Management System

Organizational Structure of Good Corporate Governance

Broadly speaking, the structure of GCG within the Company's scope refers to Law No. 40 of 2007 concerning Limited Liability Companies, consisting of 3 (three) main organs, namely the General Meeting of Shareholders (GMS), Directors, and Board of Commissioners. As explained earlier, the Limited Liability Company management system adheres to a 2 (two) body model or two tier system, namely the Board of Commissioners and the Board of Directors with clear authority and responsibilities in accordance with their respective functions as mandated in the rules and regulations as well as the Articles of Association. Meanwhile, the GMS is a forum for shareholders to decide on strategic matters.

  1. General Meeting of Shareholders, hereinafter referred to as RUPS, is an Organ of the Company which has authority not given to the Directors or the Board of Commissioners within the limits specified in the Law and/or Articles of Association.
  2. The Board of Commissioners is a Company organ that is responsible for conducting general and/or specific supervision in accordance with the Articles of Association and giving advice to the Directors.
  3. The Board of Directors is a Company organ that has the authority and is fully responsible for the management of the Company for the interests of the Company, in accordance with the aims and objectives of the Company and represents the Company, both inside and outside the court in accordance with the provisions of the Articles of Association.

Internal Control System

The internal control system is one of the main means to ensure that the management of the company has been carried out in accordance with the principles of GCG. The implementation of the internal control system is directed to ensure that the Company has a reliable system of compliance with laws and regulations, financial reporting, and asset security.

Financial and Operational Control Systems

The implementation of the Internal Control System within the Company's scope is carried out by both the Board of Commissioners and the Board of Directors. The implementation of internal control carried out by the Board of Commissioners is carried out by supervising and providing advice related to the adequacy and fairness process in the preparation of financial statements and risk management by taking into account the prudential principles that are assisted by the Audit Committee and the Risk Management Committee. Whereas the Board of Directors implements an internal control system through the Company's policies and procedures consistently and meets compliance with applicable regulations, among others related to the Company's operational activities and risk management, strategic plans, division of tasks, delegation of authority and adequate accounting policies.

The Board of Directors also establishes an effective internal control system to secure the Company's investments and assets. The internal control environment within the Company is carried out with discipline and structure, high integrity, ethical values   and employee competence. To assist the Board of Directors in planning, controlling, coordinating in supervision, evaluating the management control system and carrying out all activities of the Company as well as providing suggestions for improvement, the Internal Audit Unit function is led by the Head of Internal Audit and reports to the President Director.

The Conformity of The Company's Internal Control System With The Internationally Recognized Framework

The Company has an internal control system that is in line with an internationally recognized framework, namely the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to COSO the internal control system is a process that involves the Board of Commissioners, Directors, and other personnel. This is in line with the existing internal control system in the Company which continues to improve the organization's control system by involving all available resources.

Evaluation of The Effectiveness of Internal Control Systems

Internal control is an integrated part of the system and procedures in every activity in the work unit so that if deviations occur, they can be known early and corrective steps are taken by the relevant work unit. A review and evaluation of the effectiveness of the internal control system is carried out at the entity and operational level. Reviews and evaluations of the effectiveness of the Internal Control System are conducted periodically by internal and external auditors in accordance with applicable audit procedures.

The Company evaluates or evaluates the effectiveness of internal control at the corporate level and operational level by implementing and maintaining an adequate internal control system and financial reporting procedures in accordance with applicable regulations through the internal audit and risk management functions.