believe that the quality of the GCG best-practice implementation will be maintained and proven
We are establishing 2015 as the year of the culture to implement the basic principles of Good Corporate Governance (GCG). By making GCG basic principles as the culture in conducting daily operational tasks, we believe that the quality of the GCG best-practice implementation will be maintained and proven. Thus, we can feel the benefit of the GCG best-practice implementation, especially the increase of the company’s value and fulfilment of the stakeholders’ hope.
THE PURPOSE OF GOOD CORPORATE GOVERNAN CE IMPLEMENTATION
Telkom implements the best practice of good corporate governance with some purposes, which include:
• Maximizing the company’s value and stakeholder’s value.
• Encouraging professional, transparent, and efficient management of the company.
• Empowering the functions and improving the independence of the Shareholders, Board of Commissioners, Board of Directors, Committees, and Company Secretary.
• Paying attention to the responsibility that the company holds to its surrounding society and environment.
• Increasing the company’s contribution to national economy.
• Increasing national investment climate.
The commitment of the Company in implementing GCG is shown by the release of Board of Directors’ Resolution
on the GCG Group Guideline Number 602/2011. This Board of Directors’ Resolution has stated several GCG implementations to ensure that GCG has been implemented with ethics, both for internal or external transactions, and in accordance with the correct and proper practice of good corporate governance. The abovementioned GCG implementation system includes: business ethics, policy and procedure, risk management, internal control and surveillance, leadership, tasks and responsibilities management,
the empowerment of management and employees’ competence, performance evaluation, as well as appreciation and recognition.
The commitment to implement GCG principles in a planned, directed, and measured fashion in every company’s operational level also covers the entire range of management, down to the executive level, so that there is consistency in the GCG best practice implementation.
CONCEPT AND FOUNDATION
As an issuer (public company) that is enlisted in the Indonesian Stock Exchange (Bursa Efek Indonesia/BEI) and the New York Stock Exchange (“NYSE”), the Company not only must obey all applicable law and regulation in Indonesia, the General Guideline of Indonesian Good Corporate Governance published by KNKG and the Guideline of Public Company Governance of published by
OJK, it must also obey the Sarbanes Oxley Act (“SOA”) of 2002 and other SEC regulations in implementing GCG. There are at least two SOA regulations that are relevant with Company affairs. First, SOA Section 404 that states that the management is responsible for Internal Control Over Financial Reporting (“ICOFR”), to ensure the reliability of financial reporting and the preparation
in publishing the financial report. Second, SOA Sectionn 302 that requires the company to be responsible for the formulation, maintenance, and effectiveness evaluation of the procedure to ensure that information in the report isn consistent with the US Stock Exchange Law. The Company and the entire business group always attempt to improve the implementation of GCG so that it
is consistent with the business demand and the advanced industrial changes. The strengthening of Telkom Group GCG is built and developed to create an ethical (GCG as ethics) and dignified business practice, as well as to show that the Company has been managed in an accountable, transparent, and responsible manner, so that it could grow the sense of security and confidence
of the investors and potential investors to continue supporting the company’s development. In implementing the best-practice good corporate governance, we always try not only to be able to wellmanage risks, but also to make the Company able to respond to every changes that happened and to make use of that changes into something that can build the capacity and increase the value of the company in order to support the accomplishment of its goals and the longterm sustainability of the Company.
Posted on May 11, 2016