Good Corporate Governance
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219 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 220 05 GOOD CORPORATE GOVERNANCE Business Ethics and Work Ethics Good Corporate Governance is the main pillar of PGN in managing its business activities to create added value for all stakeholders 219 PT PerusahaanGasNegaraTbkAnnualReport2019 Overview Performance to The Report Shareholders Profile Company Discussion and Analysis Management Governance Good Corporate Annual Report 2019 PT Perusahaan Gas Negara Tbk Annual Report2019PTPerusahaanGasNegaraTbk Responsibility Corporate Social and Environmental Financial Statements Consolidated Regulatory 220 Cross Reference 221 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 222 GOOD CORPORATE GOVERNANCE IMPLEMENTATION In an era of disruption (disruptive) in the globalization period, PGN faces great challenges to maintain its position as the leader in the gas business. As a Sub-holding gas company, PGN is strongly required to provide the best services and maximum benefits of good energy to the customers and the people at large, while maintaining its best performance to create the values for its shareholders and other shareholders. With the principles of Good Corporate Governance as a strong company that has stood the test, PGN as a Sub-holding gas company has been trusted to be able to enter and answer the challenges in managing the gas business, to share good vibe, not only with the people of Indonesia, but also with the people of the world. The implementation of high standards for good corporate governance (GCG) has made PGN a fundamentally and sustainably healthy company that is capable of managing business challenges well and having strong competitiveness. By prioritizing the principles of GCG, PGN has affirmed its commitment to creating the culture of Corporate Governance consistently and sustainably in all of the corporate activities in order to successfully face the disruptive era and to have positive impacts on the shareholders and shareholders including the community at large. The implementation of GCG principles is a foundation for managing the corporate business as well as a realization of the corporate compliance with Regulation of Minister of State-Owned Corporations Number PER 09/MBU/2012 dated July 6th, 2012 concerning the amendment to Regulation of Minister of State-Owned Corporations Number: PER 01/MBU/2011 dated August 1st, 2011 concerning Implementation of Good Corporate Governance within State- Owned Corporations and Regulation of Financial Services Authority (OJK) Number 21/POJK.04/2015 dated November 16th, 2015 concerning Implementation of Good Corporate Governance within Public Companies. 221 PT PerusahaanGasNegaraTbkAnnualReport2019 Overview Performance to The Report Shareholders Profile Company Discussion and Analysis Management Governance Good Corporate Annual Report 2019 PT Perusahaan Gas Negara Tbk Annual Report2019PTPerusahaanGasNegaraTbk Responsibility Corporate Social and Environmental Financial Statements Consolidated Regulatory 222 Cross Reference 223 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 224 GCG MILESTONES 2003 • Initial Public Offering (IPO) PGN • Determination of Directors’ Decree on GCG • Appointment of Independent 2004 Commissioners • GCG Mapping • Formation of the Board of • Preparation of GCG Guidelines Commissioners’ Committees • Board Preparation Manual (Audit, Nomination, • Establishment of the Insurance Remuneration, and GCG) and Business Risk Committee • Determination of the • Determination of the Audit Independent Commissioner Committee Charter as Chairman of the Audit Committee • Formation of Functional Work Unit in GCG & Corporate Culture (GCG & BP) and Business Analysis & Risk Management (ABMR) • Determination of Risk Management Manual 2006 • Ratification of GCG soft structure: GCG Guidelines & 2005 Board Manual • The 2006 Best Issuer Award • GCG Policy Formulation in the “Capital Market • Implementation of GCG Award” by the JSX Implementation Framework • Determination of Behavior • Signing of GCG Commitments (Code of Conduct) by the President Director, Chief • GCG Socialization Commissioner and Chair of the Trade Union 223 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 224 Overview Performance to The Report Shareholders 2008 • Establishment of “ProCISE” Profile Corporate Culture Company • Merging of the Nomination and 2007 Remuneration Committee; • Transfer of Risk Management in • Establishment of Risk the Directorate of Finance Management in the Directorate • The GCG Assessment first General used Company Corporate • GCG Assessment Preparation Governance Scored developed Discussion • GCG Socialization by the Ministry of SOEs and Analysis Management • GCG Socialization Governance Good Corporate 2009 • Renewal of the Audit Committee Charter • Determination of Internal Audit Guidelines Responsibility • Determination of COSO-ERM-based Corporate Social and Environmental Risk Management Guidelines 2010-2011 • Recognition from Governance Metrics International (GMI), raised • Establishment of Division of PGN’s rating from 1.5 (March 2008) Organization and Business to 4.5 (September 2009) Processes in charge of managing • GCG Socialization GCG in the General Directorate (2010) Financial Statements • Establishment of the Directorate of Consolidated Investment Development and Risk Management (2011) • GCG Assessment • GCG Socialization Regulatory Cross Reference 225 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 226 2012 • Updated GCG Guidelines • Implementation of GCG Workshop • Establishment of a Risk 2013 Management and Business Development Monitoring • Determination of the Whistle Committee (PMRPU) Blowing System Guidelines • Preparation of PMRPU • Board Manual Updates Committee Charter • Renewal of the Audit Committee • First LHKPN implementation Charter • GCG Assessment (SOE • LHKPN implementation Parameter) • GCG Assessment (SOE Parameter) • GCG Socialization • GCG Socialization 2015 2014 • Formation of Remuneration, • Stipulation of Decree of Conflict of Nomination and GCG Interest and Gratification Control Committees • LHKPN implementation • Transfer of Risk • GCG Assessment (SOE Parameter) Management & GCG • GCG Socialization Division to the Main Directorate • LHKPN implementation • GCG Assessment (SOE Parameter) • GCG Socialization 225 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 226 Overview Performance to The Report Shareholders 2016 • Board Manual Updates • LHKPN implementation • GCG Assessment (SOE 2017 Parameter) Profile • GCG Socialization • Implementation of e-LHKPN Company • GCG Assessment (SOE Parameter) • GCG Self Assessment (ASEAN Corporate Governance Scorecard Parameter - ACGS) • GCG Socialization Discussion and Analysis Management Governance Good Corporate 2018 2019 • The establishment of PGN as • Board Manual Updates Subholding Gas and PT Pertamina • GCG Branding Implementation (Persero) as the Holding of Oil and • Implementation of e-LHKPN Gas BUMN • GCG Self Assessment in Responsibility • Acquisition of PT Pertamina Gas Subsidiaries / Affiliates Corporate Social • Updated GCG Guidelines • Measurement of GCG Maturity and Environmental • Updated Ethical Guidelines Level • GCG Soft Structure Assistance • GCG Assessment (BUMN & ACGS • at 6 AP / Affiliate Parameters) • Implementation of e-LHKPN • GCG Socialization • GCG Assessment • Compilation of GCG Online System • (BUMN parameters) (GOLS) Applications Financial Statements • GCG Self-assessment (ACGS Consolidated Parameters) • GCG Socialization Regulatory Cross Reference 227 PT Perusahaan Gas Negara Tbk Annual Report 2019 Annual Report 2019 PT Perusahaan Gas Negara Tbk 228 THE OBJECTIVES OF GCG IMPLEMENTATION d. To scale up PGN’s contribution towards national The objectives of the implementation of GCG within the economy; company’s setting in accordance with the Guidelines for e. To improve the accountability to the stakeholders; Good Corporate Governance Number P-003/0.20 are: f. To improve the conducive climate to support national a. To optimize the values of PGN to have strong investment development; competitiveness at the national and international levels g. To keep the company’s image to be better. in order for the company to maintain its existence and sustainable operation to achieve the goals of the THE STRUCTURE OF CORPORATE GOOD company; GOVERNANCE b. To endorse the implementation of PGN’s professional, In accordance with Law Number 40 of 2007 concerning efficient, and effective management and to empower Limited Company, the structure of the company is generally the functions and improve independence the corporate described in the Corporate Main Organs consisting of organs; the General Meeting of Shareholders (GMS), the Board of c. To encourage the corporate organs to make their Commissioners and the Board of Directors. As stated in decisions based on high moral value and compliance the Company’s Articles of Association and the prevailing with the law and regulations, and to improve social laws and regulations, each of the Corporate Organs plays a awareness of PGN and its Shareholders and for the significant role in the success of GCG implementation and environmental conservation; in performing their task, function, and responsibility in the company’s interest. PGN’S CORPORATE GOVERNANCE STRUCTURE RUPS DIREKSI