PT Karya Pacific Energy Tbk understands that the implementation of Good Corporate Governance (GCG) is a fundamental requirement and foundation for conducting the Company’s business activities. This commitment consistently prioritizes ethics and integrity in the Company’s management, aimed at driving improved performance, ensuring the fulfillment of stakeholder rights, and enhancing compliance with applicable laws and regulations.
Basics of Implementing Corporate Governance
PT Karya Pacific Energy Tbk is fully committed to implementing GCG principles as a foundation for creating sustainable added value for the benefit of shareholders, the wider community, and various other stakeholders (employees, consumers, regulators, business partners, etc.) both in the short and long term.
As a form of comprehensive GCG implementation, PT Karya Pacific Energy Tbk adopts the best standards that apply in accordance with the principles of Corporate Governance (CG) from the National Committee on Governance Policy (KNKG), namely openness, accountability, responsibility, independence as well as equality and fairness.
The implementation of GCG principles of PT Karya Pacific Energy Tbk is realized in the alignment of the three aspects of the governance system, namely governance structure, governance process and governance outcome with the aim of increasing investor confidence, protecting stakeholders, providing positive contributions to the financial services industry and the market in general.
Governance Framework
The effectiveness of governance implementation is seen from the adequacy of governance structures and infrastructure so that the process of implementing GCG principles produces outcomes that meet stakeholder expectations.
The governance structure includes the Board of Directors, the Board of Commissioners, committees, and the Company’s work units. The governance infrastructure includes policies and procedures, management information systems, and the primary duties and functions of each organizational structure.
Meanwhile, the Governance process is related to the implementation of governance, and Governance outcome is the result of the quality of CG implementation.
In accordance with the Company’s Articles of Association, the Board of Commissioners of PT Karya Pacific Energy Tbk carries out a supervisory function to ensure that the management of the Company by the Board of Directors complies with applicable laws and regulations. Meanwhile, the Board of Directors carries out its management functions professionally and avoids potential conflicts of interest.
Based on the principles of governance, the Company has developed a GCG structure that includes GCG structure and GCG infrastructure to implement GCG mechanisms in accordance with existing laws and regulations and best practices.
Implementation of CG Principles
As a manifestation of PT Karya Pacific Energy Tbk’s commitment to fully implement GCG, the Company applies CG principles in carrying out its business activities, as follows.
Openness
Transparency refers to the disclosure of material and relevant information regarding the Company’s financial and non-financial conditions. This transparency is realized by the Company by consistently striving to pioneer the disclosure of financial and non-financial information to various stakeholders, and this disclosure is not limited to mandatory information. One way to achieve this is by conducting a Public Expose to comply with capital market regulations and to present the Company’s performance to shareholders, investors, analysts, and the media.
The Company discloses this information while still complying with applicable laws and regulations and as recommended by CG practices.
The application of this principle of openness does not reduce or eliminate the Company’s obligation to keep certain information confidential in accordance with applicable laws and regulations or on the basis of business considerations.
Accountability
It is the clarity of the function, implementation, and accountability of each organ and all levels of the Company so that the Company’s management is carried out effectively. The Company believes that accountability is related to the existence of a system that controls the relationship between individuals and/or organs within the Company as well as the relationship between the Company and interested parties. The Company applies the principle of accountability as one solution to overcome differences in individual interests with the interests of the Company or the interests of the Company with interested parties.
To achieve this accountability, the Company has formally established clear details of duties and responsibilities for each position, taking into account segregation of duties and checks and balances. Furthermore, the Company strives to provide adequate resources to prevent overlapping duties and responsibilities.
Accountability
It is the conformity of the Company’s management with applicable laws and regulations and sound corporate principles. The Company is responsible for complying with applicable laws and regulations, including provisions related to employment, taxation, business competition, occupational health and safety, and so forth. All Company Personnel are also responsible for complying with policies, work procedures and other internal regulations in all work activities. The Company implements accountability by encouraging all individuals and/or Company organs to be aware of their rights and obligations, duties and responsibilities, and authorities.
Independence
It is a condition of professional management of the Company without conflict of interest, domination, and influence/pressure from any party that is not in accordance with applicable laws and regulations and the principles of CG. This independence is implemented by always respecting the rights and obligations, duties and responsibilities and authority of each organ of the Company. The Company believes that with the optimal implementation of the principle of independence, all organs of the Company can work well and optimally in making the best decisions and management for the Company.
Equality and Fairness
This is the implementation and fulfillment of stakeholder rights without any discrimination. The Company guarantees that all stakeholders receive fair, reasonable, and equal treatment in accordance with applicable laws and regulations. Furthermore, the Company will accept and treat all employees fairly and without bias due to differences in ethnicity, religion, origin, gender, or other factors unrelated to performance.