Governance
In carrying out its business, the Company always tries to apply the principles of Good Corporate Governance. The application is characterized by the existence of GCG KSP which refers to the Ministry of State-Owned Enterprises No. 117 of 2002 where the Company's organs in improving business success and accountability to always pay attention to the interests of stakeholders based on laws and ethical values. The GCG KSP principle is a rule, norm, or corporate guideline needed in a healthy company management system. The GCG KSP principles are referred to as follows:
1. TRANSPARENCY
in order to achieve transparency, the company obliged to provide sufficent information, accurate and also on time to the stakeholders. One of the positive things from the transparency principal is that the parties who cncerned with the company know the possible risk that may occur in conducting transactions with the company. Main things of information transparency implementation include :
- Goal Setting, Business Targets, and Company Strategy.
- Annual Report.
- Periodic Financial Report.
- Other Reports that Must be Published.
2. ACCOUNTABILITY
The company carries out the accountability principle by being fully aware of the rights, obligations, authorities and responsibilities of the company's organs based on internal check and balance system which includes auditing practices. This also includs delimitation of power between shareholders. The main points of implementation of the principles include :
- Assignment details, responsibilities and authorities of each company organ in line with the company's vision, mission, values and strategy.
- Ensuring the existence of an effetive internal control system in the management of the company. Performance measurement for all organs of the company is consistent with the application of a system of rewards and sanctions.
- The implementation of the duties and responsibilities of each organ of the company adheres to the agreed company values (Company ethics and code of conduct of top management).
3. Responsibility
The company applies the principle of responsibility by adjusting the management of the company to the prevailing laws and regulations and healthy corporate principles. The main points in omplementing the principle od responsibility include :
- Company must pay attention and sensible to situations and condition that develop both in the surroundings community and also pay attention to the fulfillment of the company's social obligations as part of the community.
- Company must comply with applicable laws and regulations, including conditions relating to the environment, consumer protection, employment, taxation, prohibition of monopolistic practices and unfair business competition, occupational health and safety, etc.
4. Independence
The company carries out the principle of independence by managing it professionaly without conflict of interest and influence/pressure from any party. The main things in implementing the principle of independence include :
- Each organ of the company must avoid domination by any party, not be influenced by certain interests, free from conflicts of interest from any influence or pressure so that decisions can be made objectively.
- Each organ of the company must carry out it's functions and duties in accordance with the articles of association and the prevailing laws and regulations, not dominating each other and or shifting responsibilities to one another.
5. Equity
The cmpany applies the principle of equity by adopting justice and equality in fulfilling the rights of stakeholders. THe main points of implementing the principle of equity include :
- Clarity of shareholder's rights, legal system and enforcement of regulations.
- Regulations regarding contracts or protection for comsu,ers must be provided and can beenforced effectively so that every contractual relationsship can be implemented effectively.
- Law enforcement contracts or protection for consumers must be provided and can be enforced effectively so that every contractual relationship can be implemented effectively.
- Equal opportunity in recruiting employees, having a career and carrying out their duties professionaly regardless of ethnicity, religion, race, class, gender, and physical condition.
