GCG Structure and Policy

In accordance with the objectives of the Financial Services Authority Regulation (POJK) No.21/POJK.04/2015 concerning the Implementation of Public Company Governance Guidelines, namely: to increase the transparency of public company management; The company's management, which since July 2020 has implemented a business restructuring program for the company, strongly supports the implementation of good corporate governance, which as we all know, the implementation of good corporate governance has become an international business culture.

In the POJK, public companies are required to implement good corporate governance guidelines.

The principles of Good Corporate Governance established as the basis for implementing this corporate governance are as follows:

  1. Transparency, namely openness in presenting material and relevant information and openness in carrying out the decision-making process.
  2. Accountability, namely clarity of function and implementation of responsibilities of company organs so that management runs effectively.
  3. Responsibility, namely the conformity of company management with statutory regulations and the principles of healthy company management.
  4. Independence, namely managing the company professionally without influence or pressure from any party.
  5. Fairness, namely fairness and equality in fulfilling the rights of Stakeholders that arise based on agreements and statutory regulations.

Based on the principles of good corporate governance mentioned above, the company management has determined:

  1. Dual or three custody principles in carrying out financial transactions and purchases, this application is reflected in all financial transactions, namely: maker, checker and approver.
  2. Non-Cash Transaction Based, all payment and receipt financial transactions through banking mechanisms.
  3. Separation of duties, namely the separation of duties and functions between negotiation implementers, purchasing implementers and payment transaction implementers. The implementation includes, among other things, the existence of a Project Committee with clear duties, responsibilities and authority, which is separate from the Project Approval Terminator, namely the Board of Directors and the payment transaction implementation unit.
  4. Code of Conduct, as explained in Sub-Chapter 5.14 previously.
  5. Whistle Blowing System, which is temporarily designed to complement the company's good governance system.
  6. Office Automation System, management is gradually implementing digitalization in all company activities, including: Accounting System, All Non-Cash Payment Transaction System, Net-Output Electric Monitoring System to monitor electricity production at each power plant, project surveillance security system, and so on.
  7. Risk Based Audit (RBA) System, the company management organizes all main activities and supporting activities of the company's business based on audit trial principles.

The company's organizational capabilities to fulfill all requirements for creating good corporate governance will continue to be met in accordance with the demands of the complexity of the company's activities, especially after the operation of hydropower plant projects.