Commitment

helpdeskAs a public company, the Company always fully commit to implement Corporate Governance principles in every aspects of the business in all levels of the Company. Implementation of Good Corporate Governance/GCG is intended to guide all Directorates of the Company in carrying out their duties with positive moral attitude and in compliance with the prevailing laws and regulations.

Some important progess in relation to GCG implementation was the completion of Good Corporate Governance Guidance. This guidance is intended to encourage the implementation of professional, transparent and efficient management through functional empowerment and higher independence for all directorates in the Company. Based on its self assessment, the Company considered that the GCG has been implemented well in 2008.

Supervision And Internal Controls

meetingThe Company has Internal Control Unit, namely Business Control & Compliance Division which has 16 personnels, include 3 managers.

Procedure

The internal audit are performed regularly in accordance with the annual planning. In general there are 4 phases of audit. First phase, preparation, is intended to understand the Business Process and activities of the auditee, followed by preliminary audit to identify problems or matters for futher audit which including but not limited to review laws and regulations, SOP, Indonesian GAAP, and management policy and limited review of internal controls.

Then further audit on the objects are performed in accordance with the Audit Standard. This covers monitoring, clarifying, analysing and verifying all important and relevant information are required to support the audit findings and recommend for improvement.

Corporate Ethics

In accordance with Directors decision letter No. 0036/DIR/I/2006; dated 1 February 2006, the Company has issued Code of Business Ethics and Conducts to be followed by all elements in the Company. The guidance contains important principles that should be implemented fully in order to maintain good relationship with all parties within the Company and Company business partners.

In general, the Code of Business Ethics and Conducts contains of six main principles, namely Integrity as working requirements, Fair competition, No Conflict of Interests, Fair treatments, Safeguarding Company Assets, apply code of ethics towards all stakeholders / interests parties.

In order to give proper understanding of Code of Ethics to each employee, Human Resources and Business Control & Compliance Division has conducted socialization to all employees of the Company all over Indonesia. Up to end of 2008, all employees have participated in this socialization.

To ensure the compliance with code of ethics, the Company has done the followings:

  1. All employees who already attended the socialization must sign a statement to comply with Code of Ethics.
  2. Monitor implementation and violation of code of ethics by having special telephone line in Human Resources and Business Control Division to receive reports of violation.
  3. Human Resources periodically email the employees as a reminder for employees to comply with code of ethics and sanctions applied for its violations, from warning letters up to termination of working relationship.

By implementating such Code of Ethics, the Company expected all elements, management as well as employees, are committed to respect and comply with prevailing laws and regulations which related to Company operating policies .