© PT Bank Mandiri (Persero) Tbk.

WHISTLEBLOWING SYSTEM

A. LETTER TO CEO (WHISTLEBLOWING SYSTEM)

Letter to CEO is one of the operational risk mitigation of Operational Risk by improving the effectiveness of the application
of fraud control systems focusing on reporting violations (Whistleblower System). Letter to CEO (LTC) is a fraud reporting
media from the employee to CEO focusing on disclosure of the complaint to improve effectiveness of fraud control system
implementation.

STATUS OF LETTER TO CEO

2009
Letter to CEO mechanism established in 2009
Whistleblower must identify himself
Only for employees
LTCs can be sent by letter, email and SMS
Reports submitted through LTC mechanism must be related to
fraud/ and improvements / excellence
2013
Revitalization of LTC mechanism in 2013
Whistleblowers no longer need to identify themselves
No only for employees but also for vendors
Reporting channels expanded to include LTC website
Reports submitted by LTC must concern fraud.

B. LTC MECHANISM
LTC reporting mechanism is as follows:
1. LTC submission method
Whistleblower may submit report using the following media:
 SMS to 0811-900-7777
 Email to lettertoceo@bankmandiri.co.id
 Letter through PO BOX 14000 JKTM 12700
 Internal Website, namely lettertoceo
Every report submitted by whistleblowers will be given a Random Unique Number
2. Protection for the whistleblower
With reference to the Bank’s internal regulations
3. Complaint Handling
The admitted reports will be handed over to Internal Audit Group and then will be investigated and followed up. The
whistleblower may get information of the outcome of such complaint handling through the received Random Unique
Number, for future check of reporting status through lettertoceo website.
4. Complaint management
The Internal Audit Group will be the line unit that handles and manage complaints.
5. Outcome of complaint handling
The report will be followed up by the Internal Audit in accordance with the stipulated SLA.
 © PT Bank Mandiri (Persero) Tbk.

C. BENEFITS OF LTC
The following are the benefits expected to be achieved by the implementation of LTC program, among others:
1. Improvements including: (1) fulfill customer needs (ii) develop the business (iii) increase the market share (iv) increase
revenue & reduce cost (v) decrease processing time (vi) improve the employee engagement.
2. Prevention of violations (Anti-Fraud) including: (i) increased participation of employees in control measures (ii)
establishing early warning systems of fraud (iii) to decrease the risk of the bank losses.
D. TYPE OF LTC REPORT
The report submitted through LTC is a report related to Fraud as described below:
a. Definition of Fraud
1) A deviating act or a purposeful neglect undertaken in order to deceive, cheat, or manipulate Bank, customer, or
another party, that occurs inside the Bank, and/or
2) Using Bank’s facility so as to cause the Bank, customer, or another party to suffer a loss, and/or
3) to cause the fraudster gain a financial benefit, both directly and indirectly.
b. Types of Fraud:
1) Corruption, namely receiving/asking for reward and/or misappropriation or misuse of bank money for personal or
others’ interest and/or making or causing others to make plans that harm the Bank.
2) Deceit, namely deceiving Bank, customers or third parties and/or falsifying documents, signature, physical evidence
and/or any authentic proof.
3) Theft, namely taking part and/or all of Bank’s assets or data illegally.
4) Neglect, namely intentionally and deliberately ignoring procedures or responsibilities as the Bank employees.
5) Violation, namely violating the Bank’s internal regulations or any external regulations or defrauding the Bank using
technology (cybercrime) and/or not, including making devious plot in financial statements or committing banking
criminal offense as stipulated in Banking Law and any other acts equivalent thereto.

E. SOCIALIZATION OF LETTER TO CEO (LTC) PROGRAM

Letter to CEO (LTC) program is socialized through 3 (three) stages namely:
1) Pre-launch, namely an educational stage for Mandiri’s employees regarding fraud. The socialization in this stage is
carried out through the following media:
a. Running Text on Bank Mandiri Portal, inviting the Mandiri members to know and prevent fraud.
b. Poster attached to the back office of the Head Office, Regional Offices, Area and Branch of Bank Mandiri in
accordance with the predetermined schedule. Monitoring of posters attachment is done by Market & Operational
Risk Group (MOR Group) by asking the line unit to send proof of poster attachment via email. The poster consists of
4 (four) designs (attachment 1. Picture of poster design) namely:
 Poster I intended to educate the Mandiri’s employees about fraud.
 Poster II intended to invite the Mandiri’s employees to be responsible to keep Bank Mandiri free from fraud.
 Poster III intended to inform the Mandiri’s employees about the impact of fraud on career and future.
 Poster IV intended to inform the Mandiri’s employees about the impact of fraud on their family.
c. Letter from the CEO to every Mandiri’s employees containing request to prevent fraud (attachment 2. Sample Letter)
d. Delivery of email Blast
e. Lettertoceo website (attachment 3. Screen capture of lettertoceo website
f. Attachment of wallpapers intended to invite Mandiri’s employees to be responsible to keep Bank Mandiri free from
fraud.
g. Socialization in the form of TIB program sharing to all line units.
2) Launch, namely a stage that invites and encourages the employees to keep Bank Mandiri free from fraud. The
socialization is carried out through the following media:
a. Poster attached to the back office of the Head Office, Regional Offices, Area and Branch of Bank Mandiri in
accordance with the predetermined schedule. Monitoring of posters attachment is done by asking the line unit to
send proof of poster attachment via email. The poster consists of 3 (three) designs namely:
 Poster I intended to improve awareness of Mandiri’s employees, starting from themselves in order to bring
positive impact on Bank Mandiri.
 Poster II intended to invite the Mandiri’s employees to participate in the eradication of Fraud “With 1 click, you
have participated in eradicating fraud”.
 © PT Bank Mandiri (Persero) Tbk.

 Poster III intended to invite the Mandiri’s employees to report any fraud event “Don’t be asleep, let’s report, be
whistleblower”.
b. Anti-Fraud TVC, namely a socialization media in the form of video in digital media within the Bank Mandiri and
lettertoceo website.
c. Email blast, SMS blast, Wallpaper, lettertoceo website, and socialization, with same explanation as referred to in pre-
launch section above.
d. Interactive Quiz to all Mandiri’s employees intended to observe the enthusiasm and understanding of Mandiri’s
employees with respect to fraud through LTC program.
3) Sustain, namely a stage to remind all Mandiri’s employees about fraud in order to keep Bank Mandiri free from fraud.
The socialization is carried out through the following media:
a. Sustain Poster intended to refresh the Mandiri’s employees about the implementation of anti-fraud strategy through
LTC.
b. Email blast, Wallpaper, lettertoceo website, socialization and interactive quiz to all Mandiri’s employees intended to
observe the enthusiasm and understanding of Mandiri’s employees with respect to fraud through LTC program.
 © PT Bank Mandiri (Persero) Tbk.

COMPLAINT RESPONSE OUTCOMES

Year Submission Channel Submission Channel Number of Reports Number of Competed
Acted Upon Report Responses
Letter Email Website Fraud Non Fraud Non Criminal Criminal
2013 33 6 2 11 30 21 10
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