In a company, the implementation of good corporate governance is very important as one of the processes to maintain the company's long-term sustainability by prioritizing the interests of shareholders and stakeholders. Theoretically, the practice of good corporate governance can increase the value of the company such as improving financial performance, reducing the risk of adverse due to the actions of managers who tend to benefit themselves and can increase investor confidence. SOEs as one of the pillars of the Indonesian economy are required to be a pioneer of GCG implementation. PT Jasa Raharja (Persero) as one of the SOEs take the main position to encourage the implementation of corporate management by trying to formulate and apply the principles of good corporate management. Implementation of these principles is necessary for companies to survive and tough in the face of increasingly strong competition.
The Ministry of SOEs in 2010-2012 has issued a series of policies in the form of regulations / decisions of the Minister of State-Owned Enterprises including the Regulation of the Minister of State-Owned Enterprises No. KEP-01 / MBU / 2011 on the Implementation of Good Corporate Governance Practices on SOEs, which significantly affects GCG PT Jasa Raharja (Persero) and Decree of the Secretary of the Minister of SOEs. SK-16 / S.MBU / 2012 Date 6 June 2012 About Indicator / Parameter Assessment and Evaluation of Good Corporate Governance Implementation in SOEs GCG Principles, including:
- Transparency, ie openness in the process of decision making and openness in disclosing material and relevant information about the company;
- Accountability, namely clarity of functions, implementation and accountability of the Organ so that the management of the company implemented effectively;
- Responsibility, ie conformity in the management of the company against the laws and principles of healthy corporations;
- Independence, that is, the circumstances in which a company is professionally managed without conflict of interest and influence / pressure from any party that is inconsistent with legislation and sound corporate principles;
- Fairness, ie justice and equity in fulfilling the rights of stakeholders arising under agreements and legislation.
Purpose and objectives
- As one of the policy concepts that can help the Company improve the Company's performance and value by enhancing the principles of openness, accountability, credibility, responsibility and fairness in order for the company to have strong competitiveness both nationally and internationally.
- As a fundamental business activity of the Company to create a conducive atmosphere for the achievement of the vision and mission of the Company and to create a motivation and sense of responsibility towards the achievement of Company goals.
- As one of the processes in the effort to detect and prevent the occurrence of violations within the Company and as the concrete manifestation of GCG implementation at the operational level.
- As a reference for the Board of Commissioners, Board of Directors and Company Officers, it is expected that high work standards will be achieved in line with GCG.
- As one of the reference for stakeholders in dealing with the Company which subsequently established as the basis for the development of work standards within the Company.
- Being a reference / guideline for Jasa Raharja employee to perform the management of the Company in accordance with the provisions to prevent and reduce fraud that can cause financial and nonfinancial losses and damage the image of the Company.
- Being a policy that applies to all Jasa Raharja's employees wherein the Company will inform this policy to all interested parties in order to understand what the Company's working standards are.
- Being a dynamic document where the Company will continually review GCG guidelines in an effort to achieve the best working standards for the Company. For that reason, the Company will always issue any changes and additions to the GCG Guidelines.
- Facilitate the management to effectively deal with deviations from Company policies regarding the implementation of GCG guidelines.
- Obtained the same perception and understanding between Jasa Raharja's employees in applying the Company's ethical values.