We are subject to Bapepam-LK and SEC regulations. In addition, we implement and strive to uphold corporate governance policies and practices based on international best practices as well as the Indonesian Code of Good Corporate Governance (“Good Corporate Governance”) published by the National Committee on Governance in Indonesia. As a listed company, we believe that good corporate governance is more than compliance with requirements; rather, it is a duty that we take on ourselves to act in the best interest of our shareholders and stakeholders as we sustain our growth in a highly competitive communications and information industry.
Our achievement in good corporate governance is may be seen, in part, by the awards we have received. These include:
The “Most Trusted Companies based on Corporate Governance Perception Index Assessment” and “Trusted Company based on Investor and Analyst’s Assessment Survey” from the Indonesian Institute of Corporate Governance (IICG) in cooperation with SWA magazine (December 2009); and
The “Best Good Corporate Governance — Non Financial Sector” by Business Review magazine and the Indonesian Institute for Corporate Directorship (IICD), (May 2009).
To maintain transparency, accountability, independence and fairness, our management and the BoC work to develop, implement and improve structures and procedures that will ensure good corporate governance. We are committed to implementing good corporate governance consistently so that we can offer the best possible service to our customers and continue to hold the trust of our shareholders and stakeholders.
A comprehensive policy statement, intended to further improve our good corporate governance, is set forth in the Decree of our BoD No. 29 of 2007. This policy includes provisions on governance to ensure that each transaction carried out by us, whether internal or external, is conducted in an ethical manner and in accordance with best corporate governance practices. The key aspects that our BOD identified and which form the backbone of our corporate governance program are:
Sound business ethics
Effective work policies and procedures
The application of risk management policies and procedures
Sound internal supervision and controls policies and procedures
Leadership and clear duties and responsibilities, with attention to the principles of accountability and segregation of duties
Empowering our human capital to enhance their capabilities and competencies
The management of our Performance Management System; and
Incentives for exemplary conduct, balanced with appropriate enforcement in the event of violations.
As a company that is listed on the NYSE, we comply with relevant provisions of the Sarbanes Oxley Act of 2002 (“SOA”) and rules promulgated under the SOA. There are several provisions of SOA that apply to us, in particular, those under (i) SOA Section 404, that requires our management to be responsible for establishing and maintaining adequate internal control over financial reporting (“ICOFR”), in order to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of published financial statements in accordance with generally accepted accounting principles. We and our subsidiaries undergo an annual assessment and audit of the effectiveness of the design and application of ICOFR, which is integrated with the audit of the financial statements (ii) SOA Section 302, that requires our management to be responsible for establishing, maintaining and evaluating the effectiveness of our disclosure controls and procedures, which are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the applicable time periods, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. A description of our management’s assessments of ICOFR disclosure controls and procedures and related disclosures are at “Controls and Procedures”. We are also subject to SEC and Bapepam-LK rules on independence of audit committee members.
Posted on May 19, 2010 Source: TELKOM 2009 Annual Report (filed to Bapepam-LK on April 08, 2010)
