Commitment to Good Corporate Governance
Several incidents happened in business industry have made Corporate Governance become an important part for industry players. The presence of public company in capital market industry obtaining financial strength from investors and having strong relation with stakeholders require to be well-managed, in order to maintain trust of stakeholders and shareholders towards management of the company.
Five principal aspects in the Good Corporate Governance (“GCG”) such as professionalism, responsibility, fairness, transparency and accountability become requirements must be fulfilled by public company, including PT Indocement Tunggal Prakarsa Tbk (“the Company”). The fulfillment of the GCG aspect is not only becoming the Company’s obligation, but also rendering several advantages for the Company, such as improving performance of the employee and the Company, reconditioning the Company’s balance sheet, increasing investor trust, enhancing the Company’s image in front of public, preventing various distortions and dishonesty which may jeopardize the company.
In order to achieve the Company’s goal in the healthy market competition supported by the capability to drive, dependable ability, innovation as well as prioritize company regulation specification and fulfillment of prevailing law in Indonesia, the Company has stipulated the Good Corporate Governance Implementation Guideline with complete explanation that can be downloaded in the link below as a primary policy of several significant principles in business practice of the Company.
GCG Policies - Indocement Way 2018
Basic and Purpose of GCG Implementation
Indocement’s GCG has a legal and policy basis that includes the following laws, regulations and guidelines:
- Optimizing the value of the Company for Shareholders while still paying attention to the interests of the Stakeholders and encouraging business continuity based on the principles of transparency, accountability, responsibility, independence, as well as fairness and equality;
- Encourage the Company's organs, namely the GMS, the Board of Commissioners, and the Board of Directors in making decisions and carrying out actions based on high moral values and compliance with the provisions of the articles of association and the prevailing laws and regulations;
- Encouraging more professional, transparent, and efficient management of the Company, as well as empowering functions and increasing the independence of the Company's organs;
- Encourage and support the development, management of the Company's resources and the management of the Company's business risks by applying the principles of prudence (prudence), accountability, and responsibility in line with the principles of GCG;
- Encouraging awareness and social responsibility of the Company towards the community and environmental sustainability, especially in the vicinity of the Company's operational areas;
- Provide guidelines for each member of the Board of Directors, Board of Commissioners and Employees of the Company in carrying out the management of the Company in a professional, transparent, and efficient manner as well as empowering functions and increasing independence, based on moral values and compliance with laws and regulations as well as awareness of the Company's social responsibility towards its stakeholders. Interests and environment;
- Increase the competitiveness of the Company both nationally and internationally, so as to gain market confidence in order to encourage investment flows and sustainable national economic growth.
Based on the laws and regulations, Indocement continues to harmonize and improve the quality of GCG in the Company.
Good Corporate Governance Purpose
In its implementation, the Company is obliged to ensure the implementation of GCG in every aspect of the business and at every level of the Company's organization with the following objectives:
- Optimizing the value of the Company for Shareholders while still paying attention to the interests of the Stakeholders and encouraging business continuity based on the principles of transparency, accountability, responsibility, independence, as well as fairness and equality;
- Encourage the Company's organs, namely the GMS, the Board of Commissioners, and the Board of Directors in making decisions and carrying out actions based on high moral values and compliance with the provisions of the articles of association and the prevailing laws and regulations;
- Encouraging more professional, transparent, and efficient management of the Company, as well as empowering functions and increasing the independence of the Company's organs;
- Encourage and support the development, management of the Company's resources and the management of the Company's business risks by applying the principles of prudence (prudence), accountability, and responsibility in line with the principles of GCG;
- Encouraging awareness and social responsibility of the Company towards the community and environmental sustainability, especially in the vicinity of the Company's operational areas;
- Provide guidelines for each member of the Board of Directors, Board of Commissioners and Employees of the Company in carrying out the management of the Company in a professional, transparent, and efficient manner as well as empowering functions and increasing independence, based on moral values and compliance with laws and regulations as well as awareness of the Company's social responsibility towards its stakeholders. Interests and environment;
- Increase the competitiveness of the Company both nationally and internationally, so as to gain market confidence in order to encourage investment flows and sustainable national economic growth.
