GCG Evaluation

To ascertain our GCG performance, we undergo an annual assessment by the Indonesian Institute for Corporate Governance (“IICG”), an independent GCG rating institution in Indonesia. In its assessment process, the IICG conducted research and rated several public companies (issuers), SOEs, including Telkom, and other companies using the Corporate Governance Perception Index (“CGPI”). At the end of the process, Telkom was declared ‘The Most Trusted Company’ in line with the 2011 GCG assessment theme of “GCG as ethics”.
The CGPI assessment had four stages, with each given a different weighting:

  1. Self assessment: We were asked to complete a questionnaire in line with the GCG assessment theme;
  2. Review of documents: We submitted policies, procedures and other evidence demonstrating our application of GCG;
  3. Evaluation of papers and presentations: We prepared a paper describing our GCG activities in line with the assessment
    theme and presented it to the jury; and
  4. Observation: The jury visited Telkom to conduct question and answer sessions, observe and do an on-site review to
    confirm the application of GCG in the Company, referring to the results of the self-assessment, document review and
    paper assessment.

Apart from the IICG assessment, we were also frequently selected for observation by other GCG rating agencies as
we are seen as a benchmark or role model for other companies. Some of our other achievements with respect to GCG
evaluation are as follows:

  1. Most Consistent Dividend Policy and Strongest Adherence to Corporate Governance Award;
  2. An award from Finance Asia magazine in the “Best Managed Company” category;
  3. The highest award, “Indonesia’s Most Trusted Companies”, on the results of the GCG assessment by
    independent agencies the Indonesian Institute for Corporate Governance (IICG) and SWA magazine, with a
    rating of “Highly Trusted”;
  4. An “Indonesia’s Trusted Company” award, based on a survey of investors and analysts;
  5. An award from the Indonesia Sustainability Reporting Awards (ISRA); and
  6. A Best State-Owned Enterprises (SOE) award, and an award from the Indonesian Institute of Corporate Directorship
    (IICD) in the Corporate Governance Practices in Public Companies in Indonesia category.