ANNUAL REPORT

ON INTEGRATED GOVERNANCE IMPLEMENTATION

2018

LAPORAN TAHUNAN

PELAKSANAAN TATA KELOLA TERINTEGRASI

TAHUN 2018

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Table of Contents / Daftar Isi

I. PREFACE / PENDAHULUAN .................................................................................................................................................................... 2

A. Integrated Governance Self-Assessment / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola Terintegrasi ......................................... 3

B. Financial Conglomerate Structure / Struktur Konglomerasi Keuangan .................................................................................................... 3

C. Financial Conglomerate Share Ownership Structure / Struktur Kepemilikan Saham pada Konglomerasi Keuangan ............................ 3

D. Management Structure in the Main Entity and Member of Financial Conglomerate / Struktur Kepengurusan pada Entitas Utama dan

Anggota Konglomerasi Keuangan .............................................................................................................................................................. 4

E. Intra-Group Transaction Policy / Kebijakan Transaksi Intra-Grup .......................................................................................................... 4

II. ANNUAL REPORT INTEGRATED GOVERNANCE IMPLEMENTATION IN 2018 / LAPORAN TAHUNAN PELAKSANAAN TATA

KELOLA TERINTEGRASI TAHUN 2018 ................................................................................................................................................ 5

A. Integrated Governance Self-Assessment / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola Terintegrasi ......................................... 5

B. Financial Conglomerate Structure / Struktur Konglomerasi Keuangan ...................................................................................................11

C. Financial Conglomerate Shares Ownership Structure / Struktur Kepemilikan Saham pada Konglomerasi Keuangan .........................13

D. Management Structure in the Main Entity and Member of Financial Conglomerate / Struktur Kepengurusan pada Entitas Utama dan

Anggota Konglomerasi Keuangan .............................................................................................................................................................15

E. Intra-Group Transaction Policy / Kebijakan Transaksi Intra-Grup ........................................................................................................24

III. CLOSING STATEMENT / PENUTUP ....................................................................................................................................................28

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I. PREFACE / PENDAHULUAN

PT Prudential Life Assurance (Prudential Indonesia), as Main

Entity, and PT Eastspring Investments Indonesia (Eastspring

Indonesia), as The Member of Financial Conglomerate, have

compiled the ‘’Annual Report on Integrated Governance

Implementation 2018’’. This report is prepared pursuant to the

requirements set forth in the Regulation of Otoritas Jasa

Keuangan (POJK) No. 18/POJK.03/2014 in conjunction with

Circular Letter of Otoritas Jasa Keuangan (SEOJK) No.

15/SEOJK.03/2015 on Integrated Governance Implementation

for Financial Conglomerates.

PT Prudential Life Assurance (Prudential Indonesia) yang

bertindak sebagai Entitas Utama dan PT Eastspring Investments

Indonesia (Eastspring Indonesia) yang merupakan anggota

konglomerasi keuangan telah menyusun ‘’Laporan Tahunan

Pelaksanaan Tata Kelola Terintegrasi Tahun 2018’’.

Laporan tersebut disusun berdasarkan ketentuan Peraturan

Otoritas Jasa Keuangan (POJK) No. 18/POJK.03/2014 juncto

Surat Edaran Otoritas Jasa Keuangan (SEOJK) No.

15/SEOJK.03/2015 tentang Penerapan Tata Kelola Terintegrasi

Bagi Konglomerasi Keuangan.

The Annual Report of Integrated Governance Implementation in

2018 consists of the following:

Laporan Tahunan Pelaksanaan Tata Kelola Terintegrasi Tahun

2018 terdiri atas:

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A. Integrated Governance Self-Assessment / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola Terintegrasi

Prudential Indonesia and Eastspring Indonesia have

submitted the Integrated Governance Self-Assessment for

the first and second halves of 2018, to Otoritas Jasa

Keuangan (OJK) in August 2018 and February 2019

respectively.

Prudential Indonesia dan Eastspring Indonesia telah

menyampaikan Laporan Penilaian Sendiri (Self-Assessment)

Pelaksanaan Tata Kelola Terintegrasi periode semester pertama

dan kedua tahun 2018, kepada Otoritas Jasa Keuangan (OJK)

masing-masing pada bulan Agustus 2018 dan Februari 2019.

B. Financial Conglomerate Structure / Struktur Konglomerasi Keuangan

This section describes the affiliation between Prudential

Indonesia and Eastspring Indonesia at a broad level.

Penjelasan mengenai struktur konglomerasi keuangan yang

menunjukan hubungan afiliasi Prudential Indonesia dengan

Eastspring Indonesia secara garis besar.

C. Financial Conglomerate Share Ownership Structure / Struktur Kepemilikan Saham pada Konglomerasi Keuangan

This section describes the shareholding relationship in

Prudential Indonesia and Eastspring Indonesia until the

ultimate shareholders.

Penjelasan mengenai struktur kepemilikan saham pada

konglomerasi keuangan yang menggambarkan pihak-pihak

yang menjadi pemegang saham Prudential Indonesia dan

Eastspring Indonesia sampai dengan pemegang saham

pengendali terakhir (ultimate shareholders).

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D. Management Structure in the Main Entity and Member of Financial Conglomerate / Struktur Kepengurusan pada Entitas

Utama dan Anggota Konglomerasi Keuangan

This section describes the management structure of the financial

conglomerate, covering the Board of Commissioners, and

Board of Directors in Prudential Indonesia and Eastspring

Indonesia.

Penjelasan mengenai struktur kepengurusan konglomerasi

keuangan yang meliputi struktur Dewan Komisaris dan Dewan

Direksi di Prudential Indonesia dan Eastspring Indonesia.

E. Intra-Group Transaction Policy / Kebijakan Transaksi Intra-Grup

The Intra-Group Transaction Policy contains the identification,

management and mitigation of intra-group transactions,

pursuant to prevailing regulations regarding intra-group

transactions.

Penjelasan mengenai Kebijakan Transaksi Intra-Grup yang

memuat kebijakan identifikasi, pengelolaan dan mitigasi atas

transaksi intra-grup mengacu pada peraturan yang berlaku

terkait transaksi intra-grup.

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II. ANNUAL REPORT INTEGRATED GOVERNANCE IMPLEMENTATION IN 2018 / LAPORAN TAHUNAN

PELAKSANAAN TATA KELOLA TERINTEGRASI TAHUN 2018

A. Integrated Governance Self-Assessment / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola Terintegrasi

1. Integrated Governance Self Assessment as of 31 December 2018 (2H 2018) / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola

Terintegrasi periode 31 Desember 2018 (Semester 2 2018)

The Integrated Governance

Self-Assessment Result

Hasil Penilaian Sendiri

Pelaksanaan Tata Kelola Terintegrasi

Rating Definitions Definisi Peringkat

2 Financial conglomeration is deemed as Good. This can be

reflected from adequate fulfillment of the integrated

governance principle. If any weakness in terms of

implementation of integrated governance, in general it is

less significant weakness and normal corrective actions.

Konglomerasi keuangan dinilai telah melakukan penerapan tata kelola

terintegrasi yang secara umum baik. Hal ini tercermin dari pemenuhan

yang memadai atas penerapan prinsip tata kelola terintegrasi. Apabila

terdapat kelemahan dalam penerapan tata kelola terintegrasi, secara

umum kelemahan tersebut kurang signifikan dan dapat diselesaikan

dengan tindakan normal oleh Entitas Utama dan/atau LJK.

Analysis Analisa

Based on the Integrated Governance Self-Assessment, the financial

conglomerate has fulfilled the main principles and main requirements

from the 7 indicators: BoD of Main Entity, BoC of Main Entity,

Integrated Governance Committee, Integrated Internal Audit Unit

(IIAU), Integrated Compliance Unit (ICU), Integrated Risk

Management Unit (IRMU) and Integrated Governance Guidelines

(IGG); that have been assessed based on the (i) structure, (ii) process,

and (iii) result.

Berdasarkan hasil penilaian sendiri tata kelola terintegrasi, konglomerasi

keuangan secara umum telah memenuhi persyaratan utama dari 7

indikator yang meliputi: Direksi Entitas Utama, Dewan Komisaris

Entitas Utama, Komite Tata Kelola Terintegrasi, Satuan Kerja Audit

Internal Terintegrasi (SKAIT), Satuan Kerja Kepatuhan Terintegrasi

(SKKT), Satuan Kerja Manajemen Risiko Terintegrasi (SKMRT) dan

Pedoman Tata Kelola Terintegrasi (PTKT) yang telah dinilai

berdasarkan (i) struktur, (ii) dan (iii) hasil tata kelola terintegrasi.

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The key focus of the integrated governance development in this

reporting period has taken into account recommendations from the

OJK based on the OJK On Site Review Result on the Implementation

of Integrated Governance and Integrated Risk Management in

financial conglomerate, by enhancing the synergy between the

members of financial conglomerate to achieve improvement for the

governance structure, process and strive for excellence outcome.

Fokus utama dalam hal perkembangan tata kelola terintegrasi pada

periode laporan ini telah mempertimbangkan rekomendasi dari OJK

berdasarkan hasil OJK On Site Review Implementasi Tata Kelola

Terintegrasi dan Manajemen Risiko Terintegrasi pada konglomerasi

keuangan, dengan meningkatkan sinergi antara anggota konglomerasi

keuangan untuk mencapai perbaikan dalam hal struktur, proses dan hasil

tata kelola terintegrasi.

As of 2H 2018, the Main Entity and the Member of Financial

Conglomerate have implemented good governance principles in line

with the prevailing IGG within financial conglomerate. To improve the

implementation of good governance, Financial Conglomerate is also

committeed to fulfill the recommendation as the result of the OJK On

Site Review in 2018 in accordance with the timeline.

As the initial stage of fulfillment of the recommendation from OJK On

Site Review, as at this reporting period, the Main Entity and the

Member of Financial Conglomerate have started to carry out some

follow up for the OJK recommendations as follow:

a. Discussed the follow up of the OJK on site review in the ICU and

IIAU meeting in Q4 2018 as follows:

- Development of the parameter on the intenal control and

implementation of integrated compliance function.

- Implementation of gap analysis on the adequacy of the

policy/guidelines and procedure on compliance aspect within

Sampai dengan periode Semester 2 tahun 2018, Entitas Utama dan

Anggota Konglomerasi Keuangan secara konsisten telah menerapkan

prinsip-prinsip tata kelola yang baik sesuai dengan PTKT yang berlaku

dalam Konglomerasi Keuangan. Untuk meningkatkan penerapan

prinsip-prinsip tata kelola yang baik, Konglomerasi Keuangan juga

memiliki komitmen untuk memenuhi rekomendasi hasil On Site Review

OJK tahun 2018 sesuai dengan tenggat waktu yang disepakati.

Sebagai tahap awal pemenuhan rekomendasi hasil On Site Review OJK

tersebut, dalam periode pelaporan ini, Entitas Utama dan Anggota

Konglomerasi Keuangan telah mulai melaksanakan beberapa tindak

lanjut rekomendasi OJK tersebut sebagai berikut:

a. Mengadakan pembahasan atas tindak lanjut yang akan dilakukan

untuk memenuhi rekomendasi OJK di dalam rapat kuartal keempat

SKKT dan SKAIT, antara lain:

- Pembahasan mengenai penyusunan parameter atas

pengendalian intern dan pelaksanaan fungsi kepatuhan

secara terintegrasi.

- Pelaksanaan gap analysis terhadap kecukupan

kebijakan/pedoman/prosedur terkait pelaksanaan aspek

kepatuhan di dalam Konglomerasi Keuangan, PTKT dengan

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financial conglomerate, IGG with GCG Guidelines of the Main

Entity and Member of Financial Conglomerate.

- Self-attestation of Compliance from the Member of Financial

Conglomerate, management of conflict of interest within

financial conglomerate.

- Discussion on the conflict of interest management within

Financial Conglomerate.

- Discussion on the additional content for IGG in line with the

OJK recommendation, such as integrated internal audit

infrastructure, integrated capital management and coordination

between ICU, IIAU and IRMU.

b. To complement the Integrated Governance Self-Assessment report

by adding:

- Approval of BoC of the Main Entity in respect with annual

review of IGG.

- Summary on the audit recommendation which has been

approved within financial conglomerate.

- Scope and overview of audit result conducted in financial

conglomerate.

c. The effectiveness of integrated risk management function in line

with the prevailing OJK regulations, with the following actions:

- IRMU and Integrated Risk Managemenet Committtee (IRMC)

conduct discussion and evaluations on the integrated risk

management implementation in regular basis.

- Submission of the evaluation report to IRMC, BoD of the main

entity and OJK.

Pedoman GCG Entitas Utama dan Anggota Konglomerasi

Keuangan.

- Self-attestation kepatuhan dari Anggota Konglomerasi

Keuangan, manajemen benturan kepentingan dalam

konglomerasi keuangan.

- Pembahasan terkait pengelolaan benturan kepentingan dalam

Konglomerasi Keuangan.

- Pembahasan terkait tambahan kebijakan yang akan

dituangkan di dalam PTKT sesuai dengan rekomendasi OJK,

antara lain terkait infrastuktur audit internal terintegrasi,

manajemen permodalan terintegrasi dan kordinasi antara

SKKT, SKAIT dan SKMRT.

b. Melengkapi Laporan Penilaian Sendiri Tata Kelola Terintegrasi

dengan menambahkan informasi tambahan berupa:

- Persetujuan Dewan Komisaris Entitas Utama dalam rangka

review tahunan PTKT.

- Ringkasan mengenai rekomendasi audit yang telah disetujui

dalam konglomerasi keuangan.

- Cakupan dan gambaran umum hasil pelaksanaan audit yang

telah dilakukan dalam konglomerasi keuangan.

c. Efektivitas fungsi manajemen risiko terintegrasi sesuai dengan

ketentuan OJK, melalui tindakan sebagai berikut:

- SKMRT dan Komite Manajemen Risiko Terintegrasi

(KMRT) melakukan pembahasan dan evaluasi terkait

penerapan manajemen risiko terintegrasi secara berkala.

- Penyampaian laporan hasil evaluasi secara berkala kepada

KMRT, Direksi Entitas Utama dan OJK.

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- Establishment of Unit and Committee to perform the

integrated risk management with supervision from BoC and

BoD of the main entity which performed in periodic basis.

- IRMU and IRMC are in progress of implementing the OJK

recommendation on the integrated risk management

implementation, based on the result of on-site review by

OJK in June 2018.

- IRMU meeting for reporting period 2H 2018 already done

in November 2018, while the IRMC meeting will be held in

January 2019.

d. The implementation of the integrated internal audit has been

performed in both entities by Internal Audit Function. During July

– December 2018, 2 audit assignments have been completed in the

Main Entity. In the member of financial conglomerate, 1 audit

assignment has been completed, i.e. EII Compliance and

Operational Risk Management.

- Pembentukan Unit dan Komite untuk melaksanakan

manajemen risiko terintegrasi atas persetujuan dan

pengawasan dari BoC dan BoD entitas utama yang

melakukan pertemuan secara periodik.

- SKMRT dan KMRT sedang dalam proses menerapkan

rekomendasi dari OJK terkait penerapan manajemen risiko

terintegrasi, berdasarkan hasil on-site review yang dilakukan

oleh OJK pada bulan Juni 2018.

- Rapat SKMRT untuk periode pelaporan semester 2 2018

telah dilakukan di bulan November 2018, sedangkan rapat

KMRT akan dilaksanakan pada bulan Januari 2019.

d. Pelaksanaan internal audit terintegrasi telah dilakukan oleh Fungsi

Internal Audit pada Entitas Utama maupun pada LJK anggota

konglomerasi keuangan. Selama periode Juli – Desember 2018, 2

penugasan audit telah diselesaikan di Entitas Utama. Di LJK

anggota konglomerasi keuangan, 1 penugasan audit telah

diselesaikan, yaitu EII Compliance and Operational Risk

Management.

Given above, the implementation on the integrated governance is

deemed as Good, since the fulfillment of requirements, principles and

development have been achieved by the financial conglomerate, even

though insignificant weakness found, these have been resolved through

normal corrective actions from the Main Entity and/or member of

financial conglomerate.

Berdasarkan analisa tersebut, konglomerasi keuangan dinilai telah

melakukan penerapan tata kelola terintegrasi yang secara umum Baik.

Hal ini tercermin dari pemenuhan syarat, prinsip dan perkembangan tata

kelola terintegrasi. Apabila terdapat kelemahan dalam penerapan tata

kelola terintegrasi, secara umum kelemahan tersebut kurang signifikan

dan dapat diselesaikan dengan tindakan normal.

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2. Integrated Governance Self-Assessment as of 30 June 2018 (1H 2018) / Laporan Penilaian Sendiri Pelaksanaan Tata Kelola

Terintegrasi periode 30 Juni 2018 (Semester 1 2018)

The Integrated Governance

Self-Assessment Result

Hasil Penilaian Sendiri

Pelaksanaan Tata Kelola Terintegrasi

Rating Definitions Definisi Peringkat

2 Satisfactory, the main requirements and principles have

been fulfilled, insignificant weakness with normal

corrective actions.

Konglomerasi keuangan dinilai telah melakukan penerapan tata kelola

terintegrasi yang secara umum baik. Hal ini tercermin dari pemenuhan

yang memadai atas penerapan prinsip tata kelola terintegrasi. Apabila

terdapat kelemahan dalam penerapan tata kelola terintegrasi, secara

umum kelemahan tersebut kurang signifikan dan dapat diselesaikan

dengan tindakan normal oleh Entitas Utama dan/atau LJK.

Analysis Analisa

Based on the Integrated Governance Self-Assessment, the financial

conglomerate has fulfilled the main principles and main requirements

from the 7 indicators: BoD of Main Entity, BoC of Main Entity,

Integrated Governance Committee, Integrated Internal Audit Unit,

Integrated Compliance Unit, Integrated Risk Management

Implementation and Integrated Governance Guidelines; that have

been assessed based on the (i) structure, (ii) process, and (iii) result.

Berdasarkan hasil penilaian sendiri tata kelola terintegrasi,

konglomerasi keuangan secara umum telah memenuhi persyaratan

utama dari 7 indikator yang meliputi: Direksi Entitas Utama, Dewan

Komisaris Entitas Utama, Komite Tata Kelola Terintegrasi, Satuan

Kerja Audit Internal Terintegrasi, Satuan Kerja Kepatuhan Terintegrasi,

Implementasi Manajemen Risiko Terintegrasi dan Pedoman Tata Kelola

Terintegrasi yang telah dinilai berdasarkan (i) struktur, (ii) dan (iii) hasil

tata kelola terintegrasi.

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As at 1H 2018, financial conglomerate has shown the following main

developments:

• Appointment of Director – Compliance & Risk Management of

Prudential Indonesia as Financial Conglomerate Director effective

as of 31 March 2018.

• Annual review of Integrated Governance Guidelines which have

been approved by BoC of Prudential Indonesia in February 2018

aligned with the development and necessity of financial

conglomerate.

• Development of Integrated Anti Money Laundering and Counter

Terrorist Financing (AML & CTF) Standard Operating Procedure

(SOP), as technical guidelines for implementation of integrated

AML & CTF monitoring program in both entities within financial

conglomerate.

Given on the analysis and assessment, the implementation on the

integrated governance is deemed as Satisfactory, since the fulfillment

of requirements, principles and development have been achieved by

the financial conglomerate, eventhough insignificant weakness found,

these have been resolved through normal corrective actions from the

Main Entity and/or member of financial conglomerate.

Pada periode semester 1 tahun 2018, konglomerasi keuangan telah

melakukan beberapa perkembangan utama sebagai berikut:

• Penunjukan Direktur – Kepatuhan dan Manajemen Risiko Prudential

Indonesia sebagai Direktur Konglomerasi Keuangan efektif per 31

Maret 2018.

• Kajian tahunan Pedoman Tata Kelola Terintegrasi yang telah

disetujui Dewan Komisaris Prudential Indonesia di bulan Februari

2018 sesuai dengan perkembangan dan kebutuhan konglomerasi

keuangan.

• Proses Penyusunan Standar Prosedur Operasional (SOP) Anti

Pencucian Uang and Pendanaan Terorisme Terintegrasi (AML &

CTF), sebagai petunjuk teknis atas implementasi program

pemantauan AML & CTF secara terintegrasi di kedua entitas

konglomerasi keuangan.

Berdasarkan analisa tersebut, konglomerasi keuangan dinilai telah

melakukan penerapan tata kelola terintegrasi yang secara umum baik.

Hal ini tercermin dari pemenuhan syarat, prinsip dan perkembangan tata

kelola terintegrasi. Apabila terdapat kelemahan dalam penerapan tata

kelola terintegrasi, secara umum kelemahan tersebut kurang signifikan

dan dapat diselesaikan dengan tindakan normal.

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B. Financial Conglomerate Structure / Struktur Konglomerasi Keuangan

The following is the financial conglomerate structure that shows the

affiliation between Prudential Indonesia and Eastspring Indonesia

at a broad level:

Berikut struktur konglomerasi keuangan yang menunjukan

hubungan afiliasi Prudential Indonesia dengan Eastspring

Indonesia secara garis besar:

94.62%

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Explanations / Penjelasan:

• Prudential Indonesia and Eastspring Indonesia are defined

as “sister companies”, which have separated institutions and

legal entities. However, both entities are owned/controlled by

the same controlling shareholder, Prudential Corporation

Holdings Limited (PCHL).

• Prudential Indonesia dan Eastspring Indonesia merupakan

perusahaan terelasi (sister company) yang terpisah secara

kelembagaan dan secara hukum, namun dimiliki dan/atau

dikendalikan oleh pemegang saham pengendali yang sama,

yaitu Prudential Corporation Holdings Limited (PCHL).

• PCHL owns 94.62% of shares of Prudential Indonesia and

100% of shares in Eastspring Investments (Hong Kong)

Limited. The relationship of PCHL to Eastspring Indonesia

exists as a result of the ownership of 99% shares of

Eastspring Investments (Hong Kong) Limited in Eastspring

Indonesia, while 1% of shares of Eastspring Indonesia are

owned by Prudential Indonesia.

• PCHL memiliki saham Prudential Indonesia dengan porsi

kepemilikan 94.62% dan memiliki 100% saham pada

Eastspring Investments (Hong Kong) Limited. Hubungan

afiliasi PCHL atas Eastspring Indonesia diperoleh melalui

Eastspring Investments (Hong Kong) Limited yang memiliki

99% saham Eastspring Indonesia dan 1% saham Eastspring

Indonesia dimiliki oleh Prudential Indonesia.

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C. Financial Conglomerate Shares Ownership Structure / Struktur Kepemilikan Saham pada Konglomerasi Keuangan

The share ownership structure in financial conglomerate until

the ultimate shareholder is as follows:

Berikut struktur kepemilikan saham pada konglomerasi

keuangan yang menggambarkan pihak-pihak yang menjadi

pemegang saham dalam konglomerasi keuangan sampai

dengan pemegang saham pengendali terakhir (ultimate

shareholders):

94.62%

5.38%

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Explanations / Penjelasan:

• Prudential Indonesia (Main Entity)

The shareholding composition in Prudential Indonesia:

94.62% of shares in Prudential Indonesia are held by

Prudential Corporation Holdings Limited (UK) and 5.38%

of shares are held by PT Sasana Dwi Paramitra.

Komposisi kepemilikan saham Prudential Indonesia:

mayoritas 94.62% saham dimiliki oleh Prudential

Corporation Holdings Limited (UK) dan PT Sasana Dwi

Paramitra memiliki minoritas 5.38% saham.

• Eastspring Indonesia (Member of Financial

Conglomerate)

The shareholding composition in Eastspring Indonesia:

99% of shares in Eastspring Indonesia are held by

Eastspring Investments (Hong Kong) Limited (Hong Kong)

and 1% of shares are held by Prudential Indonesia. Both

companies are business unit of Prudential Corporation

Holdings Limited (UK).

Komposisi kepemilikan saham Eastspring Indonesia:

mayoritas 99% saham dimiliki oleh Eastspring Investments

(Hong Kong) Limited (Hong Kong) dan 1% porsi saham

dimiliki oleh Prudential Indonesia. Kedua perusahaan

tersebut merupakan bagian dari unit bisnis dari Prudential

Corporation Holdings Limited (UK).

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D. Management Structure in the Main Entity and Member of Financial Conglomerate / Struktur Kepengurusan pada Entitas

Utama dan Anggota Konglomerasi Keuangan

The management structure of the financial conglomerate

covering the Board of Commissioners and Board of Directors

which has been updated as of 30 April 2019 is as follows:

• Prudential Indonesia (Main Entity)

Struktur kepengurusan konglomerasi keuangan yang meliputi

Dewan Komisaris dan Direksi di Prudential Indonesia dan

Eastspring Indonesia yang telah diperbaharui sampai dengan

posisi 30 April 2019 sebagai berikut:

BOARD OF COMMISSIONERS

DEWAN KOMISARIS

The following is the structure of the Board of Commissioners of Prudential Indonesia (Main Entity) as of 30 April 2019:

Berikut struktur Dewan Komisaris Prudential Indonesia (Entitas Utama) per 30 April 2019:

Name

Nama

Position

Jabatan

Richard John Taylor President Commissioner

Presiden Komisaris

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Name

Nama

Position

Jabatan

Stephen Paul Bickell Commissioner

Komisaris

Ira Eddymurthy Andamara Commissioner

Komisaris

Rhenald Kasali* Independent Commissioner

Komisaris Independen

A. Prasetyantoko

Independent Commissioner

Komisaris Independen

Raden Mohammad Marty Muliana Natalegawa

(Marty Natalegawa)

Independent Commissioner

Komisaris Independen

*) Note: - Mulchis Anwar resigned effectively as of 17 October 2018.

- Appointment of Rhenald Kasali as Independent Commissioner is effective as of 17 October 2018.

*) Catatan: - Mulchis Anwar mengundurkan diri efetif per tanggal 17 Oktober 2018.

- Pengangkatan Bapak Rhenald Kasali sebagai Komisaris Independen berlaku efektif pada tanggal 17 Oktober 2018.

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SHARIA SUPERVISORY BOARD

DEWAN PENGAWAS SYARIAH

The following is the structure of the Sharia Council Board of Prudential Indonesia (Main Entity) as of 30 April 2019:

Berikut struktur Dewan Pengawas Syariah Prudential Indonesia (Entitas Utama) per 30 April 2019:

Name

Nama

Position

Jabatan

Anwar Ibrahim Chairman

Ketua

Ahmad Nuryadi Asmawi Member

Anggota

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BOARD OF DIRECTORS

DIREKSI

The following is the structure of Board of Directors of Prudential Indonesia (Main Entity) as of 30 April 2019:

Berikut struktur Dewan Direksi Prudential Indonesia (Entitas Utama) per 30 April 2019:

Name

Nama

Position

Jabatan

Jens Reisch President Director

Presiden Direktur

Rinaldi Mudahar Vice President Director

Wakil Presiden Direktur

Evelyne Mirna Damayanti Kusumowidagdo

(Evelyne Kusumowidagdo)

Director

Direktur

Heraandajani Soemohandojo

(Nini Sumohandoyo)

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Name

Nama

Position

Jabatan

Premraj S/O N Thuraisingam

Director

Direktur Mike Wei Wen Cheng*

Nicholas Oliver Holder

*) Note: - Simon Patrick Hirst resigned effectively as of 05 April 2019.

- The appointment of Mike Wei Wen Cheng as a Director effective after OJK has determined he passes the Fit and Proper Test and the date of his stay permit and working permit is issued by the relevant regulator on 29 March 2019 and 10 April 2019.

*) Catatan: - Simon Patrick Hirst mengundurkan diri efektif per tanggal 05 April 2019. - Pengangkatan Mike Wei Wen Cheng sebagai Direktur berlaku efektif setelah OJK menyatakan ybs. lulus Uji Kemampuan dan

Kepatutan dan izin kerja serta izin tinggalnya dikeluarkan oleh institusi terkait yakni pada tanggal 29 Maret 2019 dan 10 April

2019.

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• Eastspring Indonesia (Member of Financial Conglomerate)

The management structure of the financial conglomerate

covering the Board of Commissioners and Board of Directors

which has been updated as of 30 April 2019 is as follows:

Struktur kepengurusan konglomerasi keuangan yang meliputi

Dewan Komisaris dan Direksi yang telah diperbaharui sampai

dengan posisi 30 April 2019 sebagai berikut:

BOARD OF COMMISSIONERS

DEWAN KOMISARIS

Gwee Siew Ping Presiden Komisaris

Caroline F. Johnston Komisaris

The following is the structure of the Board of Commissioners of Eastspring Indonesia (Member of Financial Conglomerate) as of 30

April 2019:

Berikut struktur Dewan Komisaris Eastspring Indonesia (Anggota Konglomerasi Keuangan) per 30 April 2019:

Name

Nama

Position

Jabatan

Gwee Siew Ping*

President Commissioner

Presiden Komisaris

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Name

Nama

Position

Jabatan

Caroline Frances Johnston* Commissioner

Komisaris

*) Note: - Julian Christopher Vivian Pull resigned effectively as of 28 February 2019 as has been recognized by the OJK through the response

letter dated 08 March 2019. - Michele Mi – Kyung Bang resigned effectively as of 28 May 2018 as has been recognized by the OJK through the response letter

dated 26 June 2018.

- The appointment of Ms. Gwee Siew Ping as Eastspring Indonesia new President Commissioner is effective as of 20 March 2019 as

also has been registered within the OJK database through the response letter dated 16 April 2019. - The appointment of Ms. Caroline Frances Johnston as Eastspring Indonesia new Commissioner effectively as of 20 September 2018,

after OJK has determined he passes the Fit and Proper Test as in accordance with the OJK approval letter dated 31 August 2018.

*) Catatan: - Julian Christopher Vivian Pull mengundurkan diri efektif per 28 Februari 2019 sebagaimana diterima oleh OJK melalui surat tanggapan tanggal 08 Maret 2019.

- Michele Mi – Kyung Bang mengundurkan diri efektif per 28 Mei 2018 sebagaimana diterima oleh OJK melalui surat tanggapan

tanggal 26 Juni 2018. - Pengangkatan Ibu Gwee Siew Ping sebagai Presiden Komisaris baru berlaku efektif sejak 20 Maret 2019 sebagaimana juga telah

didaftarkan dalam basis data OJK yang disampaiakn melalui surat tanggapan tanggal 16 April 2109.

- Pengangkatan Ibu Caroline Frances Johnston sebagai Komisaris baru Eastspring Indonesia berlaku efektif sejak tanggal 20 September 2018 yaitu setelah OJK menyatakan ybs. lulus Fit and Poper Test berdasarkan surat persetujuan OJK tanggal 31 Agustus

2018.

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SHARIA SUPERVISORY BOARD

DEWAN PENGAWAS SYARIAH

The following is the structure of the Sharia Supervisory Board of Eastspring Indonesia (Member of Financial Conglomerate) as of 30

April 2019:

Berikut struktur Dewan Pengawas Syariah Eastspring Indonesia (Anggota Konglomerasi Keuangan) per 30 April 2019:

Name

Nama

Position

Jabatan

Iggi H. Achsien Sharia Supervisory Board

Dewan Pengawas Syariah

*) Catatan: - Iggi H. Achsien secara efektif ditunjuk menjadi Dewan Pengawas Syariah secara efektif sejak 01 Juli 2016 berdasarkan rekomendasi

dari Dewan Syariah Nasional – Majelis Ulama Indonesia.

- Iggi H. Achsien memperoleh Izin Ahli Syariah Pasar Modal pada tanggal 10 Oktober 2017 berdasarkan Keputusan Dewan Komisioner

Otoritas Jasa Keuangan Nomor KEP – 05/PM.22/ASPM-P/2017 tentang Pemberian Izin Ahli Syariah Pasar Modal.

*) Notes: - Iggi H. Achsien was effectively appointed as the Sharia Supervisory Board as 01 July 2016 as in accordance with the recommendation

given by the Sharia National Board – Indonesia Ulama Council.

- Iggi H. Achsien acquired Sharia Capital Market Expert License on 10 October 2017 as in accordance with the Decree of the Board of

Indonesia Financial Services Authority Number KEP – 05/PM.22/ASPM-P/2017 regarding the Appointment Of Sharia Capital Market

Expert License.

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BOARD OF DIRECTORS

DIREKSI

The following is the structure of the Board of Directors of Eastspring Indonesia (Member of Financial Conglomerate) as of 30 April

2019:

Berikut struktur Direksi Eastspring Indonesia (Anggota Konglomerasi Keuangan) per 30 April 2019:

Name

Nama

Position

Jabatan

Alan Darmawan President Director

Presiden Direktur

Rian Wisnu Murti Director

Direktur

Demetrius Ari Pitojo Director

Direktur

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E. Intra-Group Transaction Policy / Kebijakan Transaksi Intra-Grup

The main objectives of the intra-group transaction policy are as

follows:

1. Ensure that the types of intra-group transactions recorded are

appropriate to the type of transactions.

2. Ensure that records of intra-group transactions and financial

conglomerates are in accordance with the fair value of the

transaction including the criteria of the arm-length

transaction.

3. Ensure business processes of intra-group transactions of the

Company are in compliance with applicable procedures.

4. Ensure that the presentation of intra-group transactions on

the Company's financial statements complies with prevailing

Accounting Standards.

In general, the departments responsible for the intra-group

transactions are:

1. Investment Department, responsible for checking the intra-

group transactions.

Tujuan utama dari kebijakan transaksi intra-grup adalah sebagai

berikut:

1. Memastikan bahwa jenis transaksi intra-grup yang dicatat

sudah sesuai dengan jenis transaksinya.

2. Memastikan bahwa pencatatan transaksi intra-grup dan

konglomerasi keuangan sudah sesuai dengan nilai wajar

dari transaksi tersebut termasuk di dalamnya kriteria arm-

length transaction.

3. Memastikan proses bisnis dari transaksi intra-grup

Perusahaan sudah sesuai dengan prosedur yang berlaku.

4. Memastikan penyajian transaksi intra-grup pada laporan

keuangan Perusahaan sudah sesuai dengan standar

Akuntansi yang berlaku umum.

Secara umum tanggung jawab departemen yang memiliki

keterkaitan dengan transaksi intra-grup adalah:

1. Bagian Investasi, bertanggung jawab atas proses

pengecekan dari transaksi intra-grup.

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2. Accounting Department, responsible for recording,

reconciliation, and reporting the intra-group transactions.

3. Finance Department, responsible for billing process and

payment / receipt of money from intra-group transactions.

4. Risk Management Department and related parties are

responsible for risk assessment of intra-group transactions.

1. Identification of Related Parties and Nature of Intra-Group

Transactions

The definition of related parties and its transactions refer to

PSAK 7. Related parties or intra-group that are referred in

this policy is PT Eastspring Investments Indonesia. Intra-

group transactions include management fee, marketing

service fee and Collective Investment Scheme (CIS) fee.

Accuracy and completeness of transactions with intra-group

reviewed annually at the preparation of annual financial

2. Bagian Akuntansi, bertanggung jawab atas proses

pencatatan, rekonsiliasi, hingga pelaporan transaksi intra-

grup.

3. Bagian Finance, bertanggung jawab atas proses billing

dan pembayaran / penerimaan uang dari transaksi intra-

grup.

4. Bagian Risk Management dan pihak-pihak terkait

bertanggung jawab atas penilaian risiko atas transaksi

intra-grup.

1. Identifikasi Pihak Berelasi dan Sifat Transaksi Intra-

Grup

Definisi atas pihak berelasi dan transaksi dengan pihak

berelasi mengacu pada PSAK 7. Pihak berelasi/intra-grup

yang dimaksud dalam kebijakan ini adalah PT. Eastspring

Investments Indonesia. Transaksi intra-grup berupa

management fee, marketing service fee dan CIS (Collective

Investment Scheme) fee.

Akurasi dan kelengkapan transaksi dengan intra-grup

direview secara tahunan pada saat penyusunan laporan

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report which is audited by external auditor. Review on the

fairness and conformity of the intra-group transaction value

with arm’s length principle is performed on annual basis

during the preparation of Transfer Pricing documentation.

2. Recording, Reconciling, and Reporting of Intra-Group

Transactions

Based on the intra-group transaction documents that has been

verified by Finance Department, Accounting will do the

transaction journal in the company’s accounting system.

Journaling process is done starting from the verification of the

journal creation to posting to the accounting system with

regard to chart of account and the transaction period.

Reconciliation of the receivable and payable balance which

derives from intra-group transactions is done in quarterly

basis. Confirmation of the reconciliation is reviewed and

approved by Head of Finance.

Intra-group transactions in context of financial conglomerate

are reported to the Integrated Risk Management Committee

keuangan tahunan yang diaudit oleh auditor eksternal.

Review terhadap kewajaran dan kesesuaian nilai transaksi

intra-grup dengan prinsip arm’s length telah dilakukan secara

tahunan pada saat penyusunan dokumentasi transfer pricing.

2. Pencatatan, Rekonsiliasi, dan Pelaporan Transaksi Intra-

Grup

Berdasarkan dokumen transaksi intra-grup yang telah

diverifikasi oleh Bagian Finance, Bagian Akuntansi akan

melakukan proses penjurnalan pada sistem akuntansi

Perusahaan. Proses penjurnalan dilakukan dengan tahapan

verifikasi dari pembuatan jurnal hingga pencatatan (posting)

ke sistem akuntansi dengan memperhatikan kesesuaian kode

akun serta periode transaksi tersebut.

Rekonsiliasi atas saldo hutang dan piutang yang berasal dari

transaksi intra-grup dilakukan secara berkala setiap kuartal.

Konfirmasi atas rekonsiliasi direview dan disetujui oleh Head

of Finance.

Transaksi intra-grup dalam konteks konglomerasi keuangan

telah dilaporkan ke Komite Manajemen Risiko Terintegasi

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(IRMC) in quarterly basis through Risk Management

Department.

3. Adequacy of Identification Process, Measurement,

Monitoring and Controlling

In the implementation of risk management of intra-group

transaction, the Company is obliged to conduct an integrated

identification process, measurement, monitoring, and

controlling of risk for all significant risk factors, supported by

an adequate intra-group risk management information

system. Prudential Indonesia through the Risk Management

Department and related parties conducts risk assessment of

intra-group transactions periodically through Integrated Risk

Management Report and report it to the OJK twice a year, for

mid year and year end. Based on the Integrated Risk

Management Report in 2H 2018, the result of assessment on

intra-group tansaction of Prudential Indonesia financial

conglomeate was rated as “2 (Low-Medium)”, meaning that

the probability of loss of the financial conglomerate is deemed

as low within certain period of time in the future.

(KMRT) setiap kuartal melalui Departemen Risk

Management.

3. Kecukupan Proses Identifikasi, Pengukuran,

Pemantauan dan Pengendalian

Dalam pelaksanaan manajemen risiko transaksi intra-grup,

Perusahaan wajib melakukan proses identifikasi, pengukuran,

pemantauan, dan pengendalian risiko yang bersifat signifikan

secara terintegrasi, dan didukung oleh sistem informasi

manajemen risiko transaksi intra-grup yang memadai.

Prudential Indonesia melalui Departemen Risk Management

dan pihak-pihak terkait melakukan penilaian risiko atas

transaksi intra grup secara periodik melalui Laporan

Manajemen Risiko Terintegrasi dan dilaporkan ke OJK 2

(dua) kali dalam setahun. Berdasarkan Laporan Manajemen

Risiko Terintegrasi periode Semester 2 tahun 2018, hasil

penilaian risiko transaksi intra grup konglomerasi keuangan

Prudential Indonesia berada pada rating ‘’2 (Rendah -

Sedang)’’, dimana kemungkinan kerugian yang dihadapi

konglomerasi keuangan tergolong rendah selama periode

waktu tertentu di masa datang.

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III. CLOSING STATEMENT / PENUTUP

The “Annual Report on Integrated Governance

Implementation in 2018” is prepared pursuant to the

Regulation of Otoritas Jasa Keuangan (POJK) No.

18/POJK.03/2014 in conjunction with Circular Letter of

Otoritas Jasa Keuangan (SEOJK) No. 15/SEOJK.03/2015

on Integrated Governance Implementation for Financial

Conglomerates. It reflects the implementation of integrated

governance in Prudential Indonesia (Main Entity) and

Eastspring Indonesia (Member of the Financial

Conglomerate).

Demikian “Laporan Tahunan Penerapan Tata Kelola Terintegrasi

Tahun 2018” yang telah disusun sesuai dengan ketentuan

Peraturan Otoritas Jasa Keuangan (POJK) No. 18/POJK.03/2014

juncto Surat Edaran Otoritas Jasa Keuangan (SEOJK) No.

15/SEOJK.03/2015 tentang Penerapan Tata Kelola Terintegrasi

Bagi Konglomerasi Keuangan. Laporan Tahunan ini merupakan

refleksi atas penerapan tata kelola terintegrasi di Prudential

Indonesia (Entitas Utama) dan Eastspring Indonesia (Anggota

Konglomerasi Keuangan).