Copyright WahanaDotNet. All Rights Reserved.
GOOD CORPORATE GOVERNANCE
The Company's seeks to improve its operations and performance using the principles of Good Corporate Governance. In this process, the Company will focus on improving its transparency with a focus on both procedural and administrative capacity, while also seeking to strengthen its human capital through development programs and equality of treatment.
The Board of Commissioners and Directors actively supports the Company's commitment to improving good corporate governance and holds the belief that it should be performed as a fundamental responsibility to protect and enhance the stakeholder trust.
TRANSPARENCY
On a formal basis, and in order to comply with regulations governing a listed company, the issuance of this annual report is made in compliance with information transparency requirements pertaining to related party interests and transactionsfor use by the stockholders and the Capital Market communities.
Additionally, in support of its desire to be more transparent in its operations, the Company announces its business performance in the form of quarterly financials statements to Jakarta Stock Exchange, and publishes it results in the mass media every 6 months.
PROCEDURAL
The Company acknowledges that decision making can be a risky process, and it takes steps to reduce the risks of procedural failure by including the right people in the process each time. Depending on the impact of a potential decision, certain procedures are followed in order to make sure that the Company is operating within its regulatory and moral guidelines; this means that the Company's personnel, starting from the Board of Commissioners, Audit Committee Team, the Board of Directors and employees may, at various times, be included in various aspects of the decision making process in order to ensure that the risks of the decision making process are controlled.
In 2005, the Company has made some significant corporate decisions based fully on the procedural requirements stipulated in the Capital Market Supervisory Agency (Bapepam) deregulation and the Stock Exchange as follows:
- The participation of foreign investor as the Company's stockholder using the scheme regarding Additional Capital Without Preemptive Rights (Regulation IX D.4); and
- Additional capital from bonus share distribution was made based on the scheme regarding Distribution procedure of "Bonus stock" and stock dividend distributions.
ADMINISTRATION
Proper administration is a necessary component of competent decision-making processes, future planning, and governing information releases to other parties.
Proper administration is a necessary component of competent decision-making processes, future planning, and governing information releases to other parties.
The Company has a system of procedures governing the financial reporting process, including accounting administration and daily operations. This account recording and reporting process is in compliance with the accounting principles in Indonesia, and results in the issuance of annual financial statements on the performance of the Company which have been audited by the Independent Auditors.
In 2005, the Company made changes in its accounting policies retroactively applied regarding the adoption of rulings applying to the accounting for Employee Benefits. Prior to the year 2005, the Company accrued the estimated cost of employee benefits as required by the Law No. 13 of 2003 on Manpower.
To reflect the Board of Directors responsibilities to administration, on January 26, 2006 the Board of Directors made statements as attached in the financials statements per December 31, 2005 and 2004, that:
- The Board of Directors is responsible for the preparation and presentation of the consolidated financials statement.
- The financial statements have been prepared and presented in accordance with generally accepted accounting principles in Indonesia.
- All information contained in the financial statements are complete and correct, and do not contain misleading material information or facts, and do not omit material information and facts and that
- They are responsible for the Company's internal control system.
JOB AND RESPONSIBILITY GUIDANCE
The company constantly monitors the performance of its employees and provides support through structure, defined responsibilities, and guidance. The Company seeks to recognize those that perform well; competent employees are rewarded with additional responsibility and growth opportunities. The Company prides itself on the professionalism of its key employees, and attributes the success of its business to their dedication.