Image Alt
Corporate Governance

Road Map & GCG Implementation Assesment

  /  Road Map & GCG Implementation Assesment

Road Map of GCG

The purpose and initial target of preparing the GCG road map is to encourage the Management’s commitment in implementing and improving GCG consistently. The Company has established the stages of GCG implementation at the Company with the aim of becoming an ethical and responsible company, turning the practice of good governance into a culture in the management of the Company, as follows :

Implementation Quality Standards of Corporate Governance

To ensure the quality of GCG implementation, the Company adopted the best standards in the implementation of GCG, both applicable in international and in Indonesia, among other criteria and methodology established by SOE Ministry Secretary Decree No.SK-16/S.MBU/2012 concerning Indicators/Parameters for the Implementation of Good Corporate Governance in SOE and Financial Services Authority Circular No.32/SEOJK.04/2015 concerning Public Company Governance Guidelines. These standards set the role og the Company’s Board of Commissioners in carry out their supervisory function to ensure that the management of the Company held by the Board of Directors is in accordance with applicable legislation and provides advice/opinions on strategic actions/activities carefully implemented by the Board of Directors to achieve the objectives of the Company. The Board of Directors emphasized that in carrying out its management functions, it was carried out in a mandate and professional manner and to avoid any potential conflicts of interest. Likewise with other GCG organs that work together to create all of the Company’s operational activities in accordance with applicable laws and regulations.

 

GCG Assessment

Since 2009, Semen Indonesia assesses the GCG annual implementation (except in 2013). The assessment aims to determine the adequacy of GCG implementation in the Company, which are carried out by an internal team, an independent assessor, as well as government agency, BPKP of East Java Province. Assessment conducted by the Semen Indonesia is using various benchmark for best practice standards applicable in Indonesia as well as prevailing abroad. Assessment becomes part of the check and balance mechanism. With assessment, the results of activities can be known with certainty and further actions to improve the performance of these activities can be determined. The Company regularly measures GCG implementation. This is done to obtain an objective assessment of the implementation of GCG in the Company. GCG assessment in the Company can be carried out independently by the Company internally or by using the services of an independent party (external evaluation).

The Company measures the achievements in implementing GCG in the form of:

  1. Assessment, aimed at periodically measuring the implementation of GCG in BUMN.
  2. Review, evaluate the follow-up of the implementation of GCG in BUMN that is carried out after the assessment, which includes evaluation of the results of the assessment and follow-up on recommendations for improvement.

2019, Semen Indonesia conducted an assessment as one of the steps to measure the quality of GCG implementation. Assessment was carried out by PT Synergy Power Prima as an independent appraiser to measure implementations within Company for various functions in the Company.

 

Criteria Used

The GCG assessment is carried out using the Corporate Governance Scorecard parameters issued by the Ministry of SOEs based on the Decree of the Secretary of the Ministry of SOEs No.SK-16/S.MBU/2012 concerning Indicators for Scoring Parameter and Evaluation for Good Corporate Governance Implementation for SOEs issued on 6 June 2012.

 

The Party Conducting the Assessment

In 2019, the Company’s GCG assessment was conducted by PT Sinergi Daya Prima, with the achievement of the GCG score in fiscal year 2019 of 94.54.