CORPORATE GOVERNANCE GUIDELINES

These parameters and guidelines are applied by ADHI mindful of the business practices and culture prevailing in Indonesia and in other countries where ADHI operates.

GCG POLICIES 
ADHI endeavors to add value, in the interests of all its stakeholders. To that end, the Company undertakes GCG practices in a consistent and evolving manner. The principles of GCG are constantly embedded in the Company’s culture, and are adhered to throughout all business activities of the Company. Furthermore, GCG policies are observed and carried out to ensure long-term business sustainability goals. ADHI’S GCG policies have been established pursuant to the Regulation of the Minister of State-Owned Enterprise No. PER-01/MBU/2011, dated 2 August 2011, and PER-09/ MBU/2012 dated 6 July 2012. In addition to that, ADHI implements GCG parameters issued by the Organization for Economic Cooperation and Development (OECD), as well as guidelines from the National Committee on GCG (KN-GCG). These parameters and guidelines are applied by ADHI mindful of the business practices and culture prevailing in Indonesia and in other countries where ADHI operates.

ADHI adheres to the GCG principles in all business aspects and at all organization levels, including:

  • The duties and responsibilities of members of the Board of Commissioners and the Board of Directors
  • Compliance function
  • Risk management
  • Transparency in financial and non-financial matters
  • The duties of Committees and working units that are responsible for internal control.

In line with the recommendation of OECD, the GCG principles cover five key elements, referred to as TARIF, as follows:

  • Transparency is clarity in decision-making process and the dissemination of relevant information pertaining to the Company.
  • Accountability is clarity in function, operation, and the responsibility of the Company’s organization, enabling effective management.
  • Responsibility is conformity in the management of the Company through compliance towards procedures, rules, regulations, and prevailing laws.
  • ndependence is the professional management of the Company without vested interests or influences from third parties that do not conform with Company policies as well as prevailing rules and regulations.
  • Fairness is the fair treatment of all stakeholders with regard to their rights and ownership of the Company.

 

CORPORATE GOVERNANCE BODIES 
Good Corporate Governance in ADHI is implemented through the relevant corporate governance bodies, namely General Meeting of Shareholders (GMS), the Board of Commissioners (BOC), the Board of Directors (BOD), the Oversight and Management Committees, the Management Team that comprises of senior executives and managers, the Corporate Secretary and the Internal Audit Unit.