IMPLEMENTATION
GCG Implementation
The implementation of Good Corporate Governance (GCG) is a form of Pupuk Kaltim’s compliance with the Letter from PT Pupuk Indonesia (Persero) as the Shareholder of Pupuk Kaltim number SE-08/XI/2012 dated 27 November 2012 concerning The Implementation of Good Corporate Governance in the Subsidiary of PT Pupuk Indonesia (Persero).
The implementation of GCG within Pupuk Kaltim aims to:
- Optimize the value of the Company to maintain strong competitiveness, both nationally and internationally, so that the Company can continue to exist and operate sustainably to achieve its goals and objectives.
- Encourage the management of the Company to act in a professional, efficient, and effective manner, as well as empower the functions and increase the independence of the Company’s Organs.
- Encourage the Company’s Organs to make decisions and take actions based on high moral values and compliance with laws and regulations, as well as awareness of the Company’s social responsibility toward stakeholders and the preservation of the surrounding environment.
- Increase the Company’s contribution to the national economy.
- Promote a climate conducive to the development of national investment.
COMMITMENT
GCG Commitment
Pupuk Kaltim has committed to implementing GCG by issuing Board of Directors Decree No. 13/DIR/III.2012 regarding the refinement of the Pupuk Kaltim Organization through the establishment of the Department of Compliance and Risk Management as a working unit to organize GCG, i.e., Compliance and Risk Management.
In accordance with Shareholder’s letter No. U-1283/A00000.UM/2014 dated September 5, 2014, regarding the standardization policy of the Compliance and Risk Management working unit, on December 8, 2014, the Board of Directors issued Board of Directors Decree No. 50/DIR/X/2014 that entered force on October 1, 2014, concerning the Refinement of the Board of Directors decree regarding the PT Pupuk Kaltim Organization Structure, by which the Department of Compliance and Risk Management was renamed the Department of Corporate Governance and Risk Management.
In the implementation of GCG, Pupuk Kaltim issued Board of Directors Decree No. 40/DIR/VII.2013 dated July 8, 2013, regarding the Implementation of Good Corporate Governance in PT Pupuk Kaltim. This was a refinement of Board of Directors Decree No. 4/DIR/II.2010 regarding the Refinement of PT Pupuk Kaltim Code of Conduct, i.e.,
- Stipulating and impelementing "PT Pupuk Kalimantan Timur Code of Good Corporate Governance", as the main principal reference for the implementation of PT Pupuk Kalimantan Timur Good Corporate Governance.
- Stipulating and implementing the “PT Pupuk Kalimantan Timur Code of Good Corporate Governance” as the principal reference for the implementation of Good Corporate Governance at PT Pupuk Kalimantan Timur.
- Stipulating and implementing the “PT Pupuk Kalimantan Timur Board Manual” as the principal reference for guidance concerning the commitment to the corporate governance relationship between the Board of Commissioners and the Board of Directors of PT Pupuk Kalimantan Timur.
- All material transactions that require shareholder approval have been carried out in accordance with the requirements. Shareholders approved the Board of Directors to perform various breakthroughs in response to the market condition.
- The Board of Commissioners already has a Board Manual governing the function, distribution of duty, and responsibility.
- The Board of Directors altered the organization structure, anticipating the development of business and strategy, risk management implementation, the conducting of risk self-assessment, and the enhancement of quality management capability.
- The Corporate Secretary conveys information to stakeholders regularly, clearly and accurately, via print and electronic media, among others.
- The company has already established a GCG Self-Assessment Team and conducted a self-assessment based on parameters composed by BPKP.
GUIDELINES
GCG Guidelines
Good Corporate Governance (GCG) guidelines are the basis for the Directors and Management of PT Pupuk Kalimantan Timur to make decisions and policies in accordance with the principles of GCG, namely: transparency, accountability, responsibility, independence, and fairness. GCG guidelines are needed so that PT Pupuk Kalimantan Timur can survive in the face of increasingly fierce competition, GCG is expected to be a means to achieve the Company's vision and mission.
