GCG

IMPLEMENTATION of GOOD CORPORATE GOVERNANCE

IMPLEMENTATION of GOOD CORPORATE GOVERNANCE

PT NINDYA KARYA (Persero) have formed a team applying Good Corporate Governance on February 5, 2005, passing the following step:

  1. Socialization and Workshop. Activity of socialization especially to the main functionary has been executed hopefully all employees of PT NINDYA KARYA (Persero) know & realize about the exixtence of rule arranging activity at Management level to up following the document which have been distributed, either in Head Office, Division and also to all Region.
  2. Early stage evaluation (Diagnostic Assessment) and compilation of guidances. Guidance of Good Corporate Governance compiled with the help of Team of BPKP and has been started on 30 May 2005.
  3. Bacic Framework of Good Corporate Governance PT NINDYA KARYA (Persero), for example :
    1. Shareholder rights.
    2. Function, authority and responsibility of Commissioner, Board of Directors, Company Secretary and also the interested parties  (Stake Holder).
    3. Transparency related to annual report and financial reporting of company.
    4. Business Ethics and anti corruption.
  4. Implementation of Good Corporate Governance. Pursuant to Board of directors, Decree for the implementationof Good Corporate Governance in PT NINDYA KARYA (Persero) going into effect commencing from the date of June 6,  2005.

Principles of Good Corporate Governance in PT NINDYA KARYA (Persero) shall be as follows :

  • Decision making is based on corporate culture, ethics, value, system, administration, organization chart and policy.
  • Encourage the development of company, management of resource effectively and efficiently.
  • Encourage company’s responsibility to share holder and other stakeholder.

The following measures are required to implement Good Corporate Governance :

  • Code of Corporate Governance – a guideline for interactions among Company organs or other stake holders.
  • Code of Conduct  - a guideline to create  harmonious cooperating relations between the Company and its Employees.
  • Board Manual - a handbook for the Commissioners and Directors that cover subjects concerning Membership, Duties, Obligations, Rights and Authorities, Commissioners Assembly, Working Relations between the Commissioners and the Board of Directors, plus a Best Practice Operational Manual.
  • Risk Management System – Comprises of Principles on Management Risks and its Implementation.
  • An Auditing Committee Contract – arranges the Organization and Management of the Auditing Committee along with  its Scope of Work.
  • Internal Control Auditing Unit Contract.

Risk Management and It’s Performance

As a company which is engaged in the field of construction services, PT NINDYA KARYA applies Risk Management System as an effort to improve the quality of Corporate Governance Practices, Company Budgetary Work Plan, Company Long Term Plan and Implementation of ISO 9001:2008 Quality Management  System, Environmental Management System ISO 14001:2004, SMK3 Permen 05/1996 & OHSAS 18001:2007.

Risk Management of PT NINDYA KARYA (Persero) has been validated since 17 May, 2005 based on Decree of  the Board of Directors of PT NINDYA KARYA (Persero) No. 168/DUT-I/KPTS/SEKPER/05/2005.


General Principles on Risk Management are as follows :

  • Risk Management Limitation;
  • Definition of Risk;
  • Risk Management;
  • Types of Risks;
  • How to manage Risk;
  • Risk Management Process;
  • New Paradigm on Risk Management;
  • Three (3) Steps to integrate Risk;
  • Cause of Risk.

While Implementation of Risk Management of PT NINDYA KARYA (Persero) is as follows:

  • Contextual Diagram;
  • Risk Identification;
  • Risk Analysis;
  • Risk Evaluation;
  • Risk Handling.

Risk Management includes:

  1. Non Financial Risk
    • from Micro perspective,  comprising : human being, process, event, system and technology;
    • from Macro perspective, comprising : Government, Industy/Business, community, international world.
  2. Financial Risk

Types of Risks consist of :

  1. Market Risk, risk of financial loss as a result of change of tradable asset value;
    • Banking, interest rate, exchange rate, capitalization, commodity, derivative product;
    • Corporation, Goods and services, material cost, financial cost.
  2. Credit Risk, Financial loss risk as a result of Counterpart’s mistake.
  3. Operational Risk, Financial loss risk as a result of operational failure.
  4. Reputation Risk, Financial loss risk a result of business reputation decline.

Further how to manage the following Risks :

The Risks may be :

  • avoided
  • resisted
  • transferred
  • devided
  • reduce

Three (3) Steps to integrated Risks :

  1. To identify all significant Risks by the method of listing all Risks, estimating Risks and mapping Risks;
  2. To measure Risk and integrate it with the best practices by value Method of the Risk and possible gain in the Risk;
  3. To look from wider view with the method to seek:
    • Inconsistency
    • Natural regulation
    • Opportunity creation

To allow mapping process a manual has been made by using Risk Management Form which has been filled in by the samples of potential Risks which happen considerably in the environment of Construction services.

 

PT NINDYA KARYA (Persero) has a field procedure the Internal Control System through Whistle Blowing System (WBS) which refers to the NK Procedure No.: P-NK-HR-04-01 revision 0.1 which came into force on November 1, 2013


Download File:

- Code of Conduct

- Pedoman Penanganan Gratifikasi

- Pelaporan WBS

- Pedoman Benturan Kepentingan 2014

- Board of Manual 2014

- Pedoman Tata Kelola Perusahaan 2014