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Background
Good Corporate Governance in Indonesia was known in 1997 when the economic crisis
hit Indonesia. There are many bad consequences of the crisis, one of them is the number of
companies that go bankrupt. Poor corporate governance is allegedly one of the causes of
Indonesia's political economy crisis that began in 1997 whose effects are still felt today.
Recognizing the situation and conditions, the government through the Ministry of State
Enterprises began to introduce the concept of Good Corporate Governance in SOEs. Through
the Decree of the Minister of SOEs no. Kep-117 / M-MBU / 2002 dated August 1, 2002 on the
Implementation of Good Corporate Governance Practices in State-Owned Enterprises.
Emphasize the obligation for SOEs to apply Good Corporate Governance consistently and
make Good Corporate Governance principles as its operational foundation which basically
aims to improve business success and corporate accountability in order to realize shareholder
value in the long term by still paying attention to the interests of other stakeholders, and based
on legislation and ethical values.
1
There are generally five basic principles of good corporate governance:
1. Transparency
Openness in carrying out the process of decision making and openness in expressing
material and relevant information about the company.
2. Accountability
Clarity of function, structure, system, and accountability of corporate organs so that the
management of the company is done effectively.
3. Responsibility
Suitability in the management of the company against sound corporate principles and
applicable laws and regulations.
4. Independency
5. Fairness
Fair and equitable treatment in meeting the rights of stakeholders arising under
applicable agreements and laws and regulations. The essence of corporate governance is the
improvement of company performance through supervision or monitoring of management
performance and the existence of management accountability to other stakeholders, based on
the applicable rules and regulation framework.
2
PT. Sarana Multigriya Finansial (Persero)
Implementation of all activities are in accordance with GCG basic principles of transparency,
accountability, responsibility, Independency, Fairness
1. Transparency
The principle of openness is always applied in conducting business through the provision
of material and relevant information and in a manner that is easily accessible and understood
by stakeholders.The widest information is provided to the public and shareholders, taking into
account OJK regulations as well as on their own initiative.
Analysis:
As I see in the company’s website, reports are issued periodically and on time, which
includes Quarterly Financial Statements, Semester Financial Reports, and Annual Financial
Reports audited, as well as Annual Reports. Information is also provided through public
exposure, print and electronic media, as well as investor forums.
The Company has a corporate management system that supports the clarity of function,
implementation and accountability of organ company performance.
Analysis:
4. Independency
3
The Company always ensures that the management of the company is done
independently so that each company's organs do not dominate each other and cannot be
interfered by others.
Analysis:
The Board of Commissioners and the Board of Directors of the Company have
independent opinions in every decision taken, but it is possible to obtain advice from
independent consultants, law, human resources and committees to support the smooth running
of their duties. Currently, the Board of Commissioners consists of 3 (three) members, 1 (one)
President Commissioner and 2 (two) other Commissioners.
5. Fairness
In the Company the interests of shareholders and other stakeholders always receive
special attention.
Analysis:
The Company also always applies equitable treatment to the public, capital market
authorities, capital market communities, as well as stakeholders. Meanwhile, relationships
with employees are maintained with due regard to their rights and obligations fairly and
fairly.
References:
https://www.proxsisgroup.com/articles/good-corporate-governance-gcg-dan-penerapannya-
di-indonesia-part/
https://alamsyahprasetio.wordpress.com/2010/10/28/pelaksanaan-good-corporate-
governance-di-indonesia/
http://www.ecgi.org/codes/documents/indonesia_cg_2006_id.pdf
http://keuanganlsm.com/arti-penting-corporate-governance/
http://ced.petra.ac.id/index.php/man/article/viewFile/16505/16497
http://smf-indonesia.co.id/korporasi/profil-perseroan/kegiatan-usaha/
http://smf-indonesia.co.id/korporasi/tata-kelola-perusahaan-yang-baik/