Basic of Good Corporate Governance Implementation
The implementation of Good Corporate Governance (GCG) is essential to the sustainability of the Companys business. By employing proper GCG practice, the Company will be able to enhance its credibility among its stakeholders. Five (5) prevailing CGC principles, namely, Transparency, Accountability, Responsibility, Independence and Fairness, are used as the foundation of the GCG structure. With a rigorous structure in place, the Company will be able to perform a check and balance on its operations to eliminate any conflict of interest, fraud and other violation to ensure and achieve optimum performance.
To improve its implementation, the Company drew specific guidelines based on Law No. 40 of 2007 on Limited Liability Company (UUPT) Financial Services Authority Regulation No. 21/POJK.04/2015 on Implementation of Corporate Governance Guidelines in Public Companies and Circular Letter of Financial Services Authority No. 32/SEOJK.04/2015 on Governance Guidelines for Public Companies.
By applying sound GCG practices, the Company aims to optimise its performance and create sustainable growth by prioritising the protection of rights and interest of the Company s shareholders as well as stakeholders.
To achieve this objective, the Company ensures:
Transparency
Information transparency encourages disclosure of (including access to) information that is relevant, accurate, reliable, timely, clear, consistent and comparable about the Company.
Implementation
The Company constantly communicates with its shareholders and other stakeholders to keep them abreast about the Companys strategy, development and transaction activities. Apart from disclosing mandatory information as required by the law and regulations, the Company also releases information that is deemed important to shareholders and stakeholders to allow them to make sound decisions.
Accountability
An effective monitoring system that is based on the distribution of functions, duties and responsibilities and authority among members of the Board of Commissioner and Board of Directors, as well as shareholders, are put in place to supervise, evaluate and oversee the management. The system ensures that the management takes into account the shareholders and stakeholders interest when formulating any strategies or make any decisions that will affect the Company.
Implementation
The Company implements guidelines, policies, manuals and other technical regulations systematically and takes into account shareholders and stakeholders interest in its decision-making process.
Responsibility
This principle emphasises the importance of an effective monitoring system on the results, benefits and impacts that help the Company realises its objectives. It also ensures the Company complies with the prevailing laws and regulations.
Implementation
The Company fulfil its responsibilities as a good corporate citizen by complying with the law and honouring the community living nearby the Companys operational area. As a public listed entity, the Company endeavours to abide by all prevailing Capital Market regulations. As a business operator, the Company is required to comply with the applicable regulations and be fully responsible to the community and surrounding environment by implementing Corporate Social Responsibility (CSR) programmes.
Independence
This principle oversees the professional management of the Company to ensure that it is free from any conflict of interest. Therefore, it enables the management to make decisions that prioritise the Companys interest without any pressure from any parties which are not in line with the prevailing laws and regulations as well as the principles of a well-managed Company.
Implementation
Each part of the Company operates independently without any domineering presence from other units and intervention from other parties. All decisions are made professionally and objectively that acknowledge all business units and free from any conflict of interest.
Fairness
The principle refers to the fair and equitable treatment of shareholders that respect the rights of shareholders and complies with applicable agreements, laws and regulations.
Implementation
The Company is committed to ensuring that all rights of shareholders and stakeholders are met. Both the shareholders and stakeholders are entitled to obtain the same amount of information regarding the Companys performance and activity. The Company also provides equal opportunity to its employees regarding recruiting and manages its employees without prejudice against their ethnicity, religions, race, groups, gender and physical condition.
Compliance
To improve and enhance the quality of its GCG implementation, the Company periodically conducts a comprehensive self-assessment that refers to the Board of Commissioners and Board of Directors manual. Aside from monitoring and evaluating the current GCG implementation, the assessment also develops and improves the implementation of corporate governance within the Company, including identifying corrective actions required to help the Company maintain its optimum performance.
The Company is committed to continuing improving the implementation of GCG implementation in accordance with POJK No. 21/POJK.04/2015 and SEOJK No. 32/SEOJK.04/2015.
