Implementation of GCG Principles

Commitment

The Board of Commissioners and Board of Directors are committed to building a healthy and strong corporate system so that it is able to grow sustainably by applying the principles of Good Corporate Governance (GCG) in its management. The implementation of strong GCG principles will increase investor trust and become an added value for other stakeholders.


 

The implementation of the principles of Good Corporate Governance (GCG) in Danareksa is as follows:

Transparency / Openness 

  • Danareksa explicitly and timely discloses all information that can be accessed by all Stakeholders in accordance with their authority while still paying attention to personal rights based on laws and regulations.
  • Danareksa carries out transparency of financial conditions to the public by following the provisions of the disclosure of information set by the Financial Services Authority with reference to applicable accounting standards.
  • Danareksa publishes an Annual Report containing Danareksa's financial condition and transparency of non-financial conditions.

Accountability

Danareksa applies the principle of responsibility in the Danareksa organization distinctly in accordance with the vision, mission and goals of Danareksa's targets. Danareksa applies this principle of Accountability by paying attention to the following aspects:

  • Completeness of Danareksa's governance structure at both the Board of Directors and the Board of Commissioners levels, including the risk management system, internal control system, internal supervision system, reporting mechanism for alleged irregularities in Danareksa (whistle blowing system), information technology governance and ethical code of conduct.
  • Clarity of duties and responsibilities of each of Danareksa's organizational functions and units in accordance with Danareksa's goals.
  • Determination of corporate plans and Danareksa's Corporate Work and Budget Plan ("RKAP") which are detailed to the level of organizational units, and initiate periodic evaluations of the achievement of results.
  • Establishment of a reward and punishment system that is able to support the achievement of the RKAP and Danareksa corporate plans.

Responsibility

  • Danareksa is committed to continuing to implement prudential practices and ensuring compliance with laws and regulations.
  • Danareksa has a responsibility and commitment to conserve the natural environment and social concern.
  • Danareksa establishes a Compliance Work Unit to always ensure compliance with applicable laws and regulations.
  • Danareksa establishes independent units such as the Risk Management Work Unit and the Internal Audit Work Unit to ensure risk management and the implementation of internal control are implemented in every Danareksa activity.
  • Danareksa follows up on findings from external parties such as the examination results of the Financial Audit Agency ("BPK"), the Financial and Development Supervision Agency ("BPKP") and recommendations from external auditors and other external supervisors.
  • Danareksa follows up on customer complaints and immediately takes the necessary actions to maintain customer satisfaction.

Independence

  • Danareksa’s activities and decision making are carried out professionally without any influence/pressure from any party.
  • Each Danareksa organ must avoid the occurrence of domination by any party, not be affected by certain interests, and avoid conflicts of interest.
  • In order to implement checks and balances in Danareksa's operations, the portion of independent parties appointed to occupy positions at the Board of Commissioners level is at least 20% (twenty percent) of the total board of commissioners. Independent Commissioners must have competence in the fields of auditing, finance and accounting and understand Danareksa's Business activities.
  • The Board of Directors, the Board of Commissioners and all Division Heads ensure that there is no conflict of interest in decision-making in every Danareksa transaction.
     

Fairness and Equality

  • Danareksa applies the principles of fairness and equality in fulfilling the rights of Stakeholders under agreements and laws and regulations.
  • Danareksa provides an opportunity for Stakeholders to provide input and express opinions for Danareksa to improve its contribution and service quality. Danareksa also opens access to information in accordance with the principle of transparency.
  • Danareksa gives reasonable treatment to Stakeholders in accordance with the benefits and contributions made to Danareksa.
  • Danareksa gives equal treatment to employees to pursue careers and carry out their duties professionally without discrimination based on gender, religion, ethnicity or physical deficiencies.
  • All forms of transactions, purchases, or other important decisions, must be carried out with due regard to the principle of reasonableness.