Category: Tata Kelola Perusahaan

May 3, 2019

PT AKR Corporindo Tbk. believes that GCG must be carried out continuously. To that end, AKR continuously strengthens its commitment to applying the GCG principles to maintain a balance between the Shareholders’ interests and other Stakeholders’ interests.

When applying GCG principles, AKR also adopts the best standards that apply internationally such as the ASEAN Corporate Governance Scorecard issued by the ASEAN Capital Market Forum, and applicable standards in Indonesia, such as the GCG Guidelines issued by the National Committee on Governance Policy (KNKG) in 2006 and the Indonesian Corporate Governance Road Map issued by Otoritas Jasa Keuangan in January 2014.

The Company’s commitment to implementing corporate governance is manifested in its Corporate Governance Framework as follows:

PLATFORM FOR IMPLEMENTATION OF CORPORATE GOVERNANCE

The Corporate Governance principles applied by the Company are based on:

  1. 2007 Republic of Indonesia Law No. 40 concerning Limited Liability Companies;
  2. 1995 Republic of Indonesia Law No. 8 concerning the Capital Market.
  3. Otoritas Jasa Keuangan Regulation No. 21/ POJK.04/2015 concerning Corporate Governance Implementation Guidelines;
  4. Otoritas Jasa Keuangan Regulation No. 32/POJK.04/2014 concerning the Planning and Organization of Public Company General Meeting of Shareholders;
  5. Otoritas Jasa Keuangan Regulation No. 33/POJK.04/2014 concerning the Board of Directors and Board of Commissioners of Issuers and Public Companies;
  6. Indonesia’s GCG Guidelines issued by the National Governance Policy Committee;
  7. Indonesian Corporate Governance Roadmap issued by Otoritas Jasa Keuangan.

 

CORPORATE GOVERNANCE PRINCIPLES

The Company’s GCG framework is based on the principles of transparency, accountability, responsibility, independency as well as fairness and equality.

 

 

May 2, 2019

Awards related GCG received by the Company in 2018

  1. Warta Ekonomi, Indonesia Most Innovate Business Award2018, Excellent Company For Service and OrganizationalInnovation In Wholesale Sector
  2. The Most Valuable Brands 2018 by Brand Finance PLC
  3. Warta Ekonomi, Indonesia Best Public Companies Award2018, Indonesia Excellent Public Company 2018, Category:Trade, Service & Investment
  4. Economic Review, Indonesia Public Company Award V -2018, 1st The Best Indonesia Production Goods WholesaleTrade Public Company 2018, Sector : Trading
  5. Economic Review, Indonesia Finance Award I – 2018, 2ndThe Best Indonesia Production Goods Wholesale Trade Public Company, Category : Finance, Sector : Trading
  6. Tempo Media Group, 7th Annual Strategy Into Performance Execution Excellence (SPEx2) Awards, The Best In Logistics Management Industry
  7. IICD, The 10th CG Conference & Award 2018, The 50 Big Capitalization Listed Company

 

May 1, 2019

The Company continues to strive to maximize the five basic principles of GCG, namely transparency, accountability, responsibility, independence, and fairness as the foundation of the Company’s daily operations. This is based on the Company’s awareness on the importance of implementing GCG principles in achieving its vision and mission.

GCG internalization within the Company is carried out by applying GCG values into all business processes including Procurement Procedures, Employee Selection Procedures, Acceptance Procedures, Reporting Procedures, and Marketing Procedures. The Company also periodically conducts activities that provide information to external parties regarding the Company’s operational and financial performance through:

  1. Investor relations activities (analyst meetings and roadshows to various investment institutions)
  2. Annual public exposure
  3. Update the Company’s website regularly (www.akr.co.id)
  4. Periodic dissemination of information in the form of news releases to stakeholders.

The introduction and understanding of the Company’s commitment to GCG to all levels of the Company is continuously implemented in every business activity of the Company. There are three main focuses of the Company’s concern regarding the implementation of GCG in the Company, including:

  1. Compliance, is the principle of Company’s compliance with good corporate governance in all aspects, including the implementation of Company policies.
  2. Confidence, instilling an optimistic attitude and confidence that the Company always provides the best for all stakeholders.
  3. Transparency, the Company always prioritizes the principle of transparency and always provides the information needed for investors.

The Governance Guidelines cover 5 aspects, 8 principles and 25 recommendations for the implementation of good corporate governance aspects and principles. Recommendations for applying the aspects and principles of good corporate governance in the Governance Guidelines are the implementation standards of aspects and principles of good corporate governance that the Company must apply to implement the principles of governance.

The description of the implementation can be submitted, as follows:

The Governance Guidelines cover 5 aspects, 8 principles and 25 recommendations for the implementation of good corporate governance aspects and principles. Recommendations for applying the aspects and principles of good corporate governance in the Governance Guidelines are the implementation standards of aspects and principles of good corporate governance that the Company must apply to implement the principles of governance. The description of the implementation can be submitted, as follows:

May 1, 2019

ASSESSMENT OF GCG IMPLEMENTATION

 

May 1, 2019

The Company is obligated to protect the witness or whistleblower to an offense committed by an employee or management to motivate stakeholders to report the occurrence of violations. Violations can be reported via the whistleblowing system including violations of legislations, code of conduct, generally accepted accounting principles, and company operational policies and procedures or other fraudulent activities.

VIOLATION REPORTING IN ACCORDANCE WITH INTERGRITY PACT

As stated in the Integrity Pact, signed by all employees, partners, and suppliers of goods and services to the Company, all incidents indicating violations must be reported to the appropriate authorities, namely Bambang Syumanjaya and Jimmy Tandyo on (021) 5311110.

WHISTLEBLOWER PROTECTION

Protection for the whistleblower is as follows: 1. Protection of the confidentiality of the whistleblower’s identity, including information that can be used to contact the whistleblower 2. Protection from retaliation for the reported party or other parties who have an interest in the occurrence 3. Protection from pressure, employee rights, lawsuits, assets from physical actions.

COMPLAINT HANDLING

The Company ensures that all violation reports will be followed up well. Each violation report will be immediately followed up by related parties. Recurrent and systemic violations will be reported to the relevant officials who have the authority to make improvements.

COMPLAINT MANAGER

The Internal Audit Unit manages the whistleblower system. This unit will periodically check every incoming report for further action.

May 1, 2019

Business ethics are an integral part of corporate governance in achieving long-term success. The code of ethics is a code of conduct used as the reference for employees of the Company in implementing the corporate values, which when applied on an ongoing basis will formed part of corporate culture.

Code of Conduct Contents

1. Introduction

1.1 Background

1.2 Objectives

1.3 Scope

1.4 Terms and Definitions

1.5 References

 

2. Vision, Mission, Corporate Culture and Good Corporate Governance Principles

2.1 Vision And Mission

2.2 Corporate Culture

2.3 Good Corporate Governance Principles

 

3. Business Ethics

3.1 Company Ethics With Employees

3.2 Company Ethics With Customers

3.3 Company Ethics With Goods and Services Provider

3.4 Company Ethics With Government 3.5 Company Ethics With the Community

3.6 Company Ethics With Shareholders

 

4. Work Ethics

4.1 Rules of Conduct

4.2 AKR Personnel Interagency Cooperation

4.3 Compliance with Laws and Regulations

4.4 Conflicts of Interest

4.5 Company Data and Information Confidentiality

4.6 Occupational Health And Safety And Environmental Management

5. Violation Sanctions

6. Integrity Charter Pact

6.1 AKR Group Employees

6.2 AKR Group Suppliers

 

CODE OF CONDUCT PRINCIPLES

The Company’s code of conduct principles are as follows:

  1. Compliance to Company Regulations. Company Regulations must be upheld and complied with by all employees. Violation of any rules or orders may result in warnings through to termination of employment.
  2. Compliance to avoid conflicts of interest. In any conflict of interest, the decisions taken by the employees must be made by prioritizing the interests of the Company.
  3. Obligation to maintain company confidentiality. All employees must not disclose any information that could negatively affect the Company.

CODE OF CUNDUCT APPLICABKE TO ALL ORGANIZATIONAL LEVELS

All employees at all levels of the Company are committed and responsible to implementing the code of conduct consistently. The Board of Directors and the Audit Committee have also emphasized the importance of the code of conduct for the sustainability of the Company’s business.

CODE OF CONDUCT DESSEMINATION

The media used to disseminate the code of conduct to all individuals of the Company, are as follows:

  1. Company website www.akr.co.id
  2. Annual report
  3. Newsletters
  4. Pocket books 5. New employee orientation materials
  5. etc.

ENFORCEMENT AND SANCTIONS OF CODE VIOLATION

Every employee is required to sign the Code of Conduct when joining the Company and implementing it in daily activities. The Company also periodically organizes events to emphasize the Code of Conduct application to employees. Code of Conduct violations may result in warnings to termination of employment.

CORPORATE VALUES

The Company is committed to apply GCG to all individuals in the company to realize the company’s vision. To that end, the Company has established and implemented a Corporate Culture as the guidelines for the behavior of all Company employees, including:

 

May 1, 2019

The Company continues to provide easiness for stakeholders to access information, including company and financial information, press releases, products and corporate actions through the website www.akr.co.id, which is available in Indonesian and English.

For more information, stakeholders can contact the Company’s Corporate Secretary/Investor Relations by sending an email to ir@akr.co.id or call +62 21 531 1110. The Company also continues to report material facts and information via letter to OJK and via Electronic Reporting to Indonesia Stock Exchange (www.idx.co.id).

WEBSITE

The Company provides access to company information and data via the website http:/www.akr.co.id, which is available in Indonesian and English. The website provides a variety of information, including:

  1. Company profile,
  2. vision and mission,
  3. business model,
  4. financial information,
  5. news updates,
  6. corporate social responsibility,
  7. information disclosure, etc.

Besides being a means of disseminating information to the public, the website is also a Company’s effort to implementing good corporate governance practices and transparency to all stakeholders. The Company regularly updates the website with the latest information concerning the Company for stakeholders. The Company’s website also provides contact number as well as email and postal address contact for further communication with stakeholders.

MEETING WITH ANALYST AND INVESTORS

The Investor Relations Department together with the Company’s management actively and routinely conducts meeting both one on one meetings organized directly by the Company or through investor visits by request from leading securities companies, participation in investor conferences, or road shows held in Jakarta and various cities in Asia, America and Europe.

May 1, 2019

In 2018, the Company and members of Board of Commissioners and Board of Directors of the Company were not subject to administrative sanctions by the relevant authorities (capital market, banking and others).

May 1, 2019

During 2018, there were no civil or criminal lawsuits faced by the Company, its subsidiaries, the Board of Commissioners or the Board of Directors.

May 1, 2019

FINANCIAL AND OPERATIONAL CONTROL SYSTEM

The Company’s financial control system is implemented by providing financial information to all levels of management, shareholders, and stakeholders, for them to base their economic decisions. This system is used by management to plan and control the Company’s operations.

Meanwhile, the operational control system has implemented policies and procedures that are directly used to achieve the goals and targets, to ensure or provide appropriate financial reports, and to ensure compliance with laws and regulations.

INTERNAL CONTROL SYSTEM FRAMEWORK

The Company has an internal control system that aligns with the internationally recognized framework, namely the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on COSO, the internal control system is a process that involves the Board of Commissioners, the Board of Directors, as well as other personnel. This is in line with the internal control system in the Company, which continuously improves the organizational control system by managing all available resources.
The Company believes that the internal control system should aim to provide reasonable assurances for the achievement of the following three objectives:

  1. Operational effectiveness and efficiency
  2. Financial reporting reliability
  3. Compliance with laws and regulations.

The Company views internal control as a part of a chain of activities that covers the Company’s entire business processes. Internal control can be found in the basic management processes such as planning, implementation, and monitoring. The internal control system components include the following:

  1. Control environment that includes integrity, ethical values, and competencies of people and entity, management philosophy and style of operation, the way management hands over authority and responsibility as well as organizing and developing its business in accordance with management directions.
  2. Risk assessment that aims to identify, analyze, and manage the risks associated with the Company’s many business activities.
  3. Control activities that are continuously performed to determine the policies and procedures that are established by management to ensure that the Company’s business objectives have been reached.
  4. Information and communication that allows any person or entity, to obtain and exchange the necessary information to implement, manage, and control the Company’s operations.
  5. Monitoring that aims to assess the quality of Company’s performance, conducted through continuous monitoring, separate evaluations or a combination of both.

 

Compliance with COSO standards

 

EVALUATION OF INTERNAL CONTROL SYSTEM EFFECTIVINESS

Efektifitas sistem pengendalian internal Perseroan tercermin dalam tiga proses yaitu:

The Company’s internal control system effectiveness is reflected in three processes, namely:

1. Entity level process The realization of the increase in internal control can be seen at the entity level. The Company’s Internal Audit Unit continuously strives to improve the quality of its audit control and inspection of all departments, branches and projects’ performance. The company immediately follows up any criticisms and suggestions made to the Company, so that all employees at all levels can contribute by taking part in monitoring and reporting any dishonesty in any work areas of the Company. To maintain the commitment to the Company’s corporate governance implementation, the Company has implemented code of ethics’ principles at all levels.

2. Business level process The increased scope of internal control at the business level processes has had an impact on the financial reports, especially from a risk identification aspect, which can now be made more accurately and accountably. This is evident from the internal controls on the procurement, financial reporting, sales and accounts receivable processes.

3. Information Technology level process

  1. Improvement of network and security systems;
  2. Improvement in the quality of information technology

 

 

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