Question and Answer about Good Corporate Governance

The word Governance comes from French ‘gubernance’ which means controlling. Further, it is used for company term or another organization and becomes Corporate Governance.

In Indonesia, Corporate Governance means company management.

The background of Corporate Governance is the fall of giant companies in the world such as Enron Corporationi WorldCom in the USA, HIH Insurance Company Ltd and One-Tell Pty Ltd in Australia, Parmalat in Italy in the early decade of 2000s which the fall was because the company was not managed well and responsibly, or we can say that the Corporate Governance was weak.

Code for CG is released by Indonesian National Committee about Corporate Governance Policies releasing the Indonesian Code for Good Corporate Governance for Indonesian Business society. The contents are about:

• Shareholders and their right
• Board of directors function
• Audit System
• Company secretary
• Stakeholders
• Transparency principle of company information
• Secrecy principle
• Business ethics and corruption
• Environmental protection

PT Petrokimia Gresik has responsibility toward a lot of stakeholders which have direct or indirect relations, they are: shareholders, employee, customer, supplier, creditor, society, and government. The GCG Implementation is a need of PT Petrokimia Gresik in arranging the company to be responsible upon the stakeholders that PT Petrokimia Gresik is managed well based on the GCG principle. The GCG implementation which includes justice, transparency, accountability, independency, responsibility can support the company to give value for stakeholders’ interest.

The Scopes of GCG are:

1. Commitment
   It defines as written rules and company effort to run the rules and give sincere attention toward the stakeholders’ interest.
2. Main Organ
   The main organ consists of Shareholders Annual General Meeting (AGM), the Commissioners, and the Board of Directors.
3. Supporting Organ
   The supporting organ consists of the Audit Committee, the External Auditor, the Internal Audit Unit, and the Secretary of the Company.
4. Information Access For Public
   PT Petrokimia Gresik has commitment to provide information and easy way to access it.
5. Information Technology
   Operational activity and decision making of PT Pertokimia have been computerized. All data and information provider media are adjusted to the demand of company operations and technology development.
6. Risk Management
   The Risk Management is a set of methodology and procedure used to manage the risk included, risk identification process, risk measurement, risk control, and risk monitoring of each activity done by the work unit. Therefore, one of the forms of GCG commitment implementation is forming the Risk Management Department under the Work Planning and Controlling Compartment, under the Director of Finance.
7. Company Ethic
   The company must respect the right of the stakeholders which exists based on the prevailed legislations or agreement made by the company with the employee, customer, supplier, creditor, and society around the company, and other stakeholders. The business conduct guideline of the company consists of company ethical standard and conduct standard as the moral and ethical references for each company element in applying company values to achieve and maintain the company reputation which is excellent and full of integrity.

Sistem pengendalian internal (internal control) merupakan bagian dari praktek GCG, juga praktek manajemen, yang di dalamnya mencakup pengawasan yang memadai, etika bisnis, independensi, pengungkapan yang akurat dan tepat waktu, akuntabilitas dari seluruh pihak yang terlibat dalam proses pengelolaan perusahaan, serta mekanisme untuk memastikan adanya tindak lanjut yang tepat jika terjadi praktek maupun indikasi penyimpangan dalam perusahaan.

PT Petrokimia Gresik telah membangun sistem pengendalian intern yang diimplementasikan di setiap unit kerja, yang meliputi keberadaan struktur organisasi, prosedur-prosedur operasional, pengendalian kinerja melalui Rapat Anggaran bulanan antara Direksi dengan Pejabat Eselon I/II, rapat bulanan Direksi dengan Komisaris, Pedoman Perilaku Bisnis, Etika Perusahaan, Sistem Pelaporan keuangan/Non Keuangan, Organ Satuan Pengawasan Intern, dan Manajemen Risiko. Keseluruhan sistem tersebut disesuaikan dengan tujuan perusahaan , dinamika lingkungan, dan sifat bisnis organisasi.

Melalui media-media tersebut, sistem pengendalian intern PT Petrokimia Gresik dikomunikasikan ke seluruh jajaran sehingga tercipta bentuk pengendalian seperti adanya pemisahan fungsi, otoritas berjenjang, mekanisme pelaporan kegiatan kepada atasan, pengaturan hak akses data, pengendalian dokumen, sistem wewenang yang memadai untuk melindungi aset perusahaan, berjalannya praktek-praktek yang sehat di dalam melaksanakan tugas dan fungsi setiap bagian dalam organisasi, tercapainya tingkat kecakapan pegawai yang sesuai dengan tanggung jawabnya, dan lain sebagainya.

Dengan demikian, konstruksi pengendalian intern PT Petrokimia Gresik sejauh ini telah mampu mengawal/mendukung secara kondusif implementasi prinsip-prinsip GCG.