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CORPORATE GOVERNANCE ASSESSMENT

The Company is fully committed to implement the highest standard of good corporate governance through a variety of improvement and enhancement, beyond the minimum standards and recommendations that must be met. In accordance with Regulation of the Minister of State Owned Enterprises No. PER-01/MBU/2011 on the Implementation of Good Corporate Governance in State Owned Enterprises which stipulates that each state owned enterprise is obliged to measure the implementation of Good Corporate Governance, through assessment which is held every 2 years by an independent assessor and evaluation (review) conducted by the state-owned enterprises (self-assessment) that includes an evaluation of the results of the assessment carried out by an independent party and follow-up recommendations for improvement concluded from final judgments.

In 2019 the Company has carried out evaluation/review on GCG implementation for the financial year of 2018 with assistance of the MUC Consulting. In such evaluation/review, the Company achieved a score of 93,850 maximum score of 100 or 93,850%, with the title “Very Good”.

Such score was the combination of 6 governance aspects which were assessed, namely:

Governance Aspect Weight Achievement Year 2018
Score %
I. Commitment to the Implementation of Sustainable of Good Corporate Governance 7,00 6,759 96,557
II. Shareholders and Shareholders’ General Meeting 9,00 8,758 97,309
III. Board of Commissioners 35,00 31,618 90,338
IV. Board of Directors 35,00 33,734 96,384
V. Information Disclosure and Transparency 9,00 8,606 95,617
VI. Other Aspects 5,00 4,375 87,500
Total 100 93,850 93,850
Predicate Very Good

 

Score evaluation/review for the financial year of 2018 has increased if compared with a score of assessment in 2017. In 2017 the results of the assessment with the assessor of the MUC Consulting, the Company obtained a score of 92,764, while the results of evaluation/review for the financial year of 2016, the Company obtained a score of 92,749 with the title “Very Good”.

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