Analyst Meeting Juni 2012

7/29/2019 Analyst Meeting Juni 2012

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Corporate Presentation

Unadited Financial Report 2012

Analyst Meeting

PT Bank Pembangunan Daerah Jawa Timur Tbk

Ritz Carlton Hotel-Jakarta, 1 August 2012

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Table of Content

page

Macro environment 4-8

Macro economic environment 5Banking sector performance 6

Banking sector performance-East Java 7

Economic prospect of East Java toward Bank Jatim 8

Financial Review 9-15

Balance Sheet Summary 10

Income Statement Summary 11

Financial Ratio 12

Earning Asset Composition 13

Loan Breakdown 14

Top Ten Loan by Industry Concentration 15

page

Performance Overview 16-31

Bank Jatim Key Financial Highlight 17Lending Growth 18

Multipurpose Loan Strengthen Lending Position 19

Multipurpose Loan Strengthen Lending Position 20

(East Java)

Third Party Fund Raising 21

Correlation between NIM, CoF and Productive Assets 22

Operational Networking 23

Human Resources 24

Risk Profile 25

Good Corporate Governance 26-27

Award & Achievement 28

Growth Strategy for Enhanced Business 29

IT Development Strategy 30

Strategy 31

Corporate Profile 32-37

Share Ownership 33

Board of Commissioner 34

Board of Director 35

Share Performance 36

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Agenda

Macro economic Review

Financial Overview

Performance Overview

Corporate Profile

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Macro economic Review

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Macro Economic Review

Inflation pressure under control (national)

CPI inflation in May 2012 was 0.07% (mtm) or on an

annual basis was recorded at 4.45% (yoy). The

contained inflation was in line with the movement of

core inflation, which remained low (4.14%, yoy),attributable to declining global commodity prices and

contained domestic demand.

Optimized growth at 6,3%

Indonesia economic growth quarter III-2012 predicted

lower grow at 6,3% and within the range 6,1%-6,5%

on 2012 and 6,3%-6,7% on 2013.

BI Rate predicted at 5.75%

Exchange rate level still consistent with inflation

estimation toward with still low and controlled within

the range which defined, at 4,5% + 1% on 2012 and

2013.

Rp/USD exchange rate is on Rp9.200-Rp9400

Source: Bank Indonesia

Source: Bloomberg

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Banking Sector Performance

May 2012, loans has growth about 26,59% compared with

May 2011 which reach IDR 1.899 trillion and Third Party

Funds also record growth about 21,36 % compared with May2011 which reach IDR2.826 trillion. Besides, Working Capital

Loan at the May 2012 has growth about 27,86% compared

with May 2011 which reach IDR 707 trillion and Investment

Loan at the May 2012 has growth about 27,67% compared

with May 2011 which reach IDR 300 trillion.

Description* Dec-11 May-12 %

Loan 222,4 237,3 6,23

Third Fund Party 252,3 260,5 3,15Source: Bank Indonesia

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Deskripsi* Mei-11 Mei-12 YoY

Loan 1.899 2.404 26,59

Third Party Fund 2.397 2.909 21,36

LDR 78,45% 81,61% 4.03%

ROA 2,97% 3,05% 2.69%

CAR 17,41% 17,87% 2.64%

East Java


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The Economic Prospect of East Java Towards Bank Jatim

We have strong macroeconomic backdrop in East Java that provides us economic opportunity to grow our

bank in size and quality.

Second-largest contributor towards

Indonesian economy. Approximately 15% of

the national GDP comes from East Java;

In 2011, EastJavas economy grew at 7.2%,

faster than national economic growth at

6.5%. In 2012, East Java estimates will grow

7.5 %;

As of 4th quarter 2011, placed as second

largest GDP in Java Island , accounting for14.7% of Java islands economy;

The relatively high loans-to-deposits ratio,

and low levels of non-performing loans.

The inflation rate calendar year (January-

May 2012) in East Java reached 0.99

percent, while the inflation rate year on year

(in May 2011 to May 2012) for 4.58 percentof East Java.

5.9%

6.4%

9.3%

4.3%

6.1%5.8%

6.1%6.2%

5.0%

6.7%

5.2%

5.7%

6.4%

4.7%

6.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2006 2007 2008 2009 2010

West Java & Banten East Java Nat ional

Source: Indonesia Statistic Bureau

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The Economic Prospect of East Java Towards Bank Jatim

For economic sector that most growth in March 2011-March 2012 are transportation and

communication by 13, 01 percent followed by 10,18 percent of Construction sector, Trade, Hotel and

Restaurant of 9,69 percent and agriculture of 2,25 percent.

The contribution of the Trade, Hotel and Restaurant on total economic growth in East Java to achieve

the highest level of 2.99 percent, followed by 1.55 per cent of Manufacturing sector, Transportation

and Communication sector 0.90 percent, 0.39 percent of the agricultural sector, financial sector ,

renting and business services 0.41 percent, the services sector 0.43 percent and 0.30 percent of the

construction sector. While mining and quarrying, and electricity, gas and water supply growthcontributed 0.10 percent and 0.11 percent

Source: Indonesia Statistic Bureau

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Economic sector Growth March 2011

March 2012 Contribution for east Java (March2011- March 2012

Transportation &

Communication

13,01% 0,90 %

Construction 10,18% 0,30 %

Trade, Hotel, &

Restaurants

9,69% 2,99 %

Agriculture 2,25% 0,39 %


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Financial Overview

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Balance Sheet Summary

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(In billion rupiah)

Jun-11 Sep-11 Des-11 Mar-12 Jun-12 YoY

Total Assets 24.442 25.751 24.847 29.340 30.234 23,70%

Secondary Reserve-Gross 7.386 7.697 6.097 10.342 9.864 33,56%

SBI & Other Placement in

BI3.202 3.768 2.633 6.685 3.723 16,30%

Placement with other

Bank

4.184 3.929 3.463 3.657 6.141 46,76%

Loans 14.880 15.850 16.135 16.562 18.085 21,54%

Impairment on financial

assets(230) (203) (101) (150) (284) 23,64%

Third Party Funds 20.744 21.507 19.935 24.203 25.101 21,01%

Current Account 10.342 10.314 8.177 12.143 10.724 3,69%

Saving Account 4.542 5.128 7.081 5.906 6.426 41,49%

Time Deposit 5.860 6.066 4.677 6.154 7.951 35,68%

Equity

Tier 1 2.417 2.499 2.604 3.354 3374 39,58%

Tier 2 154 169 171 160 171 11,33%


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Income Statement Summary

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(in billion Rupiah)

2Q11 3Q11 4Q11 1Q12 2Q12

Interest Income 639 719 718 666 701

Interest Expense (196) (210) (209) (197) (221)

Net Interest Income 443 510 509 469 480

Non-Interest Operating Income 104 15 87 73 100

Non-Interest Operating Expense (300) (176) (337) (255) (378)

Impairment Provision (25) 31 (23) (60) (156)

Operation Expenditure (275) (207) (313) (195) (222)

Net Non Interest Income (196) (161) (250) (182) (278)

Pre-Provision Operating Profit 273 318 282 347 358

Operating Profit 247 349 259 287 202

Non Operational Income 3 2 2 4 (1)

Pre-Tax Profit 250 351 261 291 201

Income Tax (62) (88) (95) (73) (50)

Net Profit 187 263 166 218 151


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Financial Ratio

RATIO Jun-11 Sept-11 Dec-11 Mar-12 Jun-12

ROA 5,05% 5,29% 4,97% 4,26% 3,43%

ROE 33,30% 36,25% 33,65% 27,18% 22,44%

NIM 7,77% 7,94% 7,95% 6,89% 6,63%CAR 16,64% 15,99% 16,53% 21,47% 20,51%

LDR 71,33% 73,22% 80,11% 67,90% 71,52%

NPL Gross 0,88% 1,18% 0,97% 1,36% 2,55%

NPL Nett 0,35% 0,48% 0,55% 0,75% 1,27%

BOPO 59,47% 57,09% 60,02% 61,15% 68,23%

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Earning Asset Composition

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Loan Breakdown

Loan Jun-11 Dec-11 Jun-12 YoY

Multipurpose* 8,65 8,87 9,48 9,60%

KUR 1,36 1,71 1,87 37,50%

Keppres 0,37 0,52 0,69 86,49%

Standby Loan 0,71 0,62 0,82 15,49%

SyndicatedLoan

0,85 1,00 1,00 17,65%

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Top Ten Loan by Industry Concentration

No Sector Jun-11 Dec-12 Jun-12

1 House hold 38.98% 47.04% 50.96%

2 Wholesale and retail trade 26.00% 19.50% 16.82%

3 Construction 10.01% 8.85% 9.60%

4 Farming, hunting and Forestry 5.73% 5.91% 5.76%

5 E lectric, Gas and Water 3.96% 4.40% 4.08%

6 Processing Industry 2.30% 2.50% 2.53%

7 Social services, social, cultural, entertainment and other personal 3.26% 2.80% 2.22%

8 Real estate, rental business and company service 2.48% 2.01% 1.85%

9 Education Service 1.67% 1.54% 1.35%

10 Financial intermediary 0.53% 0.75% 1.25%

Others 5.08% 4.70% 3.58%

TOTAL 100% 100% 100%

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Performance Overview of Bank Jatim

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Bank Jatim Key Financial Highlights

Position Jun-11 Jun-12 YoY

Total Asset 24,44 30,23 23.70%

Outstanding Loans 14,88 18,09 21.54%

Third Party Funds 20,74 25,10 21.01%

Net Interest Income 0.91 0.95 4.40%

Non Interest Income 0.15 0.17 13.33%

Pre-Tax Profit 0.58 0.49 -15.52%

Net Profit 0.43 0.38 -11.63%

Ratio Jun-11 Jun-12

ROA 5.05% 3.43%

ROE 33.30% 22.44%

NIM 7.77% 6.63%

LDR 71.33% 71.52%

NPL Gross 0.88% 2.55%

NPL Net 0.35% 1.27%

CAR 16.64% 20.51%

Total Asset increased by 23,69% YoY to

30,23 trillion;

Outstanding Loans grew by 21,57% YoY to

18,09 trillion;

Third Party Fund increased by 21,12% YoY

to 25,29 trillion;

CAR reached 20,51%

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Net profit = 75%>< Pre tax profit (assumption)


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Lending Growth

Loans Jun-11 Dec-11 Jun-12 YoY

Working Capital 6,20 5,83 6,41 3,39%

Investment 2,82 2,61 2,33 -17,38%

Consumer 5,86 7,69 9,35 59,56%

Outstanding Total 14,88 16,13 18,09 21,57%

Total outstanding loan increased by

21,57% YoY to 18,09 trillion. It

supported by consumer loan whichcontributed 51,69% of overall

outstanding loan.

Consumer growth increase

significantly on 4th Quarter 2011 to

2ndquarter 2012 with range 21,59%;

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Lending Growth

Loans Dec-11 May-12% Dec-11 s/d

May-12

Working Capital 128,3 135,1 5,03%

Investment 30,1 33,7 10,68%

Consumer 63,8 68,4 6,72%

Outstanding Total 222,4 237,3 6,28%

LENDING GROWTH EAST JAVA

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(In Trillion Rupiah)

For Lending Growth in East Java, the working capital credit has the largest proportion of Rp 135.1

trillion compared to Rp 237.3 trillion in total loans.

As for the growth from December 2011 to May 2012 which has the highest growth is investment loan

which grew 10.68% from December 2011 to May 2012.

In East Java Total loans grew 6.23% from December 2011 to May 2012


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Multipurpose Loan Strengthen Lending Position

Out of 471,814 civil servants in East Java,

around 52,88 % has been served by Bank

Jatim in June 2012

East Java civil servants are increasing at 14

% in 2011. January-June 2012 increasing 4

% and Q3 will be new civil servant

recruitment.

Borrowers are civil servant whose salary is

paid via their payroll Bank Jatim account.

Multipurpose loan Desember 2011 are

247,024 increase to 249,508 in June 2012 .

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2010 2011 June 2012

Total Kreedit

(trilyun)8,28 8,87 9,480

Plafon j(uta) 32.5 35.9 40.9

Rekening PNS 398.601 454.235 471.814


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Third Party Fund Raising

Third Party Fund

Third Party Fund increased by 21,24%to Rp25,29 trillion (YoY) with Time

Deposit and Saving Account

contribution.

Time Deposit which contributes

31,95% of Third Party Fund total

increased progressively 28,87% (QoQ)

and 36,03% (YoY)

Saving Account provides 25,62% of

Third Party Fund total increased

progressively 8,91% (QoQ) and

41,79% (YoY)

CASA Ratio 2nd Quarter reach 68,05%

(above banking industry )

Third Party Fund

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Correlation between NIM, CoF and Productive Assets

Cost of Fund decrease shows thatBank Jatim has low cost of

funding

Net Interest Margin decrease

because of lending rate has

slightly decrease for marketlending strategy

The result Productive Assets

increase by 18,38%

Bank Jatim NIM reach aboveNational Average NIM that 5,53%

on May 2012

In billion Rupiah

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Operational Networking

CATEGORY Dec-11 Jun-12 BUSINESS PLAN 2012

Conventional Branch Office 40 40 0

Conventional Sub Branch Office 64 64 25

Sharia Branch Office 1 1 0

Sharia Sub Branch Office 3 3 0

Cash Office 164 167 13

Sharia Office Channeling 47 47 0

Payment Point 115 124 29

Mobile Cash/Counter 57 57 9

ATM Mobile Cash 4 6 2

Cash Deposit Machine 1 1 0

ATM* 262 274 115

Until June 2012, Bank Jatim ATM was join with ATM Bersama networking about 40.837 terminal, ATM Prima

Networking about 39.216 terminal and could be use in transaction wit EDC machine in merchant with Prima Debit

logo.

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Position Mar-11 Jun-11 Sept-11 Dec-11 Mar-12 Jun-12

BoC 4 4 4 4 4 4

BoD 4 5 5 5 5 5

Management 1 12 8 14 14 13 14

Management 2 141 135 145 155 167 186

Management 3 443 438 483 478 556 530

Staff 1441 1450 1385 1362 1281 1260

Total 2045 2040 2036 2018 2026 1999

Non

Permanent71+1115 206+1229 244+1349 370+1557 331+1684 424+1766

Total 3231 3475 3629 3945 4041 4189

Description

Management 1 : Head of Division

Management 2 :Branch Manager, Sub Division Leader, Sub Operational Manager, Sub Branch Manager, Relationship Manager,

Senior Analyst

Management 3 : Assistant Relationship Manager, Supervisor and Cash Office Manager

Non Permanent : Contractual Employee, Employee Candidate and Outsourcing Employee

Human Resources

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Risk Profile

RiskProfile

Loan Risk

MarketRisk

LiquidityRisk

OperationalRisk

Law Risk

StrategicRisk

ReputationRisk

ComplianceRisk

Risk Type Jun-11 Sept-11 Dec-11 Mar-12 Jun-12

Loan Moderat Moderat Low Low LowMod

Market Low Low Lowmod Low Low

Liquidity Low Low Low Low Low

Operational Moderat Moderat Lowmod Lowmod Lowmod

Law Low Low Low Lowmod Lowmod

Reputation Moderat Moderat Low Lowmod Lowmod

Strategic Low Low Lowmod Lowmod Lowmod

Compliance Low Low Low Low Low

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Good Corporate Governance

GOOD CORPORATE GOVERNANCE IMPLEMENTATION

POLICY

CODE OF CONDUCT SELF ASSESMENT

ACCOUNTABILITY TRANSPARENCY RESPONSIBILITY INDEPENDENCY FAIRNESS

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SELF ASSESMENT GOOD CORPORATE GOVERNANCE IMPLEMENTATION JUNE 2012

ASSESMENT OF ASPECT SCORE WEIGHT S X W

BoC task and duty implementation 1.175 10% 0.118

BoD task and duty implementation 1.175 20% 0.235

Committe task completion and implementation 1.075 10% 0.108

Conflict of interest prevention 2.700 10% 0.270

Bank Compliance Function Implementation 1.225 5% 0.061

Internal Audit Function Implementation 1.950 5% 0.098

External Audit Function Implementation 0.700 5% 0.035

Risk Management Function Implementation including Internal Control System 2.235 7.5% 0.174

Prudential Principle in providing to related party and to big fund 1.725 7.5% 0.129

Financial and non financial condition transparency, GCG Report Implementation

and Internal Report2.250 15% 0.338

Bank Strategic Plan 2.250 5% 0.113

GCG COMPOSITE POINT 100% 1.679

RATING 2

Good Corporate Governance

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Awards & Achievements

Annual Report Award 2010 Committee State-owned

Company with Bapepam, Ditjen Pajak, Bursa Efek Indonesia,

Ikatan Akuntansi Indonesia and Corporate GovernanceNational Committee)

1st ranked Company Category SOE/ROE Financial Non

Listed

Persatuan Wartawan Indonesia East Java Branch

Trophy and Charter Award from Persatuan Wartawan

Indonesiaof East Java Branch to Bank Jatim of Financial

Performance Achievement.

Infobank Award 2011

Excellent Predicated on Bank category with asset 1 Trillion to 10

Trillion for 10 consecutive years

Investor Magazine 2011 & 2012

Best Regional Champion Bank with asset above Rp10

trillion

Bisnis Indonesia Daily NewspaperBPD Jatim Special RecognItion for CEO In Developing

Corporate Culture

PT BPD Jatim Special Recognition for CEO In Developing

Corporate

Culture

MRI & Info Bank5th Best Performance Overall Regional Bank

Tempo Magazine

The Best Bank in term of asset >10 trillon

Bisnis Indonesia Daily Newspaper

The Best Of 5th BUMD of The Year

ROE Performance Achievement.

-28-

Awards & Achievement

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Growth Strategy for Enhanced Business

Maintain and enhanced the quality of :

1. Loan portfolio2. Banking operation

3. Product and services

4. Human resources

Logistic and infrastructure

Reduce cost of fund

Expand Third Party Funding by Developing Product

Expand Loan by Enhanced Growth Multipurpose Loan(for

civil servant, pensioners ,others) and SME Loan Explore the new business such as clearing house for RB in

East Java

Growth

Efficiency

Quality

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IT Development and Strategy

Develop internet banking system (i-banking)

SMS and Mobile Banking (s-banking)

Electronic Loan transfer system Clearing House for Rural bank

as member APEX Bank

Cooperation with BCA for payment system using debit card

dan credit card for Regional Public Hospital and Private

Hospital

Deployment payment system online system host to host for

Regional Tax (Dispenda), Payment for educational fee, water

bills and other payment utilities like Electricity bills.

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Strategy

SHORT TERM + MIDDLE TERM BPD REGIONALCHAMPION (BRC)

With the development of the business climate in East Java, a growing number of competitors who see the

potential to penetrate the banking market in East Java

Bank Jatim focus in the Year 2012

Bank Jatim has a short-term target is to increase

the bank's performance with respect to service

quality and customer satisfaction with :

Increase the target for the collection of Third

Party Funds to 16,95%;

Target of 24% credit amount is prioritized to

the Credit of Micro, Small and Medium

Enterprises (SMEs) with a composition of at

least 80% of total loans and a maximum of

20% for corporate;

LDR increase to 78 85 %;

Maintaining Operating Expense to OperatingIncome of 62,63%

Bank Jatim focus in the Year 2014

In the medium term until the year 2014 the

main focus is:

Increase the target for the collection of Third

Party Funds to 18,62%;

Target number of credit amounting to

24.94% who prioritized for Micro Credit,

Small and Medium Enterprises (SMEs) with a

composition of at least 80% of total loans and

a maximum of 20% for corporate;

LDR maintaiin 85 %;

Maintaining Operating Expense to OperatingIncome of 64,77%

- Become BPD Regional

Champion (BRC)

- Increase in the Company's

performance in terms of

financial and non-financial

- Expansion of service network to

strengthen the competitiveness

of the Company and continue

to serve the people of East Java

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Corporate Profile

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Share Ownership

Share Ownership %

Shareholders-Series A 80,00

Provincial Government of East Java 51,46

Regency and the city of East java 28,54

Shareholders-Series B 20,00

Local Investor-Individual 3,97

Local Investor-Business Entities 13,20

Foreign Investor- Business Entities

& Individual2,83

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Board of Commissioner

From left to right:

IsnantoIndependent Commisioner

Position period

(2011-2015)

Chairul DjaelaniCommisioner

Position period

(2011-2015)

WibisonoIndependent Commisioner

Position period

(2011-2015)

MuljantoPresident Commisioner

Position period(2011-2015)

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Board of Director

Hadi SukriantoPresident Director

Position period

(2011-2015)

From left to right:

PartonoAgrobusiness & Sharia

Business Director

Position Period

(2011-2015)

Djoko LesmonoMiddle and Corporate

Business Director

Position period

(2011-2015)

SuparlanCompliance Director

Position period

(2011-2015)

Eko Antono

Operational Director

Position period

(2011-2015)

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Share Performance

Investor Relation Unit

Head Office Bank Jatim 2nd floor

Rachmad 98-104 Street

Surabaya-60271

Email:

Contact Person:

1. Revi Adiana Silawati

Corporate Secretary

([email protected])

([email protected])

2. Ferdian Timur SatyagrahaInvestor Relation Unit

([email protected])

([email protected])

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Thank You

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Analyst Meeting Juni 2012

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