Code Of Ethics And Corporate Culture

BUSINESS ETHICS AND CORPORATE CULTURE

Telkom individuals always uphold the morals and ethics as the foundation for the implementation of GCG. As time goes by in our effort to manage GCG, the implementation of GCG has formed legal awareness and created employees who are sensitive to social responsibility and loved by customers.

Code Of Conducts

As a guideline for all individuals behavior of the Company, Telkom has issued a Board of Directors’ Resolution No.KD.201.01/2014 regarding Business Ethics in Telkom Group Environment. By the issuance of the Business Ethics Guidelines, we have a set of business ethics, which is the standard behavior of employees in dealing with customers, suppliers, contractors, fellow employees and other parties that have a relationship with the company.

Code of Ethics Enforcement Application for Board of Commissioners, Board of Directors and Employees

According to the provisions of the Sarbanes Oxley Act (“SOA”) 2002 section 406, we carry out the code of conduct which applies to all levels of the organization, namely, the Board of Commissioners, Board of Directors and other key officers and all employees who can be seen in our website: http://www.telkom.co.id/hubunganinvestor/ inform any change or waivers from the code of ethics through the website.

Socialization and Business Ethics Enforcement Efforts

Understanding and efforts to remind employees about values and ethics of business is carried out through the dissemination of information materials and assessment which undertaken every year. Such materials relating to the understanding of corporate governance, business ethics, integrity pact, fraud, risk management, internal control (“SOA”), whistleblowing, prohibition on gratuities, IT governance, ensuring information security and other integrated matters related to corporate governance practices. The efforts are conducted through a business ethics survey program with the population of all employees. The survey was conducted online, through the portal media/intranet, which concluded with a willingness statement of employees to conduct the business ethics. The understanding and implementation of the business ethics and survey results are annually audited, both internally and externally, through the SOA 404 audit process associated with the application of appropriate control environment in accordance with the COSO framework during the internal audit control of the entity’s level. Philosophy to be the Best: Always The Best Always the Best is a basic belief to always provide the best in each work. The essence of Always the Best is “Ihsan” which in this sense is translated as “(the) best”. Employees who have Ihsan spirit will always deliver a better outcome of work than it should be, so as the Ihsan attitude is automatically be guided by a sincere heart. It is when any activity performed as a form of worship to God Almighty. Philosophy to be the Best: Integrity, Enthusiasm, Totality Always the Best demands every member of Telkom Group to have the integrity, enthusiasm, and totality. Principles to be the Star: Solid, Speed, Smart Principles to be the Star of The Telkom Way is the 3S, namely, Solid, Speed, Smart which also became core values or great spirit. Solid – All members of Telkom Group must provide their best (Always The Best) and increase solidarity among all members of Telkom Group as a Great Team. Speed – All members of Telkom Group must work quickly in every opportunity to win the competition. Because of the fast will beat the slow. “Our speed is our competitive advantage.” Smart – All members of Telkom Group are expected to work smart, to understand the objectives, set priorities and are always looking for new and better ways to achieve the goals. Practices to be the Winner : Imagine – Focus – Action Practices to be the Winner of The Telkom Way is IFA, namely, Imagine, Focus, Action as the Key Behaviors. Socialization of corporate culture is carried out in topdown mechanism by setting the Unit Executives to become Role Models and by Appointment of a Change Agent in each unit. To activate the corporate culture, 2015 has been deignated as the Year of Cultural Activation which aimed to internalize the corporate culture on employee’s daily behavior. To provide the same perception to the Change Agents, a Culture Agent Onboarding program had conducted which followed by the entire Change Agents totaling 263 person from Telkom and 85 person from the Subsidiaries. Acceleration of cultural activation activities is carried out by establish a Cultural Provocation Activation Community (Kipas) in every unit that is managed directly by the Role Models and Change Agent in the related unit. In 2015 has formed 147 Kipas Budaya. Monitoring of Kipas Budaya activities in the Unit conducted by online using a Telkom Knowledge Management System called KAMPIUN.In order to motivate employee involvement in the activation of cultural activities, a series of Culture Festival activities was carried out in October and November which aimed to appreciate the units or employees who are the most active in activating The Telkom Way culture in the employees’ work behavior in their units. In this activity, a unit has been chosen as the Most Admired Culture Activation Unit and an Employee as The Most Inspiring Role Model as well as The Most Inspiring Culture Agent. Evaluation of the effectiveness of culture implementation is carried out by using Entropy Survey. Entropy Survey results in 2014 was 9% and in 2015 remained 9%. This indicates that the level of corporate culture is in the PRIME or HEALTHY category.

Posted on May 11, 2016