Governance Practices

Last updated Tuesday, 13 November 2018

As a company whose shares are mostly owned by a Public Company, the Company always tries to apply the principles of good corporate governance in all of the Company's operations and activities. Implementation of good corporate governance has become a commitment from all management and employees of the Company to implement business practices that are healthy, ethical and responsible to stakeholders. Management believes that the implementation of good corporate governance will support the achievement of long-term business targets and provide a competitive advantage in facing competition. 

The Company's objectives for implementing the principles of good corporate governance include:< /span>

  1. Provide added value for the Company and shareholders;
  2. Maximizing the value of the Company so that it has strong competitiveness;
  3. Increase compliance with regulators;
  4. Encourage the management of the Company in a professional, transparent and efficient manner and empower the functions of the Board of Commissioners, Directors, Audit Committee, Internal Audit and Corporate Secretary;
  5. Encourage every decision or policy to be based on high moral values ​​and compliance with applicable laws and regulations;
  6. Protect the Board of Commissioners and Directors from possible legal claims.

In performance, the Company always tries to provide the best for both shareholders and other stakeholders in order to achieve maximum results. For this reason, in carrying out every business activity in accordance with good corporate governance, the Company always prioritizes 5 (five) principles, namely:

1. Transparency
The Company assesses the principle of transparency as openness in disclosing relevant material information accurately and in a timely manner. The Company discloses this material information not only to shareholders but also to all of the Company's stakeholders. So it is hoped that shareholders and stakeholders can find out earlier about the Company's business developments.

2. Accountability
The application of the principle of accountability is implemented by the Company by establishing clarity of function, structure, system and accountability of each organ within the Company so that the management of the Company can be carried out effectively. By implementing this principle of accountability, there will be clarity in functions, rights, obligations, authority and responsibilities between shareholders, the Board of Commissioners and Directors as well as in every part of the Company.

3. Accountability
The Company defines the principle of accountability as compliance with both operational procedures and applicable laws and regulations in every business activity carried out. Accountability is also followed by a commitment to carry out business activities in accordance with good ethical standards. In addition, supervision carried out by the Board of Commissioners is further enhanced regarding the management of the Company by the Directors so that it can run effectively, accompanied by demands for achieving targets for the Directors.

4. Independence
The Company defines independence as carrying out the duties, obligations and authority of each organ of the Company without interference from other organs of the Company or other parties that are not in accordance with the regulations current regulation. Independence is realized, among other things, by respecting the roles and functions of each Company Organ and decisions regarding the management of the Company are decisions of the Board of Directors for the best interests of the Company. 

The principle of independence is very necessary, especially in the decision-making process or management policies which must be carried out objectively and place the Company's interests as the main priority.

5. Fairness
The Company defines fairness or justice as equal treatment of each interested party in accordance with applicable laws and regulations. In its implementation, among other things, the Company always maintains good relations with employees and avoids discriminatory practices and respects employee rights.