Marga Utama Nusantara

Sustainable growth is one of the crucial agenda of business development study today. Business competition and profitability have created a discontinuity between the business world and surrounding community. Good Corporate Governance (GCG) is a systemic effort by the regulator in creating the synergy of sustainable growth-based business world. The mandatory practices of accountable, transparent, and socially responsible business world management provide the fundamental for developing harmonious relationship among business actor, regulation, environment, and the community.

Similarly the GCG implementation within the scope of the Company. The formation of GCG organ with all of its authorities provide the foundation for prudent business sustainability and compliances toward the prevailing laws and regulations. GCG implementation in the Company is based on two principles or 2 (two) bodies developed in the form of Limited Liability Company in Indonesia, namely the Board of Directors as the managers of operational and business activities and the Board of Commissioners who are responsible for supervisory duties. Additionally, there is a General Meeting of Shareholders as the forum for the highest decision making which make the strategic decision for the Board of Commissioners and Board of Directors in running operations and supervision over the Company’s activities.

The Company objectives in implementing GCG are:

1. Encourage the empowerment of independence, professionalism, and objectivity of Company’s organ in making the decisions and in performing operational activities. It should always be founded on transparency, accountability, responsibility, independence and equality, as well as fairness and prudence in addition to the compliances toward existing laws and regulations.
    
2. Enhance the Company’s performance and competitiveness in both national and international infrastructure industry.
    
3. Encourage the formation of good relationship and favorable working environment, conducive and professional among the Company’s Organs, Employees, and Surrounding Community.
    
4. Avoid practices which ignore business ethics such as avoiding conflict of interest, fraud, false statement, bribes, and discriminations.
    
5. Encourage national economic growth by increasing investments or Foreign Direct Investment in infrastructure industry.
    

The Company has attempted the GCG implementation in all of its business process. As for the implementation, the Company refers to the principles of GCG General Guideline of Komite Nasional Kebijakan Governance (KNKG)/National Committee for Governance Policies, namely transparency, accountability, responsibility, independece, and fairness (equality and objectivity).

1. Transparency

   To improve objectivity on business activities, the Company will always take the initiative to provide and disclose information and policies which are material and relevant. These information and policies will be provided in a written form and timely manner in clear, accessible, and easy to understand by the entire shareholders, creditors, other stakeholders. The Company will consistently protect the Company’s confidentiality in line with laws and regulations, secret of function, and individual rights without sacrificing the transparency principles adopted in line with GCG Transparency Principles.

    
2. Accountability

   Is the prerequisite necessary to attain good and sustainable performance hence the Company has to be properly and measurably managed in line with the Company’s interests while taking into considerations the interests of the shareholders and other stakeholders. The Company organs and employees should always adhere to the business ethics and Code of Conduct in performing responsibilities and running its business activities.

    
3. Responsibility

   As the form of responsibilities toward the community and environment as the stakeholders, the Company will consistenly apply the principle of prudence, comply to the Company’s internal regulations in performing every business activity. Therefore, the Company will be acknowledged as a Good Corporate Citizen.

    
4. Independence

   The Company will always attempt to run its business in an independent manner and avoiding any domination practice by any party whosoever, conflict of interests, domination by one of the Company’s organ over another organ, any form of pressure or influence which may affect the decision making process. It is expected that all decisions made by the Company will be more independent and objective.

    
5. Fairness (equality and objectivity)

   The Company will always pay attention and treat the stakeholders and third party’s which interact or perform transactions with the Company based on equality and objectivity. Additionally, it will also provide equal opportunity to the community during employee’s recruitment process and employee’s career development regardless of their physical conditions and their ethnicity, religious, race, group, and gender.

    

The purposes of the Company GCG implementations are:

• To encourage independency empowerment, professionalism and objectivity of the Company’s discerned in decision making and implementing it in order to be always based on transparency, accountability, responsibility, independency and equality and fairness and the principle of prudent and compliance with applicable law and regulations.
• To improve the performance and the Company’s competitiveness in the national and international infrastructure industry.
• To encourage good, conducive, and professional relationships and working environments, among the Company’s organs, staff and community.
• To avoid any practice of business ethics violations such as avoiding conflict of interests, manipulation, false statement, bribery and discrimination.
• To encourage the growth of the national economy through investment or FDI in the infrastructure industry.

Through these implementation principles, the Company conducts its business activities and makes a manual for all corporate entities in every unit activity and business lines in order that the Company always grows and has a sustainable long term pattern. The Company has GCG manual that regulates GCG dimensions and its implementation, with several discussions as follows:

1. Company’s Vision and Mission
2. Company’s Values
3. Ethics (Code of Conduct)
4. Board of Commissioners
5. Committees:
   1. Audit Committee
   2. Nomination and Remuneration Committee
   3. Investment and Strategy Committee
6. Board of Directors
7. Internal Audit Division and External Auditor
8. Corporate Secretary
9. Financial System and Internal Controlling