuangan konsolidasian adalah Rupiah, yang merupakan mata uang fungsional Grup. Angka-angka yang disajikan dalam laporan keuangan, kecuali bila dinyatakan secara khusus, adalah dibulatkan dalam ribuan Rupiah.

The reporting currency used in the consolidated financial statements is the Indonesian rupiah, which is the Group’s functional currency. Numbers presented in the financial statements, unless specifically stated, are rounded into thousands of Rupiah.

b. Penggunaan estimasi dan pertimbangan

akuntansi yang signifikan b. Use of judgements, estimates, and

assumptions

Penyusunan laporan keuangan konsolidasian Grup mengharuskan manajemen untuk membuat pertimbangan, estimasi, dan asumsi yang mempengaruhi jumlah yang dilaporkan dari pendapatan, beban, aset, dan liabilitas dan pengungkapan atas liabilitas kontinjensi, pada akhir periode pelaporan. Namun, ketidakpastian mengenai asumsi dan estimasi tersebut dapat mengakibatkan penyesuaian material terhadap nilai tercatat aset dan liabilitas dalam tahun berikutnya.

The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future years.











15


b. Penggunaan estimasi dan pertimbangan akuntansi yang signifikan (lanjutan)

b. Use of judgements, estimates, and assumptions (continued)

Pertimbangan, estimasi, dan asumsi signifikan

dalam menentukan jumlah yang diakui dalam laporan keuangan konsolidasian adalah sebagai berikut:

The judgements, estimates, and significant assumption in determining amount recorded in consolidated financial statements are as follow:

Penentuan nilai wajar dari aset keuangan dan

liabilitas keuangan Determination of fair values of financial assets and financial liabilities

Ketika nilai wajar dari aset keuangan dan

liabilitas keuangan dicatat dalam laporan posisi keuangan konsolidasian tidak dapat diambil dari pasar yang aktif, maka nilai wajarnya ditentukan dengan menggunakan teknik penilaian termasuk model discounted cash flow. Masukan untuk model tersebut dapat diambil dari pasar yang dapat diobservasi, tetapi apabila hal ini tidak dimungkinkan, sebuah tingkat pertimbangan disyaratkan dalam menetapkan nilai wajar. Pertimbangan tersebut mencakup penggunaan masukan seperti risiko likuiditas, risiko kredit, dan volatilitas. Perubahan dalam asumsi mengenai faktor-faktor tersebut dapat mempengaruhi nilai wajar dari instrumen keuangan yang dilaporkan.

When the fair value of financial assets and financial liabilities recorded in the consolidated statements of financial position cannot be derived from active markets, their fair value is determined using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. The judgment includes consideration of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Estimasi penyisihan untuk kerugian penurunan

nilai atas piutang Estimating allowance for impairment loss on receivables

Apabila terdapat bukti objektif bahwa rugi

penurunan nilai telah terjadi atas piutang (piutang usaha dan piutang-piutang lainnya, baik dari pihak ketiga maupun dari pihak berelasi), Grup mengestimasi penyisihan untuk kerugian penurunan nilai atas piutang yang secara khusus teridentifikasi diragukan pengembaliannya. Tingkat penyisihan ditelaah oleh manajemen berdasarkan faktor-faktor yang mempengaruhi tingkat tertagihnya piutang tersebut. Dalam kasus ini, Grup menggunakan pertimbangan berdasarkan fakta-fakta terbaik yang tersedia dan situasi-situasi, termasuk tetapi tidak terbatas pada, jangka lamanya hubungan Perusahaan dengan nasabah dan status kredit nasabah berdasarkan laporan dari pihak ketiga dan faktor-faktor pasar yang telah diketahui, untuk mengakui penyisihan spesifik untuk piutang tersebut sehingga menurunkan jumlah piutang ke jumlah yang diharapkan dapat ditagih. Penyisihan secara spesifik ini ditelaah dan disesuaikan jika terdapat informasi tambahan yang diterima yang mempengaruhi jumlah yang diestimasikan.

If there is an objective evidence that an impairment loss has been incurred on receivables (accounts receivable trade and others, both from third parties and related parties), the Group estimates the allowance for impairment losses related to its receivables that are specifically identified as doubtful for collection. The level of allowance is evaluated by management on the basis of factors that affect the collectibility of the receivables. In these cases, the Group uses judgement based on the best available facts and circumstances, including but not limited to, the length of the Company’s relationship with the customers and the customers’ credit status based on third party credit reports and known market factors, to record specific reserves for customers against amounts due in order to reduce the Company’s receivables to amounts that it expects to collect. These specific reserves are re-evaluated and adjusted as additional information received affects the amounts estimated.











16




Penurunan nilai investasi tersedia untuk dijual

dan dimiliki hingga jatuh tempo Impairment of available-for-sale and held-to-maturity investments

Grup menelaah efek utang dan ekuitas yang

diklasifikasikan sebagai tersedia untuk dijual dan dimiliki hingga jatuh tempo pada setiap tanggal laporan posisi keuangan konsolidasian untuk menilai apakah telah terjadi penurunan nilai. Penilaian tersebut memerlukan pertimbangan yang sama seperti yang diterapkan pada penilaian individu pada pinjaman yang diberikan dan piutang.

The Group reviews its debt and equity securities classified as available-for-sale and held-to-maturity investments at each consolidated statement of financial position date to assess whether they are impaired. This requires similar judgment as applied to the individual assessment of loans and receivables.

Kerugian penurunan nilai atas efek-efek yang

tersedia untuk dijual diakui dengan mengeluarkan kerugian kumulatif yang telah diakui secara langsung dalam ekuitas ke dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Jumlah kerugian kumulatif yang dikeluarkan dari ekuitas dan diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan selisih antara biaya perolehan (setelah dikurangi dengan nilai pelunasan pokok dan amortisasi) dengan nilai wajar kini, dikurangi kerugian penurunan nilai aset keuangan yang sebelumnya telah diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Impairment losses on available for sale securities are recognized by transferring the cumulative loss that has been recognized directly in equity to the consolidated statement of profit or loss and other comprehensive income. The cumulative loss that has been removed from equity and recognized in the consolidated statement of profit or loss and other comprehensive income is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss previously recognized in the consolidated statement of profit or loss and other comprehensive income..

Kerugian penurunan nilai yang diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian atas investasi instrumen ekuitas yang diklasifikasikan sebagai instrumen ekuitas yang tersedia untuk dijual tidak boleh dipulihkan melalui pembalikan atas penurunan nilai sebelumnya pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada tahun berjalan.

Impairment losses recognized in the consolidated statement of profit or loss and other comprehensive income on available for sale equity instruments should not be recovered through a reversal of a previously recognized impairment loss in the current year consolidated statement of profit or loss and other comprehensive income.

Jika pada periode berikutnya, nilai wajar instrumen utang yang diklasifikasikan dalam kelompok tersedia untuk dijual meningkat dan peningkatan tersebut dapat secara obyektif dihubungkan dengan peristiwa yang terjadi setelah pengakuan kerugian nilai pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian, maka kerugian penurunan nilai tersebut harus dipulihkan melalui laba rugi dan penghasilan komprehensif lain konsolidasian.

If in a subsequent period, the fair value of debt instrument classified as available for sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the consolidated statement of profit or loss and other comprehensive income, the impairment loss is recovered in the consolidated statement of profit or loss and other comprehensive income.











17





dan dimiliki hingga jatuh tempo (lanjutan) Impairment of available-for-sale and held-to-maturity investments (continued)

Jika persyaratan efek-efek yang dimiliki hingga

jatuh tempo dinegosiasi ulang atau dimodifikasi karena debitur atau penerbit mengalami kesulitan keuangan, maka penurunan nilai diukur dengan suku bunga efektif awal yang digunakan sebelum persyaratan diubah.

If the terms of held to maturity securities are renegotiated or otherwise modified because of financial difficulties of the debtor or issuer, impairment is measured using the initial effective interest rate before the modification of terms.

Jika pada suatu periode berikutnya, jumlah kerugian penurunan nilai berkurang dan pengurangan tersebut dapat dikaitkan secara obyektif pada peristiwa yang terjadi setelah penurunan nilai diakui (seperti meningkatnya peringkat debitur atau penerbit), maka kerugian penurunan nilai yang sebelumnya diakui harus dipulihkan, dengan menyesuaikan akun cadangan. Jumlah pemulihan aset keuangan diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada tahun berjalan.

If in the next period, the amount of allowance for impairment losses is decreased and the decrease can be related objectively to an event that occurred after the recognition of the impairment losses (e.g. debtor’s or issuer’s collectability upgrade), the impairment loss that was previously recognized has to be recovered, by adjusting the allowance account. The recovered amount of financial assets is recognized in the current year consolidated statement of profit or loss and other comprehensive income.

Penerimaan kembali atas aset keuangan yang

diberikan yang telah dihapusbukukan, pada tahun berjalan dikreditkan dengan menyesuaikan akun cadangan kerugian penurunan nilai. Penerimaan kembali atas aset keuangan yang telah dihapusbukukan pada tahun-tahun sebelumnya dicatat sebagai pendapatan operasional selain bunga.

The recoveries of written-off financial assets in the current year are credited by adjusting the allowance for impairment losses accounts. Recoveries of written-off loans from previous years are recorded as operating income other than interest income.

Penurunan nilai atas aset non-keuangan Impairment of non-financial assets

Grup melakukan penilaian atas penurunan nilai pada aset non-keuangan kapan saja terdapat peristiwa atau perubahan keadaan yang mengindikasikan bahwa nilai tercatat pada suatu aset mungkin tidak dapat diperoleh kembali. Faktor-faktor yang dianggap penting oleh Grup yang dapat memicu adanya alasan atas penurunan nilai termasuk sebagai berikut: · Kinerja dibawah rata-rata yang signifikan

yang relatif terhadap hasil historis atau proyeksi hasil operasi yang diharapkan di masa yang akan datang;

· Perubahan yang signifikan dari cara penggunaan aset yang diperoleh atau strategi untuk bisnis secara keseluruhan;

· Tren negatif industri dan ekonomi yang signifikan.

The Group assesses the impairment of non-financial assets when there is an event or changes in cirmcumtances which indicate that the carrying value of an asset cannot be recovered. Factors considered significant which could lead to the reason of impairment are as follow: · Significant below average performance

relative to historical result or operating result projection in the future;

· Significant changes on the use of assets acquired or business strategy as a whole;

· Significant negative trend in industry and

economy.











18





dan dimiliki hingga jatuh tempo (lanjutan) Impairment of available-for-sale and held-to-maturity investments (continued)

Klarifikasi aset keuangan dan liabilitas keuangan Impairment of non-financial assets

Grup menetapkan klasifikasi atas aset dan liabilitas tertentu sebagai aset keuangan dan liabilitas keuangan dengan mempertimbangkan kriteria dalam PSAK No. 55 (Revisi 2014). “Instrumen Keuangan: Pengakuan dan Pengukuran”. Aset keuangan dan liabilitas keuangan diakui sesuai dengan kebijakan akuntansi Perusahaan seperti diungkapkan pada Catatan 2e atau laporan keuangan.

The Group designated clasification of certain asset and liability by considering the criteria defined in PSAK No. 55 (Revised 2014). “Financial Instruments: Recognition and Measure”. Financial asset and financial liability are recognized in accordance with the Company’s accounting policy as disclosed in Note 2e to the financial statements.

Pajak penghasilan Income tax

Dalam situasi tertentu, Grup tidak dapat menentukan secara pasti jumlah liabilitas pajak mereka pada saat ini atau masa depan karena proses keberatan dan pemeriksaan dari otoritas perpajakan. Ketidakpastian timbul terkait dengan interpretasi dari peraturan perpajakan yang kompleks dan jumlah dan waktu dari penghasilan kena pajak di masa depan. Dalam menentukan jumlah yang harus diakui terkait dengan liabilitas pajak yang tidak pasti, Grup menerapkan pertimbangan yang sama yang akan mereka gunakan dalam menentukan jumlah penyisihan yang harus diakui sesuai dengan Pernyataan Standar Akuntansi Keuangan (PSAK) No. 57, “Provisi, Liabilitas Kontinjensi, dan Aset Kontinjensi”. Grup membuat analisa untuk semua posisi pajak terkait dengan pajak penghasilan untuk menentukan jika liabilitas pajak untuk beban yang belum diakui harus diakui.

In certain circumstances, the Group may not be able to determine the exact amount of its current or future tax liabilities due to ongoing objections and investigations by the taxation authority. Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. In determining the amount to be recognized in respect of an uncertain tax liability, the Group applies similar considerations as it would use in determining the amount of a provision to be recognized in accordance with PSAK No. 57, “Provisions, Contingent Liabilities and Contingent Asset”. The Group makes an analysis of all tax positions related to income taxes to determine if a tax liability for unrecognized tax expense should be recognized.

Grup mencatat bunga dan denda untuk

kekurangan pembayaran pajak penghasilan, jika ada, dalam Penghasilan (Beban) Lain-lain sebagai bagian dari “Lain-lain - bersih” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

The Group presents interest and penalties for the underpayment of income tax, if any, under other income (expenses) as part of “Others - net” in the consolidated statements of profit or loss and other comprehensive income.











19




Realisasi dari aset pajak tangguhan Realization of deferred tax assets Grup melakukan penelaahan atas nilai tercatat

aset pajak tangguhan pada setiap akhir periode pelaporan dan mengurangi nilai tersebut sampai sebesar kemungkinan aset tersebut tidak dapat direalisasikan, dimana penghasilan kena pajak yang tersedia memungkinkan untuk penggunaan seluruh atau sebagian dari aset pajak tangguhan tersebut. Penelaahan Grup atas pengakuan aset pajak tangguhan untuk perbedaan temporer yang dapat dikurangkan didasarkan atas tingkat dan waktu dari penghasilan kena pajak yang ditaksirkan untuk periode pelaporan berikutnya. Taksiran ini berdasarkan hasil pencapaian Perusahaan di masa lalu dan ekspektasi di masa depan terhadap pendapatan dan beban, sebagaimana juga dengan strategi perencanaan perpajakan di masa depan. Tetapi tidak terdapat kepastian bahwa Perusahaan dapat menghasilkan penghasilan kena pajak yang cukup untuk memungkinkan penggunaan sebagian atau seluruh bagian dari aset pajak tangguhan tersebut.

The Group reviews the carrying amounts of deferred income tax assets at the end of each reporting period and reduces these to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred income tax assets to be utilized. The Group’s assessment on the recognition of deferred income tax assets on deductible temporary differences is based on the level and timing of forecasted taxable income of the subsequent reporting periods. This forecast is based on the Company’s past results and future expectations on revenues and expenses as well as future tax planning strategies. However, there is no assurance that the Company will generate sufficient taxable income to allow all or part of the deferred income tax assets to be utilized.

Liabilitas imbalan kerja karyawan Liability for employee service entitlements

Liabilitas imbalan kerja karyawan ditentukan

berdasarkan perhitungan dari aktuaria. Perhitungan aktuaria menggunakan asumsi-asumsi seperti tingkat diskonto, tingkat pengembalian investasi, tingkat kenaikan gaji, tingkat kematian, tingkat pengunduran diri, dan lain-lain. Dikarenakan kompleksitas dari penilaian, dasar asumsi, dan periode jangka panjang, kewajiban manfaat pasti sangat sensitif terhadap perubahan asumsi. Grup percaya bahwa asumsi yang digunakan adalah memadai dan tepat, perbedaan signifikan dalam pengalaman aktual Grup atau perubahan signifikan dalam asumsi dapat mempengaruhi secara material beban dan penyisihan imbalan kerja karyawan. Semua asumsi ditelaah pada setiap tanggal pelaporan.

The liability for employee service entitlements is determined based on actuary valuation. Actuarial valuation includes making various assumptions which consist of among other things, discount rates, expected rates of return on plan assets, rates of compensation increases and mortality rates. Due to the complexity of the valuation, the underlying assumptions and their long-term nature, a defined benefit obligation is highly sensitive to changes in assumptions. While the Group believes that the assumptions used are reasonable and appropriate, significant differences in the Group’s actual experience or significant changes in its assumptions may materially affect the costs and obligations of pension and other long-term employee benefits. All assumptions are reviewed at each reporting date.











20


c. Prinsip-prinsip konsolidasian c. Principles of consolidation

Laporan keuangan konsolidasian meliputi laporan keuangan Perusahaan beserta entitas yang berada dibawah pengendalian Perusahaan.

The consolidated financial statements include the financial statements of the Group and entities that are controlled by the Company.

Perusahaan memiliki penyertaan di berbagai reksa dana yang dikelola oleh Perusahaan. Persentase kepemilikan Perusahaan di berbagai reksa dana tersebut berfluktuasi dari hari ke hari tergantung penyertaan Perusahaan di reksa dana tersebut. Dalam hal Perusahaan mengendalikan suatu reksa dana, reksa dana tersebut dikonsolidasikan. Pengendalian dianggap ada apabila Perusahaan dapat menentukan kebijakan keuangan dan operasi reksa dana tersebut.

The Company has investments in various mutual funds managed by the Company. The Company’s percentage ownership in various mutual funds can fluctuate from day to day according to the Company’s participation in them. Where the Company controls a mutual fund, the mutual fund is consolidated. Control is achieved where the Company can govern the financial and operating policies of the mutual fund.

Seluruh saldo dan transaksi yang signifikan termasuk keuntungan/kerugian yang belum direalisasi antar entitas, dieliminasi untuk mencerminkan posisi keuangan dan hasil usaha Perusahaan dan entitas yang dikonsolidasikan sebagai satu kesatuan usaha.

All significant balances and transactions, including unrealized gain/loss among entites, are eliminated to reflect the financial position and results of operations of the Company and its consolidated entities as one business entity.

Laporan keuangan konsolidasian disusun dengan menggunakan kebijakan akuntansi yang sama untuk peristiwa dan transaksi sejenis dalam kondisi yang sama. Kebijakan akuntansi utama yang digunakan dalam penyusunan laporan keuangan konsolidasian, telah diterapkan secara konsisten oleh entitas yang dikonsolidasikan, kecuali dinyatakan lain.

The consolidated financial statements are prepared using the uniformed accounting policy for similar transactions and events in similar circumstances. The principal accounting policies adopted in preparing the consolidated financial statements have been consistently applied by the consolidated entities, unless otherwise stated.

d. Transaksi dan saldo dalam mata uang asing d. Foreign currency transactions and balances

Grup menyelenggarakan catatan akuntansinya dalam mata uang Rupiah. Transaksi dalam mata uang selain Rupiah dicatat menggunakan kurs yang berlaku pada tanggal transaksi.

The Group maintains its accounting records in Rupiah. Transactions in currencies other than Rupiah are recorded at the prevailing rates of exchange in effect on the date of the transactions.

Pada tanggal laporan posisi keuangan konsolidasian, aset dan liabilitas moneter dalam mata uang asing dijabarkan ke dalam mata uang Rupiah dengan menggunakan kurs spot Reuters pada pukul 16.00 WIB (Waktu Indonesia bagian Barat). Keuntungan atau kerugian selisih kurs yang terjadi diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

As of the consolidated statements of financial position dates, all foreign currency monetary assets and liabilities are translated into Rupiah using the Reuters spot rate at 16.00 Western Indonesian Time. The resulting net foreign exchange gains or losses are recognized in the current year’s consolidated statement of profit or loss and other comprehensive income.











21


d. Transaksi dan saldo dalam mata uang asing (lanjutan)

d. Foreign currency transactions and balances (continued)

Kurs yang digunakan pada tanggal 31 Desember 2017 dan 2016 adalah sebagai berikut:

The exchange rates used as of December 31, 2017 and 2016 were as follows:

31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Dolar Amerika Serikat 13.567,50 13.472,50 United States Dollar Yen Jepang 120,54 115,07 Japanese Yen Euro Eropa 16.239,62 14.175,77 European Euro Dolar Singapura 10.154,93 9.312,57 Singapore Dollar Dolar Australia 10.549,19 9.732,11 Australian Dollar Dolar Hongkong 1.736,21 1.737,34 Hongkong Dollar Poundsterling Inggris 18.325,62 16.555,01 Great Britain Poundsterling

e. Aset dan liabilitas keuangan e. Financial assets and liabilities

Grup telah menerapkan Pernyataan Standar Akuntansi Keuangan (“PSAK”) No. 50 (Revisi 2014). “Instrumen Keuangan: Penyajian”, PSAK No. 55 (Revisi 2014), “Instrumen Keuangan: Pengakuan dan Pengukuran”, dan PSAK No. 68, “Pengukuran Nilai Wajar”.

The Group have implemented Statement of Financial Accounting Standards (“PSAK”) No. 50 (Revised 2014) “Financial Instruments: Presentation”, PSAK No. 55 (Revised 2014), “Financial Instruments: Recognition and Measurement”, and PSAK No. 68, “Fair Value Measurement”.

(i) Aset keuangan (i) Financial assets

Pengakuan awal Initial recognition

Aset keuangan diklasifikasikan sebagai aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi, pinjaman yang diberikan dan piutang, investasi dimiliki hingga jatuh tempo, dan aset keuangan tersedia untuk dijual. Grup menentukan klasifikasi atas aset keuangan pada saat pengakuan awal.

Financial assets are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The Group determines the classification of its financial assets at initial recognition.

Pembelian atau penjualan aset keuangan yang memerlukan penyerahan aset dalam jangka waktu yang telah ditetapkan oleh peraturan dan kebiasan yang berlaku di pasar (pembelian secara reguler) diakui pada tanggal perdagangan, yaitu tanggal perusahaan berkomitmen untuk membeli atau menjual aset.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way purchases) are recognized on the trade date, i.e., the date that the companies commit to purchase or sell the assets.











22


e. Aset dan liabilitas keuangan (lanjutan) e. Financial assets and liabilities (continued)

(i) Aset keuangan (lanjutan) (i) Financial assets (continued)

Pengakuan awal (lanjutan) Initial recognition (continued)

Klasifikasi aset keuangan pada pengakuan awal tergantung pada tujuan dan intensi manajemen atas aset keuangan yang diperoleh, serta karakteristik dari aset keuangan tersebut. Semua aset keuangan pada saat pengakuan awal diukur sebesar nilai wajarnya ditambah biaya transaksi, kecuali untuk aset keuangan yang dicatat pada nilai wajar melalui laporan laba rugi, dimana biaya transaksi diakui langsung dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

The classification of financial assets at initial recognition depends on the purpose and the management's intention for which the financial assets were acquired and their characteristics. All financial assets are measured initially at their fair value plus transaction costs, except in the case of financial assets recorded at fair value through profit or loss, transaction costs are charged directly to the consolidated statement of profit or loss and other comprehensive income in the current period.

Pengukuran setelah pengakuan awal Subsequent measurement

Pengukuran aset keuangan setelah pengakuan awal tergantung pada klasifikasi aset keuangan sebagai berikut:

The subsequent measurement of financial assets depends on their classification as follows:

· Aset keuangan yang ditetapkan pada

nilai wajar melalui laporan laba rugi · Financial assets designated at fair value

through profit or loss

Manajemen telah menetapkan aset keuangan pada nilai wajar melalui laporan laba rugi berdasarkan kriteria berikut:

Management has designated financial assets at fair value through profit or loss in the following criteria:

- Penetapan tersebut mengeliminasi atau mengurangi secara signifikan ketidakkonsistenan perlakuan yang dapat timbul dari pengukuran aset atau pengakuan keuntungan atau kerugian atas aset tersebut karena penggunaan dasar yang berbeda;

- The designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or recognizing gains or losses on them on a different basis;

- Kelompok aset keuangan yang dikelola, dievaluasi, dan diinformasikan secara internal berdasarkan nilai wajar;

- The group of financial assets are managed, evaluated, and reported internally on a fair value basis;

- Aset keuangan memiliki satu atau lebih derivatif melekat yang secara signifikan mengubah arus kas yang diperlukan sesuai kontrak.

- The financial asset contains one or more embedded derivatives which significantly modify the cash flows that otherwise would be required by the contract.

Aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi disajikan sebesar nilai wajarnya. Keuntungan atau kerugian yang belum direalisasi akibat perubahan nilai wajar aset keuangan diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Financial assets designated at fair value through profit or loss presented at fair value. Unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities measured at fair value through profit or loss are included in the consolidated statement of profit or loss and other comprehensive income.











23




Pengukuran setelah pengakuan awal (lanjutan)

Subsequent measurement (continued)

· Aset keuangan tersedia untuk dijual · Available-for-sale financial assets

Aset keuangan tersedia untuk dijual adalah aset keuangan non-derivatif yang tidak diklasifikasikan sebagai pinjaman yang diberikan dan piutang, investasi dimiliki hingga jatuh tempo, atau aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi. Setelah pengukuran awal, aset keuangan tersedia untuk dijual diukur sebesar nilai wajar melalui laporan laba rugi. Keuntungan atau kerugian yang belum direalisasi diakui langsung dalam ekuitas (penghasilan komprehensif lain) sebagai “Keuntungan (kerugian) yang belum direalisasi dari kenaikan (penurunan) nilai wajar efek yang tersedia untuk dijual”.

Available-for-sale financial assets are non-derivative financial assets that are not classified as loans and receivables, held-to-maturity investments, or financial assets at fair value through profit or loss. After initial measurement, available-for-sale financial assets are measured at fair value. Unrealized gains or losses are recognized directly in equity (other comprehensive income) in the “Unrealized gains (losses) from changes in fair value of available-for-sale marketable securities”.

Kerugian kumulatif yang sebelumnya diakui pada ekuitas juga direklasifikasikan ke dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada saat penurunan nilai.

Cumulative loss previously recognized in equity shall also be reclassified to consolidated statement of profit or loss and other comprehensive income at the time of impairment.

· Aset keuangan dimiliki hingga jatuh

tempo · Held-to-maturity financial assets

Aset keuangan yang diklasifikasikan sebagai dimiliki hingga jatuh tempo adalah aset keuangan non-derivatif dengan pembayaran tetap atau telah ditentukan dan jatuh temponya telah ditetapkan, dimana Grup mempunyai intensi positif dan kemampuan untuk memiliki aset keuangan tersebut hingga jatuh tempo.

Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and fixed maturities, which the Group has the positive intention and ability to hold until maturity.

Setelah pengukuran awal, aset keuangan yang diklasifikasikan sebagai dimiliki hingga jatuh tempo diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif, dikurangi dengan penurunan nilai.

After initial measurement, held-to-maturity financial assets are measured at amortized cost using the effective interest rate method, less impairment.











24






· Aset keuangan dimiliki hingga jatuh

tempo (lanjutan) · Held-to-maturity financial assets

(continued)

Biaya perolehan diamortisasi dihitung dengan memperhitungkan diskonto atau premi pada saat akuisisi dan biaya transaksi yang merupakan bagian tidak terpisahkan dari suku bunga efektif. Amortisasi dan penurunan nilai dari aset keuangan yang dimiliki hingga jatuh tempo diakui dalam laporan laba rugi dan penghasilan komprehensif Lain konsolidasian.

Amortized cost is calculated by taking into account any discount or premium on acquisition and transaction costs that are an integral part of the effective interest rate. The amortization and impairment losses of held-to-maturity financial assets are recognized in the consolidated statement of profit or loss and other comprehensive income.

· Pinjaman yang diberikan dan piutang · Loans and receivables

Pinjaman yang diberikan dan piutang adalah aset keuangan non-derivatif dengan pembayaran tetap atau telah ditentukan dan tidak mempunyai kuotasi di pasar aktif, kecuali: - yang dimaksudkan untuk dijual dalam

waktu dekat yang diklasifikasikan dalam kelompok untuk diperdagangkan dan yang pada saat pengakuan awal ditetapkan sebagai aset keuangan yang diukur pada nilai wajar melalui laporan laba rugi;

- yang pada saat pengakuan awal ditetapkan sebagai tersedia untuk dijual; atau

- dalam hal Perusahaan mungkin tidak akan memperoleh kembali investasi awal secara substansial kecuali yang disebabkan oleh penurunan kualitas pinjaman yang diberikan dan piutang.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than: - those that the Company intends to

sell immediately or in the near term which are classified as held-for-trading and those that, upon initial recognition, are designated as at fair value through profit or loss;

- those that, upon initial recognition, are

designated as available-for-sale; or - those for which the Company may not

recover substantially all of the initial investment, other than because of credit deterioration.











25






· Pinjaman yang diberikan dan piutang

(lanjutan) · Loans and receivables (continued)

Setelah pengukuran awal, pinjaman yang diberikan dan piutang diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif, dikurangi dengan penurunan nilai. Biaya perolehan diamortisasi dihitung dengan memperhitungkan diskonto atau premi pada saat akuisisi dan biaya transaksi yang merupakan bagian tidak terpisahkan dari suku bunga efektif. Amortisasi dan penurunan nilai dari pinjaman yang diberikan dan piutang diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

After initial measurement, loans and receivables are measured at amortized cost using the effective interest rate method, less impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and transaction cost that are an integral part of the effective interest rate. The amortization and impairment of loans and receivables are recognized in the consolidated statement of profit or loss and other comprehensive income.

(ii) Liabilitas keuangan (ii) Financial liabilities

Pengakuan awal Initial recognition

Liabilitas keuangan diklasifikasikan sebagai liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi dan liabilitas yang diukur pada biaya perolehan diamortisasi. Grup menentukan klasifikasi atas liabilitas keuangan pada saat pengakuan awal.

Financial liabilities are classified as financial liabilities at fair value through profit or loss and liabilities measured at amortized cost. The Group determines the classification of its financial liabilities at initial recognition.

Semua liabilitas keuangan pada saat pengakuan awal diukur sebesar nilai wajarnya dikurangi biaya transaksi, kecuali untuk liabilitas keuangan yang dicatat pada nilai wajar melalui laporan laba rugi, dimana biaya transaksi diakui langsung dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

All financial liabilities are measured initially at their fair value less transaction costs, except in the case of financial liabilities recorded at fair value through profit or loss, transaction costs are charged directly to the consolidated statement of profit or loss and other comprehensive income in the current period.











26



(ii) Liabilitas keuangan (lanjutan) (ii) Financial liabilities (continued)

Pengukuran setelah pengakuan awal Subsequent measurement

Pengukuran liabilitas keuangan setelah pengakuan awal tergantung pada klasifikasi liabilitas keuangan sebagai berikut:

The subsequent measurement of financial liabilities depends on their classification as follows:

· Liabilitas keuangan yang diukur pada

nilai wajar melalui laporan laba rugi · Financial liabilities at fair value through

profit or loss

Liabilitas keuangan yang ditetapkan pada nilai wajar melalui laporan laba rugi adalah liabilitas keuangan yang ditetapkan oleh manajemen pada saat pengakuan awal dan liabilitas keuangan yang diklasifikasikan ke dalam kelompok untuk diperdagangkan. Liabilitas keuangan yang diklasifikasikan ke dalam kelompok untuk diperdagangkan adalah liabilitas keuangan yang diperoleh atau dimiliki terutama untuk tujuan dijual dalam waktu dekat. Liabilitas derivatif juga diklasifikasikan dalam kelompok diperdagangkan kecuali derivatif yang ditetapkan sebagai instrumen lindung nilai yang efektif.

Financial liabilities at fair value through profit or loss are those that have been designated by management on initial recognition and those classified as held for trading. Held for trading financial liabilities are those which have been acquired or incurred principally for the purpose of selling in the near term. Derivative liabilities are also classified as held-for-trading unless they are designated as effective hedging instruments.

Liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi disajikan sebesar nilai wajarnya. Keuntungan atau kerugian yang belum direalisasi akibat perubahan nilai wajar liabilitas keuangan diakui dalam laporan laba rugi dan penghasilan Komprehensif lain konsolidasian.

Financial liabilities designated at fair value through profit or loss are stated at fair value. The unrealized gains or losses resulting from changes in fair value are recognized in the consolidated statement of profit or loss and other comprehensive income.

· Liabilitas yang diukur pada biaya

perolehan diamortisasi · Liabilities measured at amortized cost

Setelah pengukuran awal, liabilitas diukur pada biaya perolehan diamortisasi dengan menggunakan metode suku bunga efektif. Biaya perolehan diamortisasi dihitung dengan memperhitungkan diskonto atau premi pada saat akuisisi dan biaya transaksi yang merupakan bagian tidak terpisahkan dari suku bunga efektif. Amortisasi diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

After initial measurement, liabilities are measured at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any discount or premium on acquisition and transaction cost that are an integral part of the effective interest rate. The amortization is recognized in the consolidated statement of profit or loss and other comprehensive income.











27



(ii) Liabilitas keuangan (lanjutan) (ii) Financial liabilities (continued)

Tabel berikut menyajikan klasifikasi instrumen keuangan Grup berdasarkan karakteristik dari instrumen keuangan tersebut:

The following table presents classification of financial instruments of the Group based on characteristic of those financial instruments:

Instrumen keuangan Klasifikasi/Classification Financial instruments

Aset keuangan: Financial assets:

Kas dan setara kas Pinjaman yang diberikan dan piutang/

Loans and receivables Cash and cash equivalents

Portofolio efek

Aset keuangan diukur pada nilai wajar melalui laporan laba rugi, aset keuangan tersedia untuk dijual, dan

dimiliki hingga jatuh tempo/ Financial assets at fair value through profit or loss,

available-for-sale financial assets, and held-to-maturity Marketable securities

Piutang usaha

Aset keuangan diukur pada nilai wajar melalui laporan laba rugi dan pinjaman yang diberikan dan piutang/

Financial assets designated at fair value through profit or loss and loans and receivables Account receivables

Piutang kegiatan perantara perdagangan efek

Pinjaman yang diberikan dan piutang/ Loans and receivables

Brokerage activities receivables

Piutang kegiatan manajemen investasi


Investment management activities receivables

Piutang kegiatan pembiayaan


Financing activities receivables

Piutang lain-lain Pinjaman yang diberikan dan piutang/

Loans and receivables Other receivables

Liabilitas keuangan: Financial liabilities:

Utang kegiatan perantara dan perdagangan efek

Liabilitas yang diukur pada biaya perolehan diamortisasi/Liabilities measured at amortized cost Brokerage activities payables

Utang usaha

Liabilitas keuangan yang diukur pada nilai wajar melalui laporan laba rugi/Financial liabilities designated at fair

value through profit or loss Account payables

Utang kegiatan manajemen investasi

Liabilitas yang diukur pada biaya perolehan diamortisasi/Liabilities measured at amortized cost

Investment management activities payables

Pinjaman bank

Liabilitas yang diukur pada biaya perolehan diamortisasi/Liabilities measured at amortized cost Bank loans

Medium-Term Notes Liabilitas yang diukur pada biaya perolehan

diamortisasi/Liabilities measured at amortized cost Medium-Term Notes

Efek-efek yang diterbitkan Liabilitas yang diukur pada biaya perolehan

diamortisasi/Liabilities measured at amortized cost Bonds issued

Utang lain-lain Liabilitas yang diukur pada biaya perolehan

diamortisasi/Liabilities measured at amortized cost Other payables

Bunga masih harus dibayar Liabilitas yang diukur pada biaya perolehan

diamortisasi/Liabilities measured at amortized cost Accured interest payables











28



Penghentian pengakuan Derecognition

Perusahaan menghentikan pengakuan aset keuangan, jika dan hanya jika, hak kontraktual untuk menerima arus kas yang berasal dari aset keuangan tersebut berakhir atau Perusahaan mengalihkan hak untuk menerima arus kas yang berasal dari aset keuangan atau menanggung Liabilitas untuk membayarkan arus kas yang diterima tersebut secara penuh tanpa penundaan yang signifikan kepada pihak ketiga berdasarkan kesepakatan pelepasan (pass-through arrangement) dan (i) Perusahaan telah mengalihkan secara substansial seluruh risiko dan manfaat atas aset atau (ii) Perusahaan tidak mengalihkan maupun tidak memiliki secara substansial seluruh risiko dan manfaat atas aset, namun telah mengalihkan pengendalian atas aset tersebut.

The Company derecognizes a financial asset if, and only if, the contractual rights to receive cash flows from the financial asset have expired or the Company has transferred its rights to receive cash flows from the financial asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement and either (i) the Company has transferred substantially all the risks and rewards of the asset or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Jika Grup mengalihkan hak untuk menerima arus kas yang berasal dari suatu aset keuangan atau melakukan kesepakatan pelepasan dan tidak mengalihkan atau tidak memiliki secara substansial seluruh risiko dan manfaat atas aset tersebut, atau tidak mengalihkan pengendalian atas aset tersebut, aset diakui sebesar keterlibatan berkelanjutan Grup atas aset tersebut. Dalam hal ini, Grup juga mengakui Liabilitas terkait. Aset yang dialihkan dan Liabilitas terkait diukur dengan dasar yang mencerminkan hak dan kewajiban yang masih dimiliki Grup.

When the Group has transferred its rights to receive cash flows from a financial asset or has entered into a pass-through arrangement and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Grup has retained.

Pinjaman yang diberikan dan piutang dihapusbukukan ketika tidak terdapat prospek yang realistis mengenai pengembalian pinjaman atau hubungan normal antara Grup dan debitur telah berakhir. Pinjaman yang tidak dapat dilunasi tersebut dihapusbukukan dengan mendebit cadangan kerugian penurunan nilai.

Loans and receivables are written-off when there is no realistic prospect of collection in the near future or the normal relationship between the Group and the borrowers has ceased to exist. When a loan is deemed uncollectible, it is written-off against the related allowance for impairment losses.

Liabilitas keuangan dihentikan pengakuannya pada saat liabilitas dihentikan atau dibatalkan atau berakhir.

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired.











29



Penghentian pengakuan (lanjutan) Derecognition (continued)

Jika suatu liabilitas keuangan yang ada digantikan dengan liabilitas yang lain oleh pemberi pinjaman yang sama pada keadaan yang secara substansial berbeda, atau berdasarkan suatu liabilitas yang ada yang secara substansial telah diubah, maka pertukaran atau modifikasi tersebut diperlakukan sebagai penghentian pengakuan liabilitas awal dan pengakuan liabilitas baru, dan perbedaan nilai tercatat masing-masing diakui dalam laporan laba rugi dan penghasilan komprehensif lain.

Where an existing financial liability is replaced by another liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as derecognition of the original liability, and the difference in the respective carrying amounts is recognized in the profit or loss and other comprehensive income.

Saling hapus

Offsetting

Aset keuangan dan liabilitas keuangan saling hapus dan nilai bersihnya disajikan dalam laporan posisi keuangan konsolidasian jika, dan hanya jika, saat ini terdapat hak yang berkekuatan hukum untuk melakukan saling hapus jumlah yang telah diakui tersebut dan terdapat intensi untuk menyelesaikan secara neto atau untuk merealisasikan aset dan menyelesaikan liabilitas secara simultan.

Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

Hal yang berkekuatan hukum harus tidak kontinjen atas peristiwa di masa depan dan harus dapat dipaksakan di dalam situasi bisnis yang normal, peristiwa kegagalan atau kebangkrutan dari entitas atas seluruh pihak lawan.

The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

Pendapatan dan beban disajikan dalam jumlah neto hanya jika diperkenankan oleh standar akutansi.

Income and expenses are presented on a net basis only when permitted by the accounting standards.

Penentuan nilai wajar Determination of fair value Nilai wajar adalah harga yang akan diterima untuk menjual suatu aset atau harga yang akan dibayar untuk mengalihkan suatu liabilitas dalam transaksi teratur di pasar utama (atau pasar yang paling menguntungkan) pada tanggal pengukuran dalam kondisi pasar saat ini (yaitu harga keluar) terlepas apakah harga tersebut dapat diobservasi secara langsung atau diestimasi menggunakan teknik penilaian lain.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (in an exit price) regardless of whether that price is direcly observable or estimated using another valuation technique.











30



Penentuan nilai wajar (lanjutan) Determination of fair value (continued) Nilai wajar suatu aset atau liabilitas keuangan dapat diukur dengan menggunakan kuotasi di pasar aktif, yaitu harga yang dikuotasikan tersedia setiap waktu dan dapat diperoleh secara rutin dan harga tersebut mencerminkan transaksi pasar yang aktual dan rutin dalam suatu transaksi yang wajar.

Fair value of a financial asset or liability can be measured by using the quotation in an active market, that is if the quoted price is available anytime and can be obtained routinely and the price reflects the actual and regularly occurring market transaction on an arm’s length basis.

Dalam hal tidak terdapat pasar aktif untuk suatu aset atau liabilitas keuangan, Grup menentukan nilai wajar dengan menggunakan teknik penilaian yang sesuai. Teknik penilaian meliputi penggunaan transaksi pasar terkini yang dilakukan secara wajar oleh pihak yang berkeinginan dan memahami, dan apabila tersedia, analisa arus kas yang didiskonto dan referensi atas nilai wajar terkini dari instrumen lain yang secara substansial sama.

In case there is no active market for a financial asset or liability, the Group determines the fair value by using the appropriate valuation techniques. Valuation techniques include using a recent market transaction performed on an arm’s length basis between willing and knowledgeable parties, and if available, discounted cash flows analysis and reference to the recent fair value of another instrument which is substantially the same.

Reklasifikasi instrumen keuangan Grup tidak diperkenankan untuk mereklasifikasi instrumen keuangan dari atau ke klasifikasi yang diukur pada nilai wajar melalui laporan laba rugi selama instrumen keuangan tersebut dimiliki atau diterbitkan.

Reclassification of financial instruments The Group shall not reclassify any financial instrument out of or into the fair value through profit or loss classification while it is held or issued.

Jika terjadi penjualan atau reklasifikasi aset keuangan dari kelompok dimiliki hingga jatuh tempo dalam jumlah yang lebih dari jumlah yang tidak signifikan sebelum jatuh tempo yang tidak memenuhi kriteria tertentu, maka seluruh aset keuangan yang dimiliki hingga jatuh tempo harus direklasifikasi menjadi aset keuangan yang tersedia untuk dijual. Selanjutnya, Grup tidak diperkenankan mengklasifikasi aset keuangan sebagai aset keuangan yang dimiliki hingga jatuh tempo selama dua tahun berikutnya.

If there is a sale or reclassification of held-to-maturity financial asset for more than an insignificant amount before maturity, the entire held-to-maturity financial assets will have to be reclassified as available-for-sale financial assets. Subsequently, the Group is not allowed to classifiy financial asset as held-to-maturity during the following two years.

Reklasifikasi aset keuangan dari kelompok yang dimiliki hingga jatuh tempo ke kelompok tersedia untuk dijual dicatat sebesar nilai wajar. Keuntungan atau kerugian yang belum direalisasi diakui dalam ekuitas (penghasilan komprehensif lain) sampai aset keuangan tersebut dihentikan pengakuannya dan pada saat itu keuntungan atau kerugian kumulatif yang sebelumnya diakui dalam ekuitas diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

Reclassification of held-to-maturity financial asset to available-for-sale is recorded at fair value. The unrealized gain or loss is recognized in equity (other comprehensive income) until the financial assets are being derecognized, at which time the cumulative gain or loss previously recognized in equity shall be recognized in the consolidated statement of profit or loss and other comprehensive income.











31



Penurunan nilai aset keuangan Impairment of financial assets Pada setiap tanggal laporan posisi keuangan konsolidasian, Grup mengevaluasi apakah terdapat bukti obyektif bahwa aset keuangan atau kelompok aset keuangan mengalami penurunan nilai.

The Group assesses whether there is any objective evidence that a financial asset or a group of financial assets is impaired at each consolidated statement of financial position date.

Aset keuangan atau kelompok aset keuangan diturunkan nilainya dan kerugian penurunan nilai telah terjadi jika, dan hanya jika, terdapat bukti obyektif mengenai penurunan nilai tersebut sebagai akibat dari satu atau lebih peristiwa yang terjadi setelah pengakuan awal aset tersebut (peristiwa yang merugikan), yang berdampak pada estimasi arus kas masa depan atas aset keuangan atau kelompok aset keuangan yang dapat diestimasi secara handal.

A financial asset or a group of financial assets is deemed to be impaired and the value is reduced if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) which has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated.

Bukti obyektif penurunan nilai meliputi indikasi kesulitan keuangan signifikan yang dialami penerbit atau nasabah, wanprestasi atau tunggakan pembayaran pokok atau bunga, restrukturisasi piutang dengan persyaratan yang tidak mungkin diberikan jika nasabah tidak mengalami kesulitan keuangan, kemungkinan bahwa nasabah akan dinyatakan pailit atau melakukan reorganisasi keuangan lainnya, dan data yang dapat diobservasi mengindikasikan adanya penurunan yang dapat diukur atas estimasi arus kas masa datang, terkait dengan kelompok aset keuangan seperti memburuknya status pembayaran nasabah atau penerbit dalam kelompok tersebut atau kondisi ekonomi yang berkorelasi dengan wanprestasi atas aset dalam kelompok tersebut.

Evidence of impairment may include indications that the customers or issuers are experiencing significant financial difficulty, default or delinquency in interest or principal payments, receivable restructuring with terms that may not be applied if the customer is not experiencing financial difficulty, the probability that the customer will enter bankruptcy or other financial reorganization, and observable data indicate that there is a measurable decrease in the estimated future cash flows relating to a group of assets such as adverse changes in the payment status of the debtor or issuer in the group or economic conditions that correlate with defaults in the asset in such group.

Untuk investasi ekuitas diklasifikasikan sebagai aset keuangan tersedia untuk dijual, bukti obyektif termasuk penurunan nilai wajar yang signifikan dan berkepanjangan dibawah nilai perolehan investasi tersebut.

In the case of equity investment classified as available-for-sale financial asset, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost.

Jika terdapat bukti obyektif bahwa penurunan nilai telah terjadi, jumlah kerugian diukur sebagai selisih antara nilai tercatat aset dan nilai kini dari estimasi arus kas masa datang (tidak termasuk kerugian kredit di masa datang yang belum terjadi) yang didiskonto menggunakan suku bunga efektif awal dari aset keuangan tersebut.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred) discounted using the financial asset’s original effective interest rate.











32

2. KEBIJAKAN AKUNTANSI (lanjutan)

2. ACCOUNTING POLICIES (continued)


Penurunan nilai aset keuangan (lanjutan) Impairment of financial assets (continued)

Nilai tercatat aset keuangan diturunkan melalui akun penyisihan dan jumlah kerugian yang terjadi diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Pendapatan bunga tetap diakui atas nilai tercatat yang telah diturunkan tersebut berdasarkan tingkat suku bunga efektif awal yang digunakan untuk mendiskonto arus kas masa datang dari aset tersebut. Jika pada periode berikutnya, jumlah estimasi kerugian penurunan nilai meningkat atau menurun karena peristiwa yang terjadi setelah pengakuan kerugian penurunan nilai, maka kerugian penurunan nilai yang sudah diakui sebelumnya dinaikkan atau diturunkan dengan menyesuaikan akun penyisihan. Kerugian penurunan nilai atas investasi ekuitas tidak dipulihkan melalui laporan laba rugi dan penghasilan komprehensif lain konsolidasian; peningkatan nilai wajar setelah penurunan nilai diakui dalam ekuitas. Aset keuangan dan penyisihan yang terkait dihapuskan jika tidak ada peluang yang realistis untuk pengembalian masa datang dan semua jaminan telah terealisasi atau sudah diambil alih oleh Grup. Penerimaan kembali aset keuangan yang telah dihapusbukukan diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in the consolidated statement of profit or loss and other comprehensive income. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring impairment loss. If, in subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. Impairment losses on equity investments are not reversed through the consolidated statement of profit or loss and other comprehensive income; increases in the fair value after impairment are recognized in shareholder’s equity. Financial assets together with the associated allowance are written-off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. Recovery of financial assets previously written-off is recognized in the consolidated statement of profit or loss and other comprehensive income.

Perbedaan 1 (satu) hari Day 1 (one) difference

Pada saat nilai transaksi di pasar non-aktif berbeda dengan nilai wajar dari transaksi pasar lainnya yang dapat diobservasi saat ini atas instrumen yang sama atau berdasarkan teknik penilaian yang hanya menggunakan variabel data dari pasar yang dapat diobservasi, Grup secara langsung mengakui perbedaan antara nilai transaksi dan nilai wajar (perbedaan 1 hari) dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Jika nilai wajar ditentukan berdasarkan data yang tidak dapat diobservasi, maka perbedaan antara nilai transaksi dan nilai model hanya dapat diakui pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada saat data menjadi dapat diobservasi atau pada saat instrumen tersebut tidak diakui lagi.

Where the transaction price in a nonactive market is different with the fair value from other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable market, the Group recognizes the difference between the transaction price and fair value (a ‘Day 1’ difference) in the consolidated statement of profit or loss and other comprehensive income. In cases where the transaction price used is made of data which is not observable, the difference between the transaction price and model value is only recognized in the consolidated statement of profit or loss and other comprehensive income when the inputs become observable or when the instrument is derecognized.











33


f. Kas dan setara kas f. Cash and cash equivalents

Kas dan setara kas terdiri dari saldo kas, saldo bank, dan deposito berjangka pendek yang penempatannya tiga bulan atau kurang dan yang tidak dijaminkan serta tidak dibatasi penggunaannya.

Cash and cash equivalents consists of cash on hand, cash in banks, and all unpledged and unrestricted short-term deposits with maturities of three months or less.

g. Transaksi piutang efek yang dibeli dengan

janji dijual kembali g. Securities purchased with agreement to

resell

Efek yang dibeli dengan janji dijual kembali disajikan sebesar harga jual kembali efek yang bersangkutan dikurangi pendapatan bunga yang belum diamortisasi. Pendapatan bunga yang belum diamortisasi merupakan selisih antara harga beli dan harga jual kembali efek yang diakui sebagai pendapatan bunga dan diamortisasi selama periode perjanjian menggunakan metode suku bunga efektif. Efek yang dibeli tidak dicatat sebagai aset dalam laporan posisi keuangan konsolidasian karena secara substansi kepemilikan efek tetap berada pada pihak penjual.

Securities purchased with agreement to resell are stated at resell price of related securities net of unamortized interest income. Unamortized interest income is the difference between purchase price and resell price of the securities and is recognized as interest income and amortized over the term of the agreement using the effective interest rate method. Securities purchased are not recorded in consolidated statement of financial position due to in substance the ownership of securities is still on the seller’s side.

Pendapatan bunga yang timbul atas piutang efek yang dibeli dengan janji dijual kembali ditangguhkan dan diamortisasi sepanjang periode kontrak dengan menggunakan metode suku bunga efektif.

Interest incomes arising from the securities purchased with agreement to resell are deferred and amortized during contract period using effective interest rate method.

h. Portofolio efek h. Marketable securities

Portofolio efek diklasifikasikan, diakui, dan diukur dalam laporan keuangan konsolidasian berdasarkan kebijakan akuntansi yang diungkapkan dalam Catatan 2e atas laporan keuangan konsolidasian.

Marketable securities are classified, recognized, and measured in the consolidated financial statements in accordance with accounting policies disclosed in Note 2e of the consolidated financial statements.

Portofolio efek yang diklasifikasikan ke dalam kelompok untuk diperdagangkan (“trading”) disajikan sebesar nilai wajarnya. Keuntungan atau kerugian yang belum direalisasi akibat kenaikan atau penurunan nilai wajarnya diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

Marketable securities classified as held-for-trading are carried at fair value. Unrealized gains or losses resulting from the increase or decrease in fair values are recognized in the current period consolidated statement of profit or loss and other comprehensive income.











34


h. Portofolio efek (lanjutan) h. Marketable securities (continued)

Portofolio efek yang diklasifikasikan ke dalam kelompok tersedia untuk dijual (”available-for-sale”) disajikan sebesar nilai wajarnya. Keuntungan atau kerugian yang belum direalisasi dari portofolio efek tersedia untuk dijual tersebut setelah dicatat dalam ekuitas dan diakui sebagai penghasilan atau beban, setelah pajak, pada periode dimana portofolio efek tersebut dijual. Penurunan permanen atas nilai portofolio efek yang tersedia untuk dijual diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

Marketable Securities which are classified under available-for-sale are stated at fair value. Unrealized gains or losses on marketable securities classified as available-for-sale are recorded in equity and are recognized as gain or loss, net of tax, on the period where the portfolio are sold. Permanent decline on marketable securities classified as available-for-sale is recognized in the current period consolidated statement of profit or loss and other comprehensive income.

Portofolio efek yang diklasifikasikan ke dalam kelompok dimiliki hingga jatuh tempo (“held-to-maturity”) disajikan sebesar biaya perolehan yang disesuaikan dengan premi dan/atau diskonto yang belum diamortisasi. Bila terjadi penurunan nilai wajar dibawah biaya perolehan (termasuk amortisasi premi dan/atau diskonto) yang bersifat permanen, maka biaya perolehan portofolio efek yang bersangkutan diturunkan sebesar nilai wajarnya dan jumlah penurunan nilai tersebut dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

Marketable securities which are classified as “held-to-maturity” are stated at amortized cost adjusted by unamortized premium or discount. If there is permanent decline in fair value below acquisition cost (including amortization of premium and/or discount), acquisition cost of related marketable securities is impaired to its fair value and charged to current period consolidated statement of profit or loss and other comprehensive income.

Premi atau diskonto diamortisasi dengan menggunakan metode suku bunga efektif.

Premium or discount is amortized using effective interest rate method.

Penurunan nilai atas portofolio efek diakui menggunakan metodologi yang diungkapkan dalam Catatan 2e atas laporan keuangan tahun.

Impairment losses on marketable securities are recognized using methodology disclosed in Note 2e of the consolidated financial statements.

i. Transaksi portofolio efek i. Securities transactions

Transaksi pembelian dan penjualan portofolio efek baik untuk nasabah maupun untuk sendiri diakui dalam laporan keuangan Entitas Anak pada saat timbulnya perikatan atas transaksi portofolio efek.

Purchased and sales of securities both for customers (securities brokerage transactions) and the Subsidiary’s portofolio are recognized when the transactions are made (trade date accounting).

Pembelian portofolio efek untuk nasabah pemilik rekening dicatat sebagai piutang nasabah dan utang pada Lembaga Kliring dan Penjaminan (“LKP”), sedangkan penjualan portofolio efek dicatat sebagai utang pada nasabah dan piutang pada LKP.

Purchases of securities for the interest of customers are recorded as receivables from customers and payable to the Clearing and Guarantee Institution (“LKP”), while sales of such securities are recorded as payable to customers and receivables from LKP.











35


i. Transaksi portofolio efek (lanjutan) i. Securities transactions (continued)

Penerimaan dana dari nasabah pemilik rekening dalam rangka pembelian portofolio efek dan pembayaran dan penerimaan atas transaksi pembelian dan penjualan untuk nasabah dicatat pada rekening nasabah. Saldo lebih rekening nasabah disajikan sebagai liabilitas sedangkan saldo kurang rekening nasabah disajikan sebagai aset.

Funds received from customers in connection with securities purchased for their account and payments and receipts related to purchases and sales of securities on behalf of the customers are recorded as customers’ accounts. Payable balance of customers’ accounts is presented in the balance sheet as liabilities, while receivable balance is presented as assets.

Pada tanggal transaksi, pembelian portofolio efek yang tidak dapat diselesaikan dicatat sebagai “akun gagal terima” dan disajikan di laporan posisi keuangan konsolidasian sebagai liabilitas. Transaksi penjualan portofolio efek yang tidak dapat diselesaikan dicatat sebagai “akun gagal serah” dan disajikan di laporan posisi keuangan konsolidasian sebagai aset.

On settlement date, failure in the settlement of securities purchased is recorded as “failure to receive account” and presented in the consolidated statement of financial position as a liability, while failure in settlement of securities sold is recorded as “failure to deliver account” and presented in the consolidated statement of financial position as an asset.

Penerimaan uang pemesanan portofolio efek dalam rangka penjaminan emisi portofolio efek diakui dan disajikan tersendiri sebagai aset dan liabilitas.

Funds received for securities subscription in relation to underwriting are recognized and separately presented as assets and liabilities.

Piutang marjin dicatat berdasarkan jumlah

pendanaan yang ditanggung oleh entitas anak untuk membiayai pembelian efek yang dilakukan oleh nasabah yang telah mendapatkan fasilitas marjin. Pendapatan bunga atas transaksi marjin dicatat berdasarkan basis akrual.

Margin receivable is recorded based on the finance amount borne by subsidiaries for financing the purchases of securities by customers which have margin facility. Interest income from margin transaction is recorded based on accrual basis.

j. Anjak piutang j. Factoring receivables

Anjak piutang with recourse dan without

recourse diakui sebagai tagihan anjak piutang sebesar nilai bersih yang dapat direalisasi, setelah dikurangi pendapatan anjak piutang ditangguhkan. Selisih antara tagihan anjak piutang with recourse dengan jumlah pembayaran ke klien diakui sebagai pendapatan anjak piutang ditangguhkan, yang akan diakui sebagai pendapatan anjak piutang berdasarkan proporsi waktu selama periode kontrak menggunakan tingkat suku bunga efektif.

Factoring with recourse and without recourse are recognized as factoring receivable at the the amount of receivables acquired and are presented at the net realizable value, net of deffered income. The diferrence between the factoring receivables with recourse and the amount of payments made to the client is recognized as deferred factoring income and will be recognized as factoring income over the terms of the respective factoring agreements using the effective interest rates.











36


k. Sewa pembiayaan k. Leases

Perusahaan sebagai lessee The Company as lessee

Sewa pembiayaan yang mengalihkan kepada Perusahaan secara substansial seluruh risiko dan manfaat yang terkait dengan kepemilikan aset, dikapitalisasi pada awal sewa sebesar nilai wajar dari aset sewaan atau, jika lebih rendah, sebesar nilai kini dari pembayaran sewa minimum. Pembayaran sewa dipisahkan antara beban keuangan dan pengeluaran liabilitas sewa, sedemikian rupa sehingga menghasilkan suatu suku bunga periodik yang konstan atas saldo liabilitas yang tersisa. Beban keuangan diakui sebagai beban pendanaan dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

A lease that transfer substantially all the risks and rewards incidental to ownership of the leased assets, are capitalized at the inception of the lease at the fair value of the leased property or, if lower, at the present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of liability. Finance charges are charged directly to the consolidated statement of profit or loss and other comprehensive income.

Sebuah aset sewaan disusutkan selama masa

manfaat dari aset tersebut. Tetapi, jika tidak terdapat kepastian memadai bahwa Perusahaan akan memperoleh kepemilikan di akhir masa sewa, maka aset disusutkan selama mana yang lebih pendek antara taksiran masa manfaat aset dan masa sewa.

Capitalized leased assets are depreciated over the estimated useful life of the asset. If there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Kewajiban sewa pembiayaan disajikan sebagai

bagian dari “Utang lain-lain”. Lease liabilities is presented as part of “Other

liabilities”.

Pembayaran sewa operasi diakui sebagai beban usaha dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian.

The payment of operating lease is recognized as operating expense in the consolidated statement of profit or loss and other comprehensive income.

Perusahaan sebagai lessor The Company as lessor

Sewa dimana Perusahaan mengalihkan secara

substansial seluruh risiko dan manfaat terkait dengan kepemilikan dari aset diklasifikasikan sebagai sewa pembiayaan. Aset sewaan diakui sebagai aset sewa pembiayaan dalam laporan posisi keuangan dan disajikan sebagai piutang sebesar jumlah yang sama dengan investasi sewa bersih. Laba atau rugi dari penjualan diakui pada periode sesuai dengan kebijakan yang diterapkan oleh Perusahaan untuk penjualan biasa. Biaya yang dikeluarkan oleh Perusahaan sehubungan dengan negosiasi dan pengaturan sewa diakui sebagai beban ketika laba penjualan diakui.

A lease that the Company transfer substantially all the risks and rewards incidental to ownership of the leased assets are classified as finance lease. Leased asset is recognized as finance leased asset in the statements of the financial position and is presented as receivable at the amount equal to net lease investment. Any gain or loss from sale of asset are recognized during the period similar with the policy applied by the Company for normal sales. Any charges incurred by the Company for negotation and lease arrangement are charged when the gain from sale is recognized.











37


l. Transaksi dan saldo dengan pihak-pihak berelasi

l. Transaction and balances with related parties

Dalam kegiatan usaha normalnya Grup

melakukan transaksi dengan pihak-pihak berelasi, seperti yang didefinisikan dalam PSAK No. 7 (Revisi 2010) tentang “Pengungkapan Pihak-pihak Berelasi”. Suatu pihak dianggap berelasi dengan Grup jika:

In its normal course of business, the Group enters into transactions with related parties as defined under PSAK No. 7 (Revised 2010), “Related Party Disclosures”. A Counterpart is considered as related party of the Group if:

(a) langsung, atau tidak langsung yang melalui

satu atau lebih perantara, suatu pihak (i) mengendalikan, atau dikendalikan oleh, atau berada di bawah pengendalian bersama, dengan Perusahaan; (ii) memiliki kepentingan dalam Perusahaan yang memberikan pengaruh signifikan atas Perusahaan; atau (iii) memiliki pengendalian bersama atas Grup;

(b) suatu pihak berelasi dengan Grup; (c) suatu pihak adalah ventura bersama

dimana Perusahaan sebagai venturer; (d) suatu pihak adalah anggota dari personil

dari manajemen kunci Perusahaan; (e) suatu pihak adalah anggota keluarga

dekat dari individu yang diuraikan (a) atau (d);

(f) suatu pihak adalah entitas yang dikendalikan, dikendalikan bersama atau dipengaruhi signifikan oleh atau untuk pihak yang memiliki hak suara signifikan pada beberapa entitas, langsung maupun tidak langsung, yaitu individu seperti diuraikan dalam butir (d) atau (e);

(g) suatu pihak adalah suatu program imbalan pasca-kerja untuk imbalan kerja dari Perusahaan atau entitas yang terkait dengan Perusahaan.

(a) directly, or indirectly trough one or more liason, (i) control, or controlled by, or under common controlled, with Company; (ii) having interest in the Company which have significant influence over the Company; or (iii) having under common control over the Group;

(b) related party with the Group; (c) a counterpart is joint venture where the

Company is as venturer; (d) a counterpart is member of key

management personnel of the Company (e) a counterpart is close member of

counterpart which explained in point (a) or (d);

(f) a counterpart is entity which controlled, jointly controlled or significantly influenced by or for the counterpart which has significant voting right on the several entities, directly or indirectly, such individual explained in point (d) or (e);

(g) a counterpart is post-employment benefit program for employee benefitis from the Company or entity related with the Company.

Semua transaksi dan saldo yang signifikan

dengan pihak berelasi, baik yang dilakukan dengan syarat normal sebagaimana dilakukan dengan pihak yang tidak berelasi, maupun tidak, telah diungkapkan pada catatan atas laporan keuangan konsolidasian. Selanjutnya, saldo dan transaksi yang material antara Group dan Entitas Anak dengan Pemerintah Republik Indonesia (RI) dan entitas lain yang berelasi dengan Pemerintah RI, diungkapkan pada Catatan 38 atas laporan keuangan konsolidasian.

All significant transactions and balances with related parties, whether or not made under similar terms and conditions as those conducted with third parties, are disclosed in the notes to consolidated financial statements. Furthermore, material balances and transactions between the Group and the Subsidiaries with Government of Republic of Indonesia (RI) and other entities related to Government of RI, disclosed in the Note 38 to consolidated financial statements.











38


m. Penyertaan saham m. Investment in shares of stock

Penyertaan pada Entitas Asosiasi Investments in Associated Companies

Penyertaan saham dengan kepemilikan 20% sampai dengan 50% dengan adanya pengaruh signifikan, baik dimiliki secara langsung maupun tidak langsung dinyatakan sebesar biaya perolehan, ditambah atau dikurangi dengan bagian laba atau rugi entitas asosiasi sejak perolehan sebesar persentase pemilikan, dikurangi dengan dividen yang diterima (metode ekuitas). Bila terjadi penurunan nilai yang bersifat permanen, maka nilai tercatatnya dikurangi untuk mengakui penurunan tersebut yang ditentukan untuk setiap investasi secara individu dan kerugiannya dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

Investments in shares of stock where the Company has ownership interest of 20% to 50% with significant influence, directly or indirectly owned, are accounted for using the equity method whereby the Company’s proportionate share in the net income or loss of the associated company after the date of acquisition is added to or deducted from, and dividends subsequently received are deducted from, the acquisition cost of the investments. The carrying amount of the investments is written-down to recognize any permanent decline in value of the individual investments. Any such write-down is charged directly to the current period’s consolidated statement of profit or loss and other comprehensive income.

Penyertaan lainnya Other investments

Penyertaan dalam bentuk saham dengan

kepemilikan kurang dari 20% yang nilai wajarnya tidak tersedia dan dimaksudkan untuk penyertaan jangka panjang dinyatakan sebesar biaya perolehan (metode biaya), kecuali diketahui adanya indikasi penurunan nilai yang sifatnya permanen maka dilakukan penyisihan penurunan nilai penyertaan.

Investments in shares of stock where the Company has ownership interest of less than 20% that do not have readily determinable fair values and are intended for long-term investments are stated at cost (cost method), whereby the Company will provide allowance for such any decline in value.

n. Aset tetap n. Fixed assets

Aset tetap selain tanah disajikan sebesar harga perolehan setelah dikurangi akumulasi penyusutan. Per tanggal 1 Januari 2016, tanah disajikan sebesar nilai wajar. Aset tetap selain tanah disusutkan sejak bulan ketika aset tersebut digunakan dengan metode garis lurus (straight-line method) berdasarkan taksiran masa manfaat ekonominya sebagai berikut:

Fixed assets besides land are stated at cost less accumulated depreciation. As of January 1, 2016, land is stated at fair value. Fixed assets besides land are depreciated from the month of the assets are placed in service on the straight-line method based on the estimated economic useful lives of the assets as follows:

Masa manfaat/ Useful life

Gedung 20 Tahun/Years Building Renovasi gedung 4 - 20 Tahun/Years Building improvement Peralatan kantor 3 - 5 Tahun/Years Office equipment Kendaraan 3 - 5 Tahun/Years Vehicle Pada setiap akhir tahun buku, Grup melakukan penelaahan atas nilai residu, masa manfaat dan metode penyusutan dan disesuaikan secara prospektif, jika diperlukan.

At the end of year, the Group reviews the residual value, useful life and depreciation method and prospectively adjusted, if needed.











39


n. Aset tetap (lanjutan) n. Fixed assets (continued)

Biaya perbaikan dan pemeliharaan dibebankan pada saat terjadinya; pemugaran dan peningkatan daya guna dalam jumlah signifikan dikapitalisasi. Pada saat aset tetap sudah tidak digunakan lagi atau dijual, nilai buku dan akumulasi penyusutan dari aset tetap tersebut dikeluarkan dari akun aset tetap dan keuntungan atau kerugian yang terjadi diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

The cost of repairs and maintenance is charged to income as incurred; significant renewals or betterments are capitalized. When assets are retired or otherwise disposed of, their carrying value and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the current year’s consolidated statement of profit or loss and other comprehensive income.

Aset tetap dikaji ulang setiap tanggal laporan posisi keuangan konsolidasian untuk menilai apakah aset tetap tersebut nilai tercatatnya lebih tinggi dari jumlah yang dapat diperoleh kembali (recoverable amount) dari aset tetap tersebut.

Fixed assets are reviewed in each date of consolidated statement of financial position to assess whether the carrying amount higher than recoverable amount of fixed assets.

Apabila nilai tercatat aset lebih besar dari taksiran nilai yang dapat diperoleh kembali, nilai tercatat aset diturunkan menjadi sebesar nilai yang dapat diperoleh kembali, yang ditentukan sebagai nilai tertinggi antara harga jual neto dan nilai yang dipakai.

When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down to its recoverable amount, which is determined as the higher of the net selling price or value in use.

Kenaikan nilai tercatat yang timbul dari revaluasi dicatat sebagai keuntungan revaluasi aset dan disajikan sebagai penghasilan komprehensif lain di ekuitas. Penurunan nilai tercatat yang timbul dari revaluasi dicatat sebagai beban pada tahun berjalan. Apabila aset tersebut memiliki saldo keuntungan revaluasi aset, maka selisih penurunan nilai tercatat tersebut dibebankan terhadap keuntungan revaluasi aset dan sisanya diakui sebagai beban tahun berjalan.

Increases in the carrying amount arising from revaluation recorded in gain on revaluation of asset and presented as other comprehensive income in equity. Decreasing in carrying amount as the result of revaluation is recorded as expenses in the current year. If the asset does have balance on its gain of revaluation of fixed asset is charged to gain of revaluation of asset which presented as “Other Comprehensive Income” and the rest of the amount is charged to current year’s expenses.

o. Agunan yang diambil alih o. Foreclosed assets

Agunan yang diambiI alih diakui sebesar nilai realisasi bersih. Nilai realisasi bersih adalah nilai wajar agunan yang diambil alih dikurangi dengan estimasi biaya untuk menjual agunan tersebut. Selisih lebih saldo piutang di atas nilai realisasi bersih dan agunan yang diambil alih dibebankan ke dalam akun cadangan kerugian penurunan nilai.

Foreclosed assets are stated at net realizable value. Net realizable value is the fair value of the foreclosed assets less estimated costs of liquidating the assets. The excess of receivable over the net realizable value of the foreclosed assets is charged to the allowance for impairment losses.

Selisih antara nilai agunan yang diambil alih dan hasil penjualannya diakui sebagai keuntungan atau kerugian pada saat penjualan.

The difference between the value of the foreclosed assets and the proceeds from the sale of such properties is recorded as gain or loss as the properties are sold.











40


o. Agunan yang diambil alih (lanjutan) o. Foreclosed assets (continued)

Beban-beban yang berkaitan dengan pemeliharaan agunan yang diambil alih dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian pada saat terjadinya.

Expenses for maintaining foreclosed assets are charged in the consolidated statement of profit or loss and other comprehensive income as incurred.

Bila terjadi penurunan nilai yang bersifat permanen, maka nilai tercatat agunan yang diambil alih dikurangi untuk mengakui penurunan tersebut dan kerugiannya dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

The carrying amount of the foreclosed assets is written-down to recognize a permanent decline in value of the foreclosed assets. Any such write-down is charged to the current period’s consolidated statement of profit or loss and other comprehensive income.

p. Pengakuan pendapatan dan beban p. Revenue and expense recognition

Pendapatan jasa penasihat keuangan, pendapatan jasa manajemen investasi dan agen penjualan - reksa dana dan dana nasabah individual dan penasihat keuangan diakui pada saat ditagihkan sesuai dengan kontrak atau perjanjian dan pendapatan dapat ditentukan secara rasional. Pendapatan jasa pengelolaan dan penasihat investasi diakui pada saat jasa diberikan. Komisi dan pendapatan dari perdagangan surat berharga diakui pada saat transaksi terjadi.

Income from financial consulting services, investment management and selling agent fees - mutual funds and individual customers’ funds and financial advisory services incomes are recognized at the time the service is billed in accordance with the contract or agreement and the income is reasonably determinable. Income from investment management and advisory services is recognized at the time the service is rendered. Commission and income from trading of securities are recognized at the time the transactions occur.

Pendapatan sewa dari transaksi pembiayaan diakui apabila kemungkinan besar Perusahaan akan memperoleh manfaat ekonomis sehubungan dengan transaksi tersebut dan jumlah pendapatan dapat diukur secara handal. Pendapatan sewa diakui sesuai jangka waktunya berdasarkan tingkat pengembalian efektif aset, kecuali apabila kolektibilitasnya diragukan, dimana pendapatan sewa tidak diakui.

Lease income from lease transactions is recognized when it is probable that economic benefits associated with the transaction will flow to the Company and the revenue can be measured reliably. Lease income is recognized on a time proportion basis based on effective yield on the asset unless the collectibility is doubtful, in which case, lease income is not recognized.

Pendapatan komisi sebagai perantara pedagang portofolio efek diakui pada saat transaksi terjadi. Pendapatan dividen dari portofolio efek saham diakui pada saat emiten mengumumkan pembayaran dividen.

Commission income related to intermediaries for securities trading are recognized on the date of transactions. Dividend income from shares is recognized upon declaration by the issuers of the equity securities.

Pendapatan bunga dari penempatan deposito, penempatan jangka pendek, dan piutang marjin diakui ketika diperoleh berdasarkan basis akrual.

Interest incomes from time deposit, short-term placements, and margin receivables are recognized when earned on accrual basis.











41


p. Pengakuan pendapatan dan beban (lanjutan)

p. Revenue and expense recognition (continued)

Keuntungan (kerugian) dari perdagangan portofolio efek meliputi keuntungan (kerugian) yang timbul dari penjualan portofolio efek dan keuntungan (kerugian) yang belum direalisasi akibat kenaikan (penurunan) nilai wajar portofolio efek.

Gains (losses) on trading of securities consist of gains (losses) on securities sold and unrealized gains (losses) from increase (decrease) in the fair value of marketable securities.

Jasa penjaminan emisi portofolio efek diakui pada saat aktivitas penjaminan emisi secara substansi telah selesai dan jumlah pendapatan telah dapat ditentukan.

Underwriting fees are recognized when underwriting activities are substantially completed and the amount of income has been determined.

Beban yang terjadi pada umumnya dibebankan pada saat terjadinya. Beban yang timbul sehubungan dengan proses penjaminan emisi diakumulasikan dan dibebankan pada saat pendapatan penjaminan emisi diakui. Dalam hal kegiatan penjaminan emisi tidak diselesaikan dan emisi portofolio efek dibatalkan, maka beban penjaminan emisi tersebut dibebankan pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

Expenses are generally recognized when incurred. Expenses incurred relating to underwriting activities are accumulated and charged against income when underwriting fees are recognized. When the underwriting activities are not completed and shares issuance is cancelled, the underwriting expenses are charged to the current year’s consolidated statement of profit or loss and other comprehensive income.

q. Beban emisi obligasi q. Bonds issuance costs

Beban emisi efek obligasi dikurangkan langsung dari penerimaan hasil emisi obligasi tersebut. Selisih antara hasil emisi bersih dengan nilai nominal merupakan diskonto atau premium yang akan diamortisasi selama jangka waktu efek obligasi tersebut dengan menggunakan metode suku bunga efektif.

The cost of issuing bonds is directly deducted from the proceeds of the bonds issuance. The difference between the net receipt and the nominal value is the discount or premium to be amortized over the term of the bonds using effective interest rate method.

r. Liabilitas imbalan kerja karyawan r. Liability for employee service entitlement

(i) Imbalan pasca-kerja (i) Post-employment benefits

Imbalan kerja sehubungan dengan imbalan pasca-kerja, cuti jangka panjang, penghargaan masa kerja, dan imbalan-imbalan lainnya diakui sesuai dengan masa kerja karyawan yang bersangkutan sesuai dengan imbalan yang lebih tinggi antara UU Ketenagakerjaan No. 13/2003 atau Peraturan Perusahaan.

Benefits regarding post-employment benefits, long-term leave, loyalty awards, and other benefits are recognized based on the service period of the related employee in accordance with higher benefits between Labor Law No. 13/2003 or the Company Regulation.











42


r. Liabilitas imbalan kerja karyawan (lanjutan) r. Liability for employee service entitlement (continued)

(i) Imbalan pasca-kerja (lanjutan) (i) Post-employment benefits (continued)

Grup memberikan manfaat pasca-kerja manfaat pasti dalam bentuk:

a) Grup menyelenggarakan program

pensiun manfaat pasti yang dikelola oleh Dana Pensiun untuk karyawan yang berhak. Kontribusi yang dibayarkan kepada Dana Pensiun dihitung secara aktuaria.

b) Program Tunjangan Hari Tua manfaat

pasti bagi karyawan yang menjadi peserta program yang dikelola oleh Yayasan Kesejahteraan Pegawai Danareksa (“YKP”). Pembebanan biaya untuk imbalan kerja ini ditentukan dengan menggunakan metode penilaian aktuaria.

c) Program imbalan pasti lainnya dalam

bentuk manfaat pasca kerja sesuai dengan Undang-undang Tenaga Kerja No. 13/2003.

The Group provides post-employment defined benefit in the form of the following:

a) The Group has defined benefit pension

plans covering of their employee who are eligible which is managed by a Pension Fund. The contribution paid to the Pension Fund computed on a actuarial basis.

b) Defined benefits Retirement Plan for

employees who become a member of plan managed by Yayasan Kesejahteraan Pegawai (“YKP”). Cost for this plan is determined using actuarial valuation method.

c) Other defined benefit plans in the form of benefits in accordance with Labor Law No. 13/2003.

Pembebanan biaya untuk imbalan kerja karyawan ditentukan dengan menggunakan metode penilaian aktuaria “Projected Unit Credit”.

The cost of providing employee benefits is determined using the Projected Unit Credit actuarial valuation method.

Keuntungan dan kerugian aktuaria yang timbul dari penyesuaian dan perubahan dalam asumsi-asumsi aktuarial langsung diakui seluruhnya melalui penghasilan komprehensif lain pada saat terjadinya.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions charged or credited to equity in other comprehensive income in the period in which they arise.

Biaya jasa lalu diakui segera dalam laporan laba rugi.

Past-service costs are recognised immediately in profit or loss.

Keuntungan dan kerugian dari aktuaria atau penyelesaian program manfaat pasti diakui di laba rugi ketika aktuaria atau penyelesaian tersebut terjadi.

Gains or losses on the actuaria or settlement of a defined benefit plan are recognised in profit of loss when the actuaria or settlement occurs.











43


r. Liabilitas imbalan kerja karyawan (lanjutan) r. Liability for employee service entitlements (continued)

(ii) Imbalan kerja jangka panjang (ii) Long-term benefits

Untuk imbalan kerja jangka panjang, mengharuskan perlakuan akuntansi yang hampir sama dengan akuntansi untuk program manfaat pasti (sebagaimana disajikan pada paragraf sebelum ini).

For long term benefits, almost similar accounting treatment with the accounting for defined benefit (as presented in the preceeding paragraph.

s. Instrumen derivatif s. Derivative instruments

Instrumen keuangan derivatif (termasuk

transaksi mata uang asing untuk tujuan pendanaan dan perdagangan) diakui sebesar nilai wajar pada laporan posisi keuangan konsolidasian. Nilai wajar ditentukan berdasarkan harga pasar, model penentuan harga atau harga pasar instrumen lain yang memiliki karakteristik serupa. Derivatif dicatat sebagai aset apabila memiliki nilai wajar positif dan sebagai liabilitas apabila memiliki nilai wajar negatif.

Derivative financial instruments (including foreign currency transactions for funding and trading) are recognized in the consolidated statement of financial position at their fair value. Fair value is determined based on market value, pricing models or quoted prices of other instruments with similar characteristics. Derivatives are recorded as assets when the fair value is positive and liabilities when the fair value is negative.

Keuntungan atau kerugian yang terjadi dari

perubahan nilai wajar kontrak derivatif yang tidak ditujukan untuk lindung nilai (atau tidak memenuhi kriteria untuk dapat diklasifikasikan sebagai lindung nilai) diakui dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

Gain or loss as a result of fair value changes on a derivative contract not designated as a hedging instrument (or derivative contract that does not qualify as a hedging instrument) is recognized in the current period’s consolidated statement of profit or loss and other comprehensive income.

t. Perpajakan t. Taxation

Pajak Kini Current Tax

Aset dan liabilitas pajak kini untuk tahun berjalan diukur sebesar jumlah yang diharapkan dapat direstitusi dari atau dibayarkan kepada otoritas perpajakan.

Current income tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authority.

Beban pajak kini ditentukan berdasarkan laba kena pajak tahun berjalan yang dihitung berdasarkan tarif pajak yang berlaku.

Current tax expense is determined based on the taxable profit for the year computed using the prevailing tax rates.

Kekurangan/kelebihan pembayaran pajak penghasilan dicatat sebagai bagian dari “Beban Pajak Kini” dalam laporan laba rugi dan penghasilan komprehensif lain konsolidasian. Kelompok Usaha juga menyajikan bunga/denda, jika ada, sebagai bagian dari “Beban Pajak Kini”.

Underpayment/overpayment of income tax are presented as part of “Tax Expense - Current” in the consolidated statements of profit or loss and other comprehensive income. The Company also presented interest/penalty, if any, as part of “Tax Expense - Current”.











44


t. Perpajakan (lanjutan) t. Taxation (continued)

Pajak Kini (lanjutan) Current Tax (continued)

Koreksi terhadap liabilitas perpajakan diakui pada saat surat ketetapan pajak diterima atau, jika diajukan keberatan, pada saat keputusan atas keberatan ditetapkan.

Amendments to tax obligations are recorded when a tax assessment letter is received or, if appealed against, when the result of the appeal is determined.

Pajak Tangguhan Deferred Tax

Aset dan liabilitas pajak tangguhan diakui menggunakan metode liabilitas atas konsekuensi pajak pada masa mendatang yang timbul dari perbedaan jumlah tercatat aset dan liabilitas menurut laporan keuangan dengan dasar pengenaan pajak aset dan liabilitas pada setiap tanggal pelaporan. Liabilitas pajak tangguhan diakui untuk semua perbedaan temporer kena pajak dan aset pajak tangguhan diakui untuk perbedaan temporer yang boleh dikurangkan dan akumulasi rugi fiskal, sepanjang besar kemungkinan perbedaan temporer yang boleh dikurangkan dan akumulasi rugi fiskal tersebut dapat dimanfaatkan untuk mengurangi laba kena pajak pada masa depan.

Deferred tax assets and liabilities are recognized using the liability method for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the financial statements and their respective tax bases at each reporting date. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences and accumulated fiscal losses to the extent that it is probable that taxable profit will be available in future years against which the deductible temporary differences and accumulated fiscal losses can be utilized.

Jumlah tercatat aset pajak tangguhan ditelaah ulang pada akhir setiap periode pelaporan dan diturunkan apabila laba fiskal mungkin tidak memadai untuk mengkompensasi sebagian atau semua manfaat aset pajak tangguhan tersebut. Pada akhir setiap periode pelaporan, Kelompok Usaha menilai kembali aset pajak tangguhan yang tidak diakui. Kelompok Usaha mengakui aset pajak tangguhan yang sebelumnya tidak diakui apabila besar kemungkinan bahwa laba fiskal pada masa depan akan tersedia untuk pemulihannya.

The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized. At the end of each reporting period, the Company reassesses unrecognized deferred tax assets. The Company recognizes previously unrecognized deferred tax assets to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

Pajak tangguhan dihitung dengan menggunakan tarif pajak yang berlaku atau secara substansial telah berlaku pada tanggal pelaporan. Perubahan nilai tercatat aset dan liabilitas pajak tangguhan yang disebabkan oleh perubahan tarif pajak dibebankan pada usaha periode berjalan, kecuali untuk transaksi-transaksi yang sebelumnya telah langsung dibebankan atau dikreditkan ke ekuitas.

Deferred tax is calculated at the tax rates that have been enacted or substantively enacted at the reporting date. Changes in the carrying amount of deferred tax assets and liabilities due to a change in tax rates are charged to current period operations, except to the extent that they relate to items previously charged or credited to equity.











45


t. Pajak penghasilan (lanjutan) t. Income tax (continued)

Pajak Tangguhan (lanjutan) Deferred Tax (continued) Aset dan liabilitas pajak tangguhan disajikan secara saling hapus dalam laporan posisi keuangan konsolidasian, kecuali aset dan liabilitas pajak tangguhan untuk entitas yang berbeda, sesuai dengan penyajian aset dan liabilitas pajak kini.

Deferred tax assets and liabilities are offset in the consolidated statements of financial position, except if they are for different legal entities, consistent with the presentation of current tax assets and liabilities.

Pajak final Final tax

Peraturan perpajakan di Indonesia mengatur beberapa jenis penghasilan dikenakan pajak yang bersifat final. Pajak final yang dikenakan atas nilai bruto transaksi tetap dikenakan walaupun atas transaksi tersebut pelaku transaksi mengalami kerugian.

Tax regulation in Indonesia determined that certain taxable income is subject to final tax. Final tax applied to the gross value of transactions is applied even when the parties carrying the transaction recognizing losses.

Mengacu pada revisi PSAK No. 46 yang disebutkan di atas, pajak final tersebut tidak termasuk dalam lingkup yang diatur oleh PSAK No. 46. Oleh karena itu, Grup memutuskan untuk menyajikan beban pajak final sehubungan dengan pendapatan bunga, jasa perantara perdagangan efek dan penjualan portofolio efek sebagai pos tersendiri.

Referring to revised PSAK No. 46 as mentioned above, final tax is no longer governed by PSAK No. 46. Therefore, the Grup has decided to present all of the final tax arising from interest income, brokerage on securities trading and sale of marketable securities as separate line item.

u. Laba per saham u. Earnings per share

Laba usaha per saham dan laba bersih per saham dihitung dengan membagi masing-masing laba usaha dan laba bersih teratribusi kepada pemilik entitas induk dengan jumlah rata-rata tertimbang saham yang beredar selama tahun 2017 dan 2016 sebesar 701.480 saham (Catatan 36).

Income from operation per share and net income per share are computed by dividing income from operation and net income attributable to equity holders of the parent entity, respectively, by the weighted average number of share outstanding during 2017 and 2016 of 701,480 shares (Note 36).

v. Informasi segmen v. Segment information

Segmen adalah bagian khusus Perusahaan dan Entitas Anak yang terlibat dalam menyediakan jasa (segmen usaha), yang memiliki risiko dan imbalan yang berbeda dari segmen lainnya.

Segment is specific part of the Company and Subsidiaries involved in providing services (operating segment), which has different risk and reward from other segments.

Pendapatan, beban, hasil, aset dan liabilitas segmen termasuk item-item yang dapat diatribusikan langsung kepada suatu segmen serta hal-hal yang dapat dialokasikan dengan dasar yang sesuai dengan segmen tersebut. Segmen ditentukan sebelum saldo dan transaksi antara Perusahaan dan Entitas Anak dieliminasi.

Segment revenues, expenses, income, assets, and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis to that segment. Segment determined before balances and transactions between the Company and Subsidiaries are eliminated.











46


w. Penerapan Standar Akuntansi Revisi w. Implementation of Revised Accounting Standards

Efektif 1 Januari 2017, Perusahaan telah

menerapkan beberapa Pernyataan Standar Akuntansi Keuangan (PSAK), Perubahan dan Penyesuaian yang relevan dengan operasi Perusahaan yang berlaku efektif sejak tanggal tersebut, sebagai berikut:

Effective on January 1, 2017, the Company have applied the Statements of Financial Accounting Standards, Amendments, and Revision, which are relevant to the operation of the Company and subsidiary and which are effective since such date, as follows:

· Amandemen PSAK No. 1: Penyajian Laporan Keuangan tentang Prakarsa Pengungkapan.

· PSAK No. 3 (Penyesuaian 2016): Laporan Keuangan.

· Amandemen PSAK No. 24 (Penyesuaian 2016): Imbalan kerja.

· Amandemen PSAK No. 58 (Penyesuaian 2016): Aset Tidak Lancar yang Dimiliki Untuk Dijual dan Operasi yang Dihentikan.

· PSAK No. 60 (Penyesuaian 2016): Instrumen Keuangan: Pengungkapan.

· Amendments to PSAK No. 1: Presentation of Financial Statements on Disclosures Initiative.

· PSAK No. 3 (2016 Improvement): Financial Reporting.

· Amendments to PSAK No. 24 (2016 Improvement): Employee benefits

· Amendments to PSAK No. 58 (2016 Improvement): Non-Current Assets Held For Sale and Discontinued Operation.

· PSAK No. 60 (2016 Improvement): Financial Instruments: Disclosures.

PSAK, perubahan dan penyesuaian tersebut di

atas tidak memiliki dampak yang signifikan terhadap jumlah yang dilaporkan pada tahun berjalan atau tahun sebelumnya.

The changes of above PSAK, amendments and revision do not impact significantly to the current period and prior period reported figures.

3. KAS DAN SETARA KAS 3. CASH AND CASH EQUIVALENTS 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Kas Cash on hand Rupiah 251.731 212.500 Rupiah Dolar Amerika Serikat 67.838 67.363 United States Dollar

Total kas 319.569 279.863 Total cash on hand

Kas di bank Cash in banks Rupiah Rupiah Pihak berelasi (Catatan 38) 100.698.409 144.657.582 Related parties (Note 38) Pihak ketiga Third parties PT Bank CIMB Niaga Tbk 85.818.591 103.157.403 PT Bank CIMB Niaga Tbk PT Bank Central Asia Tbk 20.617.932 9.151.928 PT Bank Central Asia Tbk PT Bank Permata Tbk 4.093.792 5.501.532 PT Bank Permata Tbk PT Bank Sinarmas Tbk 564.482 - PT Bank Sinarmas Tbk Citibank N.A., Cabang Jakarta 190.219 517.035 Citibank N.A., Jakarta Branch PT Bank MNC Internasional Tbk 81.171 - PT Bank MNC Internasional Tbk PT Bank Tabungan PT Bank Tabungan Pensiunan Nasional Tbk 19.681 19.558 Pensiunan Nasional Tbk











47

3. KAS DAN SETARA KAS (lanjutan) 3. CASH AND CASH EQUIVALENTS (continued) 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Kas di bank (lanjutan) Cash in banks (continued) Rupiah (lanjutan) Rupiah (continued) Pihak ketiga (lanjutan) Third parties (continued) PT Bank UOB Indonesia 57.046 57.095 PT Bank UOB Indonesia PT Bank ANZ Indonesia 42.703 42.875 PT Bank ANZ Indonesia PT Bank ICBC Indonesia 36.992 - PT Bank ICBC Indonesia PT Bank Danamon Indonesia Tbk 24.936 27.409 PT Bank Danamon Indonesia Tbk PT Bank Maybank Indonesia Tbk 22.324 43.585 PT Bank Maybank Indonesia Tbk PT Bank HSBC Indonesia 16.237 16.602 PT Bank HSBC Indonesia PT Bank Bukopin Tbk 10.882 - PT Bank Bukopin Tbk PT Bank J Trust 5.746 - PT Bank J Trust PT Bank DBS Indonesia 5.587 - PT Bank DBS Indonesia PT Bank Central Asia Syariah 4.971 - PT Bank Central Asia Syariah PT Bank OCBC Indonesia Tbk 4.732 - PT Bank OCBC Indonesia Tbk PT Bank KEB Hana Indonesia 3.655 4.341 PT Bank KEB Hana Indonesia PT Bank QNB Indonesia Tbk 3.100 3.445 PT Bank QNB Indonesia Tbk

212.323.188 263.200.390 Dolar Amerika Serikat United States Dollar

Pihak berelasi (Catatan 38) 3.917.352 14.113.247 Related parties (Note 38) Pihak ketiga Third parties Citibank N.A., Cabang Jakarta 4.331.835 1.270.463 Citibank N.A., Jakarta Branch PT Bank CIMB Niaga Tbk 3.166.277 272.033 PT Bank CIMB Niaga Tbk PT Bank Danamon Indonesia Tbk 105.378 104.884 PT Bank Danamon Indonesia Tbk PT Bank Maybank Indonesia Tbk 74.212 74.500 PT Bank Maybank Indonesia Tbk PT Bank MNC Internasional Tbk 27.247 - PT Bank MNC Internasional Tbk PT Bank QNB Indonesia Tbk 26.759 - PT Bank QNB Indonesia Tbk PT Bank Central Asia Tbk 26.524 - PT Bank Central Asia Tbk PT Bank HSBC Indonesia 25.637 296.059 PT Bank HSBC Indonesia PT Bank UOB Indonesia 13.413 - PT Bank UOB Indonesia PT Bank DBS Indonesia 11.601 - PT Bank DBS Indonesia PT Bank ANZ Indonesia 7.100 7.123 PT Bank ANZ Indonesia PT Bank Permata Tbk 6.111 387.228 PT Bank Permata Tbk

11.739.446 16.525.537

Euro Eropa Europe Euro Pihak berelasi (Catatan 38) 11.774 13.054 Related parties (Note 38) Pihak ketiga Third party Citibank N.A., Cabang Jakarta 334.078 34.947 Citibank N.A., Jakarta Branch

345.852 48.001

Yen Jepang - pihak ketiga Japanese Yen - third party Citibank N.A., Cabang Jakarta 296.613 302.853 Citibank N.A., Jakarta Branch Dolar Singapura - pihak ketiga Singapore Dollar - third party Citibank N.A., Cabang Jakarta 38.174 62.865 Citibank N.A., Jakarta Branch Pound Sterling Inggris - pihak ketiga British Pound Sterling - third party Citibank N.A., Cabang Jakarta 34.825 31.540 Citibank N.A., Jakarta Branch Dolar Hongkong - pihak ketiga Hongkong Dollar - third party Citibank N.A., Cabang Jakarta 20.121 20.206 Citibank N.A., Jakarta Branch Dolar Australia - pihak ketiga Australian Dollar - third party Citibank N.A., Cabang Jakarta 11.517 10.640 Citibank N.A., Jakarta Branch

Total kas di Bank 224.809.736 280.202.032 Total cash in Banks











48

3. KAS DAN SETARA KAS (lanjutan) 3. CASH AND CASH EQUIVALENTS (continued) 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Deposito on call Deposits on call Rupiah Rupiah

Pihak berelasi (Catatan 38) 7.190.000 19.900.000 Related parties (Note 38) Pihak ketiga Third parties PT Bank Maybank Indonesia Tbk 188.000.000 - PT Bank Maybank Indonesia Tbk PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk - 95.000.000 Jawa Barat dan Banten Tbk PT Bank MNC Internasional Tbk - 80.000.000 PT Bank MNC Internasional Tbk

Total deposito on call 195.190.000 194.900.000 Total deposits on call

Total 420.319.305 475.381.895 Total

Kisaran tingkat bunga per tahun Interest rate range per annum Rupiah 2,75% - 8,25% 3,00% - 9,00% Rupiah Dolar Amerika Serikat 0,75% - 2,50% 1,00% - 2,50% United States Dollar

4. PORTOFOLIO EFEK 4. MARKETABLE SECURITIES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Portofolio efek untuk diperdagangkan 505.804.393 236.535.847 Marketable securities held for trading Portofolio efek tersedia untuk dijual 188.418.488 214.225.542 Marketable securities available-for-sale

Portofolio efek dimiliki hingga jatuh tempo Marketable securities held-to-maturity - bersih 111.085.112 166.770.081 - net

Total 805.307.993 617.531.470 Total

a. Portofolio efek untuk diperdagangkan a. Marketable securities held for trading


Pihak berelasi (Catatan 38) Related parties (Note 38) Saham - Rupiah 35.485.592 60.209.036 Shares - Rupiah Obligasi korporasi - Rupiah 125.000.000 - Corporate bonds - Rupiah Obligasi pemerintah - Rupiah 1.618.334 1.042.134 Government bonds - Rupiah Reksa dana - Rupiah 118.492.472 121.424.638 Mutual funds - Rupiah

280.596.398 182.675.808











49

4. PORTOFOLIO EFEK (lanjutan) 4. MARKETABLE SECURITIES (continued)

a. Portofolio efek untuk diperdagangkan (lanjutan)

a. Marketable securities held for trading (continued)


Pihak ketiga Third parties Saham - Rupiah 25.207.995 44.059.699 Shares - Rupiah Obligasi korporasi - Rupiah 200.000.000 9.800.340 Corporate bonds - Rupiah

225.207.995 53.860.039

Total 505.804.393 236.535.847 Total

Kisaran tingkat bunga per tahun Interest rate range per annum Obligasi Bonds Rupiah 8,25% - 10,00% 6,00% - 9,60% Rupiah Dolar Amerika Serikat 4,75% - 5,38% 4,10% - 5,37% United States Dollar

b. Portofolio efek tersedia untuk dijual b. Marketable securities available-for-sale 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Obligasi korporasi Corporate bonds Rupiah 9.328.970 18.590.951 Rupiah Dolar Amerika Serikat 42.734.979 120.157.860 United States Dollar Saham - Rupiah 48.650.000 54.086.878 Shares - Rupiah

100.713.949 192.835.689

Pihak ketiga Third parties

Saham - Rupiah 76.411.074 21.389.853 Shares - Rupiah Obligasi korporasi 11.293.465 - Corporate bonds

87.704.539 21.389.853

Total 188.418.488 214.225.542 Total

Perubahan kerugian belum direalisasi dari perubahan nilai wajar efek yang tersedia untuk dijual adalah sebagai berikut:

Movement in unrealized losses from changes in fair value of available-for-sale marketable securities is as follows:


2017 2016

Saldo awal (59.030.389) (72.459.532) Beginning balance Keuntungan belum direalisasi Unrealized gain

selama tahun berjalan- during the year- bersih 12.526.138 18.461.941 net

Keuntungan yang direalisasi atas Realized loss from

penjualan portofolio efek sale of marketable securities selama tahun berjalan (5.438.225) (5.032.798) during the year

Saldo akhir - bersih (51.942.476) (59.030.389) Ending balance - net











50


c. Peringkat obligasi dan medium-term notes c. Rating of bonds and medium-term notes Lembaga pemeringkat/ 31 Desember/ 31 Desember/ Rating company December 31, 2017 December 31, 2016 Untuk diperdagangkan/Held for trading Obligasi korporasi/Corporate bonds: dAA- Pefindo - 9.800.340

- 9.800.340 MTN IdA Pefindo 325.000.000 -

Tidak diperingkat/ Obligasi pemerintah/Government bonds Non rated 1.618.334 1.042.134

326.618.334 10.842.474

Tersedia untuk dijual/Available for sale Obligasi korporasi/Corporate bonds: id AAA Pefindo - 9.791.750 id A- Pefindo - 8.799.201

BBB- Standard & Poor’s 63.357.414 120.157.860

389.975.748 149.591.285

Peringkat untuk obligasi korporasi berdasarkan peringkat yang dilaporkan oleh PT Pemeringkat Efek Indonesia (“Pefindo”), PT Fitch Ratings Indonesia dan Standard & Poor’s (S&P).

The rating of the corporate bonds are determined by PT Pemeringkat Efek Indonesia (“Pefindo”), PT Fitch Ratings Indonesia and Standard & Poor’s (S&P).

d. Portofolio efek dimiliki hingga jatuh tempo d. Marketable securities held-to-maturity

Rincian efek dimiliki hingga jatuh tempo dari pihak ketiga adalah sebagai berikut:

The details of securities held-to-maturity from third parties are as follows:


Dolar Amerika Serikat United States Dollar Promes - jangka pendek Promissory notes - short-term Pihak ketiga: Third parties: PT Asia Cellular Satellite (ACeS) 442.704.214 439.852.955 PT Asia Cellular Satellite (ACeS) PT Widya Duta Informindo 99.973.657 99.273.633 PT Widya Duta Informindo PT Pasifik Satelit Nusantara 29.682.149 85.935.772 PT Pasifik Satelit Nusantara Promes - jangka menengah Promissory notes - medium-term Pihak berelasi (Catatan 38): Related party (Note 38): PT Hutama Karya (Persero) 81.405.000 80.835.000 PT Hutama Karya (Persero)

653.765.020 705.897.360 Dikurangi: Cadangan kerugian penurunan nilai (542.679.908) (539.127.279) Less: Allowance for impairment losses

111.085.112 166.770.081











51


d. Portofolio efek dimiliki hingga jatuh tempo (lanjutan)

d. Marketable securities held-to-maturity (continued)

Mutasi cadangan kerugian penurunan nilai adalah sebagai berikut:

The changes in the allowance for impairment losses are as follows:


2017 2016

Saldo awal 539.127.279 580.879.745 Beginning balance Perubahan selama tahun berjalan Changes during the year Pemulihan cadangan (Catatan 31) (248.183) (26.377.905) Reversal of allowance (Note 31) Selisih kurs 3.800.812 (15.374.561) Difference on foreign exchange rate

Saldo Akhir 542.679.908 539.127.279 Ending Balance

Manajemen berpendapat bahwa cadangan kerugian penurunan nilai yang dibentuk telah memadai.

The management believes that the established allowance for impairment losses is adequate.

Surat promes - PT Asia Cellular Satellite Promissory notes - PT Asia Cellular Satellite

Fasilitas pinjaman kepada PT Asia Cellular Satellite (“ACeS”) diberikan pada bulan Maret 1997 melalui sindikasi antar Perusahaan dengan beberapa bank yaitu PDFCI, PT Bank Panin Tbk, PT Bank Maybank Indonesia Tbk (dahulu PT Bank International Indonesia Tbk), dan PT Bank CIMB Niaga Tbk (dahulu PT Bank Niaga Tbk). Jumlah fasilitas pinjaman yang diberikan oleh Perusahaan sebesar USD40.486.065 (nilai penuh) dengan jatuh tempo pinjaman pada bulan Desember 2006. Pada tahun 2003 terdapat pembayaran dari ACeS sehingga jumlah pokok pinjaman berkurang menjadi USD40.448.109 (nilai penuh). Pada bulan November 2004, semua kreditur, kecuali Perusahaan, telah menandatangani Term Sheet yang merupakan kesepakatan untuk menjadwalkan kembali piutang dari ACeS. Perusahaan tidak setuju dengan persyaratan restrukturisasi tersebut.

Loan facility to PT Asia Cellular Satellite (“ACeS”) was granted in March 1997 through a syndication between the Company and several banks which are PDFCI, PT Bank Panin Tbk, PT Bank Maybank Indonesia Tbk (formerly PT Bank International Indonesia Tbk), and PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk). The amount of loan facility provided by the Company amounted to USD40,486,065 (full amount) that matured in December 2006. In 2003, ACeS has paid a portion of its debt, reducing the principal loan outstanding to USD40,448,109 (full amount). In November 2004, all creditors, except the Company, signed a Term Sheet representing an agreement to reschedule the receivable from ACeS. The Company did not agree with the terms of the restructuring agreement.

Pada tanggal 1 September 2006, semua kreditur kecuali Perusahaan, telah menandatangani Term Sheet yang merupakan kesepakatan lanjutan untuk menjadwalkan kembali piutang dari ACeS.

On September 1, 2006, all creditors, except the Company, signed a Term Sheet representing a continuing agreement to reschedule the receivable from ACeS.











52




Pada tahun 2017 dan 2016, ACeS melakukan pembayaran kepada Perusahaan masing-masing sebesar USD18.450 (nilai penuh). Perusahaan belum menandatangani Term Sheet tertanggal 1 September 2006 dan dokumen-dokumen lanjutannya yang akan menjadi acuan dalam perjanjian restrukturisasi. Pencatatan di atas hanya untuk keperluan pencatatan pembukuan tidak mengubah hak tagih Perusahaan sebesar USD40.448.109 (nilai penuh) yang tercantum pada laporan keuangan konsolidasian Perusahaan sampai dengan perjanjian restrukturisasi disepakati kemudian.

In 2017 and 2016, ACeS has made payments to the Company amounting to USD18,450 (full amount), respectively. The Company has not yet signed the Term Sheet dated September 1, 2006 and related documents that refer to the restructuring agreement. The above records are for accounting purpose only and did not change the Company's right to collect its receivable amounting to USD40,448,109 (full amount) as stated in the Company’s consolidated financial statements until the restructuring agreement is agreed.

Perusahaan juga telah melakukan pembicaraan dengan kreditur anggota sindikasi lain secara terpisah untuk mempertimbangkan alternatif-alternatif penyelesaian pinjaman, namun sampai saat ini belum tercapai kesepakatan apapun diantara anggota sindikasi.

The Company has also discussed with other creditors of syndication members separately, to consider other alternatives of debt settlement, but no agreement has reached among syndication members to date.

Perusahaan telah membentuk cadangan kerugian penurunan nilai secara penuh sejak tahun 2005.

The Company has provided full allowance for impairment losses of this promissory notes since 2005.

Berikut ini rincian surat promes dari ACeS (dalam Dolar Amerika Serikat, nilai penuh):

The details of the promissory notes of ACeS are as follows (in United States Dollar, full amount):


Pokok piutang 40.448.109 40.448.109 Principal loan Dikurangi: Total penerimaan (7.818.353) (7.799.903) Less: Total amount received

Saldo akhir 32.629.756 32.648.206 Ending balance

Surat promes - PT Pasifik Satelit Nusantara Promissory notes - PT Pasifik Satelit

Nusantara

Perusahaan menerima obligasi dari PT Pasifik Satelit Nusantara (“PSN”) sebagai pelunasan atas fasilitas pembiayaan yang diberikan oleh Perusahaan pada bulan Juni 1996, dengan rincian seri surat promes sebagai berikut:

The Company received bonds from PT Pasifik Satelit Nusantara (“PSN”) in settlement of the loan facility granted by the Company in June 1996, with the following series of the promissory notes are as follows:

No. No. seri/Serial no USD Tanggal jatuh tempo/Date of maturity

1. Seri 2/Series 2 267.979 30 Juni 2007/June 30, 2007 2. Seri 3/Series 3 370.869 30 Desember 2007/December 30, 2007 3. Seri 4/Series 4 533.124 30 Juni 2008/June 30, 2008 4. Seri 5/Series 5 533.124 30 Desember 2008/December 30, 2008 5. Seri 6/Series 6 8.961.852 30 Juni 2009/June 30, 2009

10.666.948











53




Surat promes - PT Pasifik Satelit Nusantara (lanjutan)

Promissory notes - PT Pasifik Satelit Nusantara (continued)

Pada tanggal 29 Agustus 2013, telah dilakukan restrukturisasi kembali piutang PSN melalui penandatangan Perubahan dan Pernyataan Kembali Perjanjian Penyelesaian Utang antara kreditur yang terdiri atas PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, Asean Strategic Investment Labuan Limited dan Perusahaan (“Kreditur Sindikasi”) dengan pihak PSN yang disetujui di hadapan notaris Dina Chozie, S.H. Perjanjian tersebut menyatakan bahwa 5 (lima) seri promes yang gagal bayar dikonversikan menjadi 89 (delapan puluh sembilan) seri promes yang masing-masing memiliki waktu jatuh tempo setiap bulan sejak tanggal 31 Agustus 2013 sampai dengan tanggal 31 Desember 2020 dengan tingkat bunga sebesar 5% per tahun, dimana untuk tahun pertama sampai dengan tahun keempat tingkat bunga adalah 1%. Sedangkan sisa 4% akan dibayarkan pada tahun kelima sampai dengan tahun kedelapan. Untuk bunga tahun kelima sampai dengan tahun kedelapan tingkat bunga adalah 5% per tahun.

On August 29, 2013 , PSN receivables has been restructured through the signing of Changes and Restatement Debt Settlement Agreement between lenders which consist of PT Bank Mandiri (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, Asean Strategic Investment Labuan Limited and the Company (“Syndicated Lenders”) with PSN which agreed in the presence of notary Dina Chozie, S.H. The agreement stated that the default 5 (five) series of promissory notes were converted into 89 (eighty nine) series of promissory notes, each promissory note has monthly maturity date started from August 31, 2013 until December 31, 2020 with interest rate of 5% per annum, whereas for the first year until the fourth year the interest rate is 1% per annum. The remaining 4% will be paid during the fifth to the eighth year. Interest rate for the fifth year until the eighth year is 5% per annum.

Pada tanggal 7 Juni 2017, telah dilakukan penandatangan Addendum I Perubahan dan Pernyataan Kembali Perjanjian Penyelesaian Utang atas Promes PSN antara kreditur sindikasi dengan pihak PSN yang disetujui di hadapan notaris Fathiah Helmi, S.H. Berdasarkan perjanjian tersebut, PSN dan para kreditur sindikasi telah merealisasi percepatan pembayaran pokok promes PSN sesuai dengan ketentuan yang disepakati. Setelah percepatan pembayaran tersebut, maka saldo pokok Promes PSN kepada Perusahaan sebesar USD3.096.428 (nilai penuh) dikonversi menjadi 43 seri promes yang masing masing memiliki waktu jatuh tempo setiap bulan sejak tanggal 30 Juni 2017 sampai dengan tanggal 31 Desember 2020.

On June 7, 2017, PSN promissory notes has been restructured through the signing of Addendum I Changes and Restatement Debt Settlement Agreement between syndicated lenders with PSN which agreed in the presence of notary Fathiah Helmi, S.H. Based on this agreement, PSN and its syndicated lenders have realized early principal repayment of PSN promissory notes based on agreed terms. Subsequent to the early principal repayment, the Company’s PSN promissory notes principal amounting USD3,096,428 (full amount) is converted to 43 series of promissory notes, each promissory note has monthly maturity date started from June 30, 2017 until December 31, 2020.

Setelah restrukturisasi tersebut, PSN telah melakukan pembayaran pokok dan bunga sesuai dengan skedul resktrukturisasi. Saldo piutang PSN pada tanggal 31 Desember 2017 dan 2016 masing-masing sebesar USD2.187.678 dan USD6.378.555 (nilai penuh).

After the restructuring process, PSN has paid the principal and interest in accordance with restructuring schedule. The outstanding balance as of December 31, 2017 and 2016 amounted to USD2,187,678 and USD6,378,555 (full amount), respectively.











54




Surat promes - PT Pasifik Satelit Nusantara (lanjutan)

Promissory notes - PT Pasifik Satelit Nusantara (continued)

Sejak 1 Januari 2014, berdasarkan perjanjian penyelesaian utang, seluruh angsuran PSN dibayarkan ke rekening penampungan di Bank Mandiri. Pembayaran angsuran pokok dan bunga selama tahun 2017 sebesar USD4.231.539 (nilai penuh) sehingga total pembayaran angsuran pokok dan bunga sejak 1 Januari 2014 sebesar USD7.523.896,60 (nilai penuh) .

Starting January 1, 2014, based on debt settlement agreement, installment of PSN were paid to escrow account in Bank Mandiri. Payment of principal and interest during 2017 amounted to USD4,231,539 (full amount) therefore total payment of principal and interest since January 1, 2014 amounting to USD7,523,896.60 (full amount).

Mutasi cadangan kerugian penurunan nilai surat promes dari PSN adalah sebagai berikut:

The changes in the allowance for impairment losses of promissory notes of PSN are as follows:


2017 2016

Saldo awal - 26.581.188 Beginning balance Perubahan selama tahun berjalan Changes during the year Pemulihan cadangan (Catatan 31) - (26.132.866) Reversal of allowance (Note 31) Selisih kurs - (448.322) Difference on foreign exchange rate

Saldo Akhir - - Ending Balance

Manajemen berkeyakinan bahwa seluruh piutang dari PSN pada tanggal 31 Desember 2017 dan 2016 dapat tertagih seluruhnya sehingga tidak dibentuk cadangan kerugian penurunan nilai.

Management believes that the receivables from PSN as of December 31, 2017 and 2016 are fully collectible therefore no established allowance for impairment losses is provided.

Surat promes - PT Widya Duta Informindo Promissory notes - PT Widya Duta

Informindo

Perusahaan memberikan pinjaman sebesar USD15.000.000 (nilai penuh) kepada PT Widya Duta Informindo (“WDI”) sesuai dengan Loan and Note Purchase Agreement tanggal 30 Mei 1996. Fasilitas pinjaman yang jatuh tempo pada bulan Desember 1998 dijamin dengan corporate guarantee dari PT Widya Global Ventura (“WGV”), entitas induk WDI. Pada bulan Juli 1998 WDI tidak dapat memenuhi kewajibannya.

The Company granted loan facility to PT Widya Data Informindo (“WDI”) amounting to USD15,000,000 (full amount) in accordance with Loan and Note Purchase Agreement dated May 30, 1996. The loan facility which was due in December 1998 and secured by a corporate guarantee from PT Widya Global Ventura (“WGV”), the parent entity of WDI. In July 1998, WDI failed to settle its obligation.

Perusahaan telah menyerahkan penagihan piutang WDI kepada Kantor Pelayanan Kekayaan Negara dan Lelang (“KPKNL”) dahulu Kantor Pelayanan Piutang dan Lelang Negara (KP2LN) pada bulan September 2004 sebesar USD16.713.680 (nilai penuh) yang terdiri atas pokok piutang sebesar USD15.000.000 (nilai penuh) dan bunga sebesar USD1.713.680 (nilai penuh).

The Company has surrendered the loan from WDI to the State Office of Wealth and Auction Service (“KPKNL”) formerly the State Office of Receivable and Auction Service (KP2LN) for collection in September 2004 amounting to USD16,713,680 (full amount) which consist of principal loan amounted to USD15,000,000 (full amount) and interest amounted to USD1,713,680 (full amount).











55




Surat promes - PT Widya Duta Informindo (lanjutan)

Promissory notes - PT Widya Duta Informindo (continued)

Pihak KPKNL membebankan biaya administrasi sebesar 10% dari jumlah pokok piutang dan bunga tersebut, sehingga jumlah piutang WDI yang ditangani KPKNL adalah sebesar USD18.385.048 (nilai penuh). Pada tahun 2005, Perusahaan telah menerima pembayaran dari KPKNL sebesar USD6.972.946 (nilai penuh) yang telah dicatat sebagai pengurang pokok piutang. Sehingga sisa piutang sebesar USD8.027.054 (nilai penuh).

KPKNL charged 10% administration fees on the principal and interest, thus, the total loan from WDI handled by KPKNL amounted to USD18,385,048 (full amount). During 2005, the Company received payments from KPKNL amounting to USD6,972,946 (full amount) which has been recorded as principal loan deduction. Thus, remaining principal amounted to USD8,027,054 (full amount).

Selama tahun 2007 Perusahaan telah menerima pembayaran dari KPKNL sebesar USD658.443 (nilai penuh) yang telah dicatat sebagai pengurang pokok piutang. Sisa piutang sebesar USD7.368.612 (nilai penuh).

During 2007, the Company received payments from KPKNL amounting to USD658,443 (full amount) which has been recorded as reduction of principal. The remaining principal loan amounted to USD7,368,612 (full amount).

Pada tanggal 28 September 2007, WGV telah dilikuidasi sehingga tanggung jawabnya sebagai penjamin piutang WDI secara otomatis telah berakhir.

On September 28, 2007, WGV was liquidated therefore its responsibility as guarantor was ended automatically.

Sampai dengan tanggal 31 Desember 2017, Perusahaan tidak menerima pembayaran dari KPKNL.

Until December 31, 2017, the Company did not receive any payments from KPKNL.

Perusahaan telah membentuk cadangan kerugian penurunan nilai secara penuh sejak tahun 2001.

The Company has provided full allowance for impairment losses since 2001.

Surat promes Jangka Menengah - PT Hutama Karya (Persero)

Medium-term Notes - PT Hutama Karya (Persero)

Pada Januari 1997, Perusahaan melakukan pembelian 6 (enam) Promes Jangka Menengah (“MTN”) yang diterbitkan oleh PT Hutama Karya (Persero) (“HK”) sebesar USD6.000.000 (nilai penuh) dengan rincian sebagai berikut:

In January 1997, the Company bought 6 (six) Medium-Term Notes (“MTN”) issued by PT Hutama Karya (Persero) (“HK”) amounted to USD6,000,000 (full amount) with details as follows:

USD No. No. seri/Series no (nilai penuh/full amount) Tanggal jatuh tempo/Date of maturity

1. HTK/000I/D97 1.000.000 30 Januari 1998/January 30, 1998 2. HTK/0002/D97 1.000.000 30 Januari 1998/January 30, 1998 3. HTK/0003/D97 1.000.000 30 Januari 1998/January 30, 1998 4. HTK/0004/D97 1.000.000 30 Januari 1998/January 30, 1998 5. HTK/0005/D97 1.000.000 30 Januari 1998/January 30, 1998 6. HTK/0010/D97 1.000.000 30 Januari 1998/January 30, 1998

6.000.000











56




Surat promes Jangka Menengah - PT Hutama Karya (Persero) (lanjutan)

Medium-term Notes - PT Hutama Karya (Persero) (continued)

Pada tanggal jatuh tempo HK tidak dapat memenuhi kewajibannya. Setelah beberapa kali melakukan penagihan akhirnya Perusahaan menempuh jalur hukum dengan melayangkan gugatan melalui Pengadilan Negeri Jakarta Selatan pada tanggal 7 Juni 1999.

On maturity date, HK defaulted on its obligation. After several times of payment request, the Company undertook legal steps by suing HK to the State Court of South Jakarta on June 7, 1999.

Perusahaan telah mencatat MTN sebagai efek yang diperdagangkan sebesar nilai perolehannya dan selalu disesuaikan dengan nilai pasar. Pada tahun 1998, nilai promes tersebut sebesar USD180.000 (nilai penuh). Selanjutnya, mulai tahun 1998, pencatatan promes tersebut dipindahkan menjadi efek yang dimiliki hingga jatuh tempo.

The Company has recorded MTN as marketable securities held for trading at cost and adjusted to its market value. In 1998, the value of MTN amounted to USD180,000 (full amount). Futhermore, since 1998, the promissory notes has been recorded as marketable securities held-to-maturity.

Pada tanggal 18 Juni 2007, Mahkamah Agung Republik Indonesia mengeluarkan keputusan No. 442K/Pdt/2003 yang menyatakan bahwa HK telah melakukan perbuatan melawan hukum dan wajib membayar sebesar USD6.917.500 (nilai penuh) ditambah dengan ganti rugi sebesar bunga deposito bank rata-rata yang berlaku sampai promes tersebut lunas.

On June 18, 2007, the Supreme Court of the Republic of Indonesia on its decision letter No. 442K/Pdt/2003 declared that HK broke the law and obliged to pay USD6,917,500 (full amount) plus interest compensation of the applicable average interest rates of bank deposit until the promissory is paid.

Pada tanggal 30 April 2008, HK secara resmi melayangkan Permohonan Peninjauan Kembali ("PK") atas Keputusan Mahkamah Agung ("MA") No. 442K/Pdt/2003 di atas, dan atas Permohonan PK ini Perusahaan juga telah menyampaikan Kontra Memori PK kepada Mahkamah Agung pada tanggal 29 Mei 2008.

On April 30, 2008, HK officially filed Judicial Review (“PK”) to the Supreme Court (“MA”) about aforementioned decision letter No. 442K/Pdt/2003, since that, the Company has subsequently filed for a counter appeal of Judicial Review to the Supreme Court on May 29, 2008.

Pada tanggal 24 November 2009, MA telah mengeluarkan surat putusan MA No. 457/PK/pdt/2008 yang memutuskan MA menolak permohonan PK dari HK dan memenangkan konsorsium. Sampai dengan laporan keuangan konsolidasian ini diterbitkan, Perusahaan belum melakukan proses eksekusi sesuai dengan keputusan MA.

On November 24, 2009, MA issued its decision letter No. 457/PK/pdt/2008 of which decided to reject the Judicial Review applied by HK and to win the consortium. Until the issuance of this consolidated financial statements, the Company has not made the execution process based on such MA decision.

Perusahaan terus melakukan upaya berkelanjutan sebagai tindak lanjut sebagaimana diamanatkan dalam putusan PK MA No. 457/PK/pdt/2008 tersebut. Namun demikian, sampai dengan tanggal 31 Desember 2017, Perusahaan belum menerima pembayaran dari HK.

The Company continues to conduct persistent effort as follow up action to the MA decision letter No. 457/PK/pdt/2008. However until December 31, 2017, the Company has not received any payments from HK.











57




Surat promes Jangka Menengah - PT Hutama Karya (Persero) (lanjutan)

Medium-term Notes - PT Hutama Karya (Persero) (continued)

Manajemen berkeyakinan bahwa seluruh saldo piutang dari PT Hutama Karya (Persero) pada tanggal 31 Desember 2017 dan 2016 dapat tertagih seluruhnya sehingga tidak dibentuk cadangan kerugian penurunan nilai.

Management believes that the outstanding receivables from PT Hutama Karya (Persero) as of December 31, 2017 and 2016 are fully collectible therefore no allowance for impairment losses is provided.

5. PIUTANG USAHA 5. ACCOUNTS RECEIVABLES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Rupiah Rupiah Piutang pembiayaan - bersih 562.096.840 795.059.313 Financing receivables - net Piutang derivatif 22.355.034 18.414.742 Derivatives receivable Jasa penasihat keuangan - bersih Financing advisory services – net

(Catatan 38) 18.215.621 18.889.096 (Note 38) Jasa penjaminan emisi (Catatan 38) 13.562.729 6.533.610 Underwriting services (Note 38)

616.230.224 838.896.761

a. Piutang pembiayaan a. Financing receivables

Piutang pembiayaan berdasarkan jenis nasabah:

Financing receivables based on type of customers:


Korporasi 641.339.874 833.831.105 Corporate Dikurangi: Cadangan kerugian penurunan nilai (79.243.034) (38.771.792) Less: Allowance for impairment losses

562.096.840 795.059.313

Kisaran tingkat bunga Interest rate range per tahun 12,00% - 20,00% 14,00% - 30,00% per annum

Mutasi cadangan kerugian penurunan nilai sebagai berikut:



Saldo awal 38.771.792 - Beginning Balance Penyisihan

selama tahun berjalan (Catatan 31) 40.471.242 38.771.792 Provision during the year (Note 31)

79.243.034 38.771.792

Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai yang dibentuk telah memadai.

Management believes that the established allowance for impairment losses is adequate.











58

5. PIUTANG USAHA (lanjutan) 5. ACCOUNTS RECEIVABLES (continued)

b. Transaksi derivatif b. Derivative transactions

Pada tanggal-tanggal 31 Desember 2017 dan 2016, tidak terdapat transaksi instrumen derivatif Perusahaan yang memenuhi syarat sebagai transaksi lindung nilai untuk keperluan akuntansi. Oleh karena itu, seluruh keuntungan atau kerugian dari transaksi derivatif ini dicatat pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan.

As of December 31, 2017 and 2016, no derivative transactions were designated as hedging instrument for accounting purposes. Accordingly, all gains and losses resulting from these derivative transactions were recorded in current year's consolidated statement of profit or loss and other comprehensive income.

Pada tanggal 31 Desember 2017 dan 2016, Perusahaan mempunyai transaksi derivatif sebagai berikut:

As of December 31, 2017 and 2016, the Company has derivative transactions as follows:

31 Desember/December 31, 2017

Utang derivatif Total Piutang (Catatan 15)/ nosional/ derivatif/ Derivatives Notional Nilai wajar/ Derivatives payables Transaksi amount Fair value receivable (Note 15) Transaction

Kontrak berjangka beli - USD 143.076.450 (326.038) 190.725 516.763 Forward buying - USD Kontrak berjangka jual - USD 306.574.140 5.175.363 5.180.388 5.025 Forward selling - USD

5.371.113 521.788 Opsi 16.983.921 - Option

22.355.034 521.788 31 Desember/December 31, 2016

Utang derivatif Total Piutang (Catatan 15)/ nosional/ derivatif/ Derivatives Notional Nilai wajar/ Derivatives payables Transaksi amount Fair value receivable (Note 15) Transaction

Kontrak berjangka beli - USD 31.787.000 (623.414) - 623.414 Forward buying - USD Kontrak berjangka jual - USD 343.618.000 6.164.588 6.164.588 - Forward selling - USD

6.164.588 623.414 Opsi 12.250.154 - Option

18.414.742 623.414

Pada tanggal 31 Desember 2017 dan 2016, PT Danareksa Sekuritas, entitas anak, memiliki opsi untuk menjual sejumlah saham perusahaan publik pada harga tertentu yang berlaku hingga tanggal 31 Desember 2018 (2016: 31 Desember 2017). Nilai wajar opsi tersebut pada tanggal 31 Desember 2017 dan 2016 masing-masing sebesar Rp16.983.921 dan Rp12.250.154 dan dicatat sebagai piutang derivatif.

As of December 31, 2017 and 2016, PT Danareksa Sekuritas, a Subsidiary, has option to sell a number of shares of a public company at certain price which valid until December 31, 2018 (2016: December 31, 2017). The fair value of such option as of December 31, 2017 and 2016 amounted to Rp16,983,921and Rp12,250,154, respectively, and recorded as derivative receivables.











59


c. Piutang jasa penasihat keuangan - bersih c. Financing advisory services - net 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Rupiah 13.157.648 18.889.096 Rupiah Dolar Amerika Serikat 678.125 673.625 United States Dollar Pihak ketiga Third parties Dolar Amerika Serikat 8.964.514 - United States Dollar

22.800.287 19.562.721 Dikurangi: cadangan kerugian Less: Allowance for penurunan nilai (4.584.666 ) (673.625) impairment losses

18.215.621 18.889.096

Mutasi cadangan kerugian penurunan nilai

adalah sebagai berikut: The changes in the allowance for impairment

losses are as follows:


2017 2016

Saldo awal 673.625 689.250 Beginning balance Penyisihan kerugian penurunan nilai selama Provision for impairment tahun berjalan (Catatan 31) 3.906.290 - losses during the year (Note 31) Selisih kurs 4.751 (15.625) Difference on foreign exchange rate

Saldo akhir 4.584.666 673.625 Ending balance

Manajemen berkeyakinan bahwa cadangan

kerugian penurunan nilai yang dibentuk telah memadai.


d. Anjak piutang d. Factoring receivable

Rincian anjak piutang adalah sebagai berikut: The detail of factoring receivable are as follows:


Pihak ketiga Third party PT Delta Florin Ishvara 14.966.817 14.966.817 PT Delta Florin Ishvara Dikurangi: Cadangan kerugian penurunan nilai (14.966.817) (14.966.817) Less: Allowance for impairment losses

- -

Anjak piutang ini merupakan tagihan anjak piutang kepada PT Delta Florin lshvara (“DFI”) yang diberikan pada tanggal 21 Mei 1996 dan telah jatuh tempo pada tanggal 20 Agustus 1996. Pada tanggal 21 Oktober 1998, DFI telah dinyatakan wanprestasi oleh Perusahaan berdasarkan surat Danareksa No. S-07/089/DF.

The factoring receivable represents factoring claim to PT Delta Florin lshvara (“DFI”) which was disbursed on May 21, 1996 and has expired on August 20, 1996. On October 21, 1998, DFI has been defaulted by the Company based on Danareksa letter No. S-07/089/DF.











60


d. Anjak piutang (lanjutan) d. Factoring receivable (continued)

Sampai dengan tanggal penyelesaian laporan keuangan konsolidasian ini tidak ada itikad baik dari DFI sehingga Perusahaan telah melakukan upaya litigasi hukum, dan saat ini telah diperoleh keputusan Mahkamah Agung No. 464/K/Pdt/2002 per tanggal 30 November 2006, menyatakan DFI telah melakukan perbuatan wanprestasi dan diwajibkan membayar lunas seluruh kewajibannya kepada Perusahaan.

Up to the date of completion this consolidated financial statements, there is no intention from DFI to pay its obligation, hence, the Company has taken legal action against DFI and obtained decision letter of the Supreme Court No. 464/K/Pdt/2002 on November 30, 2006, stating that DFI defaulted and must repay its obligation in full to the Company.

Perusahaan telah membentuk cadangan

kerugian penurunan nilai secara penuh. The Company has provided full allowance for

impairment losses of this receivables.

6. PIUTANG KEGIATAN PERANTARA PERDAGANGAN EFEK

6. BROKERAGE ACTIVITIES RECEIVABLES


Piutang nasabah dan perusahaan efek Receivables from customers lain - bersih 589.268.202 594.390.227 and other securities companies - net Piutang pada Lembaga Kliring Receivable from Clearing and Depository dan Penjaminan 83.803.424 59.245.757 Institution Piutang marjin 25.013.866 18.390.430 Margin receivables Deposit pada Lembaga Kliring dan Deposits in Clearing and Depository Penjaminan 9.108.317 8.660.074 Institution

707.193.809 680.686.488

a. Piutang nasabah dan perusahaan efek lain a. Receivables from customers and other

securities companies

Akun ini merupakan piutang yang timbul dari transaksi perantara perdagangan efek yang dilakukan PT Danareksa Sekuritas, Entitas Anak, dengan nasabah non kelembagaan dan nasabah kelembagaan serta transaksi Perusahaan dengan perusahaan efek terkait dengan kegiatan investasi Perusahaan.

This account represents receivables arising from brokerage transactions of PT Danareksa Sekuritas, a Subsidiary, with non-institutional customers and institutional customers and transactions with securities companies related to the Company’s investment transactions.

Piutang nasabah non lembaga adalah piutang atas transaksi dengan nasabah pemilik rekening efek pada PT Danareksa Sekuritas, Entitas Anak. Piutang nasabah lembaga adalah piutang atas transaksi dengan nasabah yang tidak memiliki rekening efek pada PT Danareksa Sekuritas, Entitas Anak.

Non-institutional receivable from customers represent balances from transactions with customers with securities account in PT Danareksa Sekuritas, a Subsidiary. Institutional receivables from customers represent balances from transactions of customers without securities account in PT Danareksa Sekuritas, a Subsidiary.











61

6. PIUTANG KEGIATAN PERANTARA PERDAGANGAN EFEK (lanjutan)

6. BROKERAGE ACTIVITIES RECEIVABLES (continued)

a. Piutang nasabah dan perusahaan efek lain (lanjutan)

a. Receivables from customers and other securities companies (continued)

Rincian piutang nasabah dan perusahaan efek lain berdasarkan pihak adalah sebagai berikut:

The details of receivables from customers and securities companies based on counterparties are as follows:


Piutang nasabah non lembaga Non-institutional customers receivable Pihak ketiga 296.389.076 397.404.669 Third parties

Piutang nasabah lembaga Institutional customers receivable Pihak berelasi (Catatan 38) 322.113.640 144.436.247 Related parties (Note 38) Pihak ketiga - 61.840.637 Third parties

322.113.640 206.276.884

Piutang perusahaan efek lain Other securities companies receivable

Pihak ketiga 25.568.986 30.026.176 Third parties

25.568.986 30.026.716

644.071.702 633.707.729 Dikurangi: Cadangan kerugian penurunan nilai (54.803.500) (39.317.502) Less: Allowance for impairment losses

589.268.202 594.390.227


2017 2016

Saldo awal 39.317.502 26.369.507 Beginning balance Penyisihan selama

tahun berjalan (Catatan 31) 15.485.998 12.947.995 Provision during the year (Note 31)

Saldo akhir 54.803.500 39.317.502 Ending balance



b. Piutang pada Lembaga Kliring dan

Penjaminan b. Receivable from Clearing and Depository

Institution

Akun ini merupakan penyelesaian perdagangan efek (settlement) atas kliring transaksi efek dengan PT Kliring Penjaminan Efek Indonesia (“KPEI”).

This accounts represents settlement amount arising from securities transactions clearing with PT Kliring Penjaminan Efek Indonesia (“KPEI”).











62



b. Piutang pada Lembaga Kliring dan

Penjaminan (lanjutan) b. Receivable from Clearing and Depository

Institution (continued) Rincian piutang kepada Lembaga Kliring dan Penjaminan berdasarkan hari transaksi:

The details of receivable from Clearing and Depository Institution based on day of transaction:


T + 0 57.572.549 24.148.971 T + 0 T + 1 19.651.027 17.613.513 T + 1 T + 2 6.579.848 17.483.273 T + 2

83.803.424 59.245.757

c. Piutang marjin c. Margin receivables

PT Danareksa Sekuritas, Entitas Anak, memberikan fasilitas pembiayaan marjin kepada nasabahnya untuk pembiayaan transaksi pasar modal nasabah tersebut. Fasilitas ini dijamin dengan efek terkait milik nasabah yang bersangkutan.

PT Danareksa Sekuritas, a Subsidiary, has granted margin financing facility to its customers for financing capital market transaction. The facility was guaranteed with customers’ marketable securities.


Tingkat bunga atas piutang Margin receivables interest rates marjin nasabah per tahun 18,00 - 36,00% 16,00% - 34,68% per annum

Piutang nasabah margin merupakan piutang fasilitas pembiayaan yang dibebani bunga atas saldo harian pinjaman.

Margin customers receivables represents receivables from margin customers facility with interest charged based on daily loan outstanding.

Nilai wajar jaminan saham untuk piutang marjin nasabah berdasarkan pada harga pasar kuotasi pada tanggal-tanggal 31 Desember 2017 dan 2016 adalah masing-masing sebesar Rp70.198.495 dan Rp36.084.595.

The fair value of shares collateral for margin receivables from customers based on quoted market prices as of December 31, 2017 and 2016 amounted to Rp70,198,495 and Rp36,084,595, respectively.

Manajemen berkeyakinan bahwa piutang marjin dapat tertagih seluruhnya dan mempunyai jaminan yang cukup sehingga tidak dibentuk cadangan kerugian penurunan nilai pada tanggal-tanggal 31 Desember 2017 dan 2016.

Management believes that receivables from margin customers are fully collectible and adequately covered by collaterals therefore, no allowance for impairment losses provided as of December 31, 2017 and 2016, respectively.











63



d. Deposito pada Lembaga Kliring dan

Penjaminan d. Deposit at Clearing and Depository

Institution Akun ini merupakan dana agunan kas yang diwajibkan oleh PT Kliring Penjaminan Efek Indonesia (“KPEI”) sebagai jaminan atas kliring transaksi yang dilakukan oleh PT Danareksa Sekuritas, Entitas Anak, melalui KPEI. Uang jaminan tersebut ditempatkan pada PT Bank Mandiri (Persero) Tbk.

This account represents cash collateral which is required by PT Kliring Penjaminan Efek Indonesia (“KPEI”) as a guarantee account for clearing transactions made by PT Danareksa Sekuritas, a Subsidiary through KPEI. Such deposits is placed at PT Bank Mandiri (Persero) Tbk.

Pada tanggal 11 Juni 2012, KPEI mengeluarkan Surat Keputusan Direksi No. KEP-009/DIR/KPEI06/12 yang mensyaratkan setiap perantara efek untuk menjaga minimum jaminan dalam bentuk kas dan setara kas sebesar Rp1.000.000.000 (nilai penuh) atau 10% dari rata-rata nilai penyelesaian harian selama 6 (enam) bulan terakhir, mana yang lebih besar.

On June 11, 2012, KPEI issued Director Decision Letter No. KEP-009/DIR/KPEI06/12 requiring each broker to maintain minimum deposits in the form of cash and cash equivalents amounting to Rp1,000,000,000 (full amount) or 10% of the average daily settlements value during the last 6 (six) months, whichever is higher.

Pada tanggal 31 Desember 2017 dan 2016, saldo dana agunan kas Perusahaan berada di atas saldo minimum deposit jaminan yang dipersyaratkan oleh KPEI.

As of December 31, 2017 and 2016, the Company's cash collateral has exceeded the required minimum balance under KPEI requirement.

7. PIUTANG KEGIATAN MANAJEMEN INVESTASI 7. INVESTMENT MANAGEMENT ACTIVITIES RECEIVABLES

Piutang kegiatan manajemen investasi merupakan piutang atas jasa pengelolaan reksa dana dan dana nasabah dengan rincian sebagai berikut:

Investment management activities receivables represent receivables on management fee of mutual funds and discretionary funds, which consist of:


Pihak berelasi (Catatan 38) Related parties (Note 38) Rupiah 11.985.817 12.016.821 Rupiah Dolar Amerika Serikat 489.959 578.933 United States Dollar

12.475.776 12.595.754

8. PIUTANG KEGIATAN PEMBIAYAAN 8. FINANCING ACTIVITIES RECEIVABLES


Anjak piutang - bersih 92.238.327 59.526.420 Factoring - net Sewa pembiayaan - bersih 49.096.237 48.213.668 Finance lease - net

141.334.564 107.740.088











64

8. PIUTANG KEGIATAN PENDANAAN (lanjutan) 8. FINANCING ACTIVITIES RECEIVABLES (continued)

a. Anjak piutang a. Factoring receivable


Pihak berelasi (Catatan 38) Related parties (Note 38) Tagihan anjak piutang 39.966.727 5.247.619 Factoring receivables Bunga masih akan diterima 199.221 32.834 Interest receivable Pendapatan anjak piutang yang ditangguhkan (201.243) (562) Deferred factoring income Retensi (10.507.303) (1.435.189) Retention

29.457.402 3.844.702

Pihak ketiga Third parties Tagihan anjak piutang 125.079.504 103.345.587 Factoring receivables Bunga masih akan diterima 4.094.524 632.545 Interest receivable Pendapatan anjak piutang yang ditangguhkan (81.844) (1.575) Deferred factoring income Retensi (21.429.221) (22.470.089) Retention

107.662.963 81.506.468

137.120.365 85.351.170 Cadangan kerugian penurunan nilai (44.882.038) (25.824.750) Allowance for impairment losses

92.238.327 59.526.420

Kisaran tingkat bunga per tahun 11,75% - 14,00% 12,50% - 16,00% Interest rate range per anum




2017 2016

Saldo awal 25.824.750 18.674.750 Beginning balance Penyisihan kerugian Provision for impairment selama tahun berjalan (Catatan 31) 19.057.288 7.150.000 losses during the year (Note 31)












65


a. Anjak piutang (lanjutan) a. Factoring receivable (continued)

Termasuk dalam tagihan anjak piutang adalah anjak piutang kepada pihak ketiga yang telah jatuh tempo dari PT Bentala Coal Mining (“BCM”) sebesar Rp4.487.446. Tagihan anjak piutang dari BCM diberikan pada tanggal 15 November 1996 dan telah jatuh tempo pada tanggal 9 April 1998. Perusahaan telah menyerahkan penagihan piutang BCM kepada Kantor Pelayanan Kekayaan Negara dan Lelang (“KPKNL”) (dahulu Kantor Pelayanan Piutang dan Lelang Negara (“KP2LN”) pada bulan September 2005. Sampai dengan tanggal penyelesaian laporan keuangan konsolidasian ini, Perusahaan belum menerima pembayaran dari KPKNL. Perusahaan telah membentuk cadangan kerugian penurunan nilai secara penuh pada tanggal 31 Desember 2017 dan 2016 atas tagihan dari BCM.

Factoring receivable includes overdue factoring receivable from PT Bentala Coal Mining (“BCM”), a third party, amounted to Rp4,487,446. Factoring receivable from BCM was granted on November 15, 1996 and already due on April 9, 1998. The Company has assigned the collection of receivable from BCM to the State Office of Wealth and Auction Service (“KPKNL”) (formerly State Office of Receivable and Auction Service (“KP2NL”) in September 2005. As of the date of completion this consolidated financial report, the Company has not received any payment from KPKNL. As of December 31, 2017 and 2016, the Company has provided full allowance for impairment losses on receivable from BCM.

Manajemen berkeyakinan bahwa cadangan kerugian penurunan nilai yang dibentuk telah memadai.


b. Sewa pembiayaan b. Finance lease


Pihak berelasi (Catatan 38) Related party (Note 38) Piutang sewa pembiayaan 5.709.056 17.353.700 Lease receivable Pendapatan sewa pembiayaan

yang belum diakui (867.113) (2.727.080) Unearned lease income

4.841.943 14.626.620

Pihak ketiga Third parties Piutang sewa pembiayaan 54.743.195 41.480.214 Lease receivable Pendapatan sewa pembiayaan

yang belum diakui (8.516.592) (7.893.166) Unearned lease income 46.226.603 33.587.048

51.068.546 48.213.668 Cadangan kerugian penurunan nilai (1.972.309) - Allowance for impaiment losses 49.096.237 48.213.668











66


b. Sewa pembiayaan (lanjutan) b. Finance lease (continued)




2017 2016

Saldo awal - - Beginning balance Penyisihan kerugian Provision for impairment selama tahun berjalan (Catatan 31) 1.972.309 - losses during the year (Note 31)

Saldo Akhir 1.972.309 - Ending Balance

Piutang sewa pembiayaan menurut jatuh temponya adalah sebagai berikut:

Lease receivables classified based on maturity period are as follows:


Jatuh tempo pada: Due within: 2017 1.942.776 21.801.662 2017 2018 26.322.094 19.497.501 2018 2019 21.604.420 11.575.774 2019 2020 10.022.943 4.768.669 2020 2021 560.018 1.190.308 2021

60.452.251 58.833.914

Kisaran tingkat bunga per tahun 12,50% - 15,48% 12,50% - 16,00% Interest rate range per annum



9. PIUTANG LAIN-LAIN 9. OTHER RECEIVABLES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Bunga efek utang 33.598.966 1.870.349 Interest from debt securities Bunga efek dimiliki hingga jatuh tempo 12.448.181 12.361.019 Interest from held-to-maturity securities Bunga efek pasar uang 87.893 2.617 Interest from money market securities

46.135.040 14.233.985

Pihak ketiga Third parties Bunga piutang pembiayaan 93.369.355 108.281.782 Interest from financing receivable Bunga efek utang 4.051.667 60.486 Interest from debt securities Lain 726.489 1.125.152 Other Bunga efek pasar uang 1.629 79.562 Interest from money market securities

98.149.140 109.546.982

144.284.180 123.780.967











67

10. BEBAN DIBAYAR DIMUKA 10. PREPAID EXPENSE 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Sewa gedung 5.931.839 1.383.535 Building rental Program kepemilikan kendaraan 306.811 1.456.458 Car ownership program Lainnya 2.816.668 3.262.996 Others

9.055.318 6.102.989

Beban dibayar dimuka - lainnya terutama terdiri dari premi asuransi dibayar dimuka

Prepaid expense – others mainly consist of prepaid insurance premium

11. PENYERTAAN SAHAM 11. INVESTMENT IN SHARES OF STOCKS

Akun ini merupakan penyertaan saham oleh Perusahaan dan Entitas Anak pada tanggal-tanggal 31 Desember 2017 dan 2016 di perusahaan-perusahaan berikut:

This account represents the Company and Subsidiaries’ investment as of December 31, 2017 and 2016, in the following companies:


Persentase Biaya kepemilikan/ perolehan/ Bidang usaha/ Percentage of Acquisition

Entitas/Entity Nature of business ownership (%) costs

PT Pemeringkat Efek Indonesia Perusahaan penilai/Rating Company 7,76 7.767.844 PT Kliring Perdagangan Berjangka Indonesia Lembaga kliring/Clearing House 2,00 1.000.000 PT Bursa Berjangka Indonesia Bursa berjangka/Futures Exchange 3,45 3.450.000 PT Kustodian Sentral Efek Indonesia Lembaga kliring/Clearing House 1,25 375.000 PT Bursa Efek Indonesia Bursa efek/Stock Exchange 0,50 135.000 PT Mitra BUMdes Nusantara Logistik pangan 20,00 20.000.000

32.727.844


Persentase Biaya kepemilikan/ perolehan/ Bidang usaha/ Percentage of Acquisition

Entitas/Entity Nature of business ownership (%) costs

PT Pemeringkat Efek Indonesia Perusahaan penilai/Rating Company 7,76 7.767.844 PT Kliring Perdagangan Berjangka Indonesia Lembaga kliring/Clearing House 2,00 1.000.000 PT Bursa Berjangka Indonesia Bursa berjangka/Futures Exchange 3,45 3.450.000 PT Kustodian Sentral Efek Indonesia Lembaga kliring/Clearing House 1,25 375.000 PT Bursa Efek Indonesia Bursa efek/Stock Exchange 0,50 135.000

12.727.844

Perusahaan melakukan penilaian atas penurunan nilai penyertaan secara individual dengan adanya bukti obyektif penurunan nilai. Manajemen berpendapat bahwa jumlah cadangan kerugian penurunan nilai tidak diperlukan pada tanggal-tanggal 31 Desember 2017 dan 2016, karena Manajemen berkeyakinan bahwa penyertaan saham dapat diperoleh kembali.

The Company assessed investment in associated entities individually for impairment based on whether an objective evidence of impairment exists. Management believes that no allowance for impairment losses is necessary as of December 31, 2017 and 2016, because investments in associated entities are fully collectible











68

12. ASET TETAP 12. FIXED ASSETS


Saldo awal/ Saldo akhir/ Beginning Penambahan/ Pengurangan/ Reklasifikasi/ Ending balance Additions Disposals Reclassification balance

Kepemilikan langsung Direct ownership Biaya perolehan/Nilai revaluasi Acquisition cost/Appraised value Tanah 581.250.000 - - - 581.250.000 Landrights Gedung dan renovasi gedung 76.869.525 - - 8.493.614 85.363.139 Buildings and improvements Peralatan kantor 15.178.391 1.559.013 - - 16.737.404 Office equipment Kendaraan 3.030.051 - (751.200) - 2.278.851 Vehicles Aset dalam penyelesaian 2.960.773 5.532.841 - (8.493.614) - Properties under construction

679.288.740 7.091.854 (751.200) - 685.629.394

Aset sewa pembiayaan Leased assets Biaya perolehan Acquisition cost Gedung dan renovasi gedung 2.101.094 - - - 2.101.094 Buildings and improvements Peralatan kantor 3.737.813 - - - 3.737.813 Office equipment

5.838.907 - - - 5.838.907

Total biaya perolehan 685.127.647 7.091.854 (751.200) - 691.468.301 Total acquisition cost

Kepemilikan langsung Direct ownership Akumulasi penyusutan Accumulated depreciation Gedung dan renovasi gedung 60.663.700 3.458.278 - - 64.121.978 Buildings and improvement Peralatan kantor 9.263.213 3.560.494 - - 12.823.707 Office equipment Kendaraan 2.571.877 316.005 (657.300) - 2.230.582 Vehicles

72.498.790 7.334.777 (657.300) - 79.176.267

Aset sewa pembiayaan Leased assets Akumulasi penyusutan Accumulated depreciation Gedung dan renovasi gedung 1.998.010 64.471 - - 2.062.481 Buildings and improvement Peralatan kantor 1.432.831 186.891 - - 1.619.722 Office equipment

3.430.841 251.362 - - 3.682.203

Total akumulasi penyusutan 75.929.631 7.586.139 (657.300) - 82.858.470 Total accumulated depreciation

Nilai tercatat 609.198.016 608.609.831 Carrying value


Saldo awal/ Saldo akhir/ Beginning Penambahan/ Pengurangan/ Ending balance Additions Disposals balance

Kepemilikan langsung Direct ownership Biaya perolehan/Nilai revaluasi Acquisition cost/Appraised value Tanah 581.250.000 - - 581.250.000 Landrights Gedung dan renovasi gedung 76.869.525 - - 76.869.525 Buildings and improvements Peralatan kantor 12.635.130 2.543.261 - 15.178.391 Office equipment Kendaraan 3.781.251 - (751.200) 3.030.051 Vehicles Aset dalam penyelesaian - 2.960.773 - 2.960.773 Properties under construction

674.535.906 5.504.034 (751.200) 679.288.740

Aset sewa pembiayaan Leased assets Biaya perolehan Acquisition cost Gedung dan renovasi gedung 2.101.094 - - 2.101.094 Buildings and improvements Peralatan kantor 3.737.813 - - 3.737.813 Office equipment

5.838.907 - - 5.838.907

Total biaya perolehan 680.374.813 5.504.034 (751.200) 685.127.647 Total acquisition cost

Kepemilikan langsung Direct ownership Akumulasi penyusutan Accumulated depreciation Gedung dan renovasi gedung 57.780.916 2.882.784 - 60.663.700 Buildings and improvement Peralatan kantor 5.105.486 4.157.727 - 9.263.213 Office equipment Kendaraan 2.265.595 932.282 (626.000) 2.571.877 Vehicles

65.151.997 7.972.793 (626.000) 72.498.790

Aset sewa pembiayaan Leased assets Akumulasi penyusutan Accumulated depreciation Gedung dan renovasi gedung 1.933.539 64.471 - 1.998.010 Buildings and improvement Peralatan kantor 1.245.939 186.892 - 1.432.831 Office equipment

3.179.478 251.363 - 3.430.841

Total akumulasi penyusutan 68.331.475 8.224.156 (626.000) 75.929.631 Total accumulated depreciation

Nilai tercatat 612.043.338 609.198.016 Carrying value











69

12. ASET TETAP (lanjutan) 12. FIXED ASSETS (continued)

Penjualan aset tetap selama tahun berjalan: Sale of fixed assets during the year:

31 Desember/December 31,

2017 2016

Harga jual 327.727 360.000 Proceed from sale Nilai buku (93.900) (125.200) Net book value

Keuntungan penjualan 233.827 234.800 Gain on sale

Pada tanggal 1 Januari 2015, Perusahaan menerapkan model revaluasi untuk mengukur nilai tanah. Pada tanggal 31 Desember 2016, nilai wajar tanah ditetapkan sebesar Rp581.250.000. Penilaian didasarkan dari laporan penilai independen Yanuar Bey & Rekan tertanggal 12 Oktober 2016. Metode penilaian atas nilai wajar pada tanah yang digunakan adalah pendekatan pasar (market data approach). Penyesuaian atas revaluasi sejumlah Rp493.830.000 diakui sebagai penghasilan komprehensif lain.

On January 1, 2015, the Company adopted the revaluation model for measurement of its landrights. As of December 31, 2016, the fair value of land amounted to Rp581,250,000. The fair value is based on Yanuary Bey & Rekan’s Independent Appraisal Report dated October 12, 2016. The valuation method used is market data approach. The revaluation adjustments amounting to Rp493,830,000 was recognized in other comprehensive income.

Dalam pengukuran nilai wajar tanah, Penilai Independen memperhitungkan kemampuan peserta pasar untuk menghasilkan manfaat ekonomi dengan penggunaan tertinggi dan terbaik atas aset atau dengan menjual aset ke peserta pasar lain yang akan menggunakan aset pada kondisi tertinggi dan penggunaan terbaik. Metode penilaian yang digunakan oleh Penilai Independen adalah pendekatan pasar.

In the fair value measurement of the land, the Independent Appraisers takes into account a market participant’s ability to generate economic benefits by using the assets in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The valuation method used by the Independent Appraiser is market approach.

Aset tetap Perusahaan berupa gedung telah diasuransikan terhadap risiko kebakaran dan risiko lainnya kepada PT Asuransi Bintang Tbk masing-masing untuk tahun 2017 dan 2016 dengan nilai pertanggungan sebesar Rp150.000.000. Aset tetap PT Danareksa Sekuritas, entitas anak, berupa kendaraan telah diasuransikan kepada PT Asuransi Jasa Indonesia (Persero) untuk tahun 2017 dan 2016 dengan nilai pertanggungan masing-masing sebesar Rp1.250.000 dan Rp1.305.000. Manajemen berpendapat bahwa nilai pertanggungan tersebut cukup untuk menutup kemungkinan kerugian yang timbul dari risiko tersebut.

The Company's fixed assets in the form of building are insured against fire and other risks with PT Asuransi Bintang Tbk for year 2017 and 2016, respectively with sum insured amounting Rp150,000,000. PT Danareksa Sekuritas, a subsidiary, fixed asset in form of vehicles are insured with PT Asuransi Jasa Indonesia (Persero) for year 2017 and 2016 with sum insured amounting Rp1,250,000 and Rp1,305,000, respectively. Management believes that the insurance coverage is sufficient to cover any possible losses that may arise from such risks.

Nilai tercatat aset tetap yang telah disusutkan terdepresiasi penuh, namun masih digunakan oleh perusahaan adalah masing-masing sebesar Rp2.455.996 dan Rp1.766.518 pada tanggal 31 Desember 2017 dan 2016 (tidak diaudit).

The carrying value of fixed assets that have been fully depreciated but still in used by the company as of December, 2017 and 2016 amounted to Rp2,455,996 and Rp1,766,518, respectively (unaudited).

Manajemen Perusahaan berpendapat tidak terdapat indikasi penurunan nilai atas aset yang dimiliki oleh Perusahaan dan tidak terdapat indikasi perubahan nilai wajar yang signifikan antara tanggal laporan penilai independen sampai dengan tanggal laporan keuangan.

The Company’s management believes that there is no indication of impairment value of fixed asset owned by the Company, and there is no indication of significant change of fair value between independent appraisal report released date and financial report released date.











70

13. ASET LAIN-LAIN 13. OTHER ASSETS


Pihak berelasi (Catatan 38) Related parties (Note 38) Dana penjaminan emisi 1.634.606 511.928 Underwriting fund Piutang lain-lain 120.458 116.832 Other receivables

1.755.064 628.760

Pihak ketiga Third parties Dana penjaminan emisi 28.139.164 7.069.255 Underwriting fund Agunan yang diambil alih - bersih 11.113.940 11.036.120 Foreclosed assets - net Piutang Out of Pocket 5.310.455 1.946.734 Out of Pocket receivables Pengembangan sistem 4.307.921 893.313 System development Rekening penampungan pembayaran Escrow account for payment of promes PSN (Catatan 4d) 1.376.071 48.103.682 PSN promissory notes (Note 4d) Piutang karyawan 1.202.995 2.577.099 Receivables from employees Lain-lain 1.187.400 650.476 Others

52.637.946 72.276.679

Total 54.393.010 72.905.439 Total

a. Piutang karyawan a. Receivables from employees

Piutang karyawan merupakan kredit mobil tanpa bunga selama jangka waktu 4 (empat) tahun dan pembayarannya dilakukan 1 (satu) tahun sekali.

Employee receivable represents non-interest bearing car loans matured in 4 (four) years and the repayment is done once a year.

b. Dana penjaminan emisi b. Underwriting fund

Dana penjaminan emisi merupakan penerimaan dana hasil penjualan emisi saham dan obligasi sehubungan dengan kegiatan penjaminan emisi yang dilakukan oleh PT Danareksa Sekuritas, Entitas Anak. Dana tersebut ditampung dalam rekening giro di bank dan akan dibayarkan kepada masing-masing penerbit.

Underwriting fund represents proceeds from sales of shares and bonds relating to the underwriting activities of PT Danareksa Sekuritas, a Subsidiary. These funds are maintained in current bank accounts and will be paid to the respective issuers.

c. Agunan yang diambil alih c. Foreclosed assets

Akun ini merupakan aset yang dimiliki oleh Perusahaan sebagai pelunasan piutang macet dari debitur.

This account represents assets owned by the Company acquired in settlement of delinquent accounts from debtors.

Aset tersebut diambil alih berdasarkan Surat Menteri Negara Pendayagunaan Badan Usaha Milik Negara (BUMN) Republik Indonesia No. S-28/M.DU.1-BUMN/1999 tertanggal 8 April 1999, yang menyetujui pelaksanaan penagihan atas piutang macet dalam bentuk non tunai, dengan mengambil alih aset dari debitur yang selanjutnya akan dijual kembali untuk memulihkan piutang tersebut.

The assets were taken over based on Letter of the Ministry of State-Owned Enterprises No. S-28/M.DU.1-BUMN/1999 dated April 8, 1999 which agreed on the collection of non performing receivables in non-cash form, by taking over the assets from the debtors to be resold to recover the receivables.

Agunan yang diambil alih ini dicatat sebesar nilai wajarnya pada saat pengambilalihan berdasarkan pada laporan penilaian dari penilai independen.

These foreclosed assets were recorded at their fair values at the time of taking over based on the appraisal report of an independent appraisal company.











71

13. ASET LAIN-LAIN (lanjutan) 13. OTHER ASSETS (continued)

c. Agunan yang diambil alih (lanjutan) c. Foreclosed assets (continued)

Rincian agunan yang diambil alih adalah: The details of the foreclosed assets are as follows:


Saham 53.726.690 53.350.494 Shares Dikurangi: Cadangan kerugian

penurunan nilai (42.612.750) (42.314.374) Less: Allowance for impairment loss

11.113.940 11.036.120




2017 2016

Saldo awal 42.314.374 54.587.980 Beginning balance Perubahan selama tahun berjalan Changes during the year

Pemulihan cadangan (Catatan 31) - (11.036.120) Reversal of allowance (Note 31) Selisih kurs 298.376 (1.237.486) Difference on foreign exchange rate


Saham yang diambil alih merupakan saham PT Pasifik Satelit Nusantara.

Shares taken over represents shares of PT Pasifik Satelit Nusantara.

Manajemen berpendapat bahwa cadangan kerugian penurunan nilai untuk agunan yang diambil alih tersebut telah memadai.

The management believes that the allowance for impairment losses of foreclosed assets is adequate.

14. PINJAMAN BANK 14. BANK LOANS 31 Desember/December 31, 2017

Tanggal Total penarikan/ Tanggal Suku bunga/ pinjaman/ Grant jatuh tempo/ Interest Kreditur/Creditor Total loan date Maturity date rate Tujuan/Purpose

Pihak berelasi/Related parties

PT Bank Mandiri (Persero) Tbk 35.000.000 30/11/2017 15/01/2018 6.75% Modal kerja/Working capital PT Bank Mandiri (Persero) Tbk 50.000.000 14/12/2017 25/01/2018 6.75% Modal kerja/Working capital

Pihak ketiga/Third parties PT Bank Central Asia Tbk 55.000.000 04/12/2017 05/02/2018 6.50% Modal kerja/Working capital PT Bank Central Asia Tbk 20.000.000 06/12/2017 06/02/2018 6.50% Modal kerja/Working capital PT Bank Central Asia Tbk 100.000.000 14/12/2017 29/01/2018 6.50% Modal kerja/Working capital PT Bank Central Asia Tbk 50.000.000 14/12/2017 14/03/2018 6.70% Modal kerja/Working capital PT Bank Central Asia Tbk 25.000.000 22/12/2017 22/01/2018 6.30% Modal kerja/Working capital PT Bank DBS Indonesia 60.000.000 11/12/2017 12/02/2018 6.75% Modal kerja/Working capital PT Bank DBS Indonesia 50.000.000 14/12/2017 14/02/2018 6.70% Modal kerja/Working capital PT Bank DBS Indonesia 50.000.000 14/12/2017 14/02/2018 6.90% Modal kerja/Working capital PT Bank MNC Internasional Tbk 40.000.000 27/12/2017 10/01/2018 6.10% Modal kerja/Working capital PT JTrust Indonesia Tbk 50.000.000 14/12/2017 14/03/2018 7.40% Modal kerja/Working capital PT Bank KEB Hana Indonesia 60.000.000 07/12/2017 07/02/2018 6.75% Modal kerja/Working capital PT Bank KEB Hana Indonesia 40.000.000 11/12/2017 12/02/2018 6.75% Modal kerja/Working capital PT Bank Tabungan Pensiunan Nasional Tbk 50.000.000 14/12/2017 15/01/2018 6.00% Modal kerja/Working capital PT Bank Tabungan Pensiunan Nasional Tbk 50.000.000 14/12/2017 12/01/2018 6.00% Modal kerja/Working capital PT Bank Tabungan Pensiunan Nasional Tbk 40.000.000 15/12/2017 16/01/2018 6.00% Modal kerja/Working capital PT Bank Tabungan Pensiunan Nasional Tbk 60.000.000 27/12/2017 29/01/2018 5.90% Modal kerja/Working capital PT Bank UOB Indonesia 60.000.000 23/11/2017 23/01/2018 6.50% Modal kerja/Working capital PT Bank UOB Indonesia 30.000.000 27/11/2017 26/01/2018 6.50% Modal kerja/Working capital PT Bank UOB Indonesia 70.000.000 30/11/2017 30/01/2018 6.50% Modal kerja/Working capital PT Bank UOB Indonesia 40.000.000 07/12/2017 07/02/2018 6.50% Modal kerja/Working capital

Total 1.085.000.000











72

14. PINJAMAN BANK (lanjutan) 14. BANK LOANS (continued) 31 Desember/December 31, 2016

Tanggal Total penarikan/ Tanggal Suku bunga/ pinjaman/ Grant jatuh tempo/ Interest Kreditur/Creditor Total loan date Maturity date rate Tujuan/Purpose

Pihak ketiga/Third parties

PT Bank Central Asia Tbk 20.000.000 18/11/2017 18/01/2017 8,15% Modal kerja/Working capital PT Bank Central Asia Tbk 40.000.000 21/11/2017 20/01/2017 8,15% Modal kerja/Working capital PT Bank Central Asia Tbk 20.000.000 25/11/2017 25/01/2017 8,15% Modal kerja/Working capital PT Bank Central Asia Tbk 79.000.000 30/11/2017 31/01/2017 8,15% Modal kerja/Working capital PT Bank Central Asia Tbk 35.000.000 5/12/2017 06/02/2017 8,15% Modal kerja/Working capital PT Bank Central Asia Tbk 56.000.000 7/12/2017 07/02/2017 8,15% Modal kerja/Working capital PT Bank ICBC Indonesia 45.000.000 13/12/2017 13/01/2017 8,00% Modal kerja/Working capital PT Bank ICBC Indonesia 80.000.000 19/12/2017 19/01/2017 8,00% Modal kerja/Working capital PT Bank Maybank Indonesia Tbk 75.000.000 9/12/2017 9/01/2017 7,80% Modal kerja/Working capital PT Bank Maybank Indonesia Tbk 70.000.000 19/12/2017 18/01/2017 7,80% Modal kerja/Working capital PT Bank MNC International Tbk 80.000.000 14/12/2017 13/01/2017 7,90% Modal kerja/Working capital PT Bank UOB Indonesia 75.000.000 24/11/2017 24/01/2017 8,05% Modal kerja/Working capital PT Bank UOB Indonesia 60.000.000 28/11/2017 27/01/2017 8,05% Modal kerja/Working capital PT Bank UOB Indonesia 65.000.000 5/12/2017 06/02/2017 8,05% Modal kerja/Working capital

Total 800.000.000

a. PT Bank Central Asia Tbk a. PT Bank Central Asia Tbk

Perusahaan mendapatkan fasilitas perbankan dari PT Bank Central Asia Tbk melalui perjanjian tanggal 4 September 2012. Perjanjian ini telah diubah terakhir kali pada tanggal 20 April 2017 dimana fasilitas yang disediakan adalah Uncommitted Money Market Facility sebesar Rp250.000.000. Perjanjian ini akan berakhir pada tanggal 4 September 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company was granted banking facility by PT Bank Central Asia Tbk through agreement dated September 4, 2012. The agreement was amended dated April 20, 2017, whereby the Bank provides Uncommitted Money Market Facility amounting to Rp250,000,000. The agreement will expire on September 4, 2018. Under the terms of the agreement, interest for this facility is determined based on agreement at the time of facility drawdown.

b. PT Bank UOB Indonesia b. PT Bank UOB Indonesia

Perusahaan mendapatkan fasilitas perbankan dari PT Bank UOB Indonesia melalui perjanjian tanggal 25 Agustus 2011. Perjanjian ini telah diubah terakhir kali dengan addendum perjanjian tanggal 25 Juli 2017 dimana Perusahaan memperoleh fasilitas Uncommitted Revolving Credit Facility sebesar Rp200.000.000. Perjanjian ini akan berakhir pada 28 Juni 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company was granted banking facilities by PT Bank UOB Indonesia through agreement dated August 25, 2011. The agreement was amended by latest addendum dated July 25, 2017 whereby the Company has been granted loan facility in the form of Uncommitted Revolving Credit Facility in the amount of Rp200,000,000. This agreement will expire on June 28, 2018. Under the terms of the agreement, interest for this facility was determined based on agreement at the time of facility drawdown.











73

14. PINJAMAN BANK (lanjutan) 14. BANK LOANS (continued)

c. PT Bank MNC Internasional Tbk c. PT Bank MNC Internasional Tbk

Perusahaan mendapatkan fasilitas perbankan dari PT Bank MNC Internasional, Tbk. melalui perjanjian tanggal 10 Juli 2017 dimana Perusahaan memperoleh fasilitas Uncommitted Money Market Line sebesar Rp150.000.000. Perjanjian ini akan berakhir pada 30 Maret 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company was granted banking facilities by PT Bank MNC Internasional, Tbk. through agreement dated July 10, 2017 whereby the Company has been granted loan facility in the form of Uncommitted Money Market Line in the amount of Rp150,000,000. This agreement will expire on March 30, 2018. Under the terms of the agreement, interest for this facility was determined based on agreement at the time of facility drawdown.

d. PT Bank Tabungan Pensiunan Nasional Tbk d. PT Bank Tabungan Pensiunan Nasional Tbk

Perusahaan mendapatkan fasilitas perbankan dari PT Bank Tabungan Pensiunan Nasional Tbk melalui perjanjian tanggal 9 April 2013. Perjanjian ini telah diubah terakhir kali melalui addendum perjanjian pada tanggal 6 Juli 2017 dimana fasilitas yang disediakan oleh Bank adalah Money Market Facility sebesar Rp200.000.000 dan telah diperpanjang sampai dengan tanggal 10 Mei 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company was granted banking facility by PT Bank Tabungan Pensiunan Nasional Tbk through agreement dated April 9, 2013. The agreement was amended by latest addendum of agreement dated July 6, 2017 whereby the Bank provides Money Market Facility amounting to Rp200,000,000 and has been extended until May 10, 2018. Under the terms of the agreement, interest for this facility is determined by based on agreement at the time of facility drawdown.

e. PT Bank Mandiri (Persero) Tbk e. PT Bank Mandiri (Persero) Tbk

Perusahaan mendapatkan fasilitas perbankan

dari PT Bank Mandiri (Persero) Tbk melalui perjanjian tanggal 14 Februari 2017 berupa fasilitas kredit modal kerja jangka pendek sebesar Rp300.000.000 dan fasilitas treasury line sebesar USD150.000.000 (nilai penuh) atau ekuivalen Rp2.136.975.000. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas. Perjanjian ini telah berakhir pada tanggal 13 Februari 2018.

The Company was granted banking facilities by PT Bank Mandiri (Persero) Tbk through agreement dated February 14, 2017, in the form of short-term working capital loan amounting to Rp300,000,000 and treasury line facility amounting to USD150,000,000 (full amount) or equivalent to Rp2,136,975,000. Under the terms of the agreement, interest for this facility is determined based on interest rate at the time of facility drawdown.This agreement had been expired on February 13, 2018.

f. PT Bank JTrust Indonesia f. PT Bank JTrust Indonesia

Perusahaan mendapatkan fasilitas perbankan dari PT Bank JTrust Indonesia berupa fasilitas kredit atas permintaan sebesar Rp200.000.000. Perjanjian ini akan berakhir pada 8 Agustus 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company obtained a banking facility from PT Bank JTrust Indonesia obtained a credit facility upon request of Rp200,000,000. This agreement will expire on August 8, 2018. Under the terms of the agreement, the facility bears interest at a rate determined based on the agreement at the time of facility withdrawal.











74


g. PT Bank KEB Hana Indonesia g. PT Bank KEB Hana Indonesia

Perusahaan mendapatkan fasilitas perbankan dari PT Bank KEB Hana melalui perjanjian tanggal 14 Oktober 2011. Perjanjian ini telah diubah terakhir kali dengan Adendum Perjanjian tanggal 25 September 2017 dimana Perusahaan memperoleh fasilitas Uncommitted Revolving Credit Facility sebesar Rp150.000.000. Perjanjian ini akan berakhir pada 14 Oktober 2018.

The Company was gr The Company obtained banking facilities from PT Bank KEB Hana through an agreement dated October 14, 2011. This agreement had been amanded through Amendement Agreement dated September 25, 2017 whereby the Company obtained Uncommitted Revolving Credit Facilities facility amounting to Rp150,000,000. This agreement will expire on October 14, 2018.

h. PT Bank DBS Indonesia h. PT Bank DBS Indonesia

Perusahaan mendapatkan fasilitas perbankan dari PT DBS Indonesia melalui perjanjian tanggal 21 Juni 2017 berupa fasilitas kredit perbankan sebesar Rp300.000.000 Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas. Perjanjian ini akan berakhir pada tanggal 18 Mei 2018.

The Company obtained a banking facility from PT DBS Indonesia through an agreement dated June 21, 2017 in the form of a credit facility of Rp300,000,000. Under the terms of the agreement, the facility bears interest at a rate determined based on the agreement at the time of facility withdrawal. This agreement will expire on May 18, 2018.

i. PT Bank ICBC Indonesia i. PT Bank ICBC Indonesia

Perusahaan mendapatkan fasilitas perbankan dari PT Bank ICBC dimana Perusahaan memperoleh fasilitas Uncommitted Money Market Facility sebesar Rp300.000.000. Perjanjian ini akan berakhir pada 8 September 2018. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

Company has been granted loan facility in the form of Uncommitted Money Market Line in the amount of Rp300,000,000. This agreement will expire on September 8, 2018. Under the terms of the agreement, interest for this facility was determined based on agreement at the time of facility drawdown.

j. PT Bank Maybank Indonesia Tbk j. PT Bank Maybank Indonesia Tbk

Perusahaan mendapatkan fasilitas perbankan dari PT Bank Maybank Indonesia, Tbk. melalui perjanjian tanggal 20 Juli 2016 dimana Perusahaan memperoleh fasilitas Uncommitted Money Market Line sebesar Rp250.000.000. Perjanjian ini berakhir satu tahun sejak tanggal pencairan dan tidak diperpanjang. Berdasarkan ketentuan dalam perjanjian, atas fasilitas tersebut dikenakan bunga yang besarnya ditentukan berdasarkan kesepakatan pada saat penarikan fasilitas.

The Company was granted banking facilities by PT Bank Maybank Indonesia, Tbk. through agreement dated July 20, 2016 whereby the Company has been granted loan facility in the form of Uncommitted Money Market Line in the amount of Rp250,000,000. This agreement expired one year after initial disbursement and was not extended. Under the terms of the agreement, interest for this facility was determined based on agreement at the time of facility drawdown.











75


j. PT Bank Maybank Indonesia Tbk (lanjutan) j. PT Bank Maybank Indonesia Tbk (continued)

Rasio keuangan yang dipersyaratkan berdasarkan perjanjian kredit adalah sebagai berikut: 1. menjaga nilai interest bearing liabilities

secara konsolodasi terhadap total ekuitas secara konsolidasi maksimal 350%.

2. menjaga nilai interest bearing liabilities perseroan terhadap total ekuitas perseroan maksimal 500%.

3. menjaga laba usaha konsolidasi setelah pajak selalu positif.

4. Menjaga agar total ekuitas konsolidasi minimal sama dengan modal dasar pada saat penandatanganan perjanjian kredit.

Financial ratios required under the credit agreement are as follows: 1. to maintain consolidated interest-bearing

liabilities to consolidated total equity maximum of 350%.

2. to maintain interest-bearing liabilities to total equity (Company only) maximum of 500%.

3. to maintain positive consolidated operating

income. 4. to maintain total consolidated equity is at

least equal to the authorized capital at the time of signing the loan agreement.

Pada tanggal-tanggal 31 Desember 2017 dan 2016, Perusahaan telah memenuhi seluruh pembatasan utang.

As of December 31, 2017 and 2016, the Company has complied with all loan covenants.

Pada tanggal-tanggal 31 Desember 2017 dan 2016, pinjaman bank tidak dijamin dengan suatu agunan.

As of December 31, 2017 and 2016, bank loans are not secured by collateral.

15. UTANG USAHA 15. ACCOUNTS PAYABLES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak ketiga Third parties Utang derivatif (Catatan 5b) 521.788 623.414 Derivative payable (Note 5b)

Rincian utang derivatif diungkapkan dalam Catatan 5b atas laporan keuangan konsolidasian.

The details of derivative payable are presented in Note 5b to the consolidated financial statements.











76

16. UTANG KEGIATAN PERANTARA PERDAGANGAN EFEK

16. BROKERAGE ACTIVITIES PAYABLES


Pihak berelasi (Catatan 38) Related parties (Note 38) Utang nasabah 126.332.607 157.511.300 Customers payable

Pihak ketiga Third parties Utang nasabah 127.258.070 166.172.683 Customers payable Utang Lembaga Kliring dan Clearing and Depository Penjaminan 223.778.479 - Institution payable Utang marjin 9.241.209 4.014.407 Margin payable

360.277.758 170.187.090

Total 486.610.365 327.698.390 Total

a. Utang nasabah a. Customers payable

Utang nasabah merupakan utang yang timbul sehubungan dengan pelaksanaan jasa perantara perdagangan efek termasuk perdagangan efek dengan perusahaan efek dan jasa penjaminan emisi yang dilakukan PT Danareksa Sekuritas, Entitas Anak.

The balance of customer’s payable represents the payable arising from securities brokerage including transactions with brokers and underwriting services performed by PT Danareksa Sekuritas, a Subsidiary.

Rincian utang nasabah berdasarkan pihak adalah sebagai berikut:

The details of customer payable based on counterparties are as follows:


Utang nasabah non lembaga Non-institutional customers payable Pihak ketiga 70.337.385 112.531.561 Third parties

Utang nasabah lembaga Institutional customers payable Pihak berelasi (Catatan 38) 126.332.607 157.511.300 Related parties (Note 38) Pihak ketiga 56.920.685 53.641.122 Third parties

183.253.292 211.152.422

Total 253.590.677 323.683.983 Total

b. Utang Lembaga Kliring dan Penjaminan b. Clearing and Depository Institution payable

Utang Lembaga Kliring dan Penjaminan timbul dari penyelesaian efek bersih atas kliring transaksi yang dilakukan oleh PT Danareksa Sekuritas, Entitas Anak, melalui PT Kliring Penjamin Efek Indonesia (“KPEI”).

Clearing and Depository Institution payable arises from net securities clearing done by PT Danareksa Sekuritas, a Subsidiary, through PT Kliring Penjaminan Efek Indonesia (“KPEI”).

Rincian utang kepada Lembaga Kliring dan Penjaminan berdasarkan hari transaksi:

The details of payables to clearing and depository institution:


T + 0 - - T + 0 T + 1 172.911.434 - T + 1 T + 2 50.867.045 - T + 2

Total 223.778.479 - Total











77

17. UTANG KEGIATAN MANAJEMEN INVESTASI 17. INVESTMENT MANAGEMENT ACTIVITIES PAYABLES

Utang kegiatan manajemen investasi adalah utang komisi reksa dana yang merupakan beban komisi reksa dana yang dikelola oleh PT Danareksa Investment Management, Entitas Anak. Pada tanggal 31 Desember 2017 dan 2016, utang kegiatan manajemen investasi masing-masing sebesar Rp3.192.408 dan Rp1.784.615, seluruh utang kegiatan manajemen investasi merupakan utang kepada pihak ketiga dalam mata uang Rupiah.

Investment management activities payables represents commission fee payable in relation to mutual funds managed by PT Danareksa Investment Management, a Subsidiary. As of December 31, 2017 and 2016, the payables of investement management activities all investment management activities are Rp3,192,408 and Rp1,784,615, respectively, payables represents payable to third parties in Rupiah currency.


Pihak berelasi (Catatan 38) 1.451.370 335.212 Related parties (Note 38) Pihak ketiga Third party PT Bank Central Asia Tbk 1.312.414 994.783 PT Bank Central Asia Tbk PT Bank Commonwealth 102.122 15.716 PT Bank Commonwealth PT Equity Life Indonesia 74.841 71.940 PT Equity Life Indonesia PT AIA Financial 69.334 - PT AIA Financial PT Asuransi Jiwa Bumiputera 34.121 - PT Asuransi Jiwa Bumiputera PT Bank Permata Tbk 29.650 80.466 PT Bank Permata Tbk PT Bank DBS Indonesia 14.775 47.247 PT Bank DBS Indonesia Lain 103.781 239.251 Others

Total 3.192.408 1.784.615 Total

18. BUNGA MASIH HARUS DIBAYAR 18. ACCRUED INTEREST


Pihak berelasi (Catatan 38) Related parties (Note 38) Obligasi 6.285.774 8.487.938 Bonds Pinjaman bank 143.438 - Bank loans

6.429.212 8.487.938

Pihak ketiga Third parties Pinjaman bank 2.376.725 4.635.144 Bank loans Obligasi 3.801.667 1.268.312 Bonds

6.178.392 5.903.456

Total 12.607.604 14.391.394 Total











78

19. BIAYA MASIH HARUS DIBAYAR 19. ACCRUED EXPENSES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Gaji dan kesejahteraan karyawan 4.487.530 8.500.000 Salaries and employee welfare

Pihak ketiga Third parties Gaji dan kesejahteraan karyawan 57.196.961 62.590.731 Salaries and employee welfare Konsultan 22.142.861 21.872.403 Consultant Umum dan administrasi 5.277.060 4.797.327 General and administrative Pemasaran 4.058.421 5.645.684 Marketing Teknologi Informasi 3.651.405 3.319.459 Information Technology Jasa penjaminan emisi 2.617.711 9.995.135 Underwriting services Jasa perantara 977.496 933.087 Brokerage Riset 534.764 510.469 Research Lainnya 5.654.546 7.497.591 Others

102.111.225 117.161.886

Total 106.598.755 125.661.886 Total

Biaya masih harus dibayar - lainnya terutama terdiri atas biaya komisi pegawai lepas dan entitas anak.

Accrued expenses - other mainly consist of commission for outsourcing employees from subsidary.

20. PERPAJAKAN 20. TAXATION

a. Pajak dibayar dimuka a. Prepaid taxes


Perusahaan: The Company: Pajak pertambahan nilai 1.496.148 290.786 Value added tax Entitas Anak: Subsidiaries: Pajak dibayar dimuka 31.235.170 - Prepaid taxes Pajak penghasilan badan 20.509.483 12.781.279 Corporate income tax Pajak pertambahan nilai 2.079.938 2.204.916 Value added tax Pajak penghasilan pasal 23 - 2.562.993 Withholding tax article 23 Pajak penghasilan pasal 25 - 314.501 Income tax article 25

53.824.591 17.863.689

Total 55.320.739 18.154.475 Total

b. Utang pajak b. Taxes payable


Perusahaan: The Company: Pajak penghasilan pasal 21 1.501.705 1.102.508 Withholding tax article 21 Pajak penghasilan pasal 23 37.481 246.666 Withholding tax article 23

1.539.186 1.349.174

Entitas Anak: Subsidiaries: Pajak penghasilan badan 4.334.487 14.481.097 Corporate income tax Pajak penghasilan pasal 21 2.541.343 2.183.854 Withholding tax article 21 Pajak penghasilan pasal 23/26 1.039.224 199.649 Withholding tax article 23/26 Pajak penghasilan pasal 25 590.812 415.110 Withholding tax article 25 Pajak pertambahan nilai 2.541.683 1.169.175 Value added tax

11.047.549 18.448.885

Total 12.586.735 19.798.059 Total











79

20. PERPAJAKAN (lanjutan) 20. TAXATION (continued)

c. Pajak final dan pajak penghasilan c. Final and income taxes


2017 2016

Pajak final: Final tax Perusahaan (3.609.400 ) (2.017.531) The Company Entitas Anak (2.494.668) (4.186.739) Subsidiaries

(6.104.068) (6.204.270 )

Taksiran beban pajak penghasilan terdiri dari: Provision for income tax expense consist of:


2017 2016

Entitas Anak: Subsidiaries: Beban pajak kini Current tax expense Tahun berjalan (16.617.175) (35.979.218) Current year Tahun sebelumnya (1.238.766) (672.132) Prior year

(17.855.941) (36.651.350) Manfaat pajak tangguhan 6.759.580 10.508.835 Deferred tax benefit

(11.096.361) (26.142.515 )

Pajak penghasilan kini Current income tax

Rekonsiliasi antara (rugi) laba sebelum beban pajak menurut laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan penghasilan kena pajak Perusahaan untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2017 dan 2016 adalah sebagai berikut:

A reconciliation between (loss) income before income tax expense per consolidated statement of profit or loss and other comprehensive income and taxable income of the Company for the years ended December 31, 2017 and 2016 are as follows:


2017 2016

(Rugi) laba konsolidasi Consolidated (loss) income sebelum pajak penghasilan (136.477.825) 142.401.413 before income tax Dikurangi: Laba Entitas Anak sebelum Less: Income from Subsidiaries before pajak penghasilan dan eliminasi 54.458.266 13.441.904 income and elimination

(Rugi) laba perusahaan sebelum The Company's (loss) income pajak penghasilan (82.019.559) 155.843.317 before income tax

Dikurangi: Penghasilan yang dikenai pajak penghasilan final Less: Income subject to final tax and

dan bukan objek pajak: non taxable income: Pendapatan dividen (99.998.703) (139.997.370) Dividend income Perdagangan efek (1.604.240) (48.441.526) Securities trading Pendapatan bunga (21.038.883) (195.750) Interest income Pendapatan sewa (11.203.568) (95.900) Rent income

(133.845.394) (188.730.546)











80


c. Pajak final dan pajak penghasilan (lanjutan) c. Final and income taxes (continued)

Pajak penghasilan kini (lanjutan) Current income tax (continued)

Rekonsiliasi antara laba sebelum beban pajak menurut laporan laba rugi dan penghasilan komprehensif lain konsolidasian dengan penghasilan kena pajak Perusahaan untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2017 dan 2016 adalah sebagai berikut:

A reconciliation between income before income tax expense per consolidated statement of profit or loss and other comprehensive income and taxable income of the Company for the years ended December 31, 2017 and 2016 are as follows:


2017 2016

Beda temporer Temporary differences Pemulihan kerugian penurunan

nilai atas efek dimiliki Reversal for impairment losses on hingga jatuh tempo 14.139.848 12.638.927 held-to-maturity securities

Pemulihan kerugian penurunan nilai atas agunan yang Reversal for impairment losses on diambil alih - (11.036.120) foreclosed assets

Beban masih harus dibayar 4.991.182 97.570 Accrued expenses Penyusutan 215.878 (225.177) Depreciations Liabilitas imbalan kerja Liability for employee karyawan 1.888.834 (678.320) service entitlements

`

21.235.742 796.880

Beda tetap Permanent differences Beban sehubungan dengan Expenses related to income penghasilan yang bersifat final 32.803.081 9.592.102 subject to final tax

Biaya bunga pinjaman 4.362.773 4.054.479 Interest expense on loan Biaya umum 5.840.458 30.254.131 General expense Beban pajak final 3.609.400 2.017.531 Final tax Biaya pegawai 2.888.399 8.384.473 Employee expenses

49.504.111 54.302.716

Laba (rugi) pajak tahun berjalan (145.125.100) 22.212.367 Current year fiscal gain (loss)

Rugi pajak tahun berjalan (145.125.100 ) - Current year fiscal loss

Akumulasi rugi pajak: Accumulated tax losses Tahun 2012 - (106.415.322) Year 2012 Tahun 2013 (101.307.025 ) (101.307.025) Year 2013 Tahun 2014 (31.617.051 ) (31.617.051) Year 2014 Tahun 2015 (47.618.603 ) (47.618.603) Year 2015

Akumulasi rugi fiskal (325.667.779 ) (286.958.001) Accumulated tax losses

Beban pajak-Perusahaan - - Income tax-the Company











81


c. Pajak final dan pajak penghasilan (lanjutan) c. Final and income taxes (continued)

Pajak penghasilan kini (lanjutan) Current income tax (continued)

Rekonsiliasi antara beban pajak penghasilan berdasarkan tarif pajak yang berlaku dengan beban pajak penghasilan berdasarkan laporan laba rugi dan penghasilan komprehensif lain konsolidasian disajikan di bawah ini:

A reconciliation of income tax expense based on statutory income tax rate with the income tax expense per consolidated statements of profit or loss and other comprehensive income is presented below:


2017 2016

(Rugi) laba konsolidasian sebelum Consolidated (loss) income before pajak penghasilan (136.477.825) 142.401.413 income tax Dikurangi: Laba Entitas Anak sebelum pajak penghasilan dan Less: Income from Subsidiaries before eliminasi 54.458.266 13.441.904 income tax and elimination

(Rugi) laba Perusahaan The Company's (loss) income sebelum pajak penghasilan (82.019.559) 155.843.317 before income tax

Beban pajak penghasilan dengan Income tax expense using the tarif pajak maksimum (20.504.890) 38.960.829 maximum tax rate

Penghasilan bukan objek pajak Non taxable income and income dan subjek pajak final (33.461.349) (47.182.637) subject to final tax

Rugi pajak yang tidak dapat Fiscal loss which can dimanfaatkan 40.829.913 1.676.166 not be utilized Rugi fiskal yang dikompensasi tahun berjalan - (5.553.092) Current year utilized fiscal loss Perubahan atas penyisihan aset Change in valuation allowance

pajak tangguhan 760.298 (1.476.945) deferred tax assets Beda tetap - bersih 12.376.028 13.575.679 Net permanent differences

Beban pajak - Perusahaan - - Income tax expense - Company Beban pajak - Entitas Anak 10.780.932 26.142.515 Income tax expense - Subsidiaries

Total beban pajak 10.780.932 26.142.515 Income tax expense

Sampai dengan tanggal penyelesaian laporan keuangan konsolidasian ini, Perusahaan belum menyampaikan Surat Pemberitahuan Tahunan (SPT) atas pajak penghasilan badan 2017 ke Kantor Pelayanan Pajak. Manajemen Perusahaan menyatakan bahwa rugi pajak penghasilan tahun 2017 akan dilaporkan sesuai dengan perhitungan yang telah diungkapkan tersebut.

As of the completion this consolidated financial statement date, the Company has not submitted its 2017 Annual Tax Return (SPT) of income tax to the tax office. The Company's management states that its 2017 income tax loss will be prepared based on the computation as stated above.











82


d. Aset pajak tangguhan d. Deferred tax assets

Perusahaan The Company


Diakui pada penghasilan Diakui pada komprehensif laporan lain/ laba rugi/ Recognized in Recognized in other 1 Januari/ statement of comprehensive 31 Desember/ January 1 profit or loss income December 31

Penyisihan imbalan kerja 5.265.874 472.209 (555.202) 5.182.881 Provision for employment benefits Beban masih harus dibayar 1.188.811 1.247.796 - 2.436.607 Accrued expenses Aset tetap 2.274.557 53.970 - 2.328.527 Fixed assets Penyisihan kerugian penurunan nilai agunan Provision for impairment losses yang diambil alih (2.759.030) - - (2.759.030) of foreclosed asset Penyisihan kerugian penurunan nilai 90.419.603 3.534.962 - 93.954.565 Allowance for impairment losses Rugi pajak 85.965.584 (4.548.639) - 81.416.945 Tax losses

Total 182.355.399 760.298 (555.202) 182.560.495 Total Dikurangi: penyisihan (182.355.399) (760.298) 555.202 (182.560.495) Less: valuation allowance

- - - -



Penyisihan imbalan kerja 4.959.006 (485.476) 792.344 5.265.874 Provision for employment benefits Beban masih harus dibayar 1.480.314 (291.503) - 1.188.811 Accrued expenses Aset tetap 2.330.851 (56.294) - 2.274.557 Fixed assets Penyisihan kerugian penurunan nilai agunan Provision for impairment losses yang diambil alih - (2.759.030) - (2.759.030) of foreclosed asset Penyisihan kerugian penurunan nilai 87.259.871 3.159.732 - 90.419.603 Allowance for impairment losses Rugi pajak 87.641.750 (1.676.166) - 85.965.584 Tax losses

Total 183.671.792 (2.108.737) 792.344 182.355.399 Total Dikurangi: penyisihan (183.671.792) 2.108.737 (792.344) (182.355.399) Less: valuation allowance

- - - -











83


d. Aset pajak tangguhan (lanjutan) d. Deferred tax assets (continued)

Entitas Anak Subsidiaries



Penyisihan imbalan kerja 9.040.537 (297.369) (1.401.882) 7.341.286 Provision for employment benefits Beban masih harus dibayar 13.985.632 (3.036.068) - 10.949.564 Accrued expenses Aset tetap (108.081) (62.532) - (170.613) Fixed assets Aset keuangan diukur pada Financial asset at fair value nilai wajar melalui laba rugi 464.080 (22.601) - 441.479 through profit or loss Penyisihan kerugian penurunan nilai 8.304.610 9.842.601 - 18.147.211 Provision for impairment losses Aset keuangan tersedia untuk dijual - - (62.094) (62.094) Financial assets available-for-sale Rugi pajak - 335.549 - 335.549 Tax loss

31.686.778 6.759.580 (1.463.976) 36.982.382



Penyisihan imbalan kerja 6.447.996 810.447 1.782.094 9.040.537 Provision for employment benefits Beban masih harus dibayar 8.969.148 5.016.484 - 13.985.632 Accrued expenses Aset tetap 94.330 (202.411) - (108.081) Fixed assets Aset keuangan diukur pada Financial asset at fair value nilai wajar melalui laba rugi 514.890 (50.810) - 464.080 through profit or loss Penyisihan kerugian penurunan nilai 3.369.485 4.935.125 - 8.304.610 Provision for impairment losses

19.395.849 10.508.835 1.782.094 31.686.778

e. Surat ketetapan pajak dan surat tagihan pajak

e. Tax assessment letters and tax collection letters

31 Desember 2017 / December 31, 2017

Pajak Pajak penghasilan Pertambahan Pajak penghasilan badan/ Nilai/ lainnya/ Corporate Value Other income tax Added Tax income tax Total

Surat ketetapan pajak kurang bayar: Tax assessment letter: 2013 4.322.760 6.262.923 882.651 11.468.334 2013 2014 4.649.579 5.160.902 1.596.268 11.406.749 2014 2015 2.494.332 - - 2.494.332 2015 Surat tagihan pajak: Tax collection letter: 2013 - 3.184.305 142.306 3.326.611 2013 2014 - 2.539.144 - 2.539.144 2014

11.466.671 17.147.274 2.621.225 31.235.170











84


e. Surat ketetapan pajak dan surat tagihan pajak (lanjutan)

e. Tax assessment letter and tax collection letter (continued)

PT Danareksa Sekuritas (“DS”) PT Danareksa Sekuritas (“DS”)

Tahun 2013 Year 2013

Pada tanggal 29 November 2017, DS menerima Surat Ketetapan Pajak Kurang Bayar (“SKPKB”) atas Pajak Penghasilan Badan (“PPh Badan”) untuk tahun fiskal 2013 sebesar Rp4.322.760 (termasuk bunga).

On November 29, 2017, DS received tax assessment letter (“SKPKB”) which stated that there was an underpayment of corporate income tax (“CIT”) for fiscal year 2013 amounting to Rp4,322,760 (including interest).

Perusahaan juga menerima SKPKB atas Pajak

Pertambahan Nilai (“PPN”) dan pajak penghasilan lainnya untuk tahun fiskal 2013 masing-masing sebesar Rp6.262.923 (termasuk bunga) dan Rp882.651 (termasuk bunga) serta Surat Tagihan Pajak (“STP”) atas PPN sebesar Rp3.184.305 (termasuk denda) dan pajak penghasilan lainnya sebesar Rp142.306 (pokok dan bunga).

The Company also received SKPKB for Value Added Tax (“VAT”) and other income taxes for fiscal year 2013 amounting to Rp6,262,923 (including interest) and Rp882,651 (including interest), respectively as well as Tax Collection Letter (“STP”) for VAT amounting to Rp3,184,305 (including penalty) and other income taxes amounting to Rp142,306 (principal and interest).

Pada tanggal 28 Desember 2017, Perusahaan

telah melakukan pembayaran atas seluruh SKPKB dan STP tersebut. Pada tanggal 28 Februari 2018, Perusahaan telah mengajukan surat keberatan terhadap seluruh SKPKB dan surat permohonan pembatalan terhadap STP tersebut kepada Direktorat Jenderal Pajak.

On December 28, 2017, DS has made full payment for all SKPKB and STP. On February 28, 2018 the Company has submitted an objection letter for all SKPKB and cancellation letter on the above STP to Directorate General of Tax.

Tahun 2014 Pada tanggal 29 November 2017, DS menerima SKPKB atas PPh Badan untuk tahun fiskal 2014 sebesar Rp4.649.579 (termasuk bunga). DS juga menerima SKPKB atas PPN dan pajak penghasilan lainnya untuk tahun fiskal 2014 masing-masing sebesar Rp5.160.902 (termasuk bunga) dan Rp1.596.268 (termasuk bunga) serta STP atas PPN sebesar Rp2.539.144 (denda). Pada tanggal 28 Desember 2017, DS telah melakukan pembayaran atas seluruh SKPKB dan STP tersebut. Pada tanggal 28 Februari 2018, DS telah mengajukan surat keberatan terhadap seluruh SKPKB dan surat permohonan pembatalan terhadap STP tersebut kepada Direktorat Jenderal Pajak.

Year 2014 On November 29, 2017, DS received SKPKB which stated that there was an underpayment of CIT for fiscal year 2014 amounting to Rp4,649,579 (including interest). The Company also received SKPKB for Value Added Tax (“VAT”) and other income taxes for fiscal year 2014 amounting to Rp5,160,902 (including interest) and Rp1,596,268 (including interest), respectively as well as STP for VAT amounting to Rp2,539,144 (penalty). On December 28, 2017, DS has made full payment for all SKPKB and STP. On February 28, 2018 the Company has submitted an objection letter for all SKPKB and cancellation letter on the above STP to Directorate General of Tax.

Tahun 2015 Pada tanggal 1 November 2017, DS menerima SKPKB atas PPh Badan untuk tahun fiskal 2015 sebesar Rp2.494.332 (termasuk bunga). Pada tanggal 27 November 2017, DS telah melakukan pembayaran atas SKPKB tersebut. Pada tanggal 30 Januari 2018, DS telah mengajukan surat keberatan ke Direktorat Jenderal Pajak terhadap SKPKB tersebut.

Year 2015 On November 1, 2017, DS received SKPKB which stated that there was an underpayment of CIT for fiscal year 2015 amounting to Rp2,494,332 (including interest). On November 27, 2017, DS has made full payment for above SKPKB. On January 30, 2018, DS has submitted an objection letter for above SKPKB to Directorate General of Tax.











85


e. Surat ketetapan pajak dan surat tagihan pajak (lanjutan)

e. Tax assessment letter and tax collection letter (continued)

PT Danareksa Sekuritas (“DS”) (lanjutan) PT Danareksa Sekuritas (“DS”) (Continued) Tahun 2015 (lanjutan) Year 2015 (continued) Sampai dengan tanggal penyelesaian laporan keuangan ini, DS belum menerima keputusan dari Direktorat Jenderal Pajak atas seluruh keberatan tersebut. Manajemen memiliki keyakinan bahwa kemungkinan Perusahaan akan memenangkan kasus pajak ini adalah tinggi, sehingga tidak dibentuk cadangan dalam laporan keuangan.

As of the completion date of these financial statements, DS has not received any decision yet from Directorate General of Tax for all of the above objection. Management believes that the probability to win this tax case is high, therefore no provision is provided in the financial statements.

PT Danareksa Investment Management (“DIM”) Tahun 2015 Pada tanggal 4 Oktober 2017, DIM menerima Surat Ketetapan Pajak Lebih Bayar (“SKPLB”) sebagai hasil pemeriksaan masa pajak dalam tahun 2015 atas pajak penghasilan badan. Jumlah lebih bayar pajak penghasilan badan berdasarkan SKPLB telah diterima sebesar Rp1.484.575 dan selisihnya dibebankan ditahun berjalan.

PT Danareksa Investment Management (“DIM”) Year 2015 On October 4, 2017 the Company received Overpayment Tax Assessment Letter (“SKPLB”) based on tax assessment on corporate income tax for the fiscal year 2015. Total overpayment of corporate income tax as per SKPLB has been received amounted to Rp1,484,575 and the remaining was charged to current year.

PT Danareksa Capital (“DC”) Tahun 2015 Pada tanggal 12 April 2017, DC menerima SKPLB sebagai hasil pemeriksaan masa pajak dalam tahun 2015 atas pajak penghasilan badan.

PT Danareksa Capital (“DC”) Year 2015 On April 12, 2017 the Company received Overpayment Tax Assessment Letter (“SKPLB”) based on tax assessment on corporate income tax for the fiscal year 2015.

Jumlah lebih bayar pajak penghasilan badan berdasarkan SKPLB telah diterima sebesar Rp1.339.454 dan selisihnya dibebankan di tahun berjalan.

Total overpayment of corporate income tax as per SKPLB has been received amounted to Rp1,339,454 and the remaining was charged to current year.

f. Administrasi f. Administrative

Berdasarkan Undang-undang Republik Indonesia No. 28 Tahun 2007 tentang “Perubahan Ketiga atas Undang-undang Nomor 6 Tahun 1983 tentang Ketentuan Umum dan Tata Cara Perpajakan” yang berlaku mulai tahun 2008, Direktorat Jenderal Pajak (“DJP”) dapat menetapkan dan mengubah liabilitas pajak dalam batas waktu lima tahun sejak tanggal terutangnya pajak. Ketentuan peralihan dari Undang-undang tersebut mengatur bahwa perpajakan untuk tahun fiskal 2007 dan sebelumnya dapat ditetapkan oleh DJP paling lambat pada akhir tahun 2013.

Based on Law of the Republic of Indonesia No. 28 Year 2007 regarding “Third Amendment of Law No. 6 Year 1983 regarding General Rules and Procedures of Taxation” which are applicable starting 2008, the Directorate General of Tax (“DGT”) may assess or amend taxes within five years from the date the tax becomes due. The transitional provisions of the said Law stipulate that taxes for fiscal year 2007 and before may be assessed by the DGT at the latest at the end of 2013.











86

21. UTANG LAIN-LAIN 21. OTHER PAYABLES 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Pihak ketiga Third parties: Upfront fee 8.138.277 2.245.295 Upfront fee Utang kepada karyawan 4.551.735 1.389.335 Payable to employees Dana titipan nasabah 2.796.795 - Customer advance payment Utang sewa 2.324.694 2.687.766 Lease payable Utang PPh bursa 1.750.271 1.423.378 Witholding tax payable to IDX Utang dividen nasabah 1.602.150 1.868.149 Customer dividends payable Utang BEI 1.436.960 2.902.890 Payable to BEI Pemegang sertifikat Danareksa 1.402.334 1.402.883 Danareksa certificate holders Lain-lain 2.255.397 3.462.064 Others

26.258.613 17.381.760

22. EFEK-EFEK YANG DITERBITKAN 22. SECURITIES ISSUED


Obligasi Berkelanjutan I Danareksa Danareksa Shelf Registration Bonds I Tahun 2012 375.000.000 375.000.000 Year 2012

Obligasi Berkelanjutan I Danareksa Danareksa Shelf Registration Bonds I Tahun 2014 250.000.000 500.000.000 Year 2014

625.000.000 875.000.000 Dikurangi: Biaya emisi (946.396) (2.944.586) Less: Issuance cost

624.053.604 872.055.414

Berikut ini efek yang diterbitkan Perusahaan berdasarkan jatuh temponya:

The following is the Company’s securities issued based on maturity:


Jatuh tempo dalam satu tahun - 250.000.000 Current maturities

Jatuh tempo setelah satu tahun Long-term portion due in 2018 375.000.000 375.000.000 2018 2019 250.000.000 250.000.000 2019

625.000.000 875.000.000 Dikurangi: Biaya emisi (946.396) (2.944.586) Less: Issuance cost

624.053.604 872.055.414

a. Obligasi V Danareksa tahun 2010 dengan

tingkat bunga tetap a. Danareksa V Bonds year 2010 at fixed

interest rates

Pada tanggal 31 Desember 2010, Perusahaan memperoleh pernyataan efektif dari Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM-LK”) melalui suratnya No. S-11763/BL/2010 untuk melakukan penawaran umum Obligasi V Danareksa tahun 2010 dengan PT Bank Mega Tbk bertindak sebagai wali amanat.

On December 31, 2010, the Company received the notice of effectivity from the Capital Market and Financial Institutions Supervisory Agency (“BAPEPAM-LK”) No. S-11763/BL/2010 for the public offering of the Danareksa V Bonds year 2010 with PT Bank Mega Tbk as a trustee.











87

22. EFEK YANG DITERBITKAN (lanjutan) 22. SECURITIES ISSUED (continued)

a. Obligasi V Danareksa tahun 2010 dengan tingkat bunga tetap (lanjutan)

a. Danareksa V Bonds year 2010 at fixed interest rates (continued)

Jumlah pokok obligasi sebesar Rp500.000.000 terdiri dari 2 (dua) seri yaitu:

The principal amount of the bond is Rp500,000,000 which consists of 2 (two) series as follows:

1. Seri A sebesar Rp125.000.000 jangka

waktu 3 (tiga) tahun sejak tanggal 11 Januari 2011 sampai dengan tanggal 11 Januari 2014 dengan tingkat suku bunga tetap sebesar 9,40% per tahun.

1. Series A amounting to Rp125,000,000 with duration of 3 (three) years from January 11, 2011 until January 11, 2014 bearing interest rate at 9.40% per annum.

2. Seri B sebesar Rp375.000.000 jangka

waktu 5 (lima) tahun sejak tanggal 11 Januari 2011 sampai dengan tanggal 11 Januari 2016 dengan tingkat suku bunga tetap sebesar 10,20% per tahun.

2. Series B amounting to Rp375,000,000 with duration of 5 (five) years from January 11, 2011 until January 11, 2016 bearing interest rate at 10.20% per annum.

Obligasi ditawarkan dengan nilai 100% dari jumlah pokok.

The bonds were offered at 100% of the principal value.

Pembayaran bunga dilakukan setiap 3 (tiga) bulanan dimana:

Interest is paid on a quarterly basis, which is:

1. Pembayaran pertama bunga obligasi Seri

A dilakukan pada tanggal 11 April 2011 dan terakhir pada tanggal 11 Januari 2014

1. The first interest payment of bonds series A was made on April 11, 2011 and the last interest payment will be made on January 11, 2014.


B dilakukan pada tanggal 11 April 2011 dan terakhir pada tanggal 11 Januari 2016.

2. The first interest payment of bonds series B was made on April 11, 2011 and the last interest payment will be made on January 11, 2016.

Biaya emisi obligasi sebesar Rp4.032.286 diamortisasi selama masa obligasi.

Bonds issuance costs amounting to Rp4,032,286 was amortized over the term of the bonds.

Obligasi ini tidak dijaminkan dengan suatu agunan khusus, namun dijamin dengan seluruh harta kekayaan Perusahaan, barang bergerak maupun tidak bergerak, baik yang ada maupun akan ada dikemudian hari sesuai dengan pasal 1131 dan 1132 Kitab Undang-undang Hukum Perdata.

The bonds are not secured by particular collateral, but rather are secured with all of the Company's assets which consist of movable and unmovable goods that currently exist and will exist, according to section 1131 and 1132 of Civil Code.











88


a. Obligasi V Danareksa tahun 2010 dengan tingkat bunga tetap (lanjutan)

a. Danareksa V Bonds year 2010 at fixed interest rates (continued)

Dana yang diperoleh dari hasil penawaran umum, setelah dikurangi biaya emisi, dipergunakan untuk:

Proceeds from the public offering of the bonds, net of issuance costs, would be used for the following:

1. Pembayaran kembali utang Obligasi IV

Danareksa tahun 2009 sebesar Rp200.000.000 yang jatuh tempo pada tanggal 14 April 2011 dan Obligasi III Seri B tahun 2008 sebesar Rp130.000.000 yang jatuh tempo pada tanggal 20 Juni 2011.

1. Repayment of Bond Danareksa IV year 2009 amounting to Rp200,000,000 which matured on April 14, 2011 and Bonds Danareksa III series B year 2008 amounting to Rp130,000,000 which matured on June 20, 2011.

2. Setoran modal awal kepada Entitas Anak

baru yaitu PT Danareksa Capital. 2. Initial paid up capital to the new Subsidiary

namely PT Danareksa Capital.

3. Investasi jangka pendek di pasar saham dan obligasi.

3. Short-term investment in stocks and bonds.

Perusahaan melunasi seluruh utang pokok Obligasi V Danareksa Tahun 2010 Seri A dan Seri B masing-masing pada tanggal 11 Januari 2014 dan 11 Januari 2016.

The Company fully paid the outstanding principal of Danareksa V Bonds Year 2010 Serial A and Serial B on January 11, 2014 and January 11, 2016, respectively.

b. Obligasi Berkelanjutan I Danareksa tahun

2012 dengan tingkat bunga tetap b. Danareksa Shelf Registration Bonds I year

2012 at fixed interest rates

Pada tanggal 27 Desember 2012, Perusahaan memperoleh pernyataan efektif dari Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan (“BAPEPAM-LK”) melalui suratnya No. S-14764/BL/2012 untuk melakukan penawaran umum Obligasi Berkelanjutan I Danareksa tahun 2012 dengan PT Bank Mega Tbk bertindak sebagai wali amanat.

On December 27, 2012, the Company received the notice of effectivity from the Capital Market and Financial Institutions Supervisory Agency (“BAPEPAM-LK”) No. S-14764/BL/2012 for the public offering of the Danareksa Shelf Registration Bonds I year 2012 with PT Bank Mega Tbk as a trustee.


The principal of bond amounting to Rp500,000,000 consists of 2 (two) series as follows:


waktu 3 (tiga) tahun sejak tanggal 9 Januari 2013 sampai dengan tanggal 9 Januari 2016 dengan tingkat suku bunga tetap sebesar 8,20% per tahun.

1. Series A amounting to Rp125,000,000 with duration of 3 (three) years from January 9, 2013 until January 9, 2016 bearing interest rate at 8.20% per annum.


waktu 5 (lima) tahun sejak tanggal 9 Januari 2013 sampai dengan tanggal 9 Januari 2018 dengan tingkat suku bunga tetap sebesar 8,80% per tahun.

2. Series B amounting to Rp375,000,000 with duration of 5 (five) years from January 9, 2013 until January 9, 2018 bearing interest rate at 8.80% per annum.











89


b. Obligasi Berkelanjutan I Danareksa tahun 2012 dengan tingkat bunga tetap (lanjutan)

b. Danareksa Shelf Registration Bonds I year 2012 at fixed interest rates (continued)






A dilakukan pada tanggal 9 April 2013 dan terakhir pada tanggal 9 Januari 2016.

1. The first interest payment of bonds series A was made on April 9, 2013 and the last interest payment will be made on January 9, 2016.

2. Pembayaran pertama bunga obligasi

Seri B dilakukan pada tanggal 9 April 2013 dan terakhir pada tanggal 9 Januari 2018.

2. The first interest payment of bonds series B was made on April 9, 2013 and the last interest payment will be made on January 9, 2018.

Biaya emisi obligasi sebesar Rp6.590.000 akan diamortisasi selama masa obligasi.

Bonds issuance costs amounting to Rp6,590,000 will be amortized over the term of the bonds.



Dana yang diperoleh dari hasil penawaran umum, setelah dikurangi biaya emisi, seluruhnya akan dipergunakan untuk mengganti kas internal yang digunakan untuk melunasi Obligasi II Danareksa Tahun 2007 sebesar Rp500.000.000 dengan tingkat bunga 10,875%, tenor 5 tahun dan jatuh tempo pada 25 September 2012.

Proceeds from the public offering of the bonds, net of issuance costs, to be used to replace the internal cash used to pay off Bond Danareksa II year 2007 amounted to Rp500,000,000 with interest rate at 10.875%, tenor of 5 years which matured on September 25, 2012.

Berdasarkan Perjanjian Perwaliamanatan, Perusahaan diwajibkan, antara lain, untuk memenuhi persyaratan-persyaratan tertentu, seperti memelihara rasio-rasio keuangan tertentu. Pada tanggal 31 Desember 2017 dan 2016, Perusahaan telah memenuhi semua rasio-rasio keuangan tersebut.

Based on Trustee Agreement, the Company is subject to certain conditions among others, to maintain certain financial ratios. As of December 31, 2017 and 2016, the Company meets all the financial ratios conditions.

Perusahaan dapat melakukan pembelian kembali (buy back) untuk sebagian atau seluruh obligasi yang diterbitkan dengan ketentuan bahwa hal tersebut hanya dapat dilaksanakan setelah ulang tahun pertama sejak tanggal emisi.

The Company can buy back part or all of the bonds isssued under a condition that such action can only be conducted after the first anniversary since the issuance date.

Perusahaan melunasi seluruh utang pokok Obligasi Berkelanjutan I Danareksa Tahun 2012 Seri A pada tanggal 9 Januari 2016.

The Company fully paid the outstanding principal of Danareksa Shelf Registration Bonds I year 2012 Serial A on January 9, 2016.











90


c. Obligasi Berkelanjutan I Danareksa tahun 2014 dengan tingkat bunga tetap

c. Danareksa Shelf Registration Bonds I year 2014 at fixed interest rates

Dalam rangka Penawaran Umum Obligasi Berkelanjutan I, pada tanggal 16 Desember 2014, Perusahaan menerbitkan Obligasi Berkelanjutan I tahun 2014, dengan PT Bank Mega Tbk bertindak sebagai wali amanat.

In regard of the Public Offering of Shelf Registration Bonds I, on December 16, 2014, the Company issued the Danareksa Shelf Registration Bonds I year 2014 with PT Bank Mega Tbk acts as trustee.


The principal of bond amounting to Rp500,000,000 consists of 2 (two) series as follows:


waktu 3 (tiga) tahun sejak tanggal 16 Desember 2015 sampai dengan tanggal 16 Desember 2017 dengan tingkat suku bunga tetap sebesar 10,50% per tahun.

1. Series A amounting to Rp250,000,000 with duration of 3 (three) years from December 16, 2015 until December 16, 2017 bearing interest rate at 10.50% per annum.


waktu 5 (lima) tahun sejak tanggal 16 Desember 2015 sampai dengan tanggal 16 Desember 2019 dengan tingkat suku bunga tetap sebesar 11,00% per tahun.

2. Series B amounting to Rp250,000,000 with duration of 5 (five) years from December 16, 2015 until December 16, 2019 bearing interest rate at 11.00% per annum.






A dilakukan pada tanggal 16 Maret 2015 dan terakhir pada tanggal 16 Desember 2017.

1. The first interest payment of bonds series A was made on March 16, 2015 and the last interest payment will be made on December 16, 2017.


B dilakukan pada tanggal 16 Maret 2015 dan terakhir pada tanggal 16 Desember 2019.

2. The first interest payment of bonds series B was made on March 16, 2015 and the last interest payment will be made on December 16, 2019.

Biaya emisi obligasi sebesar Rp1.870.000 akan diamortisasi selama masa obligasi.

Bonds issuance costs amounting to Rp1,870,000 will be amortized over the term of the bonds.



Dana yang diperoleh dari hasil penawaran umum, setelah dikurangi biaya emisi, seluruhnya akan dipergunakan untuk keperluan modal kerja Perusahaan.

Proceeds from the public offering of the bonds, net of issuance costs, will be used as working capital.











91

22. EFEK YANG DITERBITKAN (LANJUTAN) 22. SECURITIES ISSUED (CONTINUED)

c. Obligasi Berkelanjutan I Danareksa tahun 2014 dengan tingkat bunga tetap (lanjutan)

c. Danareksa Shelf Registration Bonds I year 2014 at fixed interest rates (continued)

Berdasarkan Perjanjian Perwaliamanatan, Perusahaan diwajibkan, antara lain, untuk memenuhi persyaratan-persyaratan tertentu, seperti memelihara rasio-rasio keuangan tertentu. Pada tanggal 31 Desember 2017 dan 2016, Perusahaan telah memenuhi semua rasio-rasio keuangan tersebut.

Based on Trustee Agreement, the Company is subject to certain conditions among others, to maintain certain financial ratios. As of December 31, 2017 and 2016, the Company meets all the financial ratios conditions.

Perusahaan dapat melakukan pembelian kembali (buy back) untuk sebagian atau seluruh obligasi yang diterbitkan dengan ketentuan bahwa hal tersebut hanya dapat dilaksanakan setelah ulang tahun pertama sejak tanggal emisi.

The Company can buy back part or all of the bonds isssued under a condition that such action can only be conducted after the first anniversary since the issuance date.

d. Medium Term Notes I Danareksa Tahun 2016 d. Danareksa Medium Term Notes I Year 2016

Pada tanggal 16 Desember 2015, Perusahaan

menerbitkan Medium Term Notes I Danareksa Tahun 2016 secara penawaran terbatas dengan PT Bank Mega Tbk bertindak sebagai wali amanat.

On December 16, 2015, the Company issued Danareksa Medium Term Notes I Year 2016 in private placement with PT Bank Mega Tbk as trustee.

Jumlah pokok medium term notes sebesar Rp120.000.000 dengan tingkat bunga sebesar 9,50% per tahun yang jatuh tempo pada tanggal 20 Desember 2016. Pembayaran bunga dilakukan setiap 3 (tiga) bulanan dimana pembayaran pertama dilakukan pada tanggal 16 Maret 2016.

The principal of medium term notes amounting to Rp120,000,000 bearing interest rate at 9.50% per annum that will be matured on December 20, 2016. Interest is paid on a quarterly basis with the first payment will be made on March 16, 2016.

Medium term notes ini tidak dijaminkan dengan suatu agunan khusus, namun dijamin dengan seluruh harta kekayaan Perusahaan, barang bergerak maupun tidak bergerak, baik yang ada maupun akan ada dikemudian hari sesuai dengan pasal 1131 dan 1132 Kitab Undang-undang Hukum Perdata.

The medium term notes are not secured by particular collateral, but rather are secured with all of the Company's assets which consist of movable and unmovable goods that currently exist and will exist, according to section 1131 and 1132 of Civil Code.

Perusahaan telah melunasi seluruh utang pokok pada tanggal 20 Desember 2016.

The Company has fully paid the outstanding principal on December 20, 2016.

e. Peringkat obligasi Perusahaan e. The Company’s bonds rating

Berdasarkan Sertifikat Pemantauan Tahunan Pemeringkatan yang dikeluarkan oleh PT Pemeringkat Efek Indonesia (“Pefindo”) per tanggal 10 Oktober 2017 dan 10 Oktober 2016, obligasi Perusahaan mendapat peringkat idA (Single A).

Based on annual rating of long-term debt (bonds) issued by PT Pemeringkat Efek Indonesia (“Pefindo”) as of October 10, 2017 and October 10, 2016, the Company’s bonds rating is idA (Single A).

Pada tanggal-tanggal 31 Desember 2017 dan 2016, Perusahaan telah memenuhi seluruh persyaratan dan ketentuan.

As of December 31, 2017 and 2016, the Company has complied with all terms and conditions.











92

23. KEPENTINGAN NON-PENGENDALI 23. NON-CONTROLLING INTEREST

Perubahan kepentingan non-pengendali atas aset bersih Entitas Anak adalah sebagai berikut:

Movements in the non-controlling interest’s share in the net assets of the Subsidiaries are as follows:


2017 2016

Saldo awal 139.375 123.517 Beginning balance Bagian kepentingan non-pengendali 12.491 16.403 non-controlling interest Pembagian dividen (130) (635) Dividend distribution Bagian kepentingan Other comprehensive income non-pengendali atas penghasilan attributable to non-controlling komprehensif lain (149) 90 interest

Saldo akhir 151.587 139.375 Ending balance

24. MODAL SAHAM 24. SHARE CAPITAL

Pada tanggal 31 Desember 2017 dan 2016, seluruh saham Perusahaan dimiliki oleh Pemerintah Republik Indonesia.

As of December 31, 2017 and 2016, the Company's shares are wholly owned by the Government of the Republic of Indonesia.

Berdasarkan Akta Notaris Imas Fatimah, S.H. No. 48 tanggal 30 Mei 2000, pemegang saham menyetujui untuk meningkatkan modal dasar Perusahaan dari semula Rp250.000.000 yang terdiri dari 250.000 lembar saham dengan nilai nominal Rp1.000 per saham menjadi Rp2.800.000.000 yang terdiri dari 2.800.000 lembar saham dengan nilai nominal Rp1.000 per saham, dan meningkatkan modal ditempatkan dan disetor penuh sebesar Rp576.480.000, berubah dari Rp125.000.000 yang terbagi atas 125.000 lembar saham dengan nilai nominal Rp1.000 per saham menjadi Rp701.480.000 yang terbagi atas 701.480 lembar saham dengan nilal nominal Rp1.000 per saham. Peningkatan ini disetujui dengan Keputusan Menteri Hukum dan Perundang-undangan dalam suratnya No. C-14781 HT.01.04.TH.2000 tanggal 21 Juli 2000.

Based on Notarial Deed No. 48 dated May 30, 2000 of Notary Imas Fatimah, S.H., the shareholders agreed to increase the Company's authorized capital from Rp250,000,000 consisting of 250,000 shares with a par value of Rp1,000 per share to Rp2,800,000,000 consisting of 2,800,000 shares with a par value of Rp1,000 per share, and to increase the issued and fully paid capital amounting to Rp576,480,000, changed from Rp125,000,000 divided into 125,000 shares with a par value of Rp1,000 per share to Rp701,480,000 divided into 701,480 shares with a par value of Rp1,000 per share. This increase was approved by the Ministry of Law and Legislation through letter No. C-14781 HT.01.04.TH.2000 dated July 21, 2000.

Peningkatan ini merupakan penambahan penyertaan modal Pemerintah Indonesia yang berasal dari konversi pinjaman jangka panjang RDI (Rekening Dana Investasi) yang diperoleh sejak tahun 1984 sampai 1997.

The increase in issued and paid-up capital resulted from the conversion of a long-term loan RDI (Investment Fund Account) which was drawn down from 1984 to 1997.

Berdasarkan Peraturan Pemerintah No. 40 tahun 2000, Presiden Republik Indonesia telah menyetujui konversi RDl ini sebesar Rp576.482.743 menjadi modal saham. Perbedaan jumlah penambahan modal saham antara jumlah berdasarkan akta notaris dan Peraturan Pemerintah tersebut di atas sebesar Rp2.743 dicatat sebagai "Agio Saham".

Based on the Government Regulation No. 40 Year 2000, the President of the Republic of Indonesia has approved the conversion of the above RDI amounting to Rp576,482,743 into share capital. The difference in addition paid up capital between the notarial deed and Government Regulation referred to above amounting to Rp2,743 is recorded as "Capital Paid in Excess of Par Value".











93

25. TAMBAHAN MODAL DISETOR LAINNYA 25. OTHER ADDITIONAL PAID-UP CAPITAL

Akun ini merupakan dividen yang diumumkan masing-masing sebesar Rp44.238.222, Rp36.191.020 dan Rp5.495.000 untuk tahun 2001, 2000 dan 1999, secara keseluruhan berjumlah Rp85.924.242 yang disetorkan kembali oleh pemegang saham seperti ditetapkan dalam rapat umum pemegang saham tahunan yang masing-masing diadakan pada tanggal 17 Juli 2001 dan 26 Mei 2000.

This account represents dividends declared amounting to Rp44,238,222, Rp36,191,020 and Rp5,495,000 in 2001, 2000 and 1999, respectively, totalling Rp85,924,242, which were reinvested by the shareholder as resolved in the shareholder's annual general meetings held respectively on July 17, 2001 and May 26, 2000.

26. PENDAPATAN BUNGA, DIVIDEN, DAN SEWA PEMBIAYAAN

26. INTEREST, DIVIDENDS, AND LEASE INCOME


2017 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Portofolio pendapatan tetap 49.780.868 18.966.460 Fixed income portfolio Pendapatan anjak piutang 11.741.510 4.211.345 Factoring income Pendapatan dividen 7.083.650 10.065.729 Dividend income Pasar uang 1.449.687 7.932.742 Money market Pendapatan sewa pembiayaan 996.974 1.902.685 Lease income earned

71.052.689 43.078.961

Pihak ketiga Third parties Pembiayaan nasabah dan Financing receivables and transaksi marjin 77.814.640 223.316.218 margin trading Pasar uang 15.237.710 25.699.079 Money market Pendapatan sewa pembiayaan 6.042.740 4.195.569 Lease income earned Pendapatan anjak piutang 4.995.424 6.874.636 Factoring income Portofolio pendapatan tetap 3.496.016 3.347.021 Fixed income portfolio Pendapatan dividen 692.004 24.387 Dividend income Efek yang dibeli dengan janji Securities purchased with dijual kembali - 3.619.167 agreement to resell

108.278.534 267.076.077

Total 179.331.223 310.155.038 Total











94

27. PENDAPATAN JASA 27. SERVICE FEE INCOME


2017 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Pengelolaan dana 110.099.297 90.360.750 Fund management Penasihat keuangan 47.574.115 20.265.289 Financial advisory Komisi perantara perdagangan efek 18.384.175 24.638.804 Commission from securities trading

176.057.587 135.264.843

Pihak ketiga Third parties Komisi perantara perdagangan efek 35.523.284 50.861.869 Commission from securities trading Penasihat keuangan 4.039.029 14.893.689 Financial advisory Pengelolaan dana 864.421 969.969 Fund management Lain-lain 571.074 2.554.662 Others

40.997.808 69.280.189

Total 217.055.395 204.545.032 Total

28. KEUNTUNGAN DARI PERDAGANGAN DAN PERUBAHAN NILAI WAJAR EFEK-EFEK DIPERDAGANGKAN

28. GAIN ON TRADING AND CHANGES IN FAIR VALUE OF MARKETABLE SECURITIES


2017 2016

Laba penjualan obligasi diperdagangkan 6.850.663 12.421.742 Gain on sale of bonds held for trading Laba atas penjualan reksa dana 6.020.695 8.433.797 Gain on sale of mutual fund Laba penjualan saham Gain on sale of diperdagangkan 4.885.911 22.666.283 shares held for trading Laba penjualan obligasi tersedia untuk dijual 1.039.901 3.966.214 Gain on sale of bonds available for-sale

Total 18.797.170 47.488.036 Total

29. PENDAPATAN JASA PENJAMINAN EMISI DAN PENJUALAN EFEK

29. UNDERWRITING AND SECURITIES SELLING SERVICE INCOME

Akun ini merupakan komisi yang diterima oleh PT Danareksa Sekuritas, Entitas Anak, sehubungan dengan usaha penjaminan dan penjualan efek yang dilakukan oleh Entitas Anak.

This account represents commission earned by PT Danareksa Sekuritas, a Subsidiary, in relation with underwriting activities and securities selling services undertaken by the Subsidiary.


2017 2016

Pendapatan Income Pihak berelasi (Catatan 38) 24.873.212 69.612.140 Related parties (Note 38) Pihak ketiga 7.484.910 6.550.409 Third parties

32.358.122 76.162.549 Biaya (1.127.527) (1.408.974) Expenses

Total 31.230.595 74.753.575 Total











95

30. BEBAN BUNGA 30. INTEREST EXPENSE


2017 2016

Pihak berelasi (Catatan 38) Related parties (Note 38) Obligasi 66.061.875 87.898.732 Bond Pinjaman 4.950.369 14.859.167 Loan Medium-Term Notes - 1.841.944 Medium-Term Notes

71.012.244 104.599.843

Pihak ketiga Third parties Pinjaman 49.954.404 75.264.632 Loan Obligasi 21.838.627 2.258.000 Bond Medium-Term Notes - 9.209.722 Medium-Term Notes

71.793.031 86.732.354

Total 142.805.275 191.332.197 Total

31. PEMBENTUKAN (PEMULIHAN) KERUGIAN PENURUNAN NILAI ATAS ASET

31. PROVISION FOR (REVERSAL OF) IMPAIRMENT LOSSES ON ASSETS


2017 2016

Piutang pembiayaan (Catatan 5a) 40.471.242 38.771.792 Financing receivable (Note 5a) Anjak piutang - bersih (Catatan 8a) 19.057.288 7.150.000 Factoring - net (Note 8a) Piutang kegiatan perantara perdagangan efek (Catatan 6) 15.485.998 12.947.995 Brokerage activities receivables (Note 6) Piutang Jasa penasihat keuangan (Catatan 5c) 3.906.290 - Financing advisory services (Note 5c) Sewa pembiayaan (Catatan 8b) 1.972.309 - Finance lease (Note 8b) Efek dimiliki hingga jatuh tempo - bersih (Catatan 4) (248.183) (26.377.905) Held-to-maturity securities - net (Note 4) Pemulihan efek dimiliki hingga jatuh tempo - (83.363.049) Reversal for held-to-maturity Agunan yang diambil alih (Catatan 13) - (11.036.120) Foreclosed assets (Note 13)

Total 80.644.944 (61.907.287) Total

32. BEBAN GAJI DAN KESEJAHTERAAN KARYAWAN

32. SALARIES AND EMPLOYEE WELFARE EXPENSES


2017 2016

Pihak berelasi (Catatan 38) 61.559.629 56.545.406 Related parties (Note 38)

Pihak ketiga Third parties Gaji, tunjangan, dan insentif lainnya 149.301.018 154.939.987 Salary, benefits, and other incentives Imbalan kerja karyawan (Catatan 37) 18.320.293 15.066.944 Employee service entitlements (Note 37)

167.621.311 170.006.931

Total 229.180.940 226.552.337 Total











96

33. BEBAN UMUM DAN ADMINISTRASI 33. GENERAL AND ADMINISTRATIVE EXPENSES Tahun yang berakhir pada tanggal 31 Desember/ Year ended December 31,

2017 2016

Perbaikan dan pemeliharaan 14.200.460 13.281.006 Repairs and maintenance Iuran Otoritas Jasa Keuangan (OJK) 13.504.631 11.361.920 Financial Service Authority (OJK) levy Transportasi 10.607.691 12.809.683 Transportation Sewa kantor dan inventaris kantor 5.101.448 5.473.913 Office equipment and office rental Biaya keamanan 3.199.061 3.127.409 Security expenses Representasi 2.331.943 4.928.805 Representation Telekomunikasi 1.889.086 3.724.395 Telecommunications Keperluan kantor 1.463.590 1.092.212 Office supplies Iuran keanggotaan karyawan 989.554 999.600 Employee membership Pengiriman 477.475 761.850 Expedition Lain-lain 1.433.620 561.972 Others

Total 55.198.559 58.122.765 Total

34. BEBAN SISTEM INFORMASI 34. INFORMATION SYSTEM EXPENSES


2017 2016

Langganan aplikasi 14.572.784 17.006.531 Application subscription Pemeliharaan aplikasi 7.134.799 6.770.056 Application maintenance Pemeliharaan komputer 4.153.168 4.729.496 Computer maintenance Infrastruktur komunikasi 2.898.069 2.190.271 Communication infrastructure Sewa komputer 2.461.458 3.574.103 Computer rental Pengembangan sistem 1.487.444 2.185.242 System development

Lain-lain 373.630 799.525 Others

Total 33.081.352 37.255.224 Total

35. BEBAN PENGEMBANGAN USAHA 35. BUSINESS DEVELOPMENT EXPENSES


2017 2016

Jasa konsultan 15.382.893 10.240.251 Professional fees Biaya pemasaran dan lainnya 9.861.678 8.153.743 Marketing and others Iklan dan pameran 5.935.164 8.432.747 Advertisments and exhibitions Dokumentasi, percetakan, dan Documentation, printing, and komunikasi 2.988.475 3.706.409 communication Riset pasar modal dan ekonomi 2.654.501 1.471.058 Economics and capital market research

Total 36.822.711 32.004.208 Total











97

36. LABA BERSIH PER SAHAM DASAR YANG DIATRIBUSIKAN KEPADA PEMILIK ENTITAS INDUK

36. EARNING PER SHARE ATTRIBUTABLE TO EQUITY HOLDER OF PARENT ENTITY


2017 2016

(Rugi) laba usaha (138.905.537) 145.358.081 Operating income (loss)

(Rugi) laba bersih (147.574.186) 116.258.898 Net income (loss)

Jumlah rata-rata tertimbang saham Weighted average number of shares (Catatan 2u) 701.480 701.480 (Note 2u)

(Rugi) laba usaha per Operating income (loss) saham (nilai penuh) (198.018) 207.216 per share (full amount)

(Rugi) laba bersih per saham (nilai penuh) (210.375) 165.734 Net (loss) income per share (full amount)

37. LIABILITAS IMBALAN KERJA KARYAWAN 37. LIABILITY FOR EMPLOYEE SERVICE ENTITLEMENTS

Perusahaan dan Entitas Anak mempunyai program

pensiun manfaat pasti yang meliputi seluruh karyawan yang berhak. Program pensiun tersebut dikelola oleh Dana Pensiun Danareksa. Program pensiun didanai dari kontribusi Perusahaan sebesar 22,93% dan kontribusi karyawan maksimal sebesar 5,36% dari gaji pokok.

The Company and its Subsidiaries have defined benefit pension plan covering substantially all of its eligible employees. This pension plan is managed by Dana Pensiun Danareksa. The pension plan is funded by contribution from the Company at 22.93% and the employees’ contribution at maximum 5.36% of the employees’ basic salary.


2017 2016

Kontribusi yang dibayarkan Perusahaan Contribution paid by dan Entitas Anak dan diakui sebagai the Company and Subsidiaries beban gaji dan recognized as salaries and kesejahteraan karyawan 9.770.439 8.125.231 employee welfare expense

Perusahaan dan Entitas Anak memberikan imbalan

kerja jangka panjang lainnya dalam bentuk cuti panjang dan penghargaan masa kerja.

The Company and Subsidiaries provide other long-term employee benefits in the form of long service leave and loyalty awards.

Perusahaan dan Entitas Anak mengakui beban imbalan kerja karyawan yang merupakan selisih lebih dari imbalan pensiun sebagaimana ditentukan dalam Undang-undang Ketenagakerjaan No. 13/2003 mengenai penyelesaian pemutusan hubungan kerja dan penetapan uang pesangon, uang penghargaan masa kerja dan manfaat yang diberikan oleh Dana Pensiun Danareksa.

The Company and Subsidiaries recognized the estimated employee benefit costs which represent the excess of the pension benefits set forth in the Labor Law No. 13/2003 concerning the settlement of labor dismissal and stipulation of severance pay, appreciation and compensation over the benefits provided by Dana Pensiun Danareksa.











98

37. LIABILITAS IMBALAN KERJA KARYAWAN (lanjutan)

37. LIABILITY FOR EMPLOYEE SERVICE ENTITLEMENTS (continued)

Tabel berikut mengikhtisarkan perubahan dalam nilai wajar aset program, penyisihan imbalan pasca-kerja dan imbalan kerja jangka panjang lainnya karyawan:

The following tables summarize changes in the fair value of plan assets, components of net benefits expense, and the provision for post-employment and other long-term employee benefits:

a. Perubahan dalam nilai wajar aset program a. Changes in the fair value of plan assets

Perubahan dalam nilai wajar aset program adalah sebagai berikut:

Changes in the fair value of plan assets are as follows:


2017 2016

Nilai wajar aset program pada 1 Januari 59.806.957 51.814.776 Fair value of plan assets at January 1 Imbal hasil ekspektasian aset program 7.231.431 5.169.034 Expected return of plan assets Iuran oleh pemberi kerja 9.770.439 8.125.231 Contributions by employer

Nilai wajar aset program yang Expected fair value of plan diharapkan pada 31 Desember 76.808.827 65.109.041 assets at December 31 Kerugian aktuaria pada aset program (26.712.154) (5.302.084) Actuarial loss

Nilai wajar aset program Fair value of plan assets pada 31 Desember 50.096.673 59.806.957 at December 31

Kategori utama aset program sebagai persentase dari nilai wajar atas total aset program adalah sebagai berikut:

The major categories of plan assets as a percentage of the fair value of the total plan assets are as follows:


Surat berharga negara 15,03% 2,38% Government bonds Deposito on call 0,35% 0,33% Deposit on call Deposito berjangka 1,20% 10,92% Time deposit Saham 5,60% 4,89% Stocks Obligasi 70,11% 70,69% Bonds Sukuk 7,19% 7,94% Sukuk Reksa dana 0,00% 2,03% Mutual funds Asset-backed securities Efek beragun aset dari KIK EBA 0,52% 0,82% Collective Investment Contract

100,00% 100,00%

b. Liabilitas imbalan kerja karyawan b. Liability for employee service entitlements


Imbalan kerja UU Ketenagakerjaan/ jangka panjang Labor Law lainnya/Other No. 13/2003 long-term benefits Total/Total

Nilai kini kewajiban 114.963.844 11.938.047 126.901.891 Present value of obligation Nilai wajar aset program (76.805.219) - (76.805.219) Fair value of plan assets

38.158.625 11.938.047 50.096.672



Nilai kini kewajiban 104.917.417 12.115.168 117.032.585 Present value of obligation Nilai wajar aset program (59.806.957) - (59.806.957) Fair value of plan assets

45.110.460 12.115.168 57.225.628











99



c. Mutasi liabilitas imbalan kerja karyawan

yang diakui di laporan posisi keuangan konsolidasian

c. Movements in the liability for employee service entitlements recognized in the consolidated statement of financial position

Tahun yang berakhir pada tanggal 31 Desember 2017/ Year ended December 31, 2017


Saldo awal tahun 45.110.460 12.115.168 57.225.628 Balance at beginning of year Beban manfaat bersih 15.373.251 2.947.042 18.320.293 Net benefit expenses Pengukuran kembali

atas Remeasurements of liabilitas imbalan liability for employee kerja karyawan (7.828.337) - (7.828.337) service entitlements Pembayaran manfaat (4.726.310) (3.124.163) (7.850.473) Payment of benefits Kontribusi perusahaan (9.770.439) - (9.770.439) Company contribution

38.158.625 11.938.047 50.096.672



Saldo awal tahun 31.083.664 14.544.338 45.628.002 Balance at beginning of year Beban manfaat bersih 14.318.281 748.663 15.066.944 Net benefit expenses Pengukuran kembali

atas Remeasurements of liabilitas imbalan liability for employee kerja karyawan 10.297.755 - 10.297.755 service entitlements Pembayaran manfaat (2.464.009) (3.177.833) (5.641.842) Payment of benefits Kontribusi perusahaan (8.125.231) - (8.125.231) Company contribution

45.110.460 12.115.168 57.225.628

d. Beban imbalan kerja karyawan bersih d. Net employee service entitlements expense



Biaya jasa kini 12.233.478 1.622.971 13.856.449 Current service cost Biaya bunga 2.876.568 969.651 3.846.219 Interest cost Biaya jasa lalu 263.205 - 263.205 Past service cost Kerugian aktuarial - 354.420 354.420 Actuarial loss

15.373.251 2.947.042 18.320.293











100



d. Beban imbalan kerja karyawan bersih

(lanjutan) d. Net employee service entitlements expense

(continued) Tahun yang berakhir pada tanggal 31 Desember 2016/ Year ended December 31, 2016


Biaya jasa kini 10.531.596 1.557.958 12.089.554 Current service cost Biaya bunga 2.288.506 1.308.985 3.597.491 Interest cost Biaya jasa lalu 695.304 - 695.304 Past service cost Biaya kurtailmen 802.875 - 802.875 Curtailment cost Keuntungan aktuarial - (2.118.280) (2.118.280) Actuarial gain

14.318.281 748.663 15.066.944

Tabel berikut menunjukkan sensitivitas atas

perubahan tingkat suku bunga pasar dan kenaikan gaji, dengan variabel lain dianggap tetap, terhadap imbalan kerja karyawan pada tanggal 31 Desember 2017 dan 2016 (tidak diaudit):

The following table demonstrates the sensitivity to a reasonably possible change in market interest rates and salary increases, with all variables held constant, of the provision for employee service entitlements as of December 31, 2017 and 2016 (unaudited):

Perubahan nilai kini liabilitas/ Changes in present value of obligation

2017 2016

Kenaikan tingkat diskonto Increase in discount rate 100 basis poin (9.768.301) (7.104.944) by 100 basis points Penurunan tingkat diskonto Decrease in discount rate 100 basis poin 7.164.172 8.098.259 by 100 basis points

Kenaikan tingkat kenaikan gaji Increase in salary increase rate 100 basis poin 6.584.467 7.649.946 by 100 basis points

Penurunan tingkat kenaikan gaji Decrease in salary increase rate 100 basis poin (9.448.158) (6.868.886) by 100 basis points

Jatuh tempo liabilitas imbalan kerja karyawan pada tanggal 31 Desember 2017 dan 2016, adalah sebagai berikut (tidak diaudit):

Liabilities for employee service entitlements maturing on December 31, 2017 and 2016, are as follows (unaudited):

December 31, 2017 December 31, 2016

Dalam 1 tahun 3.245.416 7.053.456 Within 1 year Tahun ke-2 5.185.564 5.001.441 Year-2 Tahun ke-3 6.714.300 7.525.590 Year-3 Tahun ke-4 11.269.368 13.162.601 Year-4 Tahun ke-5 17.148.668 19.502.417 Year-5 Tahun ke-6 sampai 10 102.111.568 115.857.920 Year-6 until 10 Tahun ke-11 sampai 15 107.112.000 116.838.715 Year-11 until 15 Tahun ke-16 sampai 20 166.021.468 187.477.168 Year-16 until 20 Tahun ke-20 dan seterusnya 966.557.299 848.460.299 Year-20 and later

1.385.365.651 1.320.879.607











101



d. Beban imbalan kerja karyawan bersih

(lanjutan) d. Net employee service entitlements expense

(continued)

Durasi rata-rata tertimbang dari imbalan kerja karyawan pada tanggal 31 Desember 2017 dan 2016 masing-masing adalah 3,26 tahun - 27,97 tahun dan 3,29 tahun - 23,06 tahun.

The weighted average duration of employee service entitlements as of December 31, 2017 and 2016 are 3.26 years - 27.97 years and 3.29 years - 23.06 years, respectively.

Liabilitas imbalan kerja karyawan per 31 Desember 2017 dan 2016 telah dihitung oleh aktuaris independen, PT Jasa Aktuaria Praptasentosa Gunajasa dalam laporannya masing-masing tertanggal 9 Februari 2018 dan 22 Februari 2017. Asumsi-asumsi dasar yang digunakan dalam perhitungan tahun 2017 dan 2016 adalah sebagai berikut:

The liability for employee service entitlements as of December 31, 2017 and 2016 has been calculated by an independent actuary, PT Jasa Aktuaria Praptasentosa Gunajasa, in its report dated February 9, 2018 and February 22, 2017, respectively. The basic assumptions used in the 2017 and 2016 calculations were as follows:

31 Desember/ 31 Desember/

December 31, 2017 December 31, 2016

Tingkat diskonto per tahun Discount rate per annum UU Ketenagakerjaan No.13/2003 dan Labor Law No.13/2003 imbalan kerja jangka panjang lainnya 7,00% 8,00% and other long term benefits Tingkat kenaikan gaji per tahun 10,00% 10,00% Annual salary increase rate per annum Tingkat kematian TMI 1999*) TMI 1999*) Mortality rates Tingkat pengunduran diri 5% per tahun 5% per tahun Resignation rates (umur 20-29 tahun), (umur 20-29 tahun), 4% per tahun 4% per tahun (umur 30-39 tahun), (umur 30-39 tahun), 3% per tahun 3% per tahun (umur 40-44 tahun), (umur 40-44 tahun), 2% per tahun 2% per tahun (umur 45-49 tahun), (umur 45-49 tahun), 1% per tahun 1% per tahun (umur 50-54 tahun), (umur 50-54 tahun), 0% per tahun 0% per tahun (> umur 54 tahun)/ (> umur 54 tahun)/ 5% p.a (age 20-29), 5% p.a (age 20-29), 4% p.a (age 30-39), 4% p.a (age 30-39), 3% p.a (age 40-44), 3% p.a (age 40-44), 2% p.a (age 45-49), 2% p.a (age 45-49), 1% p.a (age 50-54), 1% p.a (age 50-54), 0% p.a (> age 54). 0% p.a (> age 54). Tingkat kecacatan 1% dari/of TMI II 1999 1% dari/of TMI II 1999 Disability rates

Usia pensiun normal 56 tahun/56 years 56 tahun/56 years Normal retirement age *) TMI II 1999 : Tabel Mortalitas Indonesia tahun 1999 *) TMI II 1999 : Indonesian Mortality Table year 1999

38. TRANSAKSI DAN AKUN DENGAN PIHAK -PIHAK BERELASI

38. TRANSACTION AND ACCOUNTS WITH RELATED PARTIES

Dalam kegiatan usahanya, Perusahaan dan Entitas Anak melakukan transaksi dengan pihak-pihak berelasi berdasarkan ketentuan dan kondisi yang disepakati bersama oleh kedua belah pihak.

In conducting their business, the Company and its Subsidiaries have several transactions with related parties based on terms and conditions agreed by both parties.











102

38. TRANSAKSI DAN AKUN DENGAN PIHAK-PIHAK BERELASI (lanjutan)

38. TRANSACTION AND ACCOUNTS WITH RELATED PARTIES (continued)

Saldo-saldo yang signifikan dengan pihak-pihak berelasi masing-masing pada tanggal 31 Desember 2017 dan 2016 adalah:

The significant balances with the related parties as of December 31, 2017 and 2016, respectively, are as follows:


Kas dan setara kas (Catatan 3): Cash and cash equivalent (Note 3): Kas di bank Cash in banks Rupiah Rupiah PT Bank Mandiri (Persero) Tbk 91.116.616 144.559.884 PT Bank Mandiri (Persero) Tbk PT Bank Negara Indonesia PT Bank Negara Indonesia (Persero) Tbk 5.537.173 43.954 (Persero) Tbk PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia (Persero) Tbk 53.767 53.744 (Persero) Tbk PT Bank Tabungan PT Bank Tabungan Negara (Persero) Tbk 3.990.853 Negara (Persero) Tbk

100.698.409 144.657.582 Mata uang asing Foreign Currency PT Bank Negara Indonesia PT Bank Negara Indonesia (Persero) Tbk 2.045.099 - (Persero) Tbk PT Bank Mandiri (Persero) Tbk 1.884.027 14.126.301 PT Bank Mandiri (Persero) Tbk

3.929.126 14.126.301

104.627.535 158.783.883

Deposito on call Deposits on call Rupiah Rupiah PT Bank Mandiri (Persero) Tbk 7.190.000 19.900.000 PT Bank Mandiri (Persero) Tbk

111.817.535 178.683.883

Persentase terhadap total aset 3,07% 4,95% Percentage to total assets

Portofolio efek (Catatan 4): Marketable securities (Note 4): Rupiah Rupiah Obligasi korporasi Corporate bonds Badan Usaha Milik Negara 125.000.000 18.590.951 State Owned Companies Reksa dana Mutual funds Reksa dana 118.492.472 121.424.638 Mutual funds Saham Shares Badan Usaha Milik Negara 84.135.592 114.295.914 State Owned Companies Obligasi pemerintah Government bonds Pemerintah Republik Indonesia 1.618.334 1.042.134 Government of Republic Indonesia

329.246.398 255.353.637











103



Saldo-saldo yang signifikan dengan pihak-pihak berelasi masing-masing pada tanggal 31 Desember 2017 dan 2016 adalah (lanjutan):

The significant balances with the related parties as of December 31, 2017 and 2016, respectively, are as follows (continued):


Portofolio efek (Catatan 4) (lanjutan): Marketable securities (Note 4) (continued): Mata uang asing Foreign currency Surat promes - jangka menengah Promissory notes - medium-term PT Hutama Karya (Persero) 81.405.000 80.835.000 PT Hutama Karya (Persero)

Obligasi korporasi Corporate bonds Badan Usaha Milik Negara 52.063.949 120.157.860 State Owned Companies

133.468.949 200.992.860

462.715.347 456.346.497


Piutang usaha (Catatan 5): Account receivables (Note 5): Rupiah Rupiah Jasa penjaminan emisi Underwriting services

Badan Usaha Milik Negara 13.562.729 6.533.610 State Owned Companies Jasa penasihat keuangan Financing advisory services

Badan Usaha Milik Negara 13.157.648 18.889.096 State Owned Companies

26.720.377 25.422.706 Mata uang asing Foreign currency Jasa penasihat keuangan Financing advisory services

Badan Usaha Milik Negara 678.125 673.625 State Owned Companies Dikurangi: Cadangan kerugian Less: Allowance for impairment penurunan nilai (678.125) (673.625) losses

- -

26.720.377 25.422.706


Piutang kegiatan perantara perdagangan Brokerage activities receivables efek (Catatan 6): (Note 6): Piutang nasabah Receivable from customers dan perusahaan efek lain and other securities companies Rupiah Rupiah

Reksa dana 168.198.360 1.245.077 Mutual funds Badan Usaha Milik Negara 153.088.553 141.075.322 State Owned Companies Subsidiary to Entitas Anak BUMN 826.727 2.115.848 State Owned Companies

322.113.640 144.436.247












104




The significant balances with the related parties as of December 31, 2017 and 2016, respectively, are as follows (continued):


Piutang kegiatan manajemen investasi Investment management activities (Catatan 7): receivables (Note 7): Rupiah Rupiah Reksa dana 11.985.817 12.016.821 Mutual funds Dolar Amerika Serikat United States Dollar Reksa dana 489.959 578.933 Mutual funds

12.475.776 12.595.754 Persentase terhadap total aset 0,34% 0,35% Percentage to total assets Piutang kegiatan pendanaan Financing activites receivables (Catatan 8): (Note 8): Sewa pembiayaan Finance lease Rupiah Rupiah Koperasi Danareksa (Kopedana) 3.557.048 5.360.898 Koperasi Danareksa (Kopedana) PT Reksasentosa Dinamika 1.284.895 - PT Reksasentosa Dinamika Entitas Anak BUMN - 9.265.722 Subsidiary to State Owned Companies

4.841.943 14.626.620

Anjak piutang Factoring Rupiah Rupiah Badan Usaha Milik Negara 29.457.402 3.844.702 State Owned Companies

34.299.345 18.471.322 Persentase terhadap total aset 0,94% 0,51% Percentage to total assets

Piutang lain-lain (Catatan 9): Other receivables (Note 9): Bunga efek dimiliki hingga jatuh tempo Interest from held to maturity securities Badan Usaha Milik Negara 12.448.181 12.361.019 State Owned Companies Bunga efek utang Interest from debt securities Badan Usaha Milik Negara 33.598.966 1.870.349 State Owned Companies Bunga efek pasar uang Interest from money market securities Badan Usaha Milik Negara 87.893 2.617 State Owned Companies 46.135.040 14.233.985 Persentase terhadap total aset 1,27% 0,39% Percentage to total assets











105




The significant balances with the related parties as of December 31, 2017 and 2016, respectively are as follows (continued):


Aset lain-lain (Catatan 13): Other assets (Note 13): Piutang afiliasi Affiliated receivables Yayasan Kesejahteraan Yayasan Kesejahteraan Pegawai Danareksa 101.000 101.000 Pegawai Danareksa PT Reksasentosa Dinamika 11.367 10.663 PT Reksasentosa Dinamika Dana Pensiun Danareksa 7.482 4.682 Dana Pensiun Danareksa Koperasi Danareksa (Kopedana) 609 487 Koperasi Danareksa (Kopedana)

120.458 116.832

Dana penjaminan emisi Underwriting fund Badan Usaha Milik Negara 1.634.606 511.928 State Owned Companies

1.755.064 628.760 Persentase terhadap total aset 0,05% 0,02% Percentage to total assets Pinjaman bank (Catatan 14): Bank loan (Note 14): PT Bank Mandiri (Persero) Tbk 85.000.000 - PT Bank Mandiri (Persero) Tbk Persentase terhadap total liabilitas 3,53% 0,00% Percentage to total liabilities Utang kegiatan perantara perdagangan Brokerage activities payables efek (Catatan 16): (Note 16): Utang nasabah Customers payables Entitas Anak BUMN 121.787.136 151.844.014 Subsidiaries to State Owned Company Badan Usaha Milik Negara 3.986.834 4.970.778 State Owned Companies Reksadana 558.637 696.508 Mutual Funds

126.332.607 157.511.300 Persentase terhadap total liabilitas 5,25% 7,04% Percentage to total liabilities Utang kegiatan manajemen investasi Investment management activities (Catatan 17): payables (Note 17): PT Bank Mandiri (Persero) Tbk 1.386.361 246.119 PT Bank Mandiri (Persero) Tbk PT Bank Pembangunan Daerah PT Bank Pembangunan Daerah Jawa Barat Tbk 20.591 20.478 Jawa Barat Tbk PT Bank Negara PT Bank Negara Indonesia (Persero) Tbk 19.171 19.395 Indonesia (Persero) Tbk PT Bank Rakyat Indonesia PT Bank Rakyat Indonesia (Persero) Tbk 15.329 49.220 (Persero) Tbk PT BNI Life Insurance 9.918 - PT BNI Life Insurance

1.451.370 335.212 Persentase terhadap total liabilitas 0,06% 0,01% Percentage to total liabilities











106






Bunga masih harus dibayar (Catatan 18): Accrued interest payable (Note 18):

Obligasi Bonds Badan Usaha Milik Negara 3.786.168 5.112.618 State Owned Companies Reksa dana 1.543.875 2.084.757 Mutual Funds Badan Usaha Milik Daerah 346.584 468.007 Regional Owned Companies Dana Pensiun 336.082 453.825 Dana Pensiun Entitas Anak BUMN 273.065 368.731 Subsidiary to State Owned Companies

6.285.774 8.487.938

Pinjaman bank Bank loan PT Bank Mandiri (Persero) Tbk 143.438 - PT Bank Mandiri (Persero) Tbk

6.429.212 8.487.938 Persentase terhadap total liabilitas 0,27% 0,38% Percentage to total liabilities

Biaya masih harus dibayar (Catatan 19): Accrued expenses (Note 19): Pegawai Employees

Komisaris, direksi, dan pejabat Commissioners, directors and eksekutif 4.487.530 8.500.000 executive officers

Persentase terhadap total liabilitas 0,19% 0,38% Percentage to total liabilities

Pendapatan bunga, dividen dan sewa Interest, dividend, and lease income pembiayaan (Catatan 26): (Note 26): Portofolio pendapatan tetap Fixed income portfolio Pemerintah Republik Indonesia 22.401.390 8.534.907 Government of Republic Indonesia Badan Usaha Milik Negara 27.379.478 10.431.553 State Owned Companies

49.780.868 18.966.460

Pasar uang Money market Badan Usaha Milik Negara 1.449.687 7.932.742 State Owned Companies Sewa pembiayaan Lease income Badan Usaha Milik Negara 996.974 1.902.685 State Owned Companies

Pendapatan anjak piutang Factoring income Badan Usaha Milik Negara 11.741.510 4.211.345 State Owned Companies Dividen Dividends Badan Usaha Milik Negara 7.083.650 10.065.729 State Owned Companies

71.052.689 43.078.961

Persentase terhadap pendapatan yang bersangkutan 39,62% 13,89% Percentage to related revenue











107






Pendapatan jasa (Catatan 27): Service fee income (Note 27): Pengelolaan dana Fund management

Reksa dana 110.099.297 90.360.750 Mutual funds

Komisi perantara perdagangan efek Commission from Securities Trading Badan Usaha Milik Negara 10.711.850 15.311.963 State Owned Companies Reksa dana 5.961.497 7.374.575 Mutual funds Entitas Anak BUMN 1.548.295 1.731.945 Subsidiary to State Owned Companies Dana Pensiun Danareksa 162.533 220.321 Dana Pensiun Danareksa

18.384.175 24.638.804

Penasehat keuangan Financial advisory Badan Usaha Milik Negara 47.574.115 20.265.289 State Owned Companies

176.057.587 135.264.843


Pendapatan jasa penjaminan Underwriting and securities selling emisi dan penjualan efek (Catatan 29): service income (Note 29): Pendapatan jasa Service income Badan Usaha Milik Negara 21.034.292 59.996.747 State Owned Companies Pemerintah Republik Indonesia 2.965.557 9.615.393 Government of Republic Indonesia Badan Usaha Milik Daerah 873.363 - Regional Owned Companies

24.873.212 69.612.140


Beban bunga (Catatan 30): Interest expenses (Note 30): Obligasi Bonds Badan Usaha Milik Negara 29.534.794 39.875.000 State Owned Companies Dana Pensiun 18.669.131 22.154.000 Dana Pensiun Reksadana 14.824.425 17.549.000 Mutual Funds Badan Usaha Milik Daerah 2.225.025 5.755.000 Regional Owned Companies Entitas Anak BUMN 808.500 2.565.732 Subsidiary to State Owned Companies

66.061.875 87.898.732 Pinjaman Loans Badan Usaha Milik Negara 4.950.369 14.859.167 State Owned Companies Medium-Term Notes Medium-Term Notes Badan Usaha Milik Negara - 1.841.944 State Owned Companies

71.012.244 104.599.843

Persentase terhadap beban yang bersangkutan 49,73% 54,67% Percentage to related expenses











108



Berikut ini adalah kompensasi personil manajemen kunci untuk tahun yang berakhir pada tanggal-tanggal 31 Desember 2017 dan 2016:

Below is compensation for key employees for the years ended December 31, 2017 and 2016:


2017 2016

Beban gaji dan kesejahteraan Salaries and employee welfare: karyawan (Catatan 32): expenses (Note 32) Gaji, tunjangan, dan insentif lainnya 61.559.629 56.545.406 Salary, benefits and other incentives

Persentase terhadap beban yang bersangkutan 26,86% 24,96% Percentage to related expenses

Hubungan dengan pihak berelasi adalah sebagai berikut:

The relationships with related parties are as follows:

Pihak berelasi/Related parties Sifat dari hubungan/Relationship

Pemerintah Republik Indonesia/ Government of the Republic of Indonesia Pemegang saham akhir/Ultimate shareholder Yayasan Kesejahteraan Pegawai Danareksa Pemegang saham/Shareholders Dana Pensiun Danareksa Perusahaan sebagai pendiri/The Company as the founder Kopedana Mitra Usaha Anggota dari kelompok usaha yang sama/Member of the same group PT Reksasentosa Dinamika Anggota dari kelompok usaha yang sama/Member of the same group PT Reksatama Dinamika Anggota dari kelompok usaha yang sama/Member of the same group PT Adhi Karya (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Aneka Tambang (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Angkasa Pura I (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Angkasa Pura II (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT ASDP Indonesia Ferry (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Asabri (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Askrindo (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Bank Mandiri (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Bank Tabungan Negara (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Bank Negara Indonesia (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Bank Rakyat Indonesia (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Berdikari (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Bio Farma (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Bukit Asam (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Garuda Indonesia (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Hotel Indonesia Natour Badan Usaha Milik Negara/State Owned Enterprise PT Indofarma (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Indosat Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Geo Dipa Energi Badan Usaha Milik Negara/State Owned Enterprise PT Jasa Marga (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Perusahaan Listrik Negara (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perkebunan Nusantara III (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perkebunan Nusantara V (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perkebunan Nusantara XIII (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perkebunan Nusantara VII (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Telekomunikasi Indonesia (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise











109



Hubungan dengan pihak berelasi adalah sebagai berikut (lanjutan):

The relationships with related parties are as follows (continued):


PT Industri Telekomunikasi Indonesia Badan Usaha Milik Negara/State Owned Enterprise PT Semen Gresik (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Tambang Batubara Bukit Asam (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Timah (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Perusahaan Gas Negara(Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Krakatau Steel (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Pembangunan Perumahan (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Kimia Farma (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Perum Perumnas (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Pertamina (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perusahaan Pengelola Aset Badan Usaha Milik Negara/State Owned Enterprise BPJS Kesehatan Badan Usaha Milik Negara/State Owned Enterprise BPJS Ketenagakerjaan Badan Usaha Milik Negara/State Owned Enterprise Perum Pegadaian Badan Usaha Milik Negara/State Owned Enterprise PT Elnusa Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Asuransi Kesehatan (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Taspen (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Jasa Raharja (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Asuransi Jasa Indonesia (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Perusahaan Pengelolaan Aset (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Asuransi Ekspor Indonesia (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Varuna Tirta Prakasya (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT LEN Industri (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Waskita Karya (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Virama Raya (Persero) Badan Usaha Milik Negara/State Owned Enterprise Lembaga Pembiayaan Ekspor Indonesia Badan Usaha Milik Negara/State Owned Enterprise Perum Percetakan Negara RI Badan Usaha Milik Negara/State Owned Enterprise PT Asuransi Jiwasraya (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Hutama Karya (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Pupuk Indonesia Holding Company Badan Usaha Milik Negara/State Owned Enterprise

PT Kertas Kraft Aceh (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Reasuransi Internasional Indonesia (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Sarana Multigriya Finansial (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Semen Baturaja (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Perkebunan Nusantara II (Persero) Badan Usaha Milik Negara/State Owned Enterprise PT Permodalan Nasional Madani (Persero) Badan Usaha Milik Negara/State Owned Enterprise Perum Jaminan Kredit Indonesia Badan Usaha Milik Negara/State Owned Enterprise PT Istaka Karya Badan Usaha Milik Negara/State Owned Enterprise PT Wijaya Karya (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Semen Indonesia (Persero) Tbk Badan Usaha Milik Negara/State Owned Enterprise PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk Badan Usaha Milik Daerah/Regional Owned Enterprise PT BPD Sulawesi Selatan Badan Usaha Milik Daerah/Regional Owned Enterprise PT BPD Sulawesi Selatan Badan Usaha Milik Daerah/Regional Owned Enterprise PT Jasaraharja Putera Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Bank Syariah Mandiri Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT BNI Life Insurance Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT BNI Securities Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Mandiri Sekuritas Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Tugu Pratama Indonesia Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT PNM Investment Management Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Asuransi Tokio Marine Indonesia Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Reasuransi International Indonesia Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise

PT Bahana Securities Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Bahana TCW Investment Management Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Asuransi Jiwa Inhealth Indonesia Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise











110



Hubungan dengan pihak berelasi adalah sebagai berikut (lanjutan):

The relationships with related parties are as follows (continued):


PT AXA Mandiri Financial Services Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Angkasa Pura Support Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT LEN Railway System Entitas anak Badan Usaha Milik Negara/Subsidiary of State Owned Enterprise PT Bank Jabar Banten Syariah Entitas anak Badan Usaha Milik Daerah/Subsidiary of Regional Owned Enterprise Direktur dan pejabat eksekutif/ Directors and executive officers Manajemen dan karyawan kunci/Management and key employees Berbagai reksa dana/Various mutual funds Anggota dari kelompok usaha yang sama/Member of the same group

39. INFORMASI SEGMEN USAHA 39. BUSINESS SEGMENT INFORMATION

Perusahaan dan Entitas Anak mempertimbangkan segmen usaha sebagai segmen utama dan segmen geografis sebagai segmen tambahan. Segmen geografis hanya mencakup Jakarta.

The Company and Subsidiaries consider business segment as primary segment and geographical segment as their secondary segment. Geographical segment covers only Jakarta.

a. Bidang usaha kegiatan a. Business activities

Perusahaan/Company

Pengelolaan investasi PT Danareksa (Persero) Investment management Perantara pedagang efek dan penjamin emisi PT Danareksa Sekuritas Brokerage and underwriting Pengelolaan dana PT Danareksa Investment Management Fund management Pembiayaan PT Danareksa Finance Multi finance Investasi PT Danareksa Capital Investments

b. Segmen operasi b. Operating segment

i. Aset konsolidasian i. Consolidated assets


Pengelolaan investasi 2.747.918.349 2.739.942.717 Investment management Perantara pedagang efek dan penjaminan emisi efek 1.191.212.420 1.150.064.664 Brokerage and underwriting Pengelolaan dana 206.376.783 190.891.161 Fund management Pembiayaan 157.928.488 135.629.557 Multi finance Investasi 175.000.728 283.996.738 Investment

Total sebelum eliminasi 4.478.436.768 4.500.524.837 Total before elimimation Eliminasi (834.201.793) (893.135.873) Elimination

Aset konsolidasian 3.644.234.975 3.607.388.964 Consolidated assets











111

39. INFORMASI SEGMEN USAHA (lanjutan) 39. BUSINESS SEGMENT INFORMATION (continued)

b. Segmen operasi (lanjutan) b. Operating segment (continued)

ii. Liabilitas konsolidasian ii. Consolidated liabilities


Pengelolaan investasi 1.862.068.909 1.783.427.012 Investment management Perantara pedagang efek dan penjaminan emisi efek 532.970.211 430.185.648 Brokerage and underwriting Pengelolaan dana 49.049.989 31.360.626 Fund management Pembiayaan 39.323.136 5.296.725 Multi finance Investasi 25.195.882 146.184.920 Investment

Total sebelum eliminasi 2.508.608.127 2.396.454.931 Total before elimimation Eliminasi (101.081.583) (159.834.371) Elimination

Liabilitas konsolidasian 2.407.526.544 2.236.620.560 Consolidated liabilities

iii. Pendapatan konsolidasian iii. Consolidated revenues


2017 2016

Pengelolaan investasi 216.233.767 371.455.495 Investment management Perantara pedagang efek dan penjaminan emisi efek 180.566.284 289.866.363 Brokerage and underwriting Pengelolaan dana 152.979.714 119.153.119 Fund management Pembiayaan 24.496.655 20.337.431 Multi finance Investasi 39.344.989 42.340.248 Investment

Total sebelum eliminasi 613.621.409 843.152.656 Total before elimimation Eliminasi (167.207.026) (206.210.975) Elimination

Pendapatan konsolidasian 446.414.383 636.941.681 Consolidated revenues

iv. (Rugi) laba bersih konsolidasian iv. Consolidated (loss) net income


2017 2016

Pengelolaan investasi (82.019.559) 155.843.317 Investment management Perantara perdagangan efek dan penjaminan emisi efek 299.823 56.867.140 Brokerage and underwriting Pengelolaan dana 33.605.685 26.945.799 Fund management Pembiayaan (11.948.609) 768.320 Multi finance Investasi 12.488.340 15.834.192 Investment

Total sebelum eliminasi (47.574.320) 256.258.768 Total before elimimation Eliminasi (99.999.866) (139.999.870) Elimination

(Rugi) laba bersih konsolidasian (147.574.186) 116.258.898 Consolidated net (loss) income











112

40. PERJANJIAN KERJASAMA DAN KONTRAK YANG SIGNIFIKAN

40. SIGNIFICANT AGREEMENTS AND CONTRACTS

a. PT Danareksa Sekuritas (“DS”), Entitas Anak

Perusahaan, baik sendiri maupun bekerjasama dengan beberapa perusahaan efek lain, mengadakan perjanjian penjaminan emisi efek dari beberapa emiten, dimana DS dan beberapa perusahaan efek tersebut, baik sendiri maupun bersama-sama, menyetujui sepenuhnya untuk menawarkan dan menjual efek emiten-emiten tersebut kepada masyarakat sesuai dengan bagian penjaminan masing-masing dan mengikatkan diri untuk membeli sendiri sisa efek yang tidak habis terjual kepada masyarakat sesuai dengan bagian penjaminan masing-masing.

a. PT Danareksa Sekuritas (“DS”), a Subsidiary of the Company, individually or in cooperation with several other securities companies, entered into underwriting agreements for securities offering of certain issuers, whereby DS and several other securities companies fully agreed to, individually or collectively, offer and sell securities to public in accordance with respective underwriting portion and are committed themselves to buy remaining shares not sold out to the public in accordance with the respective underwriting portion.

b. PT Danareksa Investment Management (“DIM”),

Entitas Anak Perusahaan, mengadakan kerjasama dengan bank-bank kustodian sehubungan dengan Kontrak Investasi Kolektif reksa dana, dimana Entitas Anak bertindak sebagai manajer investasi yang mengelola kekayaan reksa dana dan memperoleh jasa pengelolaan.

b. PT Danareksa Investment Management (“DIM”), a Subsidiary of the Company, entered into agreements with custodian banks in relation to mutual funds Collective Investment Contract, whereby the Subsidiary acts as investment manager that manages mutual fund’s assets and earns management fee.

c. DIM mengadakan perjanjian distribusi dengan

PT Bank Mandiri (Persero) Tbk, PT Bank Central Asia Tbk, PT Bank Danamon Indonesia Tbk, PT Bank ANZ Indonesia, PT Bank Commonwealth, Standard Chartered Bank, PT Bank Permata Tbk, PT Bank CIMB Niaga Tbk, PT Bank Maybank Indonesia Tbk (dahulu PT Bank Internasional Indonesia Tbk), PT Bank UOB Indonesia, PT Bank DBS Indonesia, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk, dan institusi-institusi lain (“Agen Penjual”) dimana DIM menyetujui untuk menunjuk Agen Penjual sebagai distributor dari berbagai macam reksa dana.

c. DIM entered into distribution agreements with PT Bank Mandiri (Persero) Tbk, PT Bank Central Asia Tbk, PT Bank Danamon Indonesia Tbk, PT Bank ANZ Indonesia, PT Bank Commonwealth, Standard Chartered Bank, PT Bank Permata Tbk, PT Bank CIMB Niaga Tbk, PT Bank Maybank Indonesia Tbk (formerly PT Bank Internasional Indonesia Tbk), PT Bank UOB Indonesia, PT Bank DBS Indonesia, PT Bank Negara Indonesia (Persero), PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk, and other institutions (the “Selling Agents”) whereby DIM agreed to appoint the Selling Agents as distributors of various mutual funds.

Para Agen Penjual juga akan membantu mempromosikan produk reksa dana kepada klien mereka. Perjanjian kontrak dengan Agen Penjual menetapkan bahwa DIM dan Agen Penjual masing-masing akan mendapat persentase tertentu dari jasa manajemen yang dibebankan oleh entitas anak pada reksa dana.

The Selling Agents will also assist in the promotion of the mutual funds to their clients. The agreements provide, among others, that DIM and the Selling Agents will each receive a percentage of the management fees charged by the subsidiary to the mutual funds.











113

41. NILAI WAJAR INSTRUMEN KEUANGAN 41. FAIR VALUE OF FINANCIAL INSTRUMENTS

Tabel di bawah ini menyajikan perbandingan atas nilai tercatat dengan nilai wajar dari instrumen keuangan Perusahaan yang tercatat dalam laporan keuangan konsolidasian:

The table presents the comparison, by class, of the carrying amounts and fair value of the Company’s financial instruments that are recognized in the consolidated financial statements:


Nilai tercatat/Carrying amount

Pinjaman Biaya Dimiliki yang perolehan Total nilai hingga diberikan Tersedia diamortisasi tercatat/ Diperda- jatuh tempo/ dan piutang/ untuk dijual/ lainnya/ Total gangkan/ Held-to- Loans and Available-for- Amortized carrying Nilai wajar/ Trading maturity receivables sale cost amount Fair value

Aset Assets Kas dan setara kas - - 420.319.305 - - 420.319.305 420.319.305 Cash and cash equivalents Portofolio efek 505.804.393 111.085.112 - 188.418.488 - 805.307.993 805.307.993 Marketable securities Piutang usaha 19.153.670 - 597.076.554 - - 616.230.224 616.230.224 Account receivables Piutang kegiatan perantara Brokerage perdagangan efek - - 707.193.809 - - 707.193.809 707.193.809 activities receivables Piutang kegiatan Investment management manajemen investasI - - 12.475.776 - - 12.475.776 12.475.776 activities receivables Piutang kegiatan Financing pembiayaan - - 141.334.564 - - 141.334.564 141.334.564 activities receivables Piutang lain-lain - - 144.284.180 - - 144.284.180 144.284.180 Other receivables Investment in shares Penyertaan saham - - - 12.727.844 - 12.727.844 12.727.844 of stocks Aset lain-lain*) - - 47.337.099 - - 47.337.099 47.337.099 Other asset

Total aset 524.958.063 111.085.112 2.070.021.287 201.146.332 - 2.907.210.794 2.907.210.794 Total assets

Liabilitas Liabilities Pinjaman bank - - - - 1.085.000.000 1.085.000.000 1.085.000.000 Bank loans Utang usaha 521.778 - - - - 521.788 521.788 accouint payable Utang kegiatan perantara Brokerage perdagangan efek - - - - 486.610.365 486.610.365 486.610.365 activities payables Utang kegiatan Investment management manajemen investasi - - - - 3.192.408 3.192.408 3.192.408 activities payables Bunga masih harus dibayar - - - - 12.607.604 12.607.604 12.607.604 Accrued interest payable Efek-efek yang diterbitkan - - - - 624.053.604 624.053.604 634.395.725 Securities issued Utang lain-lain - - - - 26.258.613 26.258.613 26.258.613 Other payables

Total liabilitas 521.778 - - - 2.237.722.594 2.238.244.382 2.248.586.503 Total liabilities

*) Aset lain-lain terdiri dari dana penjaminan emisi, pengembangan sistem piutang dan hutang brokerage, dan selisih transfer transaksi *) Other assets consist of underwriting fund, system development, brokerage

receivables and payables, and different transfer transaction 31 Desember/December 31, 2016



Aset Assets Kas dan setara kas - - 475.381.895 - - 475.381.895 475.381.895 Cash and cash equivalents Portofolio efek 236.535.847 166.770.081 - 214.225.542 - 617.531.470 617.531.470 Marketable securities Piutang usaha 13.978.079 - 824.918.682 - - 838.896.761 838.896.761 Account receivables Piutang kegiatan perantara Brokerage perdagangan efek - - 680.686.488 - - 680.686.488 680.686.488 activities receivables Piutang kegiatan Investment management manajemen investasi - - 12.595.754 - - 12.595.754 12.595.754 activities receivables Piutang kegiatan Financing pembiayaan - - 107.740.088 - - 107.740.088 107.740.088 activities receivables Piutang lain-lain - - 123.780.967 - - 123.780.967 123.780.967 Other receivables Investment in shares Penyertaan saham - - 12.727.844 - - 12.727.844 12.727.844 of stocks Aset lain-lain*) - - 72.066.284 - - 72.066.284 72.066.284 Other asset

Total aset 250.513.926 166.770.081 2.309.898.002 214.225.542 - 2.941.407.551 2.941.407.551 Total assets

*) Aset lain-lain terdiri dari dana penjaminan emisi, pengembangan sistem piutang dan hutang brokerage, dan selisih transfer transaksi *) Other assets consist of underwriting fund, system development, brokerage

receivables and payables, and different transfer transaction











114

41. NILAI WAJAR INSTRUMEN KEUANGAN (lanjutan) 41. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)

31 Desember 2016/December 31, 2016



Liabilitas Liabilities Pinjaman bank - - - - 800.000.000 800.000.000 800.000.000 Bank loans Utang kegiatan perantara Brokerage perdagangan efek - - - - 327.698.390 327.698.390 327.698.390 activities payables Utang kegiatan Investment management manajemen investasi - - - - 1.784.615 1.784.615 1.784.615 activities payables Bunga masih harus dibayar - - - - 14.391.394 14.391.394 14.391.394 Accrued interest payable Efek-efek yang diterbitkan - - - - 872.055.414 872.055.414 872.055.414 Securities issued Utang lain-lain - - - - 17.381.760 17.381.760 17.381.760 Other payables

Total liabilitas - - - - 2.033.311.573 2.033.311.573 2.033.311.573 Total liabilities

Nilai wajar didefinisikan sebagai jumlah dimana instrumen tersebut dapat dipertukarkan di dalam transaksi jangka pendek antara pihak yang berkeinginan dan memiliki pengetahuan yang memadai melalui suatu transaksi yang wajar, selain dalam penjualan terpaksa atau penjualan likuidasi.

Fair value is defined as the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm's-length transaction, other than in a forced or liquidation sale.

Instrumen keuangan yang disajikan di dalam laporan posisi keuangan konsolidasian dicatat sebesar nilai wajar, atau sebaliknya, disajikan dalam jumlah tercatat apabila jumlah tersebut mendekati nilai wajarnya atau nilai wajarnya tidak dapat diukur secara handal. Metode-metode dan asumsi-asumsi di bawah ini digunakan untuk mengestimasi nilai wajar untuk masing-masing kelas instrumen keuangan:

Financial instruments presented in the consolidated statement of financial position are carried at the fair value, otherwise, they are presented at carrying values as either these are reasonable approximation of fair values or their fair values cannot be reliably measured. The following methods and assumptions are used to estimate the fair value of each class of financial instruments:

Nilai wajar dari kas dan setara kas, piutang usaha (termasuk di dalamnya aset derivatif), piutang kegiatan perantara perdagangan efek, piutang kegiatan manajemen investasi, piutang kegiatan pembiayaan, piutang lain-lain, pinjaman bank, utang usaha, utang kegiatan perantara perdagangan efek, utang kegiatan manajemen investasi, bunga yang masih harus dibayar, dan utang lain-lain mendekati nilai tercatat karena instrumen keuangan tersebut memiliki jangka waktu jatuh tempo yang singkat dan memiliki tingkat bunga sesuai pasar.

Fair values of cash and cash equivalents, account receivable (including derivatives assets), brokerage activities receivables, investment management activities receivables, financing activities receivables, other receivables, bank loans, account payable, brokerage activities payables, investment management activities payable, accrued interest payable and other payable approximate their carrying amounts due to short-term maturities of these financial instruments and due to the interest rate is at market rate.

Nilai wajar dari portofolio efek - reksa dana ditentukan berdasarkan nilai aset bersih reksa dana tersebut pada tanggal laporan posisi keuangan.

The fair value of marketable securities - mutual funds is determined on the basis of net assets value of the mutual funds at statement of financial position date.











115


Nilai wajar dari portofolio efek - saham dan obligasi yang diperdagangkan ditentukan berdasarkan harga kuotasi pasar yang berlaku pada tanggal laporan posisi keuangan. Manajemen berpendapat bahwa harga pasar atas saham tersebut tidak mencerminkan nilai wajar atas saham tersebut.

The fair value of marketable securities - shares and bonds held for trading are determined on the basis of quoted market price at the statement of financial position date. Management believes that the market price of the shares does not reflect the fair value of the shares.

Nilai wajar dari obligasi yang diterbitkan ditentukan berdasarkan harga kuotasi pasar yang berlaku pada tanggal laporan posisi keuangan konsolidasian.

The fair value of bonds issued is determined on the basis of quoted market price at the consolidated statement of financial position date.

Tabel di bawah ini menyajikan instrumen keuangan yang diakui pada nilai wajar berdasarkan hirarki yang digunakan Perusahaan untuk menentukan dan mengungkapkan nilai wajar dari instrumen keuangan:

The table below shows the financial instruments recognized at fair value based on the hierarchy used by the Company in determining and disclosing the fair value of financial instruments:

a. Tingkat 1: Dikutip dari harga di pasar aktif untuk

aset atau liabilitas keuangan yang identik; a. Level 1: Quoted (unadjusted) prices in active

markets for identical financial assets or liabilities;

b. Tingkat 2: Yang melibatkan input selain dari

harga kuotasi yang termasuk dalam tingkat 1 yang dapat diobservasi untuk aset dan liabilitas, baik secara langsung (seperti harga) atau tidak langsung (berasal dari harga);

b. Level 2: Those involving inputs other than quoted prices included in level 1 that are observable for the asset and liability, either directly (as prices) or indirectly (derived from prices);

c. Tingkat 3: Input untuk aset dan liabilitas yang

tidak berdasarkan pada data yang dapat di observasi di pasar (input yang tidak dapat diobservasi).

c. Level 3: Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs).


Nilai tercatat/ Tingkat/ Tingkat/ Tingkat/ Carrying amount Level 1 Level 2 Level 3

Aset keuangan yang diukur Financial assets at fair pada nilai wajar melalui value through profit laporan laba rugi: or loss: Portofolio efek 505.804.393 502.768.652 - 3.035.741 Marketable securities Piutang derivatif 22.351.356 - 5.367.435 16.983.921 Derivative receivables Aset keuangan yang Financial assets tersedia untuk dijual: available-for-sale: Portofolio efek 188.418.488 63.357.414 125.061.074 - Marketable securities

Liabilitas keuangan yang diukur Financial liabilities at fair pada nilai wajar melalui value through profit laporan laba rugi: or loss: Utang derivatif 521.788 - 521.788 - Derivative payables











116



Nilai tercatat/ Tingkat/ Tingkat/ Tingkat/ Carrying amount Level 1 Level 2 Level 3

Aset keuangan yang diukur Financial assets at fair pada nilai wajar melalui value through profit laporan laba rugi: or loss: Portofolio efek 236.535.847 233.500.106 - 3.035.741 Marketable securities Piutang derivatif 18.414.742 - 6.164.588 12.250.154 Derivative receivables Aset keuangan yang Financial assets tersedia untuk dijual: available-for-sale: Portofolio efek 214.225.542 81.960.620 132.264.922 - Marketable securities

Liabilitas keuangan yang diukur Financial liabilities at fair pada nilai wajar melalui value through profit laporan laba rugi: or loss: Utang derivatif 623.414 - 623.414 - Derivative payables

42. PENGELOLAAN PERMODALAN 42. CAPITAL MANAGEMENT

Sasaran utama atas pengelolaan permodalan yang dilakukan oleh Perusahaan adalah untuk melindungi kemampuan entitas dalam mempertahankan kelangsungan usaha dan untuk memaksimalkan nilai bagi pemegang saham.

The primary objective of the Company’s capital management is to protect the entity’s ability in maintaining business continuity and to maximize shareholder value.

Perusahaan mengelola struktur modal dan melakukan penyelesaian atas struktur tersebut tergantung kondisi ekonomi. Untuk mempertahankan atau menyesuaikan struktur modal tersebut, Perusahaan dapat menyesuaikan jumlah pembayaran dividen kepada pemegang saham, mengembalikan modal kepada pemegang saham atau mengeluarkan saham baru.

The Company manages its capital structure and makes adjustments to it in accordance with changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

Tidak terdapat perubahan atas tujuan, kebijakan atau proses dalam mengelola permodalan selama tahun yang berakhir pada tanggal-tanggal 31 Desember 2017 dan 2016.

No changes were made in the objectives, policies or processes for managing capital for the years ended December 31, 2017 and 2016.

Entitas Anak, PT Danareksa Sekuritas dan PT Danareksa Investment Management, diwajibkan untuk memelihara persyaratan minimum Modal Kerja Bersih Disesuaikan (“MKBD”) seperti yang disebutkan dalam peraturan BAPEPAM-LK No. V.D.5 dan peraturan BAPEPAM-LK No. X.E.1, yang antara lain, menentukan MKBD untuk perusahaan efek yang beroperasi sebagai perantara perdagangan efek, manajer investasi dan penjamin emisi. Jika hal ini tidak dipantau dan disesuaikan, tingkat modal kerja sesuai peraturan dapat berada di bawah jumlah minimum yang ditetapkan oleh regulator, yang dapat mengakibatkan berbagai sanksi mulai dari denda sampai dengan penghentian sebagian atau seluruh kegiatan usaha.

Subsidiaries, PT Danareksa Sekuritas and PT Danareksa Investment Management, are required to maintain the Net Adjusted Working Capital (“NAWC”) in accordance with BAPEPAM-LK regulation No. V.D.5 and BAPEPAM-LK regulation No. X.E.1, which among others, determine NAWC for securities company which operated as securities broker, investment manager, and underwriter. If this capital is not being monitored and adjusted, level of working capital can be below the minimum requirement established by regulator, which causes sanctions from penalty to suspense of part or whole business.











117

42. PENGELOLAAN PERMODALAN (lanjutan) 42. CAPITAL MANAGEMENT (continued)

Dalam mengelola permodalan, Entitas Anak, PT Danareksa Finance melakukan analisa secara bulanan untuk memastikan bahwa Perseroan tetap mengikuti Peraturan Menteri Keuangan Republik Indonesia No. 84/PMK.012/2006 tertanggal 29 September 2006 tentang Perusahaan Pembiayaan yang diantaranya mengatur ketentuan sebagai berikut:

· Modal disetor minimum sebesar Rp100.000.000,

· Modal sendiri minimum sebesar 50% dari modal disetor,

Jumlah pinjaman yang dimiliki dibandingkan modal sendiri dan pinjaman subordinasi dikurangi penyertaan maksimum 10 kali, baik untuk pinjaman luar negeri maupun dalam negeri.

In managing capital, Subsidiaries, PT Danareksa Finance conducts monthly analysis to ensure that the Company complies with the Regulation of the Ministry of Finance Republic of Indonesia No. 84/PMK.012/2006 dated 29 September 2006 regarding Finance Companies which have some provisions as follows:

· The paid-up capital of minimum Rp100,000,000,

· The equity amounting to minimum 50% of paid-up capital,

The amount of loan to equity and subordinated loan deducted by investment is maximum 10 times, both for foreign and domestic loans.

Untuk mengatasi risiko ini, Entitas Anak terus mengevaluasi tingkat kebutuhan modal kerja berdasarkan peraturan dan memantau perkembangan peraturan tentang modal kerja bersih yang disyaratkan dan mempersiapkan peningkatan batas minimum yang diperlukan sesuai peraturan yang mungkin terjadi dari waktu ke waktu di masa datang. Entitas Anak telah memenuhi persyaratan MKBD pada tanggal 31 Desember 2017.

To mitigate this risk, Subsidiaries keep evaluating the need of working capital based on regulation and monitoring the regulation update regarding net working capital as required and prepare the increase of minimum level which required by regulation from time to time in the future. Subsidiaries have fulfilled the requirement of NAWC as of December 31, 2017.

43. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO KEUANGAN

43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Perusahaan telah mendokumentasikan kebijakan manajemen risiko keuangannya. Kebijakan yang ditetapkan mencerminkan strategi bisnis dan filosofi manajemen risiko secara menyeluruh. Keseluruhan strategi manajemen risiko Perusahaan ditujukan untuk meminimalkan pengaruh ketidakpastian yang dihadapi di pasar terhadap kinerja keuangan Perusahaan.

The Company has documented its financial risk management policy. The established policies are comprehensive business strategy and risk management philosophy. A comprehensive risk management strategy is aimed to minimize impact from uncertainty from the market towards the financial performance of the Company.

Risiko yang melekat pada Perusahaan meliputi risiko yang ada pada internal bisnis Perusahaan dan Entitas Anak. Beberapa aktivitas bisnis yang dijalankan langsung oleh Perusahaan antara lain proprietary trading (saham dan obligasi), direct investment dan treasury.

Inherent risks of the Company consist of risks from internal business of the Company and its Subsidiaries. Several business activities which are directly managed by the Company, including propietary trading (shares and bonds), direct investment and treasury.

Pengawasan aktif oleh Direksi dan Dewan Komisaris terhadap aktivitas manajemen risiko Perusahaan diimplementasikan melalui pembentukan Komite Pengelolaan Risiko (KPR). KPR memiliki tugas dan tanggung jawab untuk melakukan kajian dan evaluasi, menentukan arah atas kebijakan dan pelaksanaan manajemen risiko Perusahaan, serta mengambil keputusan untuk mengubah eksposur risiko sesuai kewenangan yang telah ditetapkan.

Active supervision from the Boards of Directors and Commissioners of the Company towards risk management activities is implemented through the establishment of the Risk Management Committee (“KPR”). KPR has a task and responsibility to conduct research and evaluation, determine the direction of policy and the implementation of risk management, and make decision to change the risk exposure in accordance with established authority.











118

43. TUJUAN DAN KEBIJAKAN MANAJEMEN RISIKO KEUANGAN (lanjutan)

43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

Divisi Manajemen Risiko bersama unit kerja terkait bertanggung jawab dalam mengelola/ mengkoordinasikan seluruh risiko keuangan yang dihadapi Perusahaan, yang terdiri dari risiko pasar, risiko pembiayaan, risiko likuiditas, dan risiko penjaminan termasuk mengusulkan kebijakan dan pedoman pengelolaan risiko. Kepala Divisi Manajemen Risiko bertanggung jawab kepada Direksi.

The Risk Management Division and each relevant business unit are responsible for managing/ coordinating overall financial risks that mainly consist of market risk, financing risk, liquidity risk, and underwriting risk including proposing risk management policies and standards. The head of Risk Management Division reports to the Board of Directors.

Risiko pasar Market risk

i. Risiko harga saham i. Shares price risk

Efek Perusahaan dalam bentuk saham terpengaruh oleh risiko harga pasar yang muncul dari ketidakpastian nilai investasi efek di masa yang akan datang. Risiko harga saham melekat pada posisi yang diambil oleh Perusahaan dan juga pada kecukupan jaminan atas pembiayaan yang diberikan kepada nasabah. Perusahaan mengelola risiko harga saham melalui diversifikasi dan penetapan limit atas instrumen saham secara individual dan keseluruhan serta disiplin dalam pengelolaan kecukupan jaminan dalam bentuk saham untuk pembiayaan yang diberikan kepada nasabah.

The Company’s equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. Shares price risk is embedded to the position taken by the Company and the adequacy of collateral of the customes’ receivables. The Company manages the shares price risk through diversification and placing limits on individual total shares instruments, and the discipline in the managing of collateral adequacy in the form of shares for financing provided to the customers.

Tabel berikut menunjukkan sensitivitas terhadap perubahan yang mungkin terjadi pada harga pasar saham, dengan semua variabel lainnya tetap konstan, dari laba sebelum pajak untuk tahun berjalan (tidak diaudit).

The following table shows the sensitivity toward possible changes on market price of shares with all other variables held constant, from income before tax for the current year (unaudited).


Dampak terhadap laba rugi komprehensif konsolidasian tahun berjalan/ Perubahan Impact to dalam consolidated persentase/ statement of Changes comprehensive in percentage income

Rupiah ±10% ±8.384.782 Rupiah 31 Desember/December 31, 2016

Dampak terhadap laba rugi komprehensif konsolidasian tahun berjalan/ Perubahan Impact to dalam consolidated persentase/ statement of Changes comprehensive in percentage income

Rupiah ±10% ±12.994.917 Rupiah











119



Risiko pasar (lanjutan) Market risk (continued)

ii. Risiko suku bunga ii. Interest rate risk

Risiko suku bunga arus kas adalah risiko arus kas di masa datang atas instrumen keuangan yang berfluktuasi karena perubahan suku bunga pasar. Risiko suku bunga Perusahaan terutama muncul dari aset keuangan dengan pendapatan bunga dan pinjaman untuk modal kerja. Perusahaan dihadapkan pada berbagai risiko terkait dengan fluktuasi suku bunga pasar.

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or fair values of financial instruments. The Company interest rate risk mainly arises from interest bearing financial assets and loans for working capital purposes. The Company is exposed to risks regarding interest rate fluctuation.

Aset dan liabilitas keuangan yang berpotensi terpengaruh risiko suku bunga terutama terdiri dari deposito on call, deposito berjangka, sewa pembiayaan, anjak piutang, piutang efek yang dibeli dengan janji dijual kembali, piutang dan utang marjin, medium-term notes, piutang pembiayaan, pinjaman bank, pinjaman dari lembaga keuangan, dan piutang lain-lain. Perusahaan memonitor perubahan suku bunga pasar untuk memastikan suku bunga Perusahaan sesuai dengan pasar.

Financial assets and liabilities that are potentially affected by interest rate risk consist mainly of deposits on call, time deposits, lease financing, factoring, security receivables purchased under resale agreements, receivables and payables margin, medium-term notes, financing receivables, bank loans, loans from financial institutions, and other receivables. The Company monitors changes in market interest rates to ensure the Company’s interest rates is in accordance with the market.

Analisis sensitivitas merupakan salah satu bentuk pengukuran risiko pasar, salah satu metode yang digunakan adalah pengukuran tingkat sensitivitas suku bunga yang mempengaruhi portofolio trading yang dimiliki Perusahaan. Tingkat sensitivitas digunakan untuk menganalisis kemungkinan perubahan suku bunga yang berdampak pada keuntungan dan kerugian portofolio trading, serta perhitungan cadangan modal yang dialokasikan untuk menutup kerugian instrumen keuangan dengan metode standar. Secara umum, sensitivitas diestimasi dengan membandingkan nilai awal tertentu setelah perubahan tertentu dari faktor pasar, dengan mengasumsikan seluruh variabel lainnya tetap. Sensitivitas atas laporan laba rugi dan penghasilan komprehensif lain konsolidasian merupakan efek atas perubahan estimasi suku bunga atas laba rugi komprehensif konsolidasian untuk suatu periode, berdasarkan nilai suku bunga mengambang atas aset dan liabilitas yang diperdagangkan yang dimiliki Perusahaan.

Sensitivity analysis is one form of the market risk measurement tool, one of the methods used is the measurement of the sensitivity level of interest rates that affect the Company's trading portfolio. The level of sensitivity is used to analyze possible changes in interest rates affecting the trading portfolio gains and losses, as well as the calculation of reserves allocated capital to cover the losses of financial instruments with standard methods. In general, the sensitivity is estimated by comparing a certain initial value after a certain change of market factors, assuming all other variables remain. Sensitivity to the consolidated statement of profit or loss and other comprehensive income is the effect of interest rates estimation changes of consolidated statement of comprehensive income for the period, based on the value of floating rate assets and liabilities that are traded by the Company.











120




ii. Risiko suku bunga (lanjutan) ii. Interest rate risk (continued)

Tabel berikut menunjukkan sensitivitas terhadap perubahan yang mungkin terjadi pada suku bunga, dengan semua variabel lainnya tetap konstan, dari laba untuk periode berjalan Perusahaan (melalui dampak atas pinjaman tingkat bunga mengambang yang didasarkan SBI untuk pinjaman Rupiah) (tidak diaudit).

The following table demonstrates the sensitivity to possible changes in interest rates, with all other variables held constant, of the Company's earnings for the current period (through the impact on floating rate loans based on SBI for Rupiah loans) (unaudited).


Dampak terhadap laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan/ Impact to Consolidated statement of profit or loss Perubahan basis and other poin/Changes comprehensive in basis point income

Rupiah ±50 ±3.185 Rupiah ±125 ±7.962 31 Desember/December 31, 2016

Dampak terhadap laba rugi dan penghasilan komprehensif lain konsolidasian tahun berjalan/ Impact to Consolidated statement of profit or loss Perubahan basis and other poin/Changes comprehensive in basis point income

Rupiah ±50 ±8.777 Rupiah ±125 ±21.942











121




iii. Risiko nilai tukar mata uang asing iii. Foreign exchange rate risk

Risiko nilai tukar mata uang asing adalah risiko dimana nilai wajar atau arus kas masa datang dari suatu instrumen keuangan akan berfluktuasi akibat perubahan nilai tukar mata uang asing. Eksposur terhadap fluktuasi nilai tukar Perusahaan terutama berasal dari Dolar Amerika Serikat. Untuk mengelola risiko nilai tukar mata uang asing, Perusahaan menandatangani beberapa kontrak swap valuta asing dan kontrak forward valuta asing dan instrumen lainnya yang diperbolehkan. Kontrak ini dicatat sebagai transaksi yang tidak ditetapkan sebagai lindung nilai, dimana perubahan nilai wajar dikreditkan atau dibebankan langsung pada laporan laba rugi dan penghasilan komprehensif lain konsolidasian periode berjalan.

Foreign currency exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. Exposure to the Company’s exchange rate fluctuations is primarily from United States Dollar. To manage foreign currency exchange risk, the Company entered into several foreign currency swap contracts and foreign currency forward contracts and other allowed instruments. These contracts are accounted as transactions not designated as hedges, wherein changes in fair value are credited or charged directly to the consolidated statement of profit or loss and other comprehensive income for the period.

Tabel berikut menunjukkan sensitivitas terhadap perubahan yang mungkin terjadi dalam nilai tukar mata uang Dolar Amerika Serikat, dengan semua variabel lainnya dianggap tetap, terhadap laporan laba rugi dan penghasilan komprehensif lain konsolidasian Perusahaan untuk tahun yang berakhir pada tanggal 31 Desember 2017 and 2016 (tidak diaudit):

The following table shows the sensitivity to possible changes in the United States Dollar exchange rate, with all other variables held constant, based on the consolidated statement of profit or loss and other comprehensive income of the Company for the year ended December 31, 2017 and 2016 (unaudited):


Dampak terhadap laba rugi komprehensif konsolidasian tahun berjalan/ Perubahan Impact to dalam consolidated persentase/ statement of Changes comprehensive in percentage*) income

Dolar Amerika Serikat ±2,12 ±841 United States Dollar











122




iii. Risiko nilai tukar mata uang asing (lanjutan) iii. Foreign exchange rate risk (continued)


Dampak terhadap laba rugi komprehensif konsolidasian tahun berjalan/ Perubahan Impact to dalam consolidated persentase/ statement of Changes comprehensive in percentage*) income

Dolar Amerika Serikat ±4,73 ±2.895 United States Dollar

*) Berdasarkan volatilitas 30 harian dari perubahan nilai tukar

dalam setahun terakhir. *) Based on 30 days volatilty of currency exchange in the last

year.

Tabel berikut menunjukkan aset dan liabilitas konsolidasian Perusahaan dan Entitas Anak dalam mata uang Dolar Amerika Serikat:

The following table shows the consolidated assets and liabilities of the Company and Subsidiaries in United States Dollar currency :

31 Desember/December 31, 2017 Dolar Amerika Serikat/ United States Dollar Rupiah*)

Aset: Assets: Kas dan setara kas 5.322.720 72.216.008 Cash and cash equivalent Efek diperdagangkan 13.466.323 182.704.337 Marketable securities held for trading Piutang lain-lain 337.261 4.575.783 Other receivables

Total aset 19.126.304 259.496.128 Total assets

Liabilitas: Liabilites: Utang kegiatan manajemen Investment management investasi 19.922 270.293 activities payables

Posisi aset bersih 19.106.382 259.225.835 Net asset position

*) Nilai tukar yang digunakan untuk menjabarkan Dolar Amerika Serikat ke Rupiah adalah sebesar Rp13.567,5 per AS$1 (nilai penuh) yang dikeluarkan oleh Reuters pada tanggal 31 Desember 2017.

*) Foreign exchange rate used to translate United States Dollar to Rupiah was Rp13,567.5 per US$1 (full amount) issued by Reuters on December 31, 2017.











123




31 Desember/December 31, 2016 Dolar Amerika Serikat/ United States Dollar Rupiah*)

Aset: Assets: Kas dan setara kas 3.865.356 52.076.003 Cash and cash equivalent Efek diperdagangkan 22.264.813 299.962.693 Marketable securities held for trading Piutang lain-lain 3.184.625 42.904.861 Other receivables

Total aset 29.314.794 394.943.557 Total assets

Liabilitas: Liabilites: Utang kegiatan manajemen Investment management investasi 11.104 149.599 activities payables

Posisi aset bersih 29.303.690 394.793.958 Net asset position

*) Nilai tukar yang digunakan untuk menjabarkan Dolar

Amerika Serikat ke Rupiah adalah sebesar Rp13.785,00 per AS$1 (nilai penuh) yang dikeluarkan oleh Reuters pada tanggal 31 Desember 2016.

*) Foreign exchange rate used to translate United States Dollar to Rupiah was Rp13,785.00 per US$1 (full amount) issued by Reuters on December 31, 2016.

Risiko pembiayaan Financing risk

Risiko pembiayaan adalah risiko kerugian yang akan dialami Perusahaan, apabila nasabah atau pihak lawan, gagal untuk memenuhi liabilitas kontraktual. Perusahaan tidak memiliki risiko konsentrasi pembiayaan yang signifikan. Perusahaan mengelola dan mengendalikan risiko pembiayaan dengan menetapkan batasan besaran risiko yang dapat diterima dan tingkat jaminan yang diberikan atas setiap transaksi dengan pihak ketiga, baik secara individu maupun Grup, serta memonitor eksposur yang berhubungan dengan batasan-batasan tersebut.

Financing risk is the risk of loss that will be experienced by the Company, if customers or counterparties, failed to meet contractual liabilities. The Company has no significant concentration financing risk. The Company manages and controls financing risk by setting limits on the amount of acceptable risk and the level of collateral guaranteed in every transaction with a third party either individually or in group, and to monitor exposure related to such limits.











124



Risiko pembiayaan (lanjutan) Financing risk (continued)

Eksposur risiko pembiayaan Perusahaan berkaitan dengan kegiatan broker saham terasosiasi pada posisi kontraktual nasabah yang muncul pada saat perdagangan. Mitigasi utama risiko pembiayaan tersebut adalah melalui evaluasi nasabah, penerapan limit transaksi, serta penyediaan jaminan oleh nasabah dan pengelolaan jaminan dengan memperhatikan likuiditas, volatilitas, dan kecukupan nilai jaminan. Jenis instrumen yang diterima Perusahaan sebagai jaminan dapat berupa kas, tanah dan bangunan, dan efek yang tercatat di bursa maupun tidak tercatat. Disiplin dalam pengelolaan kecukupan jaminan melalui mekanisme permintaan top up atau force sell merupakan faktor penting untuk menjaga kualitas pembiayaan yang diberikan kepada nasabah. Perusahaan mempunyai eksposur terhadap piutang yang telah jatuh tempo dan Perusahaan telah menurunkan nilainya ke estimasi jumlah terpulihkan. Atas piutang tersebut, Perusahaan telah menerima jaminan yang memadai.

The Company’s financing risks exposure related to its stock brokerage activities is assosiated on customer’s contractual position that appears during the trade. The main mitigation for financing risk is through customers evaluations, implementation of transactions limit, as well as the provision of collaterals by the customers and the collaterals’ management in respect of liquidity, volatility, and adequacy of the collateral value. Types of instruments accepted by the Company as guarantee/collateral are in the form of cash, land and building, and securities listed on the stock exchange or not-listed. Being discipline in managing the adequacy of collateral through request for top up or force sell is an important factor to maintain the quality of the financing provided to customers. The value of the Company’s overdue receivables have been reduced to their estimated recoverable amount. The Company has received sufficient guarantee for these receivable.

Di samping itu, kebijakan limit ditetapkan untuk memastikan aktivitas pembiayaan Perusahaan dilakukan secara hati-hati dengan membatasi tingkat risiko sampai batas yang dapat ditolerir oleh Perusahaan sehingga potensi kerugian risiko pembiayaan yang timbul masih dapat diserap dengan modal Perusahaan yang telah dialokasikan. Perusahaan telah melakukan penetapan limit pembiayaan dan secara rutin melakukan pemantauan atas eksposur risiko pembiayaan secara portofolio, segmen bisnis, dan sektor ekonomi.

In addition, the establishment of limits policy is to ensure the Company's financing activities are carefully implemented by limiting the risk to tolerable extent so that the potential financial risks losses are still absorbable by the Company's allocated capital. The Company has set financing limits and regularly monitors the financial risk exposure in their portfolios, business segments and economic sectors.

Eksposur maksimum kotor(1)/ Gross maximum exposure(1) 31 Desember/ 31 Desember/ December 31, 2017 December 31, 2016

Kas dan setara kas 419.999.736 475.102.032 Cash and cash equivalents Portofolio efek - diperdagangkan 505.804.393 236.535.847 Marketable securities - held for trading Portofolio efek - tersedia untuk dijual 188.418.488 214.225.542 Marketable securities - available-for-sale Portofolio efek - dimiliki hingga Marketable securities - jatuh tempo 111.085.112 166.770.081 held-to-maturity Piutang usaha 616.230.224 838.896.761 Account receivables Piutang kegiatan perantara perdagangan efek 761.997.309 720.003.990 Brokerage activities receivables Piutang kegiatan manajemen Investment management investasi 12.475.776 12.595.754 activities receivables Piutang kegiatan pembiayaan 188.188.911 133.564.838 Financing activities receivables Piutang lain-lain 144.284.180 123.780.967 Other receivables

2.948.484.129 2.921.475.812











125



Risiko pembiayaan (lanjutan) Financing risk (continued)

(1) Aset keuangan kotor, sebelum

memperhitungkan jaminan yang dimiliki, financing enhancement lainnya atau pengaturan saling hapus.

(1) Gross financial assets, without considering collateral owned, other financing enhancement or offsetting.


Belum Telah jatuh tempo jatuh tempo atau tidak tetapi tidak mengalami mengalami Mengalami penurunan nilai/ penurunan nilai/ penurunan Neither past due Past due but nilai/ nor impaired not impaired Impaired Total

Aset Assets Kas dan setara kas 419.999.736 - - 419.999.736 Cash and cash equivalents Portofolio efek 694.222.870 - 653.765.020 1.347.987.890 Marketable securities Piutang usaha 526.060.477 - 188.964.264 715.024.741 Accounts receivables Piutang kegiatan perantara perdagangan efek 560.439.005 5.187.848 196.370.456 761.997.309 Brokerage activities receivables Piutang kegiatan Investment management manajemen investasi 12.475.776 - - 12.475.776 activities receivables Piutang kegiatan pembiayaan 104.372.727 677.480 83.138.704 188.188.911 Financing activities receivables Piutang lain-lain 144.284.180 - - 144.284.180 Other receivables 2.461.854.771 5.865.328 1.122.238.444 3.589.958.543 Dikurangi: Penyisihan kerugian Less: Allowance of impairment penurunan nilai (743.132.272) losses 2.846.826.271 31 Desember 2016/December 31, 2016

Belum Telah jatuh tempo jatuh tempo atau tidak tetapi tidak mengalami mengalami Mengalami penurunan nilai/ penurunan nilai/ penurunan Neither past due Past due but nilai/ nor impaired not impaired Impaired Total

Aset Assets Kas dan setara kas 475.102.032 - - 475.102.032 Cash and cash equivalents Portofolio efek 450.761.389 - 705.897.360 1.156.658.749 Marketable securities Piutang usaha 713.308.995 - 180.000.000 893.308.995 Accounts receivables Piutang kegiatan perantara perdagangan efek 518.202.769 14.395.079 187.406.142 720.003.990 Brokerage activities receivables Piutang kegiatan Investment management manajemen investasi 12.595.754 - - 12.595.754 activities receivables Piutang kegiatan pembiayaan 133.564.838 1.894.683 65.794.898 201.254.419 Financing activities receivables Piutang lain-lain 123.780.967 - - 123.780.967 Other receivables 2.427.316.744 16.289.762 1.139.098.400 3.582.704.906 Dikurangi: Penyisihan kerugian Less: Allowance of impairment penurunan nilai (658.681.765) losses 2.924.023.141

Pada tanggal-tanggal 31 Desember 2017 dan 2016, aset keuangan yang telah jatuh tempo tetapi tidak mengalami penurunan nilai masing-masing sebesar Rp5.865.328 dan Rp16.289.762 yang berasal dari piutang kegiatan perantara perdagangan efek dan piutang kegiatan pembiayaan dengan umur tunggakan 1-180 hari.

As of December 31, 2017 and 2016, the financial asset that are past due but not impaired amounted to Rp5,865,328 and Rp16,289,762, respectively, which come from brokerage activities receivables and financing activities receivables are 1-180 days past due.











126



Risiko likuiditas Liquidity risk

Risiko likuiditas didefinisikan sebagai risiko dimana Perusahaan akan mengalami kesulitan untuk memenuhi liabilitas keuangan yang harus diselesaikan secara tunai atau dengan aset keuangan lainnya. Risiko likuiditas muncul akibat adanya kemungkinan bahwa Perusahaan tidak dapat memenuhi kewajiban pembayaran pada saat jatuh tempo pada keadaan normal maupun tidak.

Liquidity risk is defined as the risk that the Company will encounter difficulty to meet its financial liabilities that must be settled in cash or other financial assets. Liquidity risk arises from the possibility that the Company is unable to meet its payment obligations punctually whether in its normal circumstances or not.

Perusahaan melakukan pengelolaan risiko likuiditas sebagai upaya untuk memenuhi setiap liabilitas keuangan yang sudah diperjanjikan secara tepat waktu, dan agar dapat memelihara tingkat likuiditas yang memadai dan optimal.

The Company conducts liquidity risk management as an effort to fullfil every financial liabilities punctually, and to maintain the adequacy and the optimum liquidity level.

Perusahaan menghadapi risiko likuiditas pendanaan dan risiko likuiditas pasar. Risiko likuiditas pendanaan terjadi saat Perusahaan mengalami kesulitan untuk memperoleh pendanaan yang diperlukan untuk menjembatani jurang likuiditas (liquidity gap). Mitigasi atas risiko ini dilakukan dengan memperhatikan ketersediaan pendanaan dari pihak ketiga melalui beberapa alternatif transaksi, mempertahankan penyisihan likuiditas yang memadai, dan terus memantau rencana dan realisasi arus kas melalui analisis profil jatuh tempo aset keuangan dan liabilitas keuangan.

The Company faces financing liquidity risk and market liquidity risk. Financing liquidity risk occurs when the Company experience difficulties in obtaining financing to bridge its liquidity gap. Mitigation for this risk is done by observing the availability of a third party financing through various alternative transactions, maintaining adequate liquidity reserves, and always monitor the cashflow planning and realization through financial asset and financial liabilities maturity profile analysis.

Analisis aset dan liabilitas Perusahaan berdasarkan jatuh tempo dari tanggal laporan posisi keuangan konsolidasian sampai dengan tanggal jatuh tempo diungkapkan dalam tabel sebagai berikut:

Analysis for the Company’s assets and liabilities is based on the due date from the consolidated financial statements until the due date mentioned in the table shown below:


Tidak mempunyai tanggal jatuh tempo kontraktual/ No contractual ≤ 1 bulan/ > 1 - 3 bulan/ > 3 - 6 bulan/ > 6 - 12 bulan/ > 12 bulan/ maturity month months months months months Total

Aset Assets Kas dan setara kas 419.999.736 - - - - - 419.999.736 Cash and cash equivalents Portofolio efek - bersih 655.206.712 - - - - 150.101.281 805.307.993 Marketable securities - net Piutang usaha - bersih 565.298.416 13.562.729 19.153.670 18.215.621 - - 616.230.436 Account receivables - net Putang kegiatan perantara perdagangan Brokerage activities efek - bersih 6.428.741 640.784.005 59.981.063 - - - 707.193.809 receivables - net Piutang kegiatan Management activities manajemen investasi - 12.475.776 - - - - 12.475.776 receivables Piutang kegiatan Financing activities pendanaan - bersih 105.401.524 4.247.902 2.973.248 3.125.725 - 25.586.165 141.334.564 receivables - net Piutang lain-lain 94.185.367 37.650.632 12.448.181 - - 144.284.180 Other receivables Pajak dibayar dimuka 55.320.739 - - - - - 55.320.739 Prepaid taxes Beban dibayar dimuka 9.055.318 - - - - - 9.055.318 Prepaid expens Penyertaan saham 32.727.844 - - - - - 32.727.844 Investment in shares of stock Aset pajak tangguhan 36.982.382 - - - - - 36.982.382 Deferred tax assets Aset tetap - bersih 608.609.831 - - - - - 608.609.831 Fixed assets - net Aset lain-lain - bersih 54.393.010 - - - - - 54.393.010 Other assets - net

Total aset 2.549.424.253 765.255.779 119.758.613 33.789.527 - 175.687.446 3.643.915.618 Total assets











127



Risiko likuiditas (lanjutan) Liquidity risk (continued)

Analisis aset dan liabilitas Perusahaan berdasarkan jatuh tempo dari tanggal laporan posisi keuangan konsolidasian sampai dengan tanggal jatuh tempo diungkapkan dalam tabel sebagai berikut:

Analysis for the Company’s assets and liabilities is based on the due date from the consolidated financial statements until the due date mentioned in the table shown below:



Liabilitas Liabilities Pinjaman bank - 1.085.000.000 - - - - 1.085.000.000 Bank loans Utang usaha - 5.025 516.763 - - - 521.788 Account payables Utang kegiatan perantara perdagangan efek - 486.610.365 - - - 486.610.365 Brokerage activities payables Utang kegiatan Investment management manajemen investasi - 3.192.408 - - - 3.192.408 activities payable Utang pajak - 12.586.735 - - - 12.586.735 Taxes payable Bunga masih harus dibayar - 10.086.083 2.521.521 - - 12.607.604 Accrued interest Beban masih harus dibayar - 21.270.104 85.328.651 - - - 106.598.755 Accrued expenses Obligasi yang diterbitkan - 375.000.000 - - - 249.053.604 624.053.604 Bonds issued Liabilitas imbalan Liability for employee kerja karyawan - - - - - 50.096.672 50.096.672 service entitlements Utang lain-lain 1.402.334 24.856.279 - - - - 26.258.613 Other payables

Total liabilitas 1.402.334 2.018.606.999 88.366.935 - - 299.150.276 2.407.526.544 Total liabilities

Aset (liabilitas) bersih 2.548.021.919 (1.253.351.220) 31.391.678 33.789.527 - (123.462.830) 1.236.389.074 Net assets (liabilities) 31 Desember 2017/December 31, 2016


Aset Assets Kas dan setara kas 280.202.032 194.900.000 - - - - 475.102.032 Cash and cash equivalents Portofolio efek - bersih 462.910.524 - - - - 154.620.946 617.531.470 Marketable securities - net Piutang usaha - bersih - 9.496.882 498.505.909 138.623.338 145.050.491 47.220.141 838.896.761 Account receivables - net Putang kegiatan perantara perdagangan Brokerage activities efek - bersih 8.660.073 621.007.052 51.019.363 - - - 680.686.488 receivables - net Piutang kegiatan Management activities manajemen investasi - 12.595.754 - - - - 12.595.754 receivables Piutang kegiatan Financing activities pendanaan - bersih 46.528.890 1.398.456 978.826 1.029.023 - 57.804.893 107.740.088 receivables - net Piutang lain-lain - 93.345.207 1.930.835 28.504.925 - - 123.780.967 Other receivables Pajak dibayar dimuka 18.154.475 - - - - - 18.154.475 Prepaid taxes Beban dibayar dimuka 6.102.989 - - - - - 6.102.989 Prepaid expens Penyertaan saham 12.727.844 - - - - - 12.727.844 Investment in shares of stock Aset pajak tangguhan 31.686.778 - - - - - 31.686.778 Deferred tax assets Aset tetap - bersih 609.198.016 - - - - - 609.198.016 Fixed assets - net Aset lain-lain - bersih 72.905.439 - - - - - 72.905.439 Other assets - net

Total aset 1.549.077.060 932.743.351 552.434.933 168.157.286 145.050.491 259.645.980 3.607.109.101 Total assets











128



Risiko likuiditas (lanjutan) Liquidity risk (continued)


Tidak mempunyai tanggal jatuh tempo kontraktual/ No contractual ≤ 1 bulan/ > 1 - 3 bulan/ > 3 - 6 bulan/ > 6 - 12 bulan/ > 12 bulan/ Total/ maturity month months months months months Total

Liabilitas Liabilities Pinjaman bank - 565.000.000 235.000.000 - - - 800.000.000 Bank loans Utang usaha - 43.218 580.196 - - - 623.414 Account payables Utang kegiatan perantara perdagangan efek - 327.698.390 - - - - 327.698.390 Brokerage activities payables Utang kegiatan Investment management manajemen investasi - 1.784.615 - - - - 1.784.615 activities payable Utang pajak - 19.798.059 - - - - 19.798.059 Taxes payable Bunga masih harus dibayar - 10.423.422 3.967.972 - - - 14.391.394 Accrued interest Beban masih harus dibayar - 68.454.257 57.207.628 - - - 125.661.885 Accrued expenses Obligasi yang diterbitkan - - - - 249.158.690 622.896.724 872.055.414 Bonds issued Liabilitas imbalan Liability for employee kerja karyawan - - - - - 57.225.628 57.225.628 service entitlements Utang lain-lain 1.402.882 15.978.878 - - - - 17.381.760 Other payables

Total liabilitas 1.402.882 1.009.180.839 296.755.796 - 249.158.690 680.122.352 2.236.620.559 Total liabilities

Aset (liabilitas) bersih 1.547.674.178 (76.437.488) 255.679.137 168.157.286 (104.108.199) (420.476.372) 1.370.488.542 Net assets (liabilities)

Risiko Penjaminan Emisi Efek Underwriting Risk

Dalam penjaminan emisi efek, Perusahaan harus mengikat perjanjian untuk membeli semua efek yang menjadi bagian penjaminannya yang tidak dapat diserap oleh pasar. Pembelian atas efek yang tidak dapat diserap oleh pasar tersebut, apabila jumlahnya besar akan berpengaruh pada tingkat likuiditas Perusahaan, selain itu menurunnya harga pasar atas efek tersebut dapat mempengaruhi tingkat profitabilitas Perusahaan.

Under underwriting arrangement, the Company is obliged by an agreement to purchase all the securities that are part of the collateral or that unabsorbable by the market. Purchases of securities that cannot be absorbed by the market in large numbers will influence the level of Company’s liquidity, moreover, declining prices of the securities market may affect the level of the Company’s profitability.

44. STANDAR AKUNTANSI YANG TELAH

DISAHKAN NAMUN BELUM BERLAKU EFEKTIF 44. ACCOUNTING STANDARDS ISSUED BUT NOT

YET EFFECTIVE Berikut ini ikhtisar PSAK dan ISAK yang diterbitkan

oleh Dewan Standar Akuntansi Keuangan (DSAK) - IAI yang relevan untuk Perusahaan, namun belum berlaku efektif untuk laporan keuangan pada tanggal 31 Desember 2017:

The following summarizes the SFAS and IFAS which were issued by the Financial Accounting Standards Board (FASB) are relevant to the Company, but not yet effective for the financial statements as of December 31, 2017:

Efektif berlaku pada atau setelah tanggal 1 Januari 2018:

a. PSAK No. 2 (Amandemen 2016), ”Laporan

Arus Kas Tentang Prakarsa Pengungkapan”.

b. PSAK No. 46 (Amandemen 2016), ”Pajak Penghasilan Tentang Pengakuan Aset Pajak Tangguhan Untuk Rugi Yang Belum Direalisasi”.

Effective on or after January 1, 2018: a. SFAS No. 2 (2016 Amendment), “Disclosure

Initiative on Statement of Cash Flow”. b. SFAS No. 46 (2016 Amendment), “Income Tax

on Recognition of Deffered Tax Assets for Unrealised Losses”.











129

44. STANDAR AKUNTANSI YANG TELAH DISAHKAN NAMUN BELUM BERLAKU EFEKTIF (lanjutan)

44. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE (continued)

Efektif berlaku pada atau setelah tanggal 1 Januari 2018: (lanjutan)

c. PSAK No. 15 (Penyesuaian 2017), “Investasi

pada Entitas Asosiasi dan Ventura Bersama”.

d. PSAK No. 53 (Amendemen 2017), “Pembayaran Berbasis Saham”, Klasifikasi dan Pengukuran Transaksi Pembayaran Berbasis Saham”.

Effective on or after January 1, 2018: (continued)

c. SFAS No. 15 (2017 Amendment), “Investments in Associates and Joint Ventures”.

d. SFAS No. 53 (2017 Amendment), “Share-

Based Payment, Classification and Measurement of Share-Based Transactions Payment”.


e. ISAK No. 33, ”Transaksi Valuta Asing dan

Imbalan di Muka”.

Effective on or after January 1, 2019:

e. ISAK No. 33: Foreign Currency Transaction and Advance Consideration.


f. PSAK No. 71, ”Instrumen Keuangan”.

g. PSAK No. 71 (Amandemen 2017), ”Instrumen

Keuangan”.

h. PSAK No. 73, ”Sewa”.

Effective on or after January 1, 2020:

f. SFAS No. 71, ”Financial Instrument”.

g. SFAS No. 71 (2017 Amendment), ”Financial Instrument”.

h. SFAS No. 73, ”Leases”.

Saat ini Perusahaan sedang mengevaluasi dan belum menetapkan dampak dari PSAK yang direvisi tersebut terhadap laporan keuangan konsolidasian.

Currently, the Company is evaluating and has not yet determined the impact of the revised SFAS on the consolidated financial statements.

45. AKTIVITAS NON KAS 45. NON-CASH ACTIVITIES

Transaksi non kas terdiri dari: Non-cash transaction consists of: 31 Desember/December 31

2017 2016

Penerimaan dividen saham - 2.700.000 Receipt of stock dividend

46. PENYELESAIAN ATAS LAPORAN KEUANGAN KONSOLIDASIAN

46. COMPLETION OF THE CONSOLIDATED FINANCIAL STATEMENTS

Manajemen Perusahaan bertanggung jawab atas penyusunan laporan keuangan konsolidasian ini yang diselesaikan dan disetujui untuk diterbitkan pada tanggal 2 Maret 2018.

The management of the Company is responsible for the preparation of this consolidated financial statements which were completed and authorized to be issued by March 2, 2018.











130

47. INFORMASI TAMBAHAN 47. SUPPLEMENTARY INFORMATION

Informasi berikut pada Appendix 1 sampai dengan Appendix 5 adalah informasi tambahan PT Danareksa (Persero), Entitas Induk saja yang menyajikan penyertaan Perusahaan pada Entitas Anak berdasarkan metode biaya.

The following supplementary information of PT Danareksa (Persero), Parent Entity only, on Appendix 1 to Appendix 5, presents the company’s investments in Subsidiaries under the cost method.

The original supplementary financial information included herein is in the Indonesian language.

Appendix 1

PT DANAREKSA (PERSERO) LAPORAN POSISI KEUANGAN

ENTITAS INDUK Tanggal 31 Desember 2017


PT DANAREKSA (PERSERO) STATEMENTS OF FINANCIAL POSITION

PARENT ENTITY As of December 31, 2017


31 Desember/ Catatan/ 31 Desember/ December 31, 2017 Notes December 31, 2016 ASET ASSETS Kas dan setara kas 150.369.066 88.977.804 Cash and cash equivalents Portofolio efek, setelah dikurangi cadangan Marketable securities, kerugian penurunan nilai net of allowance for impairment Rp542.679.908 pada tanggal Rp542,679,908 as of 31 Desember 2017 dan December 31, 2017 and Rp539.127.279 pada tanggal Rp539,127,279 as of 31 Desember 2016 620.918.011 448.133.120 December 31, 2016 Piutang usaha, setelah dikurangi cadangan Accounts receivables, kerugian penurunan nilai net of allowance for impairment Rp94.888.226 pada tanggal Rp94,888,226 as of 31 Desember 2017 dan December 31, 2017 and Rp54.412.234 pada tanggal Rp54,412,234 as of 31 Desember 2016 438.801.015 638.657.526 December 31, 2016 Piutang lain-lain 162.356.172 170.855.458 Other receivables Pajak dibayar dimuka 1.496.149 1.649.935 Prepaid taxes Beban dibayar dimuka 156.061 1.768.959 Prepaid expenses Penyertaan saham 753.347.000 733.347.000 Investment in shares of stocks Aset tetap, Fixed assets, setelah dikurangi akumulasi net of accumulated penyusutan Rp68.984.957 depreciation Rp68,984,957 pada tanggal 31 Desember 2017 as of December 31, 2017 dan Rp64.521.428 pada tanggal and Rp64,521,428 as of 31 Desember 2016 602.572.307 596.425.809 December 31, 2016 Aset lain-lain, setelah dikurangi cadangan Other assets, kerugian penurunan nilai net of allowance for impairment Rp42.612.750 pada tanggal Rp42,612,750 as of 31 Desember 2017 dan December 31, 2017 and Rp42.314.374 pada tanggal Rp42,314,374 as of 31 Desember 2016 17.902.613 60.127.106 December 31, 2016

TOTAL ASET 2.747.918.394 2.739.942.717 TOTAL ASSETS


Appendix 1

PT DANAREKSA (PERSERO) LAPORAN POSISI KEUANGAN

(lanjutan) ENTITAS INDUK

Tanggal 31 Desember 2017 (Disajikan dalam ribuan Rupiah,


PT DANAREKSA (PERSERO) STATEMENTS OF FINANCIAL POSITION

(continued) PARENT ENTITY


unless otherwise stated) 31 Desember/ Catatan/ 31 Desember/ December 31, 2017 Notes December 31, 2016 LIABILITAS DAN EKUITAS LIABILITIES AND EQUITY LIABILITAS LIABILITIES Pinjaman bank 1.085.000.000 800.000.000 Bank loans Utang pembiayaan afiliasi 24.118.083 10.020.000 Affiliated finacing payables Utang usaha 1.208.491 810.786 Account payables Utang pajak 1.539.184 2.708.324 Taxes payable Bunga masih harus dibayar 12.607.604 14.391.395 Accrued interest Biaya masih harus dibayar 63.752.916 55.545.562 Accrued expenses Efek-efek yang diterbitkan 624.053.604 868.467.152 Securities issued Liabilitas imbalan kerja Liability for employee karyawan 20.731.525 21.063.499 service entitlements Utang lain-lain 29.057.502 10.420.294 Other payables

TOTAL LIABILITAS 1.862.068.909 1.783.427.012 TOTAL LIABILITIES

EKUITAS EQUITY Ekuitas yang dapat diatribusikan Equity attributable to equity holders kepada pemilik entitas induk : of the parent entity : Modal saham Share capital Modal dasar - 2.800.000 saham Authorized capital - 2,800,000 dengan nilai nominal shares with par value of Rp1.000.000 (nilai penuh) per Rp1,000,000 (full amount) per saham share Modal ditempatkan dan disetor Issued and paid up penuh - 701.480 saham 701.480.000 701.480.000 capital - 701,480 shares Agio saham 2.743 2.743 Capital paid in excess of par value Tambahan modal disetor lainnya 85.924.242 85.924.242 Other additional paid-up capital Kerugian belum direalisasi Unrealized losses from decrease dari penurunan nilai wajar efek in fair value of available-for-sale yang tersedia untuk dijual (37.874.176) (47.006.562) marketable securities Keuntungan revaluasi aset 493.830.000 493.830.000 Gain on revaluation of asset Saldo laba (defisit): Retained earnings (deficits): Telah ditentukan penggunaannya 78.520.859 78.520.859 Appropriated Belum ditentukan penggunaannya (436.034.183) (356.235.577) Unappropriated

TOTAL EKUITAS 885.849.485 956.515.705 TOTAL EQUITY

TOTAL LIABILITAS DAN EKUITAS 2.747.918.394 2.739.942.717 TOTAL LIABILITIES AND EQUITY


Appendix 2

PT DANAREKSA (PERSERO) LAPORAN LABA RUGI DAN PENGHASILAN

KOMPREHENSIF LAIN ENTITAS INDUK



PT DANAREKSA (PERSERO) STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME PARENT ENTITY




2017 2016

PENDAPATAN USAHA OPERATING REVENUES Bunga dan dividen 213.495.632 341.044.257 Interest income and dividends Pendapatan jasa - 2.231.042 Service fee income Gain (loss) on trading of Keuntungan dari marketable securities perdagangan efek dan and changes in fair value of perubahan nilai wajar efek 2.738.135 28.180.196 marketable securities

216.233.767 371.455.495

BEBAN KEUANGAN FINANCIAL EXPENSE Beban bunga 133.551.893 186.528.235 Interest expenses

BEBAN USAHA OPERATING EXPENSES Penyisihan (pemulihan) kerugian Reversal of penurunan nilai impairment losses on atas aset keuangan 40.223.059 (82.005.280) financial assets Gaji dan kesejahteraan karyawan 85.298.619 80.947.242 Salaries and employee welfare Umum dan administrasi 21.065.792 9.735.146 General and administrative Sistem informasi 6.204.982 5.481.935 Information system Pengembangan usaha 12.395.832 1.178.620 Business development Penyusutan aset tetap 4.463.530 3.840.442 Depreciation of fixed assets

169.651.814 19.178.105

Total beban 303.203.707 205.706.340 Total expenses

(RUGI) LABA USAHA (86.969.940) 165.749.155 OPERATING INCOME

Bunga jasa giro 97.756 195.750 Interest on current accounts Beban administrasi bank (310.686) (689.553) Bank charges Keuntungan (kerugian) selisih kurs - bersih 2.474.891 (3.085.963) Gain (loss) on foreign exchange - net Lain-lain - bersih 6.297.820 (4.308.540) Others - net

Penghasilan (beban) lain-lain - bersih 8.559.781 (7.888.306) Other income (expenses) - net

(RUGI) LABA SEBELUM PAJAK FINAL DAN (LOSS) INCOME BEFORE FINAL TAX (BEBAN) MANFAAT PAJAK PENGHASILAN (78.410.159) 157.860.849 AND INCOME TAX (EXPENSES) BENEFIT Pajak final (3.609.400) (2.017.532) Final tax

(RUGI) LABA SEBELUM (BEBAN) MANFAAT (LOSS) INCOME BEFORE INCOME TAX PAJAK PENGHASILAN (82.019.559) 155.843.317 (EXPENSES) BENEFIT

Pajak kini - - Current tax Pajak tangguhan - - Deferred tax

Beban pajak penghasilan - bersih - - Income tax expense - net

(RUGI) LABA BERSIH (82.019.559) 155.843.317 NET INCOME


Appendix 2

PT DANAREKSA (PERSERO) LAPORAN LABA RUGI DAN PENGHASILAN

KOMPREHENSIF LAIN (lanjutan) ENTITAS INDUK



PT DANAREKSA (PERSERO STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME (continued) PARENT ENTITY




2017 2016 Pos yang tidak akan direklasifikasi Items that will not be reclassified Ke laba rugi to profit or loss Pengukuran kembali (kerugian) Unrealized (loss) gain from

keuntungan atas program decrease in fair value of imbalan pasti - setelah pajak 2.220.953 (3.169.376) assets - net of tax Pos yang akan direklasifikasi Items that will be reclassified Ke laba rugi to profit or loss Keuntungan belum 9.132.386 819.946 Unrealized gain from direalisasi dari penurunan decrease in fair value of nilai wajar efek yang available-for-sale tersedia untuk dijual marketable securities

TOTAL (RUGI) LABA KOMPREHENSIF (70.666.220) 153.493.887 TOTAL COMPREHENSIVE INCOME

(RUGI) LABA BERSIH PER SAHAM DASAR EARNING PER SHARE (Rugi) laba usaha per saham Operating income per share (nilai penuh) (123.981) 236.285 (full amount) (Rugi) laba bersih per saham Net income (nilai penuh) (116.924) 222.164 per share (full amount)


Appendix 3

PT DANAREKSA (PERSERO) LAPORAN PERUBAHAN EKUITAS

ENTITAS INDUK Untuk tahun yang berakhir pada tanggal



PT DANAREKSA (PERSERO) STATEMENT OF CHANGES IN EQUITY

PARENT ENTITY For the year ended December 31, 2017


Keuntungan/ (kerugian) yang belum direalisasi atas surat-surat berharga dalam kelompok tersedia Saldo laba (defisit)/ untuk dijual/ Retained earnings (deficit) Unrealized Keuntungan Agio saham/ Tambahan modal gain/(loss) on revaluasi aset/ Telah Belum Capital paid disetor lainnya/ available-for-sale Gain from ditentukan ditentukan Catatan/ Modal saham/ in excess of Additional paid-up marketable revaluation penggunaannya/ penggunaannya/ Total/ Notes Share capital par value capital securities of asset Appropriated Unappropriated Total

Saldo pada tanggal Balance as of 31 Desember 2015 24,25 701.480.000 2.743 85.924.242 (47.826.508) 493.830.000 78.520.859 (508.909.518) 803.021.818 December 31, 2015 Kerugian yang belum Unrealized loss on direalisasi atas efek securities available- tersedia untuk dijual - - - 819.946 - - - 819.946 for-sale

Pengukuran kembali kerugian Remeasurement loss on atas program imbalan pasti defined benefit plans - setelah pajak 23 - - - - - - (3.169.376) (3.169.376) - net of tax Laba bersih tahun 2016 - - - - - - 155.843.317 155.843.317 Net income for 2016

Saldo pada tanggal Balance as of 31 Desember 2016 24,25 701.480.000 2.743 85.924.242 (47.006.562) 493.830.000 78.520.859 (356.235.577) 956.515.705 December 31, 2016

Kerugian yang belum Unrealized loss on direalisasi atas efek securities available- tersedia untuk dijual - - - 9.132.386 - - - 9.132.386 for-sale

Pengukuran kembali kerugian Remeasurement loss on atas program imbalan pasti defined benefit plans - setelah pajak 23 - - - - - - 2.220.953 2.220.953 - net of tax Laba bersih tahun 2017 - - - - - - (82.019.559) (82.019.559) Net income for 2017

Saldo pada tanggal Balance as of 31 Desember 2017 24,25 701.480.000 2.743 85.924.242 (37.874.176) 493.830.000 78.520.859 (436.034.183) 885.849.485 December 31, 2017


Appendix 4

PT DANAREKSA (PERSERO) LAPORAN ARUS KAS

ENTITAS INDUK Untuk tahun yang berakhir pada tanggal



PT DANAREKSA (PERSERO) STATEMENT OF CASH FLOWS





ARUS KAS DARI AKTIVITAS CASH FLOWS FROM OPERATING OPERASI ACTIVITIES Penerimaan pendapatan operasional 972.394 2.801.291 Proceeds from operating revenues Pembayaran beban operasional (149.297.495) (244.791.870) Payments of operating expenses Pembayaran bunga (381.225.127 ) (194.419.979) Payments of interest Penerimaan bunga dan dividen 113.496.928 350.249.189 Proceeds from interest and dividend Pembayaran sehubungan Payments relating dengan piutang 240.160.214 245.820.870 to receivable transactions (Pembelian) penjualan efek yang (Purchase) sale of trading diperdagangkan - bersih (237.766.591) 56.033.343 marketable securities - net Penjualan efek yang Sale of available-for-sale tersedia untuk dijual - bersih - 819.946 marketable securities - net Pembayaran pajak penghasilan (3.984.251) (1.037.761) Payments of income taxes Penerimaan (pembayaran untuk) dari Proceeds (payment of) from aset lain-lain - bersih 4.008.213 (8.522.894) other assets - net Pembayaran beban non-operasional (2.251.018) (128.658.954 ) Payments of non-operating expenses

Kas bersih yang (digunakan untuk) Net cash (used in) provided by diperoleh dari aktivitas operasi (415.886.733) 78.293.181 operating activities

ARUS KAS DARI AKTIVITAS CASH FLOWS FROM INVESTING INVESTASI ACTIVITIES Pembelian aset tetap (7.091.854) (655.161) Purchase of fixed assets Penambahan penyertaan (20.000.000) (3.050.000) Addition of investment Penerimaan dividen dari Proceeds from entitas anak 99.998.703 139.997.370 dividend from subsidiaries Penerimaan efek dimiliki hingga Proceeds from held-to-maturity jatuh tempo 119.093.929 203.365 marketable securities

Kas bersih yang diperoleh dari Net cash provided by aktivitas investasi 192.000.778 136.495.574 investing activities


Appendix 4


LAPORAN ARUS KAS (lanjutan) ENTITAS INDUK



PT DANAREKSA (PERSERO) STATEMENT OF CASH FLOWS (continued)





ARUS KAS DARI AKTIVITAS CASH FLOWS FROM FINANCING PENDANAAN ACTIVITIES Penerimaan pinjaman Proceeds jangka pendek - bersih 285.000.000 375.000.000 from short-term loans - net Pelunasan obligasi - (500.000.000) Payment of bonds issuance Hasil penerbitan obligasi - - Proceeds from bonds issuance Pelunasan medium term notes - (120.000.000) Payment of mediym term notes

Kas bersih yang diperoleh dari (digunakan untuk) aktivitas Net cash provided by (used in)

pendanaan 285.000.000 (245.000.000) financing activities

KENAIKAN (PENURUNAN) BERSIH NET INCREASE (DECREASE) IN KAS DAN SETARA KAS 61.114.045 (30.211.245) CASH AND CASH EQUIVALENTS KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTS AWAL TAHUN 88.977.804 120.288.404 AT BEGINNING OF YEAR

Pengaruh perubahan kurs Effect of foreign exchange mata uang asing atas rate differences on saldo kas dan setara kas 277.217 (1.099.355) cash and cash equivalent

KAS DAN SETARA KAS PADA CASH AND CASH EQUIVALENTS AKHIR TAHUN 150.369.066 3 88.977.804 AT END OF YEAR

PENGUNGKAPAN TAMBAHAN SUPPLEMENTAL DISCLOSURES

Aktivitas tidak mempengaruhi kas: Non-cash activities: Penyesuaian revaluasi Revaluation adjustment of biaya perolehan tanah - 493.830.000 acquisition cost of landright Kas dan setara kas terdiri dari: Cash and cash equivalents consist of: Kas 167.069 179.363 Cash Bank 14.801.997 15.398.441 Bank Deposito on call 135.400.000 73.400.000 Deposit on call

150.369.066 88.977.804



CATATAN ATAS LAPORAN KEUANGAN ENTITAS INDUK

Tanggal 31 Desember 2017 dan untuk tahun yang berakhir

pada tanggal tersebut (Disajikan dalam ribuan Rupiah,


PT DANAREKSA (PERSERO) NOTES TO THE FINANCIAL STATEMENTS

PARENT ENTITY As of December 31, 2017 and

for the year then ended (Expressed in thousands of Rupiah,

unless otherwise stated)

Appendix 5

1. IKHTISAR KEBIJAKAN AKUNTANSI SIGNIFIKAN 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Kebijakan akuntansi yang diterapkan dalam penyusunan

laporan keuangan tersendiri Entitas Induk adalah sama dengan kebijakan akuntasi yang diterapkan dalam penyusunan laporan keuangan konsolidasian sebagaimana diungkapkan dalam Catatan 2 atas laporan keuangan konsolidasian, kecuali untuk penyertaan pada Entitas Anak yang disajikan berdasarkan harga perolehan.

Accounting policies adopted in the preparation of the Parent Entity separate financial statements are the same as the accounting policies adopted in the preparation of the consolidated financial statements as disclosed in Note 2 to the consolidated financial statements, except for investments in Subsidiaries, which have been presented at cost.

2. PENYERTAAN SAHAM PADA ENTITAS ANAK 2. INVESTMENTS IN SHARES OF STOCK OF

SUBSIDIARIES Informasi mengenai Entitas Anak yang dimiliki

Perusahaan diungkapkan dalam Catatan 1c atas laporan keuangan konsolidasian.

Information pertaining to Subsidiaries by the Company is disclosed in Note 1c to the consolidated financial statements.

Pada tanggal-tanggal 31 Desember 2017 dan 2016,

Entitas Induk memiliki penyertaan saham pada Entitas Anak berikut:

As of 31 December 2017 and 2016, Parent Entity has the following investments in shares of stock of Subsidiaries:

31 Desember 2017 dan 2016/ December 31, 2017 and 2016/

Presentase Biaya perolehan kepemilikan/ 31 Desember/ Percentage of Acquisition cost Nama entitas/Entity name ownership December 31

PT Danareksa Sekuritas 99,999% 499.900.000 PT Danareksa Investment Management 99,997% 29.900.000 PT Danareksa Finance 99,999% 99.900.000 PT Danareksa Capital 99,900% 99.900.000