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. Between April and November 2010, IICG conducted research and a corporate governance rating perception index of public companies (issuers), SOEs and other, non-issuer and non-SOE companies, and finally singled out a few companies (including TELKOM). We were once again declared the Most Trusted Company 2010 in line with the theme of the 2010 GCG evaluation, “GCG as Culture.”
The Corporate Governance Perception Index (“CGPI”) evaluation comprised four stages, with each given a different weighting:
Self assessment: Companies were asked to complete a questionnaire in line with the GCG evaluation theme;
Review of documents: Companies submitted policies, procedures and other evidence demonstrating their application of GCG;
Evaluation of papers and presentations: Companies prepared papers describing their GCG activities in line with the evaluation theme and presented them to the jury; and
Observation: The jury visited TELKOM to conduct question and answer sessions, observe and study on site to confirm the application of GCG in the company with reference to the results of the self-assessment, document review and paper assessment
As nominees we are also frequently selected for observation by GCG ratings institutions since we are considered to represent a benchmark or role model for other companies. Some of our achievements with respect to GCG evaluation are as follows:
Awards received from Finance Asia Magazine on July 21, 2010, in the “Best Managed Company”, “Best Corporate Governance”, “Best Investor Relations”, “Best Corporate Social Responsibility”, and “Most Committed to a Strong Dividend Policy” categories;
An award from Business Review Magazine and the Indonesian Institute of Corporate Directorship (IICD) for “The Best GCG, Non Financial Sector”;
Runner-up for the “Best GCG in a SOE” award from the BUMN (State-Owned Enterprise) Awards;
A Corporate Governance Award for “The Best Rights of Shareholders”; and
Achieved the highest award in “Indonesia’s Most Trusted Companies” based on the results of the GCG assessment by independent institutions the Indonesian Institute for Corporate Governance (IICG) and SWA Magazine, with a rating of “Highly Trusted”.
