Corporate governance execution is important to the Company, and can have a direct impact on a country’s economy. The Company is well aware of this, and continues to maintain its commitment to the effective application of corporate governance. The Company’s commitment to corporate governance is evident from the effectiveness of its governance structure, and the governance processes already applied. The Governance Structure and Governance Processes has encouraged the achievement of a Governance Outcome, in line with the Company stakeholders’ expectations.
Basic Principles of Good Corporate Governance
In GCG implementation, Company complies with the following five principles:
- Transparency – transparent in performing decision making process and in relevant material information related to the company.
- Accountability – clarity of organization functions, implementation, and responsibility so that the company management shall run effectively.
- Responsibility – suitability in company management toward laws and regulations.
- Independency – independence of company management to act without any interference from other parties which is incompliance with the applicable laws and regulations as well as healthy corporation principles.
- Fairness – justice and equalization in fulfilling stakeholders’ rights based on current agreement and regulations.
Implementation of GCG principles requires thorough approaches and phases based on analysis of company situation and condition as well as company readiness.
Basis for Corporate Governance Application
The application of GCG in WIKA refers to the following provisions, namely:
- 2007 Law Number 40 concerning Limited Liability Companies
- 2003 Law Number 19 concerning State Own Enterprises
- Republic of Indonesia Government Regulation Number 45 of 2001 concerning amendment to Government Regulation Number 12 of 1998 concerning Limited Liability Companies (Persero)
- Minister of State-Owned Enterprises Regulation Number: PER-01/MBU/2011 dated August 1, 2011 concerning the Implementation of Good Corporate Governance in State-Owned Enterprises and amendment to Minister of State-Owned Enterprises Regulation No. PER-09/MBU/2012 dated July 6, 2012
- Secretary of the Ministry of State-Owned Enterprises Decree No. SK-16/S.MBU/2012 dated June 6, 2012 concerning the Indicators / Parameters for Evaluation of Good Corporate Governance in SOEs
- Otoritas Jasa Keuangan Regulation No. 8/ POJK.04/2015 concerning Issuers or Public Company Web Sites
- Otoritas Jasa Keuangan Regulation No. 31/ POJK.04/2015 concerning Disclosure of Material Information or Facts by Issuers or Public Companies
- Otoritas Jasa Keuangan Regulation No. 21/ POJK.04/2015 concerning the Implementation of GCG Guidelines
In addition, to further streamline the implementation of GCG, the Company also reviews the best business practices that include:
- Corporate Governance principles for SOEs developed by the Organization for Economic Co-operation and Development (OECD)
- ASEAN Corporate Governance Scorecard
- GCG Implementation based on perception index from specific part regarding to corporate governance or Corporate Governance Perception Index (CGPI)
- Assessment of excellence business implementation through the Superior Performance Appraisal Criteria (KPKU) especially for governance and leadership
- GCG Indonesia Guidance developed by Komite Nasional Kebijakan Governance (KNKG) in 2006.