Good Corporate Governance in Brief
GCG implementation is the company’s effort to increase shareholders’ values, protect the interest of the stakeholders, increase compliance toward laws and regulations and implementation of general ethical values (as stipulated in the Code of Conduct) hence can enhance the confidence from the public as well as KSEI’s customers. GCG implementation is also the basis to achieve KSEI’s vision to be a reliable and competitive Central Depository whose competence is in line with the growing needs and interests of stakeholders and the business environment.
In order to strengthen corporate governance practices, KSEI has established guidelines and charters as references for the Company’s organs, which are defined by taking into account KSEI’s characteristics as well as OJK’s rules and regulations. GCG framework is also established by referring to the prevailing laws and regulations; and considering the Company’s conditions, cultures and values.
Based on these guidelines and charters, the effective decision making and supervisory function as well as managing the Company which follows the Good Corporate Governance (GCG) principles, can be achieved. The implementation of GCG principals shall contribute positively in improving Company’s performances.
In implementing the GCG principle, KSEI refers to the following basic values as follows:
To ensure that all material information about the company is disclosed accurately and timely, including the financial position and performance as well as governance and ownership structures.
To ensure that the company has a strategic business plans to perform its missions and realize its vision, effective monitoring by the Board of Directors to all staffs employees in implementing such strategic business plan, effective supervision by the Board of Commissioner to the Board of Directors’ management and accountability of the Board of Directors and the Board of Commissioner to the company and its shareholders.
- Responsibility To ensure the Company fullfilling its roles and responsibity towards the shareholders and other stakeholders as stipulated in the rules and regulations and promoting a condusive environment to ensure the company’s sustainability.
- Independency To ensure the Company managed independently, of which the Board of Directors and the Board of Commissioners as well as all employees are treating each other equally and shall not be intervened by other parties that can affect their objectivity and professionalism.
- Fairness To ensure the Company protecting the rights of the shareholders and equal treatment to all shareholders, including minority shareholders and foreign shareholders. All shareholders who lost their rights need to have the opportunity to regain their rights. These principles also require the Company to treat its other stakeholders with equality and fairness.