The National Committee on Governance Policy (KNKG) has issued the 2021 Indonesian General Guidelines for Corporate Governance (PUGKI) which is an improvement of the 2019 Indonesian General Guidelines for Corporate Governance (PUGKI). The Indonesian General Guidelines for Corporate Governance (PUGKI) primarily applies to publicly listed companies and companies that collect and manage public funds, namely corporations that issue financial instruments (bonds, medium-term debt securities) and companies in the financial services sector.
The 2021 PUGKI is intended to establish global standard corporate governance practices recommended especially for corporations listed on the capital market and managing public funds to protect the interests and fulfill the expectations of shareholders, creditors, debtors, and other stakeholders to achieve long-term sustainable corporate value creation.
The 2021 PUGKI consists of eight principles divided into three groups of principles: (1) the first three principles are those that govern the management and supervisory functions of the corporation, namely the Board of Directors and the Board of Commissioners, (2) the group of principles that govern the processes and outputs produced by the Board of Directors and the Board of Commissioners, (3) the group of principles that govern the resource owners, who will primarily benefit from the implementation of corporate governance.
The Company has implemented the principles and recommendations of the 2021 PUGKI which is carried out with an "apply or explain" approach in accordance with the 2021 PUGKI recommendations. The details and explanation of the implementation of PUGKI 2021 of the Company are provided in the document below: