The Company implements corporate governance based on the basic principles of GCG and adheres to the 2021 General Guidelines for Indonesian Corporate Governance (PUGKI) prepared by the National Committee for Governance Policy (KNKG). The Indonesian Corporate Governance Principles contain the shareholders and stakeholders’ rights and their fulfilment, basic rules on management and supervision of management, including aspects of ethics, risk management and disclosure.
The Indonesian Corporate Governance Principles consist of eight principles which are divided into three groups of principles:
- The first group of principles is governing the management and supervision functions of the corporation, i.e the Board of Directors and the Board of Commissioners;
- The group of principles governing the processes and outcomes generated by the Board of Directors and the Board of Commissioners; and
- The group of principles governing the providers of resources, who are the primary beneficiaries of the implementation of corporate governance.
The principles along with the recommendations and guidelines are inspired by the four pillars of corporate governance: ethical behavior, accountability, transparency, and sustainability. The reflection of the four pillars in the principles of Indonesian corporate governance will encourage the creation of corporate value in the long term. The four pillars of corporate governance are:
Ethical Behavior
In carrying out its activities, corporations always value honesty, treat all parties with respect, honor its commitments, consistently build and maintain ethical values and beliefs. The corporation respects the interests of shareholders and other stakeholders in accordance with the principle of fairness, and each company body is managed independently so it will not dominate other bodies or be interfered with by other parties.
Accountability
Corporations are accountable for their performance in a transparent and fair manner. To achieve this, corporations are required to be managed in a proper, measurable manner that aligns with corporate objectives while also considering the interests of shareholders and other stakeholders. Accountability is the prerequisite to achieve sustainable performance.
Transparency
To maintain objectivity in conducting business, the corporation provides material and relevant information in a manner that stakeholders can easily access and understand. The corporation takes the initiative to disclose not only matters required by laws and regulations, but also matters that are important for shareholders, creditors and other stakeholders in making decisions.
Sustainability
The corporation complies with laws and regulations and is committed to carrying out responsibilities towards society and the environment in order to contribute to sustainable development by working with all relevant stakeholders to improve their lives in a way that is consistent with business interests and the sustainable development agenda.