Good Corporate Governance

The Development of GCG

Understanding good corporate governance is essential to ensure advantages in the operations of a Company’s management, so that the Company can develop and achieve success. The implementation of GCG reflects the Company’s efforts to optimize their performance in order to provide value to customers, public society, and stakeholders, in addition to targeting and enhancing the Company’s high value of the corporation. GCG plays a significant role in supporting the Company’s high performance and sustainability. GCG also impacts the Company’s structuring that resulted in a well established and highly organized system.

The concept of Corporate Governance, is initially issued through propositions, concerning regulatated amendment for issuers listed on the BEJ in 1998 (now is named Indonesia Stock Exchange), of which the content mandates each Company to appoint an Audit Committee and Independent Commissioner. As well as to entitle the Corporate Secretary, to magnify information transparency.

Indonesia’s government has already established Komite Nasional Kebijakan Governance (KNKG) by virtue of Decision from the Coordinating Minister of Economic, Financial, and Industrial Affairs Nomor: KEP-31/M.EKUIN/06/2000. KNKCG have duties to formulate and recommend national policy regarding GCG. To pioneer, monitor improvement and innovation in corporate governance arena in Indonesia. Issuing guidelines for Indonesia’s GCG is one of its responsibilities The implementation of GCG is essential for the Company to manage hierarchy and systems successfully. This practice will result in positive impacts for the Company namely efficiency, competitiveness, sustainable growth, optimum value, and high return. The enforcement of GCG will enhance the Company’s credibility with investors, as well as increasing the Company’s values as their investment target. In TOTAL, GCG then functions as a steering body that is accountable for monitoring corporate performance for the improvement of its business operation. Relating to its function, the implementation of GCG provides rights and responsibilities to all stakeholders. Balancing between external and internal interests, can also be achieved through effective controls.

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