Good Corporate Governance (GCG) is a structure and mechanism that regulates corporate management in order to generate sustainable, long-term economic value for shareholders and stakeholders. Adherence to the principles of good corporate governance contributes to improvements in company performance.
IMPLEMENTATION OF GCG PRINCIPLES
Building on the basic principles of GCG and taking into account the Indonesia GCG Basic Guidelines laid down by the National Committee on Governance (NCG), the Company has established a corporate management system that covers the following elements:
The principle of transparency is always applied by the Company in its business through delivering material and relevant information, both easily accessible and understood by stakeholders. The Company provides to public and shareholders with information to the fullest extent possible, both in compliance with the Financial Services Authority (FSA) regulations and on its own initiative. Reports are published on a periodic basis and on time, consisting of audited quarterly, half yearly, and annual financial reports. Information is also released through public expose, print and electronic media, and investor forums.
The Company has established a corporate management system that supports clarity in functions, implementation and responsibility of the work performance of organizational organs. The principle of accountability among others is assured through the Directors’ report to the Board of Commissioners and joint evaluation of the Company’s financial performance; submission of financial statements to the Annual General Meeting of Shareholders (GMS), establishment of an internal audit body and the appointment of an external auditor, and adherence to business ethical standards and corporate code of conduct.
To maintain long-term business sustainability and earn recognition as a good corporate citizen, the Company always upholds compliance with existing laws and regulations, and fulfills its obligations to the public and the environment. Through Corporate Social Responsibility (CSR) program, the Company is directly engaged in a wide range of social activities focused on education and community empowerment.
The Company ensures that corporate management is implemented in an independent manner where no organizational organ can dominate the other and neither can there be intervention from others. For example, the Company’s Board of Commissioners and Directors hold independent views for each decision reached, but possible to get advice from independent consultant, legal and human resource consultants, as well as relevant committees to support the smooth implementation of duties. Furthermore, the Company’s Board of Commissioners currently consists of 2 (two) Independent Commissioners to guarantee the independence of the Board of Commissioners in overseeing the Company.
5.Fairness and Equality
The Company specifically pays attention to the interests of its shareholders and other stakeholders. The Company also consistently ensures equal treatment of the public, capital market authorities and communities, and stakeholders. Good relations with employees are maintained by being heedful of their rights and obligations in a fairness and equal manner.
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