OBJECTIVES OF GCG IMPLEMENTATION

Directing & managing relationship to all stakeholders

Promoting and supporting the Company’s growth

Managing human resource discreetly

Managing risk more responsibly

Enhancing the Company’s good image

Treating stakeholders more responsibly

Preventing irregularity in the management of the Company

Promoting work ethos

To achieve those objectives, Company strives to apply basic GCG principles of transparency, accountability, responsibility, independence, and fairness consistently in each operational activity. The form of Company’s real commitment to the implementation of GCG principles is as follows:

IMPLEMENTATION OF TRANSPARENCY

PThe Company assures that all material and relevant information regarding its performance, financial condition and other issues will be disclosed in a clear, adequate, accurate, comparable and timely manner, and accessible by the stakeholders according to their respective rights.


IMPLEMENTATION OF ACCOUNTABILITY

The Company assures the clarity of function, implementation and accountability of each level in the Company’s organization to enable an effective management of the Company.


IMPLEMENTATION OF RESPONSIBILITY

The responsibility principle is implemented by always adhering to the prevailing laws and regulations, good management of ex mining hotspots, performing reciprocal obligations to business partners as well as designing and implementing corporate social responsibility programs.


IMPLEMENTATION OF INDEPENDENCY

Independency principle is implemented by preparing and ensuring the adherence to the codes of conduct and regulating all transactions and investment plans with potential conflicts of interests.


IMPLEMENTATION OF FAIRNESS

The Company implements fairness principle by giving equal treatment to the rights and obligations of its stakeholders. The Company makes available the access to information on the progress of the Company to all stakeholders.

LEGAL BASIS

The Legal Basis of GCG Implementation

  1. Law No. 19 Year 2003 dated June 19, 2003 concerning State-Owned Enterprises.
  2. Law No. 40 of 2007 concerning Limited Liability Companies.
  3. Minister of SOEs Regulation No.PER-01/MBU/2011 dated August 1, 2011 concerning GCG Implementation in SOEs as amended with the Minister of SOEs Regulation No. PER-09/MBU/2012 concerning Amendments to the Minister of SOEs Regulation No. PER-01/MBU/2011 concerning GCG Implementation in SOEs
  4. The Secretary to the Ministry of SOEs Letter No. SK-16/S.MBU/2012 concerning Indicators/Parameters of the Assessment and Evaluation of Good Corporate Governance Implementation.
  5. Indonesia’s Code of Good Corporate Governance issued by the National Committee of Governance Policies.
  6. Indonesian Corporate Governance Roadmap issued by the Financial Services Authority (FSA).

GCG STRUCTURE

The Company’s GCG Structure refers to Law No. 40 of 2007 concerning Limited Liability Companies, which stipulates that corporate organs consist of three elements, namely the Shareholders through the General Meeting of Shareholders (AGM) as the highest decision making forum for the Shareholders; the Board of Commissioners as the supervisor of the company management; and the Board of Directors as the company manager. The Company’s organs perform their functions based on the principle that each organ has its own independence and performs its duties, functions and responsibilities solely for the best interest of the Company.

In operational activities, the Board of Commissioners and Board of Directors have established sub-organs of the Company to support the smooth operation of the Company and provide necessary input in assuring the smooth operation of the Company. Formation of sub-organs is conducted as part of clear division of authorities in implementing GCG principles effectively. The Board of Commissioners has established Audit Committee and Business Risk, Nomination, Remuneration and Human Resources Development Committee (KRU & NRSDM) to enhance the Board of Commissioners’ supervisory function and assist the Board of Commissioners in performing their duties and obligations as well as in formulating Board of Commissioners policies in accordance with the scope of duties.

Meanwhile, the Board of Directors has formed supporting organs as the working units to control, oversee and be responsible for GCG implementation as well as partners of the Committees under the Board of Commissioners. The working units directly responsible to the President Director are as follows:

  • Corporate Secretary
  • Corporate Management System
  • Internal Audit Unit (SPI)

GCG IMPLEMENTATION

The implementation of Good Corporate Governance (GCG) is the Company’s utmost commitment to achieve not only in short-term business growth, but also in long-term business continuity. Therefore, the Company strives to enhance the GCG implementation by doing some improving effort in theimplementation. In addition to the rules enhacement, the Company conducts socialization and internalization of GCG to all individuals in PTBA and ensures compliance on the GCG practices. The GCG implementation is not only enough by complying the applicable rules, but also shows in daily practices. The Company believes that by becoming Good Corporate Citizen through the best GCG practice implementation, thus the thrust from Stakeholders remains continuously.

As the foundation for all business activities, the Company upholds the integrity values and apllies GCG principes, namely: Transparency, Accountability, Responsibility, Fairness and Indepence.

ASSESSMENT OF GCG IMPLEMENTATION

The assessment of GCG implementation is stipulated in the article 44 Minister of SOE regulation Number: PER-01/MBU/2011 dated August 1, 2001 on the Implementation of Good Corporate Governance in SOE Chapter XII concerning Assessment on the Implementation of GCG, which technical provisions are regulated in the Decree of the Secretary of the Minister of SOE Number: SK-16/S.MBU/2012 dated Juni 6, 2012 concerning Indicators/Parameters for Assessment and Evaluation to the Implementation of Good Corporate Governance (GCG) in SOEs.

To find out and get an overview of the quality of GCG implementation, the Company conducts regular assessment every year, alternating betwen self-assessment and assessment from independent party. Self-assessment is conducted by the internal auditor from Risk Management Work Unit and Management System of the Company. While assessment by independent party will be implemented in the first quarter of 2019.

GCG CODE OF CONDUCT

ARTICLES OF ASSOCIATION

POLICIES MANUAL